nep-ino New Economics Papers
on Innovation
Issue of 2021‒03‒01
fifteen papers chosen by
Uwe Cantner
University of Jena

  1. Patent landscaping using 'green' technological trajectories By Nomaler, Önder; Verspagen, Bart
  2. Technological relatedness: How do firms diversify their technology? By Kim, Seung Hwan; Jun, Bogang; Lee, Jeong-Dong
  3. Fencing Off Silicon Valley: Cross-Border Venture Capital and Technology Spillovers By Ufuk Akcigit; Sina T. Ates; Josh Lerner; Richard R. Townsend; Yulia Zhestkova
  4. Financing Innovation: A Complex Nexus of Risk & Reward By Dutta, Sourish
  5. How Social Innovation can be Supported in Structurally Weak Rural Regions By Christmann, Gabriela B.
  6. The missing link: international migration in global clusters of innovation By Massimiliano CODA-ZABETTA; Christian CHACUA; Francesco LISSONI; Ernest MIGUELEZ; Julio RAFFO; Deyun YIN
  7. Tapping into Talent: Coupling Education and Innovation Policies for Economic Growth By Ufuk Akcigit; Jeremy Pearce; Marta Prato
  8. Local entrepreneurship ecosystems and emerging industries: Case study of Cambridgeshire and Peterborough, United Kingdom By OECD
  9. Conceptualizing Strategic Innovation in a Firm Context: A Theoretical Review and Research Agenda By Mulaa, Josephine K.; Kilika, James M.; Namusonge, Mary J.; Institute of Research, Asian
  10. Orchestrating platform ecosystems : the interplay of innovation and business development subsystems By Thierry Isckia; Mark de Reuver; Denis Lescop
  11. Digitalizing Firms: Skills, Work Organization and the Adoption of New Enabling Technologies By Valeria Cirillo; Lucrezia Fanti; Andrea Mina; Andrea Ricci
  12. The Impact of Digitalization Policies. Evidence from Italy�s Hyper-depreciation of Industry 4.0 Investments By Barbara Bratta; Livio Romano; Paolo Acciari; Francesca Mazzolari
  13. Technology Transfer and Innovation for Low-Carbon Development. By Miria A. Pigato; Simon J. Black; Damien Dussaux; Zhimin Mao; Miles Mckenna; Ryan Rafaty; Simon Touboul
  14. Technology Diffusion By Nancy Stokey
  15. Centripetal and centrifugal forces in technological activities: linking regional innovation performances to EU Science & Technology policies By Daniele Archibugi; Rinaldo Evangelista; Antonio Vezzani

  1. By: Nomaler, Önder (UNU-MERIT); Verspagen, Bart (UNU-MERIT, Maastricht University)
    Abstract: We present a number of green technology patent landscaping exercises, based on a method that we developed earlier to identify the main technological trends in a very large (i.e., universal) patent citation network comprising all patented technologies. This method extracts a so-called network of main paths, where we interpret each path as a technological trajectory in the sense of Dosi (1982). We use co-occurrence on the technological trajectories as the main metric to build a network of technological relations, with green/non-green, the technology class (4-digit IPC classes) and geographical location (countries) as the main dimensions along which we observe green technology. The technology landscaping exercise visualises these networks. In this way, we draw a detailed map of green technologies (along with the particular non-green technologies that contribute thereto or benefit therefrom), in which we find both very broad and general areas (such as ICT or medical and health), and specific green technologies, such as batteries, wind power and electric vehicles. In the geography- based map, we find specific European and non-European areas. In all our landscaping maps, non-green technologies play a large role, indicating that sectoral and geographical progress in greentech cannot be fully understood independently of developments in particular fields of non-greentech technologies.
