nep-ino New Economics Papers
on Innovation
Issue of 2020‒03‒30
eleven papers chosen by
Uwe Cantner
University of Jena

  1. Unlocking the radical potential of German innovators How can R&D policy foster radical innovation? By Hesse, Kolja
  3. Assessing Innovation Patterns and Constraints in Developing East Asia : An Introductory Analysis By Iootty De Paiva Dias,Mariana
  4. The generation of management innovation in microentreprises: absorptive capacity and entrepreneur-CPA relationship By Agnès Mazars Chapelon; Philippe Chapellier; Sophie Mignon
  5. Mass Migration and Technological Change By Andersson, David; Karadja, Mounir; Prawitz, Erik
  6. Innovation Promotion Rationales and Impacts – A Review By Aalto, Eero; Gustafsson, Robin
  7. Patterns of innovation, advanced technology use and business practices in Canadian firms By Fernando Galindo-Rueda; Fabien Verger; Sylvain Ouellet
  8. Business visits, technology transfer and productivity growth By Piva, Mariacristina; Tani, Massimiliano; Vivarelli, Marco
  9. Tertiary Education Expansion and Regional Firm Development By Tobias Schlegel; Curdin Pfister; Uschi Backes-Gellner
  10. Developing the Business Performance of the Digital Creative Industry: Corporate Entrepreneurship Approach By Rofi Rofaida
  11. Innovation in public services in the light of public administration paradigms and service innovation perspectives By Benoît Desmarchelier; Faridah Djellal; Faïz Gallouj

  1. By: Hesse, Kolja (University of Bremen)
    Abstract: Recently, the outstanding potential of radical innovations has been acknowledged to foster the economic development of countries and regions. However, due to market imperfection, economic actors do not engage in radical innovation to a socially desirable degree. Hence, governments have established measures to compensate the under-investment in private R&D. For instance, in Germany and on the European level innovation agencies have been established to support innovations that move the technological frontier. In the light of this development, this study aims to answer the question whether direct funding of R&D projects in general and collaborative R&D grants in particular can support the emergence of radical innovations. Furthermore, this study scrutinises on the effect of policy-induced cross-innovation activities on radical innovation processes. Although many scholars advise policy makers to support activities inducing cross-fertilisation in order to enhance radical innovation, we lack evidence whether the funding of such research projects actually has an effect. The results can be of interest for scholars as well as policy makers aiming to support this type of innovation.
    Keywords: R&D subsidies; R&D collaboration; cross-innovation activities; radical innovation; treatment effects
    JEL: C30 H20 O31 O38
    Date: 2020–03–27
  2. By: Francesco Aiello (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); Paola Cardamone (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); Lidia Mannarino (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); Valeria Pupo (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria)
    Abstract: This article focuses on the relationship between external research and development (R&D) and firm innovation output. Using a sample of Italian manufacturing firms in the period of 2007-2009, the role played by external R&D is evaluated, investigating differences between family and non-family firms. Results show that the R&D acquired from external sources has a positive impact, especially on family firms, suggesting that family companies have a greater capacity to translate external R&D into tangible economic benefits. This result is consistent with those obtained when we consider the combination of internal and external R&D, as well as the family involvement in governance and management.
    Keywords: Family firms, R&D investment, Innovative sales, Italian manufacturing industry
    JEL: O32 G34 C24
    Date: 2020–02
  3. By: Iootty De Paiva Dias,Mariana
    Abstract: This paper sheds light on key innovation patterns and constraints within a selected set of developing East Asian countries (Cambodia, China, Indonesia, the Lao People?s Democratic Republic, Malaysia, Myanmar, the Philippines, Thailand, and Vietnam). It follows a comprehensive approach about national innovation systems while highlighting the supply and demand dimensions of innovation as well as the markets where firms make accumulation decisions for different forms of capital (knowledge capital, human capital. and physical capital). The paper presents a set of empirical exercises drawing from various data sets. The results corroborate the idea of the importance of adopting a broad view of innovation policy and investing in missing complementary factors. Although investment in research and development is key to boost innovation, it is also crucial to have business and regulatory environments that are conducive to overall firm performance and capital accumulation (not only knowledge capital), as they are expected to improve innovation returns. In addition, the results suggest that other innovation inputs aside from research and development matter for innovation activities, such as training for innovative activities, acquisition/licensing of technology, and managerial practices.
