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on Innovation |
| By: | Karlson, Nils (The Ratio Institute); Sandström, Christian (The Ratio Institute); Wennberg, Karl (The Ratio Institute) |
| Abstract: | This paper takes stock of recent suggestions that the state apparatus is a central and underappreciated actor in the generation, diffusion and exploitation of innovations enhancing growth and social welfare. We contrast such a view of “the entrepreneurial state” with theories and empirical evidence of the microeconomic processes of innovation in the modern economy which focus on well-functioning markets, free entry and competition among firms, and independent entrepreneurship as central mechanisms in the creation and dissemination of innovations. In doing so, we identify several deficiencies in the notion of an entrepreneurial state by showing that (i) there is weak empirical support in the many hundreds empirical studies and related meta analyses evaluating the effectiveness of active industrial and innovative policies, that (ii) these policies do not take account of the presence of information and incentive problems which together explain why attempts to address purported market failures often result in policy failures, and that (iii) the exclusive focus on knowledge creation through R&D and different forms of firm subsidies ignores the equally important mechanisms of knowledge dissemination and creation through commercial exploitation in markets. We discuss how a more theoretically well-founded focus on the state as investing in knowledge generation and securing the conditions of free and competitive markets will lead to a more innovative economy. |
| Keywords: | innovation policy; market failure; entrepreneurial state; incentive problem; rent seeking |
| JEL: | M13 O31 O38 O40 P16 |
| Date: | 2020–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0331&r=all |
| By: | Link, Albert (University of North Carolina at Greensboro, Department of Economics); Morris, Cody (University of North Carolina at Greensboro, Department of Economics); van Hasselt, Martijn (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | Entrepreneurial firms that rely on public research institutes, the third sector of R&D, are also firms that are more innovative in terms of introducing new or significantly improved goods or services to the market. This finding is based on an analysis of 4,004 knowledge-intensive entrepreneurial (KIE) firms located in ten European Union countries. We interpret our findings as suggestive evidence of the importance of policy makers continuing to support financially public research institutions. |
| Keywords: | Research institute; third sector of R&D; innovation; entrepreneurship; KIE firms; |
| JEL: | L26 O31 O32 O38 |
| Date: | 2020–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2020_002&r=all |
| By: | Pierre-Alexandre Balland; Ron Boschma; Koen Frenken |
| Abstract: | We review proximity research on collaborative innovation among organizations. We discuss the basic theorical tenets of collaborative innivation and summarize empirical findings on the roles of various forms of proximity. At the aggregative level, we look at studies of inter-organizational relations at the aggregate level of innovation systems. We end with a discussion of next steps in proximity research on collaborative innovation. |
| Keywords: | proximity, innovation, networks, inter-organizational relations, innovation systems, knowledge base |
| JEL: | B25 D85 L14 O3 R1 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2019&r=all |
| By: | Andrés Rodríguez-Pose; Neil Lee |
| Abstract: | Innovation in cities is increasingly regarded as an outcome of two potential inputs: scientific activity and creativity. Recent research using firm level data has suggested that actually it might be the combination of these two inputs, rather than the mere presence of workers representing each group, which matters. Yet there is little evidence on whether this relationship holds using city level data in the case of the United States (US). This paper investigates this gap in our knowledge by examining how the combination of STEM (geeks) and creative workers (hipsters) in a panel of 290 US Metropolitan Statistical Areas during the period between 2005 and 2015 relates to city level innovation. The results indicate that, although the presence of STEM workers is a more important driver of innovation than that of creative ones, the most innovative cities are characterised by a combination of the two. Hence, current policies which tend to focus mainly on either STEM or creativity may be better targeted at ensuring interactions between the two. |
| Keywords: | creativity, creative class, STEM, innovation, cities, United States |
| JEL: | O18 O32 O33 R12 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2021&r=all |
| By: | Bryson, Alex (University College London); Dale-Olsen, Harald (Institute for Social Research, Oslo) |
