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on Innovation |
| By: | Caroline Paunov (OECD); Dominique Guellec (OECD); Nevine El-Mallakh (Université Paris 1 Panthéon-Sorbonne); Sandra Planes-Satorra (OECD); Lukas Nüse (Bertelsmann Foundation) |
| Abstract: | This paper investigates how digital technologies have shaped the concentration of inventive activity in cities across 30 OECD countries. It finds that patenting is highly concentrated: from 2010 to 2014, 10% of cities accounted for 64% of patent applications to the European Patent Office, with the top five (Tokyo, Seoul, San Francisco, Higashiosaka and Paris) representing 21.8% of applications. The share of the top cities in total patenting increased modestly from 1995 to 2014. Digital technology patent applications are more concentrated in top cities than applications in other technology fields. In the United States, which has led digital technology deployment, the concentration of patent applications in top cities increased more than in Japan and Europe over the two decades. Econometric results confirm that digital technology relates positively to patenting activities in cities and that it benefits top cities, in particular, thereby strengthening the concentration of innovation in these cities. |
| Keywords: | cities, digital technologies, geography of innovation, innovation, local knowledge spillovers, OECD countries, patenting |
| JEL: | R12 O31 O34 |
| Date: | 2019–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:85-en&r=all |
| By: | Dirk Czarnitzki; Kristof Van Criekingen |
| Abstract: | We contribute to the economic literature on patent litigation by taking a new perspective. In the past, scholars mostly focused on specific litigation cases at the patent level and related technological characteristics to the event of litigation. However, observing IP disputes suggests that not only technological characteristics may trigger litigation suits, but also the market positions of firms, and that firms dispute not only about single patents but often about portfolios. Consequently, this paper examines the occurrence of IP litigation cases in Belgian firms using the 2013 Community Innovation Survey with supplemental information on IP litigation and patent portfolios. The rich survey information regarding firms’ general innovation strategies enables us to introduce market-related variables such as sales with new products as well as sales based mainly on imitation and incremental innovation. Our results indicate that when controlling for firms’ IP portfolio, the composition of turnover in terms of innovations and imitations has additional explanatory power regarding litigation propensities. Firms with a high turnover from innovations are more likely to become plaintiffs in court. Contrastingly, firms with a high turnover from incremental innovation and imitation are more likely to become defendants in court, and, moreover, are more likely to negotiate settlements outside of court. |
| Keywords: | IP litigation, patenting, innovation, imitation |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ecoomp:621964&r=all |
| By: | Ernest MIGUELEZ; Julio RAFFO; Christian CHACUA; Massimiliano CODA-ZABETTA; Deyun YIN; Francesco LISSONI, Gianluca TARASCONI |
| Abstract: | In this paper we exploit a unique and rich dataset of patent applications and scientific publications in order to answer several questions concerned with two current phenomena on the way knowledge is produced and shared worldwide: its geographical spread at the international level and its spatial concentration in few worldwide geographical hotspots. We find that the production of patents and scientific publications has spread geographically to several countries, and has not kept within the traditional knowledge producing economies (Western Europe, Japan and the U.S.). We observe that part of this partial geographical spread of knowledge activities is due to the setting up of Global Innovation Networks, first toward more traditional innovative countries, and then towards emerging economies too. Yet, despite the increasing worldwide spread of knowledge production, we do not see the same spreading process within countries, and even we see some increased concentration in some of them. This may have, of course, important distributional consequences within countries. Moreover, these selected areas also concentrate a large and increasing connectivity, within their own country to other hotspots, and across countries through Global Innovation Networks. |
| Keywords: | patents, scientific publications, geocoding, global innovation networks, clusters, geography of innovation |
| JEL: | O30 F20 F60 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2019-16&r=all |
| By: | Rimmer, Matthew (Queensland University of Technology) |
