nep-ino New Economics Papers
on Innovation
Issue of 2019‒01‒07
fifteen papers chosen by
Uwe Cantner
University of Jena

  1. Eco-Innovation: Drivers, Barriers and Effects – A European Perspective By Sandra M. Leitner
  2. Understanding processes of path renewal and creation in thick specialized regional innovation systems. Evidence from two textile districts in Italy and Sweden By Chaminade, Cristina; Bellandi, Marco; Plechero, Monica; Santini, Erica
  3. The Role of Obstacles to Innovation on Innovative Activities: an Empirical Analysis By Daniel Goya; Andrés Zahler
  4. Does the high-tech enterprise certification policy promote innovation in China? By Liu, Huiling; Fei, Xing; Yakshtas, Kseniya; Li, Bo
  5. Public service innovation networks (PSINs): an instrument for collaborative innovation and value co-creation in public service(s) By Benoît Desmarchelier; Faridah Djellal; Faïz Gallouj
  6. Public Service Innovation Networks (PSINs): Collaborating for Innovation and Value Creation By Benoît Desmarchelier; Faridah Djellal; Faïz Gallouj
  7. Innovation in public services in the light of public administration paradigms and service innovation perspectives By Benoît Desmarchelier; Faridah Djellal; Faïz Gallouj
  8. The interplay of firms' absorptive capacity, export orientation and innovation strategies: Evidence from Russia By Ermolaeva, L.; Freixanet, J.; Panibratov, A.
  9. Innovation and Trade Policy in a Globalized World By Ufuk Akcigit; Sina T. Ates; Giammario Impullitti
  10. Technology, Market Structure and the Gains from Trade By Giammario Impullitti; Omar Licandro; Pontus Rendahl
  11. SMEs' responses to potentially disruptive innovations: Does strategic entrepreneurship provide an explanation? By Kay, Rosemarie; Nielen, Sebastian; Schröder, Christian
  12. From Local to Global: A Unified Theory of Public Basic Research By Gersbach, Hans; Schetter, Ulrich; Schmassmann, Samuel
  13. High Tech and Venture Capital Inflows: The case of Israel By Assaf Razin
  14. Can productivity still grow in service-based economies?: Literature overview and preliminary evidence from OECD countries By Stéphane Sorbe; Peter Gal; Valentine Millot
  15. Evolution and structure of technological systems - An innovation output network By Josef Taalbi

  1. By: Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper determines the key drivers, barriers and effects of eco-innovation, in comparison to innovation in general. It further distinguishes between different types of eco-innovations to better capture their heterogeneous nature. It uses two different data sets (1) the Community Innovation Survey 2014 (CIS-2014) for a large sample of EU Member States, further split up into three groups in accordance with their eco-innovation performance; (2) the German Mannheim Innovation Panel to address additional drivers the CIS-2014 is unable to capture. Results show that both R&D investments and complementary fixed capital investments are key drivers of eco-innovation, with differences across country groups. Results from the German sample further emphasise that expected future demand, rising costs for energy and other resources and the wish to improve one’s reputation and the need to meet industry standards help spur eco-innovation, while public policy is only of limited importance. In contrast, international market orientation turns out to be a barrier for eco-innovation. By and large, eco‑innovations also have a productivity-enhancing effect which is however lower as compared to innovations in general.
    Keywords: eco-innovation, demand pull, technology push, public policy, Europe
    JEL: Q55 O33 O38
    Date: 2018–12
  2. By: Chaminade, Cristina (Lund University); Bellandi, Marco (University of Florence); Plechero, Monica (University of Florence); Santini, Erica (Fondazione per la Ricerca e l’Innovazione)
    Abstract: The type of regional innovation system (RIS) strongly affects possibilities of paths of industrial transformation. This paper argues that traditional manufacturing districts, corresponding to specialized RISs and characterised by various nuclei of specialization and know-how, may foster different trajectories in combination with extra-regional networks. In particular, the paper analyses the interplay between regional and national innovation systems, providing an overview of the effect that different multilevel dynamics have on local trajectories. The cases of the textile districts in Prato (Italy) and Borås (Sweden) show SRISs can display not only path extension but also path renewal and creation strategies.
