nep-ino New Economics Papers
on Innovation
Issue of 2019‒06‒10
fourteen papers chosen by
Uwe Cantner
University of Jena

  1. Going Green: Environmental Regulation, eco-innovation and technological alliances By F. Fusillo; F. Quatraro; S. Usai
  2. Cross-border knowledge flows through R&D FDI: Implications for low- and middle-income countries By Amendolagine, Vito; Chaminade, Cristina; Guimón, José; Rabellotti, Roberta
  3. OK Computer: The Creation and Integration of AI in Europe By Bernardo S. Buarque; Ronald B. Davies; Dieter F. Kogler; Ryan M. Hynes
  4. The innovative performance of firms in heterogeneous environments : the interplay between external knowledge and internal absorptive capacities By Crescenzi, Riccardo; Gagliardi, Luisa
  5. Green Technology and Patents in the Presence of Green Consumers By Langinier, Corinne; Ray Chaudhuri, A.
  6. Academic inventors: collaboration and proximity with industry By Crescenzi, Riccardo; Filippetti, Andrea; Iammarino, Simona
  7. Understanding Weak Capital Investment: the Role of Market Concentration and Intangibles By Nicolas Crouzet; Janice C. Eberly
  8. Market-based Financing Reforms and Shareholder Valuations: Event Study Evidence from the Chinese Science and Technology Innovation Board By Qin, Yaohua; Xiao, He; Zhang, Yifei
  9. The Gift of Global Talent: Innovation Policy and the Economy By William R. Kerr
  10. Green Innovation in Natural Resource Industries: The case of Local Suppliers in the Peruvian Mining Industry By Ana Sofía Aron; Oswaldo Molina
  11. Expertise in the relationship between biobanks and research units By Carole Haritchabalet; Catherine Bobtcheff
  12. Economic Modeling and Valorization of Biobanks By Catherine Bobtcheff; Carole Haritchabalet
  13. Routinization, within-occupation task changes and longrun employment dynamics By Davide Consoli; Giovanni Marin; Francesco Rentocchini; Francesco Vona
  14. Embodied and disembodied technological change: the sectoral patterns of job-creation and job-destruction By Giovanni Dosi; Mariacristina Piva; Maria Enrica Virgillito; Marco Vivarelli

  1. By: F. Fusillo; F. Quatraro; S. Usai
    Abstract: The literature on the determinants of green technologies (GTs) has already identified regulation as a key driver of environmental innovations. However, relatively little is known on how the regulatory framework affect the knowledge generation process. This paper contributes this literature by investigating the impact of collaboration networks and environmental regulation, and of their interaction, on the generation of green technologies. The empirical analysis is carried out on a newly constructed dataset of European firms over the period 2005-2012 and it is articulated in two steps. Firstly, we test the existence of a relationship between the environmental regulation, as measured by the OECD Environmental Policy Stringency index, and GTs, proxied by patent applications. We then employ a dynamic network analysis model to explore the dual role of GTs both as determinant of the collaboration network and as outcome of firm collaboration strategies. We find that, even though there exists a strong and positive relationship, the regulatory framework has not a direct effect on GTs but rather it stimulates firms to search for new qualified collaboration. Then, it is the nature and the structure of these collaborations that encourages firms to generate new green technological knowledge.
    Keywords: proximity;innovation networks;Green technologies;firms' strategies;environmental regulation;Dynamic Network Analysis
    Date: 2019
  2. By: Amendolagine, Vito (Università di Pavia); Chaminade, Cristina (Lund University); Guimón, José (Autonomous University of Madrid); Rabellotti, Roberta (Università di Pavia)
    Abstract: R&D related foreign direct investments represent a powerful mechanism for cross-border knowledge sharing that can stimulate the process of technological catch-up. However, low-income countries and smaller middle-income countries remain largely excluded from this kind of global flows of knowledge. In this chapter, we discuss the motivations and implications of this type of FDI for low and middle income countries, building on a critical review of the existing literature and analyse the trajectory of R&D FDI during the period 2003-2017 by region and industry. The data is used as a point of departure to discuss potential policies specially tailored for low and middle income countries and their capacity to attract and anchor R&D related FDI for technological catch up. The paper finalizes outlining a future research agenda.