| Abstract: | We present theoretical and empirical evidence challenging results from early studies that found unions were detrimental to workplace innovation. Under our theoretical model, which extends the Cournot duopoly innovation model, local union wage bargaining is more conducive to innovation - particularly product innovation - than competitive pay setting. We test the theory with workplace data for Britain and Norway. Results are consistent with the theory: local union bargaining is positively associated with product innovations in both countries. In Norway, local union bargaining is also positively associated with process innovation. |
| Keywords: | product innovation, process innovation, trade unions, collective bargaining |
| JEL: | J28 J51 J81 L23 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13015&r=all |
| By: | Gaetan de Rassenfosse (Ecole polytechnique federale de Lausanne); Gabriele Pellegrino (Ecole polytechnique federale de Lausanne); Emilio Raiteri (Eindhoven University of Technology) |
| Abstract: | This paper provides novel empirical evidence that patents enable knowledge disclosure. The analysis exploits the Invention Secrecy Act, which grants the U.S. Commissioner for Patents the right to prevent disclosure of new inventions that represent a threat to national security. Using a two-level matching approach, we document a negative and large relationship between the enforcement of a secrecy order and follow-on inventions, as captured with patent citations and text-based measures of invention similarity. The effect of secrecy orders is particularly salient for geographically-distant parties and for inventions in the same technological field as the secreted patent. |
| Keywords: | disclosure, follow-on invention, knowledge diffusion, patent |
| JEL: | O31 O33 O34 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:iip:wpaper:9&r=all |
| By: | James A. Cunningham (Northumbria University, Newcastle Business School); Paul O’Reilly (Technological University Dublin); Daire Hooper (Technological University Dublin); Daniel Nepelski (European Commission, Joint Research Centre); Vincent Van Roy (European Commission, Joint Research Centre) |
| Abstract: | This report presents key findings of the Innovation Radar Project Coordinators Survey in European Framework Programme Research and Innovation projects, a purposeful sample of European Framework Programme (FP) Project Coordinators (PC). The objective is to identify the practices and activities of PCs leading EU FP projects and to understand their impact on innovation outcomes. The survey findings confirm the lynchpin role of PCs in the European FP R&I projects. Their role clearly extends significantly beyond that identified in the Horizon 2020 User Guide which sees the PC as “the main contact point between the consortium and the Commission for a particular grant†. The PC is far more than simply “the proposal initiator in the submission phase†but taking account of their prime role in project conceptualisation and consortia formation, the PC is in effect the principal translator of the EC funded research programme and responsible for how the majority of the European research budget is invested. Identifying the PC as a scientific entrepreneur significantly changes how the PC role is viewed. Recognising the PC as a scientific entrepreneur means their engagement with the PC during the project should be less about monitoring and oversight during project implementation, and more about providing the entrepreneur with support. |
| Keywords: | European Commission, Framework Programme, FP7, H2020, Project Coordinators, Principal Investigators, innovation |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc120015&r=all |
| By: | Padmashree Gehl Sampath; Walter Park |
| Abstract: | Market concentration in technology intensive industries has been a subject of interest to both scholars and policy analysts. This paper provides a first empirical assessment on how the patenting system contributes to market concentration and the generation of economic rents in three key sectors – pharmaceuticals, chemicals and ICTs. Using data for US multinationals and their foreign affiliates on the one hand, and locally registered private and public companies in Brazil, India and China, we conclude that the concentration of patent ownership is found significantly to relate to market concentration in the USA. In developing countries such as Brazil, India, and China, a strengthening of patent rights has contributed to greater returns for affiliates of U.S. companies but has not stimulated their R&D intensity. The affiliates of U.S. multinationals have enjoyed greater profitability relative to their local competitors in Brazil, India, and China. The paper draws implications for the setting of intellectual property policy and offers suggestions on the role of competition policy in curbing market concentration and related effects on inequality and access. |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:dae:daepap:19-02&r=all |
| By: | Iwata, Hiroki |
| Abstract: | This paper analyzes the effects of environmental policy on green innovation. We compare the incentives for green innovation in both the Cournot and Bertrand competition. It is shown that positive incentives for green innovation exist in both competition models. When environmental regulations are imposed, the effects of the probability of success on green innovation incentives differ between the Bertrand and Cournot competition. Additionally, we clarify the conditions necessary for the establishment of the Porter hypothesis in both competition models. |