    Keywords: green technology, technological trajectories, patent citations, patent landscaping
    JEL: O31 O33 Q55
    Date: 2021–02–08
  2. By: Kim, Seung Hwan; Jun, Bogang; Lee, Jeong-Dong
    Abstract: The principle of relatedness, which helps estimate the affinity between economic activities, suggests that cities, regions, and countries are more likely to undertake new economic activities when they already perform related activities. This empirical principle has been confirmed for various dimensions---cities, regions, and countries---and their activities--- developing new technologies, products, and industries. However, the technological diversification of firms is yet unexplored. Is a firm more successful at entering a new technology when it has already accumulated related technologies? Here, we explore this issue using a unique dataset that contains firms' patent data and financial and market information. In particular, we examine Korean firms listed in the Korean stock market that published patents at the patent offices in Korea, Europe, and the United States from 1984 to 2004. We develop a technological relatedness measure to estimate whether a firm has already published patents with similar technologies. We find that firms are more likely to develop a new technology when they already have related technologies. Interestingly, technological relatedness shows an increasing return to related knowledge. We also check the robustness of this effect using propensity score matching and find that the effects of technological relatedness and its increasing return behavior remain significant when controlling for potential confounding effects. These findings extend the concept of relatedness to a firm's technological diversification and show that the development of a firm's technological knowledge is shaped by its technological relatedness.
    Date: 2021–02–25
  3. By: Ufuk Akcigit (University of Chicago - Department of Economics; NBER; CEPR); Sina T. Ates (Federal Reserve Board of Governors); Josh Lerner (Harvard University - Harvard Business School; NBER); Richard R. Townsend (University of California at San Diego - Rady School of Management); Yulia Zhestkova (University of Chicago - Department of Economics)
    Abstract: The treatment of foreign investors has been a contentious topic in U.S. entrepreneurship policy in recent years. This paper examines foreign corporate investments in Silicon Valley from a theoretical and empirical perspective. We model a setting where such funding may allow U.S. entrepreneurs to pursue technologies that they could not otherwise, but may also lead to spillovers to the overseas firm providing the financing and the nation where it is based. We show that despite the benefits from such inbound investments for U.S. firms, it may be optimal for the U.S. government to raise their costs to deter investments. Using as comprehensive as possible a sample of investments by non-U.S. corporate investors in U.S. start-ups between 1976 and 2015, we find evidence consistent with the presence of knowledge spill-overs to foreign investors.
    Keywords: Innovation, foreign direct investment, corporate venture capital
    JEL: G24 O33 O34
    Date: 2020
  4. By: Dutta, Sourish
    Abstract: The crucial and growing role performed by different financial intermediaries such as venture capitalists and angel investors as well as more traditional intermediaries such as commercial banks in developing entrepreneurial or innovative firms and boosting product market innovations has led to great research interest in the economics of innovation and entrepreneurial finance. Besides this, there are some important factors or developments which have affected the entrepreneurial finance in general as well as its influence upon different entrepreneurial or innovative firms. Indeed, it is also true that the financial and ownership structures of the different entrepreneurial firms and the legal as well as the institutional environment, in which they operate, itself affects the product market innovations (Chemmanur and Fulghieri, 2014). Therefore, in this paper, I want to target a broad theme i.e. analysis of the mechanisms behind this scenario, especially, in the context of the Indian market system.
    Date: 2019–12–16
  5. By: Christmann, Gabriela B.
    Abstract: In fact, throughout Europe there is an abundance of innovative initiatives to be seen in the countryside (Olmedo/van Twuijver/O'Shaughnessy 2019), advanced by rural inhabitants, social entrepreneurs, or both in collaboration, and which is here termed "social innovation". To social innovation one can ascribe the potential for meeting the diverse challenges of our society. For some time, political decision makers have also placed hope in social innovation. Early on, the European Commission set itself the target of promoting the empowerment of people and the development of social innovation (Bureau of European Policy Advisers 2010; see also Jenson/Harrison 2013, Christmann 2020). There are, however, still many questions about the conditions in which social innovation emerges in rural areas, how its potential can be developed, and what support strategies can be used to assist it. The basis of this Policy Paper is empirical research that tackles these questions. By analysing innovative initiatives in the countryside, the conditions and the actor constellations necessary for their emergence has been reconstructed. The phases through which the processes of innovation are carried out have also been investigated, and critical junctures that could pose a threat to their further progress have been identified, as well as favourable factors. Using the example of failed initiatives, it has been possible to explore what conditions could be adverse, or what obstacles are insurmountable, for an innovative initiative.