    Keywords: path development; regional innovation system; textile; knowledge nuclei; innovation policy; industrial district
    JEL: O19 O30 R11 R12
    Date: 2018–12–13
  3. By: Daniel Goya; Andrés Zahler
    Abstract: We study the effect of different types of barriers to innovation (financial, demand, knowledge, market, cooperation, and regulatory barriers) on firm level innovation inputs and outputs. Using a pooled sample of three Chilean innovation surveys, based on an instrumental variables approach, we find that the probability of generating innovation outcomes is significantly reduced by demand and financial barriers. Regarding inputs for innovation, we find a clear negative relationship between financial and demand obstacles and the propensity to incur (non-R&D) innovation expenditures, but not with its intensity. We also provide evidence of heterogeneous effects across sectors, finding that knowledge obstacles are relevant for manufacturing and market structure obstacles for services, while demand and financial obstacles appear to matter across the board.
    Keywords: Financial and non-financial barriers to innovation, sectoral heterogeneity in innovation barriers, potential innovators, instrumental variables.
    JEL: D22 O31 O32
    Date: 2018–12
  4. By: Liu, Huiling; Fei, Xing; Yakshtas, Kseniya; Li, Bo
    Abstract: This study investigates the impacts of Chinese high-tech enterprise certification policy on enterprise innovation by exploiting the unique data of listed companies and their affiliates from 2006 to 2015. The authors exclude firms certified after year 2009 from the sample, because they may have exhibited R&D manipulation. The results show that high-tech enterprise certification can promote Chinese enterprise innovation, especially the innovation captured by invention patents. The results of a rich set of robustness tests all support this conclusion. Regarding the underlying mechanism, high-tech enterprise certification can influence enterprise innovation through tangible and intangible channels. The heterogeneity analysis shows that private enterprises, enterprises in industries with more competition, and equity-inspired enterprises benefit most from high-tech enterprise certification. This paper helps to scientifically evaluate the validity of Chinese innovation policy and contributes to a more comprehensive understanding of enterprise innovation's driving forces as well as the inconclusive relationship between government support and enterprise innovation.
    Keywords: high-tech enterprise certification,innovation,R&D manipulation
    JEL: O31 O32 O38
    Date: 2018
  5. By: Benoît Desmarchelier (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique); Faridah Djellal (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique); Faïz Gallouj (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This article is devoted to a new network form that is developing within the New Public Governance paradigm, namely "Public Service Innovation Networks" (PSINs). PSINs are multi-agent collaborative arrangements that develop within public services (sectoral perspective) or within public service (functional perspective), spontaneously or at the instigation of local, national or European public policies. They mobilize a variable number of public and private agents, especially citizens, to co-produce innovations and ultimately contribute to value co-creation. This article aims to deepen the definition and description of PSINs, especially in comparison with other known network forms, and to examine in particular how PSINs are formed and function to co-create, more or less efficiently, value in public service(s) through innovation.
    Keywords: public service,network,innovation,value,co-creation,co-production,collaboration
    Date: 2018–11–25
  6. By: Benoît Desmarchelier (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique); Faridah Djellal (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique); Faïz Gallouj (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique)
    Date: 2018–11–26
  7. By: Benoît Desmarchelier (Xjtu - Xi'an Jiaotong University); Faridah Djellal (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique); Faïz Gallouj (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This article addresses the issue of innovation in public services through the prism of the three main paradigms of public administration (i.e. traditional public administration, new public management and new public governance), and of the three main analytical perspectives that structure Service Studies (i.e., assimilation, demarcation and integration). It analyses how the shifts in these paradigms and perspectives converge to highlight, on the one hand, a broad and open concept of innovation (including non-technological innovation) and, on the other hand, interactive and network innovation models.