| Keywords: | Cournot and Bertrand competition, Green innovation, Porter hypothesis |
| JEL: | L13 Q52 Q55 |
| Date: | 2020–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:99305&r=all |
| By: | Gaetan de Rassenfosse (Ecole polytechnique federale de Lausanne); Marco Grazzi (Department of Economic Policy, Università Cattolica del Sacro Cuore); Daniele Moschella (Institute of Economics & EMbeDS, Scuola Superiore Sant’Anna); Gabriele Pellegrino (Ecole polytechnique federale de Lausanne) |
| Abstract: | This paper investigates the extent to which international trade hinges on patents. We analyze the export and patenting activities of the universe of French exporting firms over the period 2002–2011. The noticeable feature of our study is that we observe export and patenting activities worldwide and at the product level. We exploit how heterogeneity of patent coverage across (and within) product-country relates to exports. We find a patent premium of at least 10 percent, which is mainly associated with a quantity effect. A modest price effect emerges in specific sectors, notably pharmaceuticals. |
| Keywords: | export, international trade, patent, product |
| JEL: | F14 O34 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:iip:wpaper:8&r=all |
| By: | Itai Arieli (Faculty of Industrial Engineering and Management, Technion–Israel Institute of Technology); Yakov Babichenko (Faculty of Industrial Engineering and Management, Technion–Israel Institute of Technology); Ron Peretz (Department of Economics, Bar Ilan University); H. Peyton Young (London School of Economics and Nuffield College, University of Oxford) |
| Abstract: | New ways of doing things often get started through the actions of a few innovators, then diffuse rapidly as more and more people come into contact with prior adopters in their social network. Much of the literature focuses on the speed of diffusion as a function of the network topology. In practice, however, the topology may not be known with any precision, and it is constantly in flux as links are formed and severed. Here we establish an upper bound on the expected waiting time until a given proportion of the population has adopted that holds independently of the network structure. Kreindler and Young [33, 2014] demonstrated such a bound for regular networks when agents choose between two options: the innovation and the status quo. Our bound holds for directed and undirected networks of arbitrary size and degree distribution, and for multiple competing innovations with different payoffs. |
| Date: | 2018–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:nuf:econwp:1806&r=all |
| By: | Joshua Becker |
| Abstract: | When innovations compete for adoption, chance historical events can allow an inferior strategy to spread at the expense of superior alternatives. However, advantage is not always due to chance, and networks have emerged as an important determinant of organizational behavior. To understand what factors can impact the likelihood that the best alternative will be adopted, this paper asks: how does network structure shape the emergence of social and technological conventions? Prior research has found that highly influential people, or "central" nodes, can be beneficial from the perspective of a single innovation because promotion by central nodes can increase the speed of adoption. In contrast, when considering the competition of multiple strategies, the presence of central nodes may pose a risk, and the resulting "centralized" networks are not guaranteed to favor the optimal strategy. This paper uses agent-based simulation to investigate the effect of network structure on a standard model of convention formation, finding that network centralization increases the speed of convention formation but also decreases the likelihood that the best strategy will become widely adopted. Surprisingly, this finding does not indicate a speed/optimality trade-off: dense networks are both fast and optimal. |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2003.12112&r=all |
| By: | Itai Arieli (Faculty of Industrial Engineering and Management, Technion–Israel Institute of Technology); Yakov Babichenko (Faculty of Industrial Engineering and Management, Technion–Israel Institute of Technology); Ron Peretz (Department of Economics, Bar Ilan University); H. Peyton Young (London School of Economics and Nuffield College, University of Oxford) |
| Abstract: | New ways of doing things often get started through the actions of a few innovators, then diffuse rapidly as more and more people come into contact with prior adopters in their social network. Much of the literature focuses on the speed of diffusion as a function of the network topology. In practice, however, the topology may not be known with any precision, and it is constantly in flux as links are formed and severed. Here we establish an upper bound on the expected waiting time until a given proportion of the population has adopted that holds independently of the network structure. Kreindler and Young [33, 2014] demonstrated such a bound for regular networks when agents choose between two options: the innovation and the status quo. Our bound holds for directed and undirected networks of arbitrary size and degree distribution, and for multiple competing innovations with different payoffs. |
