nep-ino New Economics Papers
on Innovation
Issue of 2020‒11‒02
five papers chosen by
Uwe Cantner
University of Jena

  1. Are ‘Flow of Ideas’ and ‘Research Productivity’ in secular decline? By Peter Cauwels; Didier Sornette
  2. Inter-sectoral and international R&D spillovers By Belderbos, René; Mohnen, Pierre
  3. R&D and firm resilience during bad times By Gupta, Apoorva
  4. The Influence of Knowledge Management Processes on Intellectual Capital and Innovation Performance By Wendra Wendra
  5. The long wave of the Internet By Pietro Bonaccorsi; Massimo Moggi

  1. By: Peter Cauwels (ETH Zürich; Director Quaerens CommV); Didier Sornette (ETH Zürich - Department of Management, Technology, and Economics (D-MTEC); Swiss Finance Institute; Southern University of Science and Technology; Tokyo Institute of Technology)
    Abstract: It is widely held true that fundamental scientific knowledge has been accelerating exponentially over the past centuries and will continue to do so for the foreseeable future. Moreover, endogenous growth theory postulates that this exponential accumulation of knowledge is the main source of the ubiquitous exponential economic growth. We test these claims by constructing two new series of knowledge indices, one representing the historical evolution of the Flow of Ideas, the other of the Research Productivity, for the time period between 1750 and 1988. Three different geographical regions are covered: 1) Continental Europe, 2) the United Kingdom, and 3) the United States; and two disciplines: a) the physical sciences, and b) the life sciences. Our main result is that scientific knowledge has been in clear secular decline since the early 1970s for the Flow of Ideas and since the early 1950s for the Research Productivity. We also observe waves coinciding with the three industrial and technological revolutions, in particular in the United Kingdom. Overall, our results support the Kuhnian theory of knowledge creation through scientific revolutions, punctuation and paradigm shifts and falsify the gradualism that lies at the basis of the currently prevailing economic paradigm of endogenous growth.
    Keywords: research productivity, knowledge accumulation, economic growth, endogenous growth, exponential growth, S-curve, technological progress, discovery, invention, innovation, scientific revolutions
    JEL: C80 H50 J24 O30 O31 O40 O50
    Date: 2020–10
  2. By: Belderbos, René (UNU-MERIT, Maastricht University, and KU Leuven); Mohnen, Pierre (UNU-MERIT, Maastricht University)
    Abstract: It has been well established in the literature that there are intra- and inter-sectoral knowledge spillovers, national as well as cross-border, that make the social rate of return to R&D exceed the private rate of return. Taking such spillovers into account is essential to examine the impact of R&D policies. This paper reviews the literature on (international) R&D spillovers and the various ways that have been proposed to measure such spillovers. Although distinctions have been made between knowledge spillovers due to the public good nature of knowledge on the one hand, and 'rent' or 'pecuniary' spillovers between suppliers and buyers due to the incomplete translation of R&D-induced quality improvements into the price of intermediates on the other hand, this distinction is difficult to make empirically. The variety of potential transmission channels and transmission effects - all with their measurement problems, suggests calculating spillover matrices that are sufficiently broad to capture their correlated effects. The paper proceeds by discussing the advantages and disadvantages of different spillover measures. It subsequently describes two matrices of inter-sectoral and international spillover weights based on patent citation data. It concludes with suggestions for future work.
    Keywords: spillovers, R&D policy, innovation, productivity, patents
    JEL: O31 O32 O33
    Date: 2020–10–12
  3. By: Gupta, Apoorva
    Abstract: Can being innovative help firms to shield themselves from the disruptive effects of a recession? Using data for Spanish manufacturing firms, this paper finds that innovative firms suffered considerably less compared to noninnovative firms during the Great Recession. The operating mechanism for the resilience of innovative firms to market disruption during a recession is product differentiation, and not reduction in marginal cost of production and prices with process innovation. The data does not support alternative explanations such as better access to capital, or difference in labour moving costs for innovative firms. The results provide evidence for the role of innovation in making firms dynamically capable and resilient to large negative shocks.
    Keywords: Innovation,Recession,Resilience,Product differentiation,Dynamic capability
    JEL: L25 O30 O31 E32
    Date: 2020
  4. By: Wendra Wendra (PPM School of Management, Indonesia Author-2-Name: Fadhliah M. Alhadar Author-2-Workplace-Name: Khairun University, Jalan Pertamina Kampus II Unkhair, Gambesi, 97719, Ternate, Indonesia Author-3-Name: Author-3-Workplace-Name: 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 - Low amounts of management research have taken into account the link between knowledge management processes and intellectual capital in innovation success. This study empirically investigates the mediation role of intellectual capital in the relationship between knowledge management processes and innovation performance. Methodology/Technique - The research questionnaires were distributed to 297 small and medium enterprises wearing apparel companies in Indonesia. The primary statistic methodology for data analysis was Partial Least Square. Findings - The study found that knowledge management processes and intellectual capital significantly influence innovation performance. Furthermore, intellectual capital mediated knowledge management processes impact on innovation performance partially Novelty - IC partially mediates the impact of knowledge management processes on innovation performance. Type of Paper - Empirical.
    Keywords: Knowledge Management Processes; Intellectual Capital; Innovation Performance; Small and Medium Enterprises; Wearing Apparel Companies.
    JEL: L67 L25 M19
    Date: 2020–09–30
  5. By: Pietro Bonaccorsi; Massimo Moggi
    Abstract: The Internet technology has radically transformed the computer and communication world, with revolutionary effects on economic and social systems at a global level. Its invention is the result of a collective research effort performed by computer scientists and telecommunications, electrical, software and computer engineers tied together in a sort of loosely coupled community, nurtured by US federal and military research programs. In this work we systematically recollect and reframe the contributions from the technological, business and economic history of the Internet into the interpretive framework provided by the evolutionary theories of technical change. More specifically, we show how the Internet as we know it is the outcome of the evolutionary processes followed by multiple technological innovations both in its transport infrastructure and in the applications grown out of it.
    Keywords: Internet history; Technological Paradigms; Technological Revolutions.
    Date: 2020–10–05

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