    Keywords: innovation,services,public services,public administration,new public management,new public governance
    Date: 2018–11–25
  8. By: Ermolaeva, L.; Freixanet, J.; Panibratov, A.
    Abstract: Exporters' advantages have been discussed in the literature for many decades. Scholars report positive influence of export on firm'’ productivity, efficiency, innovativeness etc. However different contexts suggest different outcomes of the exporting activity. The aim of this study is to analyze the interplay between firms' absorptive capacity, export orientation and innovation strategy of Russian firms. We argue that for Russian firms developed absorptive capacity is an essential antecedent of exporting capacity. Moreover absorptive capacity not only affects firms’ export strategies but is affected itself by export and innovation strategy of the firm. We test our hypotheses using Confirmatory Factor Analysis (CFA). The data was collected by survey of Russian exporters. Total sample accounts 107 observations.
    Keywords: internationalization, export, innovation,, absorptive capacity, Russia,
    Date: 2018
  9. By: Ufuk Akcigit; Sina T. Ates; Giammario Impullitti
    Abstract: How do import tariffs and R&D subsidies help domestic firms compete globally? How do these policies affect aggregate growth and economic welfare? To answer these questions we build a dynamic general equilibrium growth model where firm innovation endogenously determines the dynamics of technology, market leadership and trade flows, in a world with two large open economies at different stages of development. Firms R&D decisions are driven by (i) the defensive innovation motive, (ii) the expansionary innovation motive, and (iii) technology spillovers. The theoretical investigation illustrates that, statistically, globalization boosts domestic innovation through induced international competition. Accounting for transitional dynamics, we use our model for policy evaluation and compute optimal policies over different time horizons. The model suggests that the introduction of the Research and Experimentation Tax Credit in 1981 proves to be an effective policy response to foreign competition, generating substantial welfare gains in the long run. A counterfactual exercise shows that increasing tariffs as an alternative policy response improves domestic welfare only when the policymaker cares about the very short run, or when there is retaliation by the foreign economy. Protectionist measures generate large dynamic losses by distorting the impact of openness on innovation incentives and productivity growth. Finally our model predicts that a more globalized world entails less government intervention, thanks to innovation-stimulating effects of intensified international competition.
    Keywords: economic growth, short- and long-run gains from globalization, foreign technological catching-up, innovation policy, trade policy, competition
    JEL: F13 F43 O40
    Date: 2018–12
  10. By: Giammario Impullitti; Omar Licandro; Pontus Rendahl
    Abstract: We study the gains from trade in a new model with oligopolistic competition, firm heterogeneity, and innovation. Lowering trade costs reduces markups on domestic sales but increases markups on export sales, as firms do not pass the entire reduction in trade costs onto foreign consumers. Trade liberalisation can also reduce the number of firms competing in each market, thereby increasing markups on both domestic and export sales. For the majority of exporters, however, the pro- competitive effect prevails and their average markups decline. The incomplete pass-though and the reduction in the number of competitors instead dominate for top-exporters - the top 0.1% of firms - which end up increasing their markup. In a quantitative exercise we find that the aggregate effect of trade-induced markup changes is pro-competitive and accounts for the majority of the welfare gains from trade. Trade-induced changes in competition affect survival on domestic and export markets and firms' decision to innovate. All exporters, and especially the top exporters, increase their market size after liberalisation which, in turn, encourages them to innovate more. Hence, top exporters contribute negatively to welfare gains by increasing their markups but positively by increasing innovation and productivity. Firms' innovation response accounts for a small but non-negligible share of the welfare gains while the contribution of selection is U-shaped, being negative for small liberalisations and positive otherwise. A more globalised economy is therefore populated by larger, fewer and more innovative firms, each feature representing an important source of the gains from trade.
    Keywords: Gains from trade, heterogeneous firms, oligopoly, innovation, endogenous markups, endogenous market structure
    JEL: F12 F13 O31 O41
    Date: 2018–12
  11. By: Kay, Rosemarie; Nielen, Sebastian; Schröder, Christian
    Abstract: This study analyses how established SMEs respond to potentially disruptive inno-vations and business models in the course of increasing digitization. Drawing on the strategic entrepreneurship approach we argue that SMEs showing strategic entrepreneurial behaviour are more likely to respond to potentially disruptive innovations and business models proactively. We find that established SMEs recognizing disruptive innovations and business models as a business opportunity apply significantly more frequently strategic measures to exploit these opportunities. Observing and evaluating relevant new technologies and devel-opments is a key determinant of belonging to the group of SMEs demonstrating strategic en-trepreneurial behaviour. In our sample only a minority belongs to the group of proactive es-tablished SMEs.