| Date: | 2019–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:nuf:econwp:1907&r=all |
| By: | Frank Tietze; Pratheeba Vimalnath; Leonidas Aristodemou; Jenny Molloy |
| Abstract: | Within national and international innovation systems a pandemic calls for large-scale action by many actors across sectors, to mobilise resources, developing and manufacturing Crisis-Critical Products (CC-Products) efficiently and in the huge quantities needed. Nowadays, this also includes digital innovations from complex epidemiological models, AI, to open data platforms for prevention, diagnostic and treatment. Amongst the many challenges during a pandemic, innovation and manufacturing stakeholders find themselves engaged in new relationships, and are likely to face intellectual property (IP) related challenges. This paper adopts an IP perspective on the COVID-19 pandemic to identify pandemic related IP considerations and IP challenges. The focus is on challenges related to research, development and urgent upscaling of capacity to manufacture CC-Products in the huge volumes suddenly in demand. Its purpose is to provide a structure for steering clear of IP challenges to avoid delays in fighting a pandemic. We identify 4 stakeholder groups concerned with IP challenges: (i) governments, (ii) organisations owning existing Crisis-Critical IP, described as incumbents in Crisis-Critical Sectors (CC-Sectors), (iii) manufacturing firms from other sectors normally not producing CC-Products suddenly rushing into CC-Sectors to support the manufacturing of CC-Products (new entrants), and (iv) voluntary grassroot initiatives that are formed during a pandemic. This paper discusses IP challenges related to the development and manufacturing of technologies and products for (i) prevention (of spread), (ii) diagnosis of infected patients and (iii) the development of treatments. We offer an initial discussion of potential response measures to reduce IP associated risks among industrial stakeholders during a pandemic. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2004.03715&r=all |
| 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: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02498297&r=all |
| By: | Kwadwo Atta-Owusu; Rune Dahl Fitjar; Andrés Rodríguez-Pose |
| Abstract: | Research and innovation policy aims to boost research output and university-industry collaboration (UIC) at least in part to allow firms access to leading scientific knowledge. As part of their mission, universities are expected to contribute to innovation in their regions. However, the relationship between research output and UIC is unclear: research-intensive universities can produce frontier research, which is attractive to firms, but may also suffer from a gap between the research produced and the needs of local firms, as well as mission overload. This may hinder local firms’ ability to cooperate with universities altogether or force them to look beyond the region for other suitable universities to interact with. This paper investigates the relationship between the research output of local universities and firms’ participation in UICs across different geographical scales. It uses Community Innovation Survey (CIS) data for Norwegian firms and Scopus data on Norwegian universities’ research output across various disciplines. The results demonstrate that local university research intensity and quality are negatively associated with firm participation in UICs at the local level. Firm characteristics, in particular the firm’s general strategy towards cooperation and its geography, turn out to be much more important than university characteristics in explaining UICs. Notably, firms’ cooperation with other external partners at the same scale is a strong predictor of UICs. |
| Keywords: | research, universities, firms, university-industry collaboration, Norway |
| JEL: | O31 O32 O33 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2017&r=all |
| By: | Gaetan de Rassenfosse (Ecole polytechnique federale de Lausanne); Kyle Higham (Ecole polytechnique federale de Lausanne) |
| Abstract: | Patent marking is used by patentees to provide a form of notice to the public about the existence of a patent and can increase damages awarded in cases of infringement. Historically, marking is done by listing the associated patents on the product they cover. Virtual patent marking (VPM), or webmarking, offers patentees a convenient alternative to this practice by allowing patentees to place a web address, linking to a list of the associated patents, on the product instead of the static patent list. However, due to uncertainty in the legal community about proper implementation, adoption has been slow, despite broad agreement on their many advantages over traditional marking. In this article, we lay out guidelines for the proper implementation of VPMs and call for a formal standard to encourage their adoption. |
| Keywords: | patent notice, product, standard, virtual patent marking, webmarking |
| JEL: | K20 K40 O34 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:iip:wpaper:7&r=all |