    Date: 2020
  6. By: Massimiliano CODA-ZABETTA; Christian CHACUA; Francesco LISSONI; Ernest MIGUELEZ; Julio RAFFO; Deyun YIN
    Abstract: In this chapter we look at the global network of innovative agglomerations, with a focus on their degree of internationalization and on the actors behind it – particularly high-skilled migrants. Using worldwide patent and publication geo-localized data, we identify all Global Hotspots of Innovation (GIHs) and Niche Clusters (NCs) worldwide, and study their success as a function of their international connections. In particular, we compare organizational ones, such as international collaborations orchestrated by multinational firms’ collaborations, to personal ones, which may derive from migration to/from the GIHs and NCs. We find a strong role of the latter, always comparable and sometimes larger than the former.
    Keywords: patents; publications; agglomeration; internationalization; migration
    JEL: O30 F20 F60
    Date: 2021
  7. By: Ufuk Akcigit (University of Chicago - Department of Economics; NBER; CEPR); Jeremy Pearce (University of Chicago - Department of Economics); Marta Prato (University of Chicago - Department of Economics)
    Abstract: How do innovation and education policy affect individual career choice and aggregate productivity? This paper analyzes the various layers that connect R&D subsidies and higher education policy to productivity growth. We put the development of scarce talent and career choice at the center of a new endogenous growth framework with individual-level heterogeneity in talent, frictions, and preferences. We link the model to micro-level data from Denmark and uncover a host of facts about the links between talent, higher education, and innovation. We use these facts to calibrate the model and study counter-factual policy exercises. We find that R&D subsidies, while less effective than standard models, can be strengthened when combined with higher education policy that alleviates financial frictions for talented youth. Education and innovation policies not only alleviate different frictions, but also impact innovation at different time horizons. Education policy is also more effective in societies with high income inequality.
    Keywords: R&D policy, education policy, inequality, innovation, iq, endogenous growth
    JEL: O31 O38 O47 J24
    Date: 2020
  8. By: OECD
    Abstract: This paper examines how local-level policies can strengthen entrepreneurship and innovation in the region of Cambridgeshire and Peterborough in the United Kingdom. It investigates the quality of the local entrepreneurship ecosystem for generating innovative start-ups and scale-ups and the regional conditions for generating positive industry transitions by supporting the strategic sectors of life sciences, information technologies, agri-tech and advanced manufacturing. Key areas of focus are on skills development, entrepreneurship development and knowledge exchange for local economic development. A number of policy recommendations are offered based on the analysis together with international inspiring policy practice examples.
    Keywords: entrepreneurship, industry transition, knowledge exchange, regional policy, skills
    JEL: J24 L52 L53 R58
    Date: 2021–02–02
  9. By: Mulaa, Josephine K.; Kilika, James M.; Namusonge, Mary J.; Institute of Research, Asian
    Abstract: The literature on strategic management recognizes the pivotal role played by strategic innovation as a strategic choice in organizations in order to create a sustainable competitive advantage. However, although there are emerging calls for the adoption of strategic innovation in a firm’s strategic management process, the concept of strategic innovation is not well understood. The scanty empirical literature reviewed has methodological and conceptual gaps that affect the generalizability of findings even in similar contexts. In this paper, the authors have attempted to review Strategic Innovation and argued that the emerging phenomena from its deployment in firms invite the role of the firm structure and innovative capacity as the firm seeks to enhance its chances of survival in a rapidly changing firm context. The conceptual, theoretical and empirical literature reviewed identified diverse issues that present a case for a theoretical model suitable to advance the current understanding of strategic innovation and the emerging phenomenon in firms. This paper therefore proposes an integrated theoretical model conceptualizing strategic innovation in a firm context and identifies relevant implications for future research.