    Keywords: Business Environment,International Trade and Trade Rules,Public Sector Management and Reform,Food&Beverage Industry,Plastics&Rubber Industry,Construction Industry,Common Carriers Industry,General Manufacturing,Textiles, Apparel&Leather Industry,Pulp&Paper Industry,Business Cycles and Stabilization Policies,Educational Sciences
    Date: 2019–01–17
  4. By: Agnès Mazars Chapelon (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Philippe Chapellier (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Sophie Mignon (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier)
    Abstract: In microentreprises, considering the management knowledge basis of the entrepreneur, the generation of management innovation (MI) is a crucial question. In this qualitative case study of a microentreprise, we follow Mol and Birkinshaw (2014) who claimed for research on MI generation, highlighting "how relations with external and internal partners can deliver knowledge" (2009). We focus on the entrepreneur-CPA relationship to study how the relationship between the CPA as an external change actor and the entrepreneur as an internal change actor can be a lever of MI generation in microentreprises. More particularly, we aim at understanding how the external CPA knowledge can be internalised by the entrepreneur in microentreprises through the acquisition, assimilation, transformation and exploitation of knowledge. And more particularly, we propose to highlight the key drivers of the generation of MI in microentreprises through the study of the process by which a potential ACAP becomes realised (Cohen and Levinthal, 1990; Lane et al., 2006; Gebauer et al., 2012; Marabelli and Newell, 2014).
    Keywords: management innovation,absorptive capacity,microentreprise,relationship,CPA,entrepreneur
    Date: 2018–09
  5. By: Andersson, David; Karadja, Mounir; Prawitz, Erik (Research Institute of Industrial Economics)
    Abstract: This paper studies the effect of emigration on technological change in sending locations after one of the largest migration events in human history, the mass migration from Europe to the United States in the 19th century. To establish causality, we adopt an instrumental variable strategy that combines local growing-season frost shocks with proximity to emigration ports. We document two sets of results. First, using novel data on technological patents, we find that emigration led to an increase in innovative activity in sending municipalities. Moreover, the increase in innovation is coupled with an increased adoption of new technologies in both the agricultural and industrial sectors. Second, in terms of local economic development, we find that emigration led to higher unskilled wages in agriculture, a shift towards employment in the nascent industrial sector, a larger presence of incorporated firms, as well as higher tax revenues.
    Date: 2020–03–20
  6. By: Aalto, Eero; Gustafsson, Robin
    Abstract: Abstract We review the extant research on the government innovation promotion rationales and impacts. Based on the research literature, the review synthesizes innovation promotion rationales, economic justifications for the intervention, impact evaluations of innovation promotion interventions, and current forms and mechanisms of innovation promotion. We identify four main rationales and economic justifications for government intervention in promoting research, technology development, and innovation: (1) the market failure rationale; (2) the system failure rationale; (3) policy outcome rationale from positive spill-over effects from research, technology development and innovation; and (4) four mission oriented policy rationale, including grand societal challenges, responsible innovation, demand-side innovation policy, and public sector innovation. Recent impact evaluation evidence show, in general, more positive than negative outcomes from innovation promotion. Research designs still include high degree of heterogeneity, and thus has some mixed results. Studies are still divided on the crowding-out effect, and to which extent interventions translate into long-lasting benefits. We find tentative positive impacts on broader policy goals seeking for societal and economic benefits. Future public policies and impact evaluations should seek to incorporate more holistic and longitudinal designs.
    Keywords: Innovation policy, Impact evaluation, Policy rationales, Innovation promotion
    JEL: L53 O38 O30
    Date: 2020–03–12
  7. By: Fernando Galindo-Rueda (OECD); Fabien Verger (OECD); Sylvain Ouellet (Statistics Canada)
    Abstract: This paper uses a distributed microdata analysis approach to map patterns of technology adoption in Canadian firms, exploring the relationship between technology adoption, business practices and innovation. Prepared by the OECD NESTI secretariat in collaboration with Statistics Canada, the paper leverages a unique enterprise database combining information on innovation, technology adoption and the use of selected business practices. This work suggests a number of possible pathways for selecting and defining priority technology and business practices for data collection and reporting, implementing recommendations in the 2018 Oslo Manual on enablers and objectives of business innovation, and identifying potential synergies between business innovation, management and ICT, and other surveys focused on various aspects of technology adoption.