| Abstract: | The multidisciplinary field of climate law and justice needs to address the topic of intellectual property, climate finance, and technology transfer to ensure effective global action on climate change. The United Nations Framework Convention on Climate Change 1992 (UNFCCC) established a foundation for the development, application and diffusion of low-carbon technologies. Against this background, it is useful to analyse how the Paris Agreement 2015 deals with the subject of intellectual property, technology transfer, and climate change. While there was discussion of a number of options for intellectual property and climate change, the final Paris Agreement 2015 contains no text on intellectual property. There is text, though, on technology transfer. The Paris Agreement 2015 relies upon technology networks and alliances in order to promote the diffusion and dissemination of green technologies. In order to achieve technology transfer, there has been an effort to rely on a number of formal technology networks, alliances, and public–private partnerships—including the UNFCCC Climate Technology Centre and Network (CTCN); the World Intellectual Property Organization’s WIPO GREEN; Mission Innovation; the Breakthrough Energy Coalition; and the International Solar Alliance. There have been grand hopes and ambitions in respect of these collaborative and co-operative ventures. However, there have also been significant challenges in terms of funding, support, and operation. In a case of innovation policy pluralism, there also seems to be a significant level of overlap and duplication between the diverse international initiatives. There have been concerns about whether such technology networks are effective, efficient, adaptable, and accountable. There is a need to better align intellectual property, innovation policy, and technology transfer in order to achieve access to clean energy and climate justice under the framework of the Paris Agreement 2015. At a conceptual level, philosophical discussions about climate justice should be grounded in pragmatic considerations about intellectual property and technology transfer. An intellectual property mechanism is necessary to provide for research, development, and deployment of clean technologies. There is a need to ensure that the technology mechanism of the Paris Agreement 2015 can enable the research, development, and diffusion of clean technologies at a scale to address the global challenges of climate change. |
| Date: | 2019–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:fxhvm&r=all |
| By: | Enrico Moretti; Claudia Steinwender; John Van Reenen |
| Abstract: | In the US and many other OECD countries, expenditures for defense-related R&D represent a key policy channel through which governments shape innovation, and dwarf all other public subsidies for innovation. We examine the impact of government funding for R&D - and defense-related R&D in particular - on privately conducted R&D, and its ultimate effect on productivity growth. We estimate models that relate privately funded R&D to lagged government-funded R&D using industry-country level data from OECD countries and firm level data from France. To deal with the potentially endogenous allocation of government R&D funds we use changes in predicted defense R&D as an instrumental variable. In both datasets, we uncover evidence of “crowding in” rather than “crowding out,” as increases in government-funded R&D for an industry or a firm result in significant increases in private sector R&D in that industry or firm. A 10% increase in government-financed R&D generates 4.3% additional privately funded R&D. An analysis of wages and employment suggests that the increase in private R&D expenditure reflects actual increases in R&D employment, not just higher labor costs. Our estimates imply that some of the existing cross-country differences in private R&D investment are due to cross-country differences in defense R&D expenditures. We also find evidence of international spillovers, as increases in government-funded R&D in a particular industry and country raise private R&D in the same industry in other countries. Finally, we find that increases in private R&D induced by increases in defense R&D result in significant productivity gains. |
| JEL: | O3 O30 O31 O33 O38 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26483&r=all |
| By: | Nikola Radovanovic (European Commission - JRC); Maximilian Benner (European Commission - JRC) |
| Abstract: | Enhancing the innovation potential has been on the policy agenda of the Western Balkan economies for years. Hence, innovation policymaking has led to a number of policy documents and strategies that relate to economic and innovative competitiveness. The concept of smart specialisation is a newer approach of innovation policy that seeks to develop countries’ or regions’ competitiveness based on their innovative potential in a cross-sectoral perspective and through evidence-based analysis. As Western Balkan economies are currently developing Smart Specialisation Strategies or preparing to do so, pre-existing policy documents provide a relevant context for ensuring the cross-sectoral character of Smart Specialisation Strategies. This paper gives an overview of the main elements of the smart specialisation concept and surveys the existing strategic frameworks for innovation in the Western Balkan economies. The analysis addresses the relevance of these frameworks and policy documents for smart specialisation, and highlights the links between pre-existing strategic frameworks in a smart specialisation perspective. |
| Keywords: | smart specialisation, Western Balkans, innovation, EU enlargement |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc118199&r=all |
| By: | Ali-Yrkkö, Jyrki; Pajarinen, Mika; Ylhäinen, Ilkka |
