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on Innovation |
| By: | Dany Bahar (Center for International Development at Harvard University); Hillel Rapoport |
| Abstract: | We investigate the relationship between the presence of migrant inventors and the dynamics of innovation in the migrants’ receiving countries. We find that countries are 25 to 60 percent more likely to gain advantage in patenting in certain technologies given a twofold increase in the number of foreign inventors from other nations that specialize in those same technologies. For the average country in our sample, this number corresponds to only 25 inventors and a standard deviation of 135. We deal with endogeneity concerns by using historical migration networks to instrument for stocks of migrant inventors. Our results generalize the evidence of previous studies that show how migrant inventors "import" knowledge from their home countries, which translates into higher patenting in the receiving countries. We interpret these results as tangible evidence of migrants facilitating the technology-specific diffusion of knowledge across nations. |
| Keywords: | innovation, migration, patent, technology, knowledge |
| JEL: | O31 O33 F22 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:cid:wpfacu:124a&r=all |
| By: | Igor Letina; Armin Schmutzler; Regina Seibel |
| Abstract: | This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We apply this theory to identify the effects of prohibiting start-up acquisitions. We differentiate between killer acquisitions (when the incumbent does not commercialize the acquired start-up’s technology) and acquisitions with commercialization. A restrictive acquisition policy reduces the variety of research approaches pursued by the firms and thereby the probability of discovering innovations. Furthermore, it leads to strategic duplication of the entrant’s innovation by the incumbent. These negative innovation effects of restrictive acquisition policy have to be weighed against the pro-competitive effects of preserving potential competition. |
| Keywords: | innovation, acquisitions, mergers, competition, start-ups. |
| JEL: | O31 L41 G34 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:ube:dpvwib:dp2003&r=all |
| By: | Marcel Bednarz; Tom Broekel |
| Abstract: | This paper contributes to and connects the literature on spatial innovation diffusion, entre-preneurship, and industry life-cycles by disentangling the relevance of local demand and sup-ply in the adoption of wind energy production. More precisely, we evaluate the strength of local supply-push effects with those of local demand-pull over the course of the evolution of an industry and its main product evolution. By using Bayesian survival models with time-dependent data of wind turbine deployment and firm foundation for 402 German regions between the years 1970 and 2015, we show that the spatial evolution of the German wind energy industry was more strongly influenced by local demand-pull than local supply-push processes. New producers are found to emerge in proximity to existing local demand for wind turbines. No evidence was found for producers being able to create local demand for their products by pushing the adoption of the technology in their regions. |
| Keywords: | supply-push, demand-pull, Bayesian survival analysis, wind energy |
| JEL: | Q21 R12 O33 O31 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2008&r=all |
| By: | Kolja Hesse; Dirk Fornahl |
| Abstract: | The role of radical innovations for the economy has received increasing attention by German policy makers. This paper investigates how (un-)related variety and external linkages influence these innovations in German labour market regions. Evidence is found that related and unrelated knowledge capabilities both support the emergence of radical innovations, although strong related capabilities are especially important. External linkages have an inverted u-shape relation to radically new ideas and can act as substitute for missing unrelated competences in a region. The results shed new light on the emergence of radical innovations and thus have interesting scientific and practical implications. |
| Keywords: | Radical innovations, related variety, unrelated variety, external linkages, labour market regions |
| JEL: | O31 O33 R11 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2007&r=all |
| By: | Edoardo FERRUCCI; Francesco LISSONI; Ernest MIGUELEZ |
| Abstract: | Based on an original dataset spanning over 20 years of patenting at the United States Patent & Trademark Office (USPTO), we identify the gender, residence, and nationality of inventors, based on which we also identify migrants and natives in the United States, as well as stayers (non-migrants) in the migrants’ countries of origin. We find that the share of women over the total number of US-resident inventors (or WIR: Women Inventor Rate) is generally higher for migrants than for US natives, so that the former have contributed significantly to the increase of WIR in the US over the past quarter century. At the same time, the WIR for migrants is higher than that of stayers, which suggests that migration to the US represents an opportunity for high-skilled women to undertake a career in R&D, notwithstanding the obstacles they may face, and irrespective of their country of origin. This intuition is reinforced by an analysis of women inventors’ technological specialization, which reveals that female migrants are better represented than natives and stayers in men-dominated fields. |
| Keywords: | STEM migrants; High-skilled migrants; Inventors; Gender |
| JEL: | J16 F22 O15 O30 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:grt:bdxewp:2020-01&r=all |
| By: | Alan Finkelstein Shapiro (Universidad de los Andes; Tufts University); Federico S. Mandelman (Federal Reserve Bank of Atlanta) |
| Abstract: | We document a strong negative link between self-employment and the rate of digital adoption by firms in developing and emerging economies. No link between digital adoption and the unemployment rate is found, however. To explain this evidence, we build a general equilibrium search-and-matching model with endogenous labor force participation, self-employment, endogenous firm entry, and information-and-communications technology adoption. The main finding is that changes in the cost of technology adoption per se cannot rationalize the evidence. Instead, changes in firms' barriers to entry directly linked to the cost of technology adoption are key to explain the data. |
