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on Innovation |
| By: | Zaby, Alexandra |
| Abstract: | From the viewpoint of an innovator a patent is a tradeoff between the right to exclude others from using the patented matter versus the requirement to disclose it. Given the sequential nature of many innovations, patent induced technology diffusion can spur technological progress. However, second innovators face the risk of being sued for infringement of the original patent. Incomplete patent protection reduces the risk of such infringement: either a narrow 'leading breadth' of the patent or the intentional containment of patent protection by a "research use" or "Bolar exemption" provide "safe harbors" for second innovators. This paper investigates how incomplete patent protection affects the propensity to patent of the initial inventor on the one hand and overall innovation incentives on the other hand. We find that incomplete patent protection can positively affect overall innovation incentives while maintaining the advantageousness of patent protection over secrecy. However, if second innovators face a very low risk of being punished for patent infringement, the propensity to patent decreases. |
| Keywords: | sequential innovation,research use exemption,patenting decision,patent race,incomplete patent protection |
| JEL: | O31 O24 L24 D21 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224653&r=all |
| By: | Schmutzler, Armin; Letina, Igor; Seibel, Regina |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224631&r=all |
| By: | Naudé, Wim |
| Abstract: | Industrialization is vital for inclusive and sustainable global development. The two engines of industrialization - innovation and trade - are in danger of being compromised by the COVID-19 pandemic, under conditions increasingly reminiscent of the medieval world. It comes at a time when innovation had already been stagnating under guild-like corporate concentration and dominance, and the multilateral trade system had been buckling under pressure from a return to mercantilist ideas. The COVID-19 pandemic may cause a permanent reduction in innovation and entrepreneurship and may even bring the 4th industrial revolution (4IR) to a premature end. Hence the post-COVID-19 world may be left with trade as the only engine for industrialization for the foreseeable future. If the global community fails to fix the multilateral trade system, the world may start to resemble the Middle Ages in other, even worse, aspects. |
| Keywords: | COVID-19,innovation,trade,development,industrialization,industrial policy |
| JEL: | F01 F13 L26 L52 O25 O30 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:704&r=all |
| By: | Gries, Thomas (University of Paderborn); Naudé, Wim (RWTH Aachen University) |
| Abstract: | In light of the COVID-19 pandemic, we scrutinize what has been established in the literature on whether entrepreneurship can cause and resolve extreme events, the immediate and long-run impacts of extreme events on entrepreneurship, and whether extreme events can positively impact (some) entrepreneurship and innovation. Based on this, we propose a partial equilibrium model to provide several conjectures on the impact of COVID-19 on entrepreneurship and derive policy recommendations for recovery. Our model's comparative statics shows that entrepreneurship recovery will benefit from aggregate demand-side support measures, combined with direct subsidies for start-ups, firms' revenue losses, and loan liabilities, as well as from actions that promote income redistribution. |
| Keywords: | entrepreneurship, innovation, COVID-19, extreme events, development |
| JEL: | I18 L26 L53 M13 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13835&r=all |
| By: | Link, Albert (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | The relationship between investments in research and development (R&D) and innovative behavior, measured in terms of new products or services being delivered to the market, is well documented in the literature. This paper departs from the extant literature in that the unit of observation is a country rather than a firm. Using World Bank aggregate data, this level of analysis thus allows for a systematic study of cross-country observations on an R&D Innovation relationship. |
| Keywords: | R&D; Innovation; Developed Economy; Transition Economy; Developing Economy; |
| JEL: | O31 O32 O57 |
| Date: | 2020–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2020_010&r=all |
| By: | Slavtchev, Viktor; Bräuer, Richard; Mertens, Matthias |
| Abstract: | This study analyzes empirically the effects of import competition on firm productivity (TFPQ) using administrative firm-level panel data from German manufacturing. We find that only import competition from high-income countries is associated with positive incentives for firms to invest in productivity improvement, whereas import competition from middle- and low-income countries is not. To rationalize these findings, we further look at the characteristics of imports from the two types of countries and the effects on R&D, employment and sales. We provide evidence that imports from high-income countries are relatively capital-intensive and technologically more sophisticated goods, at which German firms tend to be relatively good. Costly investment in productivity appears feasible reaction to such type of competition and we find no evidence for downscaling. Imports from middle- and low-wage countries are relatively labor-intensive and technologically less sophisticated goods, at which German firms tend to generally be at disadvantage. In this case, there are no incentives to invest in innovation and productivity and firms tend to decline in sales and employment. |
| Keywords: | productivity,multi-product firms,import competition |
| JEL: | F14 L25 D22 D24 F61 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc20:224563&r=all |
| By: | Bart van Ark; Klaas de Vries; Abdul Erumban |
| Abstract: | Over the past 15 years productivity growth in advanced economies has significantly slowed, giving rise to the productivity paradox of the New Digital Economy – that is, the notion of increased business spending on ICT assets and digital services without a noticeable increase in productivity. We argue that time lags are the most important reason for the slow emergence of the productivity effects from digital transformation. This paper provides evidence that underneath the slowing productivity growth rates at the macro level, signs of structural improvements can be detected. In the US most of the positive contribution to productivity growth is coming from the digital producing sector. The Euro Area and the UK show larger productivity contributions from the most intensive digital-using sectors, although the UK also had a fairly large number of less intensive digital-using industries which showed productivity declines. We also find that increases in innovation competencies of the workforce are concentrated in industries showing faster growth in labour productivity, even though more research is needed to identify causality. Finally, we speculate that as the recovery from the COVID-19 recession gets underway the potential for significant productivity gains in the medium term is larger than during the past fifteen years. |
| Keywords: | Production, Cost, Capital, Multifactor and Total Factor Productivity, Capacity, Measurement of Economic Growth, Aggregate Productivity |
| JEL: | D24 O47 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:niesrd:518&r=all |