| Abstract: | Abstract In recent years, business angels have invested in a few hundred Finnish firms annually. The target firms are mainly young and small: 75% of them employ fewer than 10 workers and are less than 8 years old. These firms are most likely to be found in the ICT and professional service industries and manufacturing. Although many angel-funded firms have faster employment growth compared to matched nonfunded firms, the average growth rates do not significantly differ when we control for receiving public innovation funding and other firm characteristics. As many as 75% of the firms funded by business angels have also received public innovation funding in some phase, and 57% have received it before angel funding. However, no robust indication was found that combining these two sources of funds would give an extra boost to growth. |
| Keywords: | Business angels, Innovation subsidies, R&D, Firm growth |
| JEL: | D22 G24 G30 L53 O31 |
| Date: | 2019–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:97&r=all |
| By: | Catalina MARTINEZ; Valerio STERZI |
| Abstract: | Intellectual property regimes governing university inventions were quite diverse in Europe at the end of the 1990s. Several European countries maintained the so-called professor’s privilege, an exception to employment law whereby university researchers were allowed to retain the ownership of academic inventions. The 2000s were characterised by convergence towards a more homogeneous system, in which university administrations took control of IP management. We investigate the impact of the reform and we observe a decline in the technological importance and the value of the patents owned and managed by universities in the countries abolishing the professor’s privilege. On the contrary, by differentiating the academic patents by type of ownership, we find that the technological importance of academic patents owned by companies has instead increased. Our study produces some new results that may alert policymakers to the possible unintended consequences of the university ownership model. |
| Keywords: | University-owned patents; academic-invented patents; patent quality; patent management; patent value; technology transfer |
| JEL: | I23 L26 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2019-15&r=all |
| By: | José Luis Moraga-González (Vrije Universiteit Amsterdam); Evgenia Motchenkova (Vrije Universiteit Amsterdam); Saish Nevrekar (Universidad Carlos III de Madrid) |
| Abstract: | This paper studies mergers in markets where firms invest in a portfolio of research projects of different profitability and social value. The portfolio nature of the investment problem brings about novel insights on the external effects of firms’ investments. The investment of a firm in one project imposes a negative business-stealing externality on the rival firms because it lowers the probability they win the innovation contest for that project; however, the investment of a firm in one project also exerts a positive business-giving externality on the rival firms because it increases the likelihood they win the contest for the alternative project. |
| Keywords: | innovation portfolios, R&D contests, mergers |
| JEL: | O32 L13 L22 O31 |
| Date: | 2019–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20190085&r=all |
| By: | Ndubuisi, Gideon |
| Abstract: | This paper contributes to the literature on the innovation effect of social trust by analyzing the mechanisms linking social trust and R&D Investments. High social trust level can ease firms’ credit constraints by reducing moral hazards and information asymmetries problems which make raising external capital difficult and expensive for firms. It can also reduce relational risks that expose firms to ex-post holdup or outright intellectual property expropriation. Using data from 20 OECD countries, I test these mechanisms by evaluating whether more external finance dependent and relational risks vulnerable sectors exhibit disproportional higher R&D investments in countries with high social trust level. The empirical results confirm that high social trust level encourages investments in R&D. Importantly, the results indicate that sectors which depend more on external finance and those sectors that are more vulnerable to relational risks experience a relatively greater increase in R&D investments in countries with high social trust. The results underline access to external credit and reduction in relational risks as causal pathways linking social trust and R&D investment. |
| Keywords: | Social Trust, Innovation; R&D Investments; Relational Risks; Credit Constraints |
| JEL: | A13 O17 O31 O43 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97043&r=all |
| By: | Jakub Growiec (Department of Quantitative Economics, Warsaw School of Economics, Poland; Rimini Centre for Economic Analysis) |
| Abstract: | The article proposes a new conceptual framework for capturing production, R&D, and economic growth in aggregative economic models which extend their horizon into the digital era. Two key factors of production are considered: hardware, including physical labor, traditional physical capital and programmable hardware, and software, encompassing human cognitive work and pre-programmed software, including artificial intelligence (AI). Hardware and software are complementary in production whereas their constituent components are mutually substitutable. The framework generalizes, among others, the standard model of production with capital and labor, models with capital–skill complementarity and skill-biased technical change, and unified growth theories embracing also the pre-industrial period. It offers a clear conceptual distinction between mechanization and automation of production. It delivers sharp, empirically testable and economically intuitive predictions for long-run growth, the evolution of factor shares, and the direction of technical change. |