    Keywords: Foreign Direct Investment; Technology driven FDI; International technology transfer; South-South FDI; Developing countries; Less developed countries; Emerging Economies; Innovation policy
    JEL: O19 O24 O32 O57
    Date: 2019–06–07
  3. By: Bernardo S. Buarque; Ronald B. Davies; Dieter F. Kogler; Ryan M. Hynes
    Abstract: This paper investigates the creation and integration of Artificial Intelligence (AI) patents in Europe. We create a panel of AI patents over time, mapping them into regions at the NUTS2 level. We then proceed by examining how AI is integrated into the knowledge space of each region. In particular, we find that those regions where AI is most embedded into the innovation landscape are also those where the number of AI patents is largest. This suggests that to increase AI innovation it may be necessary to integrate it with industrial development, a feature central to many recent AI-promoting policies.
    Keywords: Artificial Intelligence; Geography of Innovation; Knowledge Space; Technological Change; Regional Studies
    JEL: O33 O31 R11
    Date: 2019–05
  4. By: Crescenzi, Riccardo; Gagliardi, Luisa
    Abstract: This paper investigates the link between firm-level innovative performance and innovation prone external environments where knowledgeable individuals tend to cluster. Organizational ambidexterity and absorptive capacities (potential and realized) make it possible for firms to leverage the availability of external knowledge and boost their innovation performance. The empirical analysis focuses on England and is based on a novel combination of Community Innovation Survey (CIS) firm-level data and patent data. The results show that only firms complementing potential and realized absorptive capacities are able to take advantage of favorable external environments by actively combining internal and external sources of knowledge.
    Keywords: Innovation; Geography of innovation; Absorptive capacities; Exploration and exploitation
    JEL: J1
    Date: 2018–05–01
  5. By: Langinier, Corinne; Ray Chaudhuri, A. (Tilburg University, Center For Economic Research)
    Abstract: We develop a theoretical framework to investigate the impact of patent policies and emission taxes on green innovation that reduces the emission output ratio, and on the emission level. In the absence of green consumers, the introduction of patents results in a paradox whereby increasing emission tax beyond a certain threshold leads to a discrete increase in the emission level, which may be avoided by reducing the patenting cost. In the presence of green consumers, this paradox is restricted to an intermediate range of tax rates, and at sufficiently high tax rates, reducing the patenting cost may increase the emission level. Also, higher emission taxes increase green investment only if the fraction of green consumers is sufficiently small, and the magnitude of this effect decreases as this fraction increases.Moreover, a stricter patentability requirement is only effective at reducing emissions if the fraction of green consumers is sufficiently small.
    Keywords: patent; clean technologies; environmentally friendly consumers
    JEL: O34 L13 Q50
    Date: 2019
  6. By: Crescenzi, Riccardo; Filippetti, Andrea; Iammarino, Simona
    Abstract: This paper addresses a number of fundamental research questions on university-industry (U-I) collaborations. Are U-I collaborations intrinsically different from other forms of collaboration, such as inter-firm or inter-university collaborations? Are they more difficult to form? Is their output qualitatively different? What factors facilitate their development? By looking at the collaborative behavior of all Italian inventors over the 1978-2007 period, the empirical analysis shows that U-I collaborations are less likely to happen when compared to other types of collaboration, and suggests that they tend to generate patents of more general applicability in subsequent inventions. As emphasized by the literature, geographical proximity plays an important role in facilitating all forms of collaboration. At the same time, it works as a possible substitute for institutional proximity, facilitating U-I collaborations. However, the involvement of ‘star inventors’ on both sides of the collaboration can play an equally important role in ‘bridging’ universities and industry.
    Keywords: university-industry collaboration; institutional and geographical proximity; innovation; regions.; Intra-European Fellowship
    JEL: O31 O32 O33 R10
    Date: 2017–08–01
  7. By: Nicolas Crouzet; Janice C. Eberly
    Abstract: We document that the rise of factors such as software, intellectual property, brand, and innovative business processes, collectively known as “intangible capital” can explain much of the weakness in physical capital investment since 2000. Moreover, intangibles have distinct economic features compared to physical capital. For example, they are scalable (e.g., software) though some also have legal protections (e.g., patents or copyrights). These characteristics may have enabled the rise in industry concentration over the last two decades. Indeed, we show that the rise in intangibles is driven by industry leaders and coincides with increases in their market share and hence, rising industry concentration. Moreover, intangibles are associated with at least two drivers of rising concentration: market power and productivity gains. Productivity gains derived from intangibles are strongest in the Consumer sector, while market power derived from intangibles is strongest in the Healthcare sector. These shifts have important policy implications, since intangible capital is less interest-sensitive and less collateralizable than physical capital, potentially weakening traditional transmission mechanisms. However, these shifts also create opportunities for policy innovation around new market mechanisms for intangible capital.