| Keywords: | automation; self-employment; digital adoption; Information-and-telecommunications-technology capital (ICT); labor search frictions; endogenous firm entry; developing and emerging economies; unemployment |
| JEL: | E24 J23 J24 J64 O14 |
| Date: | 2019–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:87499&r=all |
| By: | Roberta De Santis (ISTAT); Cecilia Jona Lasinio (ISTAT); Piero Esposito (LUISS) |
| Abstract: | In this paper, we empirically analyse the environmental regulation-productivity nexus for 14 OECD countries in the period 1990-2013. Our findings support the hypothesis that environmental policies have a productivity growth enhancing effect through innovation as suggested by Porter and Van Der Linde (1995). We provide evidence that both market and non-marked based policies foster labour and multifactor productivity growth and that the positive association is better captured by environmental adjusted productivity indicators. Moreover, we find that productivity increases resulting from changes in the environmental regulation pass through a stimulus to capital accumulation and this effect is concentrated in high ICT intensive countries. Overall, the need to speed up the transition towards a “green economy” for environmental protection purposes can be seen also as an opportunity to improve competitiveness generating a virtuous circle between innovation and environmental friendly production techniques. |
| Keywords: | Inenvironmental regulation, productivity, innovation, Porter hypothesis, |
| JEL: | D24 Q50 Q55 O47 O31 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:lui:lleewp:20153&r=all |
| By: | Michael Fritsch; Michael Wyrwich |
| Abstract: | Popular theories claim that innovation activities should be located in large cities because of more favorable environmental conditions that are absent in smaller cities or remote and rural areas. Germany provides a clear counterexample to such theories. We argue that a main force behind the geography of innovation in Germany is the country’s federal tradition that has shaped the settlement structure, the geographic distribution of universities and public research institutions, as well as local access to finance. Additional factors that may play a role in this respect are the system of education and the tax treatment of inheriting a business. We demonstrate the long-lasting effect of the historical political structure and distribution of knowledge sources on innovation activities today. We conclude that historical factors that shape the settlement structure and location of knowledge sources are of key importance for the geographic location of innovation activities. |
| Keywords: | innovation, patents, agglomeration economies, cities, Germany |
| JEL: | O31 R11 L26 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2009&r=all |
| By: | Weshah Razzak (School of Economics and Finance, Massey University, Palmerston North) |
| Abstract: | Total factor productivity growth (TFP) is positively related to the growth rate in effective research efforts. At the macro level, research effort is the nonlinear product of human capital and the number of people engaged in research activity. The rate of return on human capital is positive across the G7 countries. However, the rate of return on the number of researcher is negative in all countries except the U.S. thus; there is a decreasing return to scale in the production of new ideas. |
| Keywords: | TFP Growth, Research Efforts, Education, Human Capital, Useful Knowledge |
| JEL: | O40 O47 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:mas:dpaper:2002&r=all |
| By: | Michael Fritsch; Michael Wyrwich |
| Abstract: | We investigate the geographic concentration of patenting in large cities using a sample of 14 developed countries. There is wide dispersion of the share of patented inventions in large metropolitan areas. South Korea and the US are two extreme outliers where patenting is highly concentrated in large cities. We do not find any general trend that there is a geographic concentration of patents for the period 2000-2014. There is also no general trend that inventors in large cities have more patents than in rural areas (scaling). Hence, while agglomeration economies of large cities may offer advantages for innovation activities, the extent of these advantages is not very large. We conclude that popular theories over-emphasize the importance of large cities for innovation activities. |
| Keywords: | innovation, patents, cities, urban scaling, creativity |
| JEL: | O31 R12 O57 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2010&r=all |
| By: | Annita Nugent; Ho Fai Chan; Uwe Dulleck |
| Abstract: | Government investment in university research results in greater output and impact. To better capture economic benefits stemming from university research, governments have developed funding programs specifically targeting university-industry collaboration. However, little is known about the success of university-industry targeted (U-I targeted) grants. In this study we evaluate the effect of one such scheme, the Australian Research Council (ARC) Linkage Project scheme, by comparing it to its non-targeted sister scheme, the ARC Discovery Project scheme. Having in common selection criteria, grant assessors, awardees, magnitude of funding and duration, the schemes differ in the requirement for an industry partner. We measure capture of economic benefit by patent applications filed and granted. Interrogating the effect of targeted funding at a university level we find award of U-I targeted grants coincides with increased patent activity compared to non-targeted grants. Exploring the dynamics of the relationship, we observe the effect of U-I targeted grants on patent activity is short lived at an inventor level. Further, the propensity for patent activity is influenced by the ratio of U-I targeted to non-targeted grants held at a university level, but not at an inventor level. |
| Keywords: | research funding, patent, university-industry collaboration, grants |
| JEL: | O34 O38 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8032&r=all |