| Keywords: | production function, R&D equation, technological progress, complementarity, automation, artificial intelligence |
| JEL: | O30 O40 O41 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:19-18&r=all |
| By: | Inés Macho-Stadler; Noriaki Matsushima; Ryusuke Shinohara |
| Abstract: | We analyze firms' decisions to adopt a vertical integrated or decentralized structure taking into account the characteristics of both the final good competition and the R&D process. We consider two vertical chains, where R&D is conducted by upstream sectors. R&D investment determines the production costs of the downstream sector and has spillovers on the rivals' costs. In a general setup, we show that equilibrium organizational structure depends on whether the situation considered belongs to one of four possible cases and we study how final good market competition, spillover, and incentives in innovation interact to determine the optimal vertical structure. |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1069&r=all |
| By: | Wintjes, Rene (UNU-MERIT, and SBE, Maastricht University); Es-Sadki, Nordine (UNU-MERIT, and SBE, Maastricht University); Notten, Ad (UNU-MERIT) |
| Abstract: | Social innovation can be seen as new combinations of social, economic and political capital (resources and capabilities)1. In social innovation initiatives actors with different capabilities cooperate and function as systems of innovation. The various actors (from the social, economic and/or political domain) contribute and benefit in different tangible and intangible ways. As producers and users of solutions for societal problems they co-create value for society. The paper aims for insights in the economic outcomes of social innovation. We argue that social innovation can be seen as an investment, rather than a cost. For 55 social innovation initiatives across Europe we identify economic outcomes for the various actors, and the sustainability of the initiative. Since social innovation is context-dependent, and because the regional situation concerning social innovation differs across the EU, we also systemise the regional context in which the social innovation initiatives have emerged. The results support the idea that social innovation generates economic as well as complementary social benefits. Four types of regional systems of social innovation can be identified. It helps explain why regions as different contexts induce different social innovation initiatives and economic outcomes. |
| Keywords: | social innovation, indicators, outcome, regions, measurement, innovation systems |
| JEL: | O31 I31 |
| Date: | 2019–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2019050&r=all |
| By: | Link, Albert (University of North Carolina at Greensboro, Department of Economics); Scott, John (Dartmouth College) |
| Abstract: | This paper presents and explains an approach for measuring technological change in the production of new scientific knowledge. The paper expands our previous work on this topic. Our approach is illustrated by using as an example new scientific journal publications from the U.S. National Institute of Standards and Technology. The empirical findings are consistent with the expectation that resource constraints will cause a breakdown in the process of creating new scientific knowledge and with the evidence that scientific research has been less productive in recent decades. |
| Keywords: | scientific publications; technological change; R&D; knowledge production function; |
| JEL: | O33 O38 |
| Date: | 2019–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2019_014&r=all |
| By: | Knut Blind; Mirko Bohm |
| Abstract: | This report has been developed in the framework of the 2017 Communication of the European Commission ‘Setting out the EU approach to Standard Essential Patents’ (COM(2017) 712 final). In this Communication there is a direct commitment that 'The Commission will work with stakeholders, open source communities and SDOs for successful interaction between open source and standardisation, by means of studies and analyses'. Standards and open source development are both processes widely adopted in the ICT industry to develop innovative technologies and drive their adoption in the market. Innovators and policy makers assume that a closer collaboration between standards and open source software development would be mutually beneficial. The interaction between the two is however not yet fully understood, especially with regard to how the intellectual property regimes applied by these organisations influence their ability and motivation to cooperate. This study provides a comprehensive analysis of the interaction between standard development organisations (SDOs) and open source software (OSS) communities. The analysis is based on 20 case studies, a survey of stakeholders involved in SDOs and OSS communities, an expert workshop, and a comprehensive review of the literature. |
| Keywords: | Open source software development, standard development organization, intellectual property rights, intellectual property policies, FRAND licensing |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc117836&r=all |