    Date: 2021–02–09
  10. By: Thierry Isckia (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School, MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School); Mark de Reuver (TU Delft - Delft University of Technology); Denis Lescop (Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School)
    Abstract: In this paper, we analyze how to orchestrate platform ecosystems in order to ensure the commercialization of constant flows of innovations. We focus on platform-owners and how they orchestrate the coupling process between the innovation part of the ecosystem and the business development part of the ecosystem. We apply a life-cycle perspective, analyzing how these two subsystems are dynamically aligned through this coupling process. Three emblematic case studies illustrate platform-owners' choices regarding the management of this coupling process. Existing accounts of ecosystem orchestration are quite scarce in the academic literature and do not systematically acknowledge that innovation and business development are subsystems. By considering the two parts of ecosystems, our paper contributes to a more fine-grained understanding of platform ecosystem orchestration.
    Keywords: Platform Ecosystems,Orchestration,Coupling Process,Sub-systems,Innovation
    Date: 2020–05
  11. By: Valeria Cirillo; Lucrezia Fanti; Andrea Mina; Andrea Ricci
    Abstract: New enabling technologies are shaping the transformation of production activities. This process of change is characterised by growing digitization, inter-connectivity and automation. The diffusion of new technologies is, however, very uneven, and firms display different adoption behaviours. By using panel data on a large representative sample of Italian firms, we explore the patterns and determinants of new digital technology adoption. We build our theoretical framework on the nexus between technology, skills and the organisation of work. We then provide novel econometric evidence on the positive effects of human capital and training. Among the notable results of the paper, labour flexibility does not seem to favour new technology adoption, whereas second-level collective bargaining plays a positive role in the process. Results also show heterogeneous effects between large vs. small and medium-size firms, and between manufacturing and service sectors.
    Keywords: Digital technologies; Industry 4.0; skills; human capital; work organisation.
    Date: 2021–02–05
  12. By: Barbara Bratta (Ministry of Economy and Finance of Italy); Livio Romano (Confindustria); Paolo Acciari (Ministry of Economy and Finance of Italy); Francesca Mazzolari (Confindustria)
    Abstract: This paper investigates the role played by hyper-depreciation of tangible assets, a fiscal incentive introduced for the first time by the Italian Government in 2017, in sustaining private investments in advanced digital technologies, and, indirectly, in affecting firms� labor demand. By making use of a unique firm-level dataset that links administrative records on tax returns and job flows with information from company balance-sheets, the paper addresses the following questions: what was the take-up of the fiscal incentive in its first year of implementation? What are the characteristics of recipient firms? What is the impact of subsidized investments on firms� hirings and separations? Overall, the results of the analysis suggest that hyper-depreciation has been so far an effective means to support the digital technology trasformation of the Italian production system and that such transformation has had a positive net effect
    Keywords: digitalization, innovation policy, labor demand, skills
    JEL: J24 O25 O33
    Date: 2020–06
  13. By: Miria A. Pigato; Simon J. Black; Damien Dussaux; Zhimin Mao; Miles Mckenna; Ryan Rafaty; Simon Touboul (CERNA i3 - Centre d'économie industrielle i3 - CNRS - Centre National de la Recherche Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres)
    Date: 2020–03–24
  14. By: Nancy Stokey (University of Chicago - Department of Economics)
    Abstract: The importance of new technologies derives from the fact that they spread across many different users and uses, as well as different geographic regions. The diffusion of technological improvements, across producers within a country and across international borders, is critical for long run growth. This paper looks at some evidence on adoption patterns in the U.S. for specific innovations, reviews some evidence on the diffusion of new technologies across international boundaries, and looks at two theoretical frameworks for studying the two types of evidence. One focuses on the dynamics of adoption costs, the other on input costs.
    JEL: O14 O33
    Date: 2020
  15. By: Daniele Archibugi (Department of Management, Birkbeck College, University of London); Rinaldo Evangelista (chool of Law, University of Camerino, Italy); Antonio Vezzani (Department of Economics, Roma Tre University, Italy)
    Date: 2021–01

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