    Keywords: SMEs,Strategic Entrepreneurship,Digitization,Disruptive Innovations,New Business Models
    JEL: L26 L21 M21
    Date: 2018
  12. By: Gersbach, Hans; Schetter, Ulrich; Schmassmann, Samuel
    Abstract: We analyze public investment in basic research in a multi-country, multi-industry environment with international trade. In our economy, basic research generates ideas which private firms take up in applied research to develop new varieties. Such development requires industryspecific know-how. A country's current specialization in international trade thus determines which ideas can be commercialized domestically. We demonstrate that the equilibrium is consistent with key patterns observed from the data. We then compare basic research investments of national governments with optimal investments of a global social planner. We show that national investments are inefficient along three dimensions: (1) There is typically too little total investment in basic research. (2) Basic research is too heavily concentrated in industrialized countries. (3) And basic research is potentially insufficiently directed to support innovation in complex, high-tech industries.
    Keywords: applied research, basic research, economic growth, international trade, knowledge spillover, optimal policy
    JEL: F10 F43 H40 O31 O38
    Date: 2018–12
  13. By: Assaf Razin
    Abstract: Large capital inflows are understandably viewed as dangerous in emerging markets living with memories of recent currency crises: in Israel foreign capital provided crucial funding for investment in the country’s showcase technology sector. Israel is now solidly established as a high-tech powerhouse—a place where budding venture capitalists from emerging market countries flock to learn how to develop an innovation ecosystem. However, the domestic market alone is far too small and homegrown capital formation insufficient to foster that innovation. Globalization has been essential. The paper reviews the crucial role which globalization forces played Israel’s transformation from low tech to high tech economy. Special emphasis is placed on foreign direct investment as a driver for the high-tech transformation.
    JEL: F21
    Date: 2018–12
  14. By: Stéphane Sorbe; Peter Gal; Valentine Millot
    Abstract: Services employ an ever-increasing share of workers in all OECD countries. This trend is likely to continue as it reflects deep structural forces, such as increasing consumption of services with rising incomes and population ageing and the growing role of intangible assets. Services are very diverse, but overall tend to have weaker productivity levels and growth rates than manufacturing. As a result, the shift to services entails a moderate but persistent drag on productivity growth. Still, there are reasons to hope for a pick-up in service productivity in the future, including thanks to new technologies (e.g. digital platforms, artificial intelligence). This concerns both “knowledge intensive” services (e.g. information and communication) and less knowledge intensive ones (e.g. personal transport). Harnessing this productivity potential requires adjusting policies to foster innovation and efficient use of new technologies, enhance competitive forces by reducing information asymmetries, barriers to entry and switching costs, and increase the tradability of services within countries and across borders.
    Keywords: automation, measurement, online platforms, productivity, services, structural change
    JEL: E24 L80 O40
    Date: 2018–12–21
  15. By: Josef Taalbi
    Abstract: This study examines the network of supply and use of significant innovations across industries in Sweden, 1970-2013. It is found that 30% of innovation patterns can be predicted by network stimulus from backward and forward linkages. The network is hierarchical, characterized by hubs that connect diverse industries in closely knitted communities. To explain the network structure, a preferential weight assignment process is proposed as an adaptation of the classical preferential attachment process to weighted directed networks. The network structure is strongly predicted by this process where historical technological linkages and proximities matter, while human capital flows and economic input-output flows have conflicting effects on link formation. The results are consistent with the idea that innovations emerge in closely connected communities, but suggest that the transformation of technological systems are shaped by technological requirements, imbalances and opportunities that are not straightforwardly related to other proximities.
    Date: 2018–11

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