    JEL: E22
    Date: 2019–05
  8. By: Qin, Yaohua; Xiao, He; Zhang, Yifei
    Abstract: This paper studies the impact of the newly introduced science and technology innovation board (STIB) on stock valuations in China. This Nasdaq-style board features a market-based IPO system that contrasts with the current approved-based arrangement. Event study approach shows that A-share firms pertaining to STIB related industries increased significantly after the reform announcement. The effect is stronger for Non-SOEs and firms with higher R&D capacity. Public shareholders of the firms filing STIB IPO applications experienced salient growth in their abnormal returns while their industry competitors suffered price drops. Financial analysts also broadened their company coverages in STIB related industries and revised their market valuation forecasts positively in line with the market investors.
    Keywords: China's financial reform, Registration-based IPO system, Science and technology innovation board in China, Chinese financial markets.
    JEL: G18 G38 N25 O16
    Date: 2019–05–19
  9. By: William R. Kerr
    Abstract: Talent is the most precious resource for today’s knowledge-based economy, and a significant share of the U.S. skilled workforce in technology fields is foreign born. The United States has long held a leading position in attracting global talent, but the gap to other countries is weakening. Immigration policies like the H-1B visa program shape the admissions of foreign workers to the country and grant a particularly strong gatekeeping role to sponsoring firms and universities. This chapter explores the data around global talent flows and some of the economic implications of an employer-driven immigration approach.
    JEL: F22 F23 J24 O31 O33
    Date: 2019–05
  10. By: Ana Sofía Aron (Universidad del Pacífico); Oswaldo Molina (Universidad del Pacífico)
    Abstract: Concerns about climate change are gaining more notoriety and exerting a pressure for more stringent environmental regulations in the mining sector. Thus, demand for sustainable methods of production has increased and created opportunities for Peruvian mining suppliers that offer green innovations (GI). In this paper, we follow the technological trajectories of a set of local firms who successfully undertook green innovations, in order to analyze the main factors which determined their development and integration into the mining value chain. Our study reveals that due to the novelty of the demand for GI, most local suppliers engaged in these activities are emergent ones. Moreover, they tend to follow different strategies which facilitate their entrance to the market: they establish relationships with strategic partners, specialize in niches that can hardly be covered by foreign multinational companies, and adapt their innovations to client’s requirements. However, innovations by emergent suppliers remain limited due to multinational mining companies favoring incumbent suppliers with a positive trajectory in the market, financial constraints, and lack of communication and coordination channels within the sector. Thus, successful emergent suppliers depend highly on governmental financing, and linkages with research centers at universities.
    Keywords: Green innovations, sustainable innovations, Natural Resource Industries, suppliers
    Date: 2019–05
  11. By: Carole Haritchabalet (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour); Catherine Bobtcheff (PSE - Paris School of Economics)
    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
  12. By: Catherine Bobtcheff (PSE - Paris School of Economics); Carole Haritchabalet (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)
    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
  13. By: Davide Consoli (Institute of Innovation and Knowledge Management); Giovanni Marin (Università degli Studi di Urbino Carlo Bo); Francesco Rentocchini; Francesco Vona (Observatoire français des conjonctures économiques)
    Abstract: This study contributes to the literature on routinization and employment by capturing within- occupation task changes over the period 1980-2010. The main contribution is the measurement of such changes combining two data sources on occupational task content for the United States: the Dictionary of Occupational Titles and the Occupational Information Network. We show that within-occupation task change: i) accounts for 1/3 of the decline in routine-task use; ii) accelerates in the 1990s, decelerates in the 2000s but with significant catching-up; iii) is associated with educational upgrading in several dimensions and iv) allows escaping the employment decline conditional on initial routine-task intensity.
    Keywords: Tasks; Routinization; Technological change; Employment dynamics; Race between technology and education
    JEL: J23 J24 O33
    Date: 2019–05
  14. By: Giovanni Dosi; Mariacristina Piva; Maria Enrica Virgillito; Marco Vivarelli
    Abstract: This paper addresses, both theoretically and empirically, the sectoral patterns of job creation and job destruction in order to distinguish the alternative effects of embodied vs disembodied technological change operating into a vertically connected economy. Disembodied technological change turns out to positively affect employment dynamics in the üupstreamùù sectors, while expansionary investment does so in the üdownstreamùù industries. Conversely, the replacement of obsolete capital vintages tends to exert a negative impact on labour demand, although this effect turns out to be statistically less robust.
    Keywords: Innovation; disembodied and capital-embodied technological change; employment; job- creation; job-destruction; sectoral interdependencies.
    Date: 2019–05–29

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