    Date: 2020–03–19
  8. By: Piva, Mariacristina; Tani, Massimiliano; Vivarelli, Marco
    Abstract: This paper builds on and considerably extends Piva, Tani and Vivarelli (2018), confirming the key role of Business Visits as a productivity enhancing channel of technology transfer. Our analysis is based on a unique database on business visits sourced from the U.S. National Business Travel Association, merged with OECD and World Bank data and resulting in an unbalanced panel covering 33 sectors and 14 countries over the period 1998-2013 (3,574 longitudinal observations). We find evidence that BVs contribute to fostering labour productivity in a significant way. While this is consistent with what found by the previous (scant) empirical literature on the subject, we also find that short-term mobility exhibits decreasing returns, being more crucial in those sectors characterized by less mobility and by lower productivity performances.
    Keywords: Business visits,Labour mobility,Knowledge diffusion,R&D,Productivity
    JEL: J61 O33
    Date: 2020
  9. By: Tobias Schlegel; Curdin Pfister; Uschi Backes-Gellner
    Abstract: Previous economic research shows that tertiary education expansions lead to various positive first order effects, such as more patents, higher productivity or newly founded firms. However, less is known on the second order effects of tertiary education expansions, for example, the impact on regional firm development. We evaluate the impact of a tertiary education expansion on regional firm development——as measured by average profits per firm——by using administrative tax data at a geographically disaggregated level (i.e. municipalities). A policy change in Switzerland, leading to a quasi-random establishment of universities of applied sciences (UAS)-bachelor-granting three year-colleges teaching and conducting applied research-thereby serves as our case study. Depending on our regression model, we find that average profits per firm in treated municipalities, i.e., near a UAS, are between 15% to 24% higher than in non-treated municipalities after the establishment of UASs. Analyzing the dynamics of this second order effects shows that profits start to increase significantly three years after the UAS establishment and persist even in the long run.
    Keywords: Higher Education and Research Institution, Innovation, Regional Firm Development
    JEL: I23 I26 O18 O30
    Date: 2020–03
  10. By: Rofi Rofaida (Faculty of Business and Economic Education, Universitas Pendidikan Indonesia, Indonesia Author-2-Name: Suryana Author-2-Workplace-Name: Faculty of Business and Economic Education, Universitas Pendidikan Indonesia, Indonesia Author-3-Name: Ayu Krishna Yuliawati Author-3-Workplace-Name: Faculty of Business and Economic Education, Universitas Pendidikan Indonesia, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - This research aims to obtain profile corporate entrepreneurship and identify a strategy to develop corporate entrepreneurship to improve the business performance of the digital creative industry in the industrial revolution era 4.0/industry 4.0 through a Penta Helix Collaboration Model.Methodology/Technique - The unit of analysis in this study was the digital creative industry in West Java Province, which was one of the centres of the digital creative industry in Indonesia. This research was a qualitative research. The sample size was determined by the snow ball method. The sample size used in this study was 50 SMEs. The sampling technique used was purposive sampling. Data was collected through observation, questionnaires, in depth interviews and focus group discussions by involving SME's in the digital creative industry, academics, creative industries communities, and media. The study used a time frame from June 2017 until March 2019. According to the objective of this study, descriptive analysis was used.Findings - The findings revealed that most digital creative industry need corporate entrepreneurship development. Penta helix collaboration models are needed so that the strategy can be implemented well. Research on the topic of corporate entrepreneurship in the digital creative industry is still rarely conducted. Novelty – The novelty or originality of this research is recommended business strategies based on corporate entrepreneurship and assist the government in formulating appropriate policies for the growth and development of digital creative industries in West Java. The results of this study can also strengthen research with different topics in the digital creative industry in West Java and in Indonesia.
    Keywords: Business Performance; Creative Industry; Digital Creative Industry; Corporate Entrepreneurship; Penta Helix Collaboration Model.
    JEL: M21 M29
    Date: 2019–12–30
  11. 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: "Service Studies" and public management are two fields of research that have developed separately, although they share a common target (services delivery). This paper is an attempt to enhance the dialogue about service production and innovation among the paradigms of public administration (Traditional Public Administration, New Public Management and New Public Governance) and the analytical perspectives used in service studies (Assimilation to the goods logic, Demarcation and Integration).
    Abstract: Les « service studies » et le management public sont deux champs qui se sont développés séparément bien que partageant un même objet : le service. Ce papier vise à renforcer le dialogue à propos de la production et de l'innovation de service entre les paradigmes du management public (administration publique traditionnelle, nouveau management public et nouvelle gouvernance publique) et les perspectives analytiques des « Service Studies » (assimilation à la logique industrielle, démarcation et intégration).
    Keywords: innovation,services,public services,public administration,new public management,new public governance,services publics,administration publique,nouveau management public,nouvelle gouvernance publique
    Date: 2019

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