nep-ino New Economics Papers
on Innovation
Issue of 2021‒03‒29
nine papers chosen by
Uwe Cantner
University of Jena

  1. Smart Specialisation Strategies and Regional Productivity: A preliminary assessment in Portugal By Anabela Santos; John Edwards; Paulo Neto
  2. Exploring Recent Phenomena in Entrepreneurial Finance By Hackober, Christian
  3. The missing link: international migration in global clusters of innovation By Massimiliano Coda Zabetta; Christian Mauricio Chacua Delgado; Francesco Lissoni; Ernest Miguelez; J. Raffo; Deyun Yin
  4. Regional differences in the generation of green technologies: the role of local recombinant capabilities and academic inventors By Gianluca Orsatti; Francesco Quatraro; Alessandra Scandura
  5. On Immigration and Native Entrepreneurship By Harriet Duleep; David A. Jaeger; Peter McHenry
  6. Law, mobile money drivers and mobile money innovations in developing countries By Simplice A. Asongu; Peter Agyemang-Mintah; Rexon T. Nting
  7. What are the key components of an entrepreneurial ecosystem in a developing economy? A longitudinal empirical study on technology business incubators in China By Xiangfei Yuan; Haijing Hao; Chenghua Guan; Alex Pentland
  8. Does a local knowledge base in Industry 3.0 foster diversification in Industry 4.0 technologies? Evidence from European regions By Matteo Laffi; Ron Boschma;
  9. University Procurement-led Innovation By Sofia Patsali

  1. By: Anabela Santos (European Commission - JRC); John Edwards (Policy Experimentation and Evaluation Platform); Paulo Neto
    Abstract: Smart Specialisation is a place-based approach to innovation policy that underpins a significant amount of EU funding. The origins of the concept lie in the transatlantic productivity gap and a concern that previous investments in Research and Innovation (R&I) had failed to deliver commercial benefits. Following more than five years of implementation, this report contributes to the evaluation of the smart specialisation approach through quantitative analysis. As part of the Stairway to Excellence project, it is one of the first to assess its impact on regional productivity, based on the case of Portugal. This is done using the country’s main instrument to support corporate Research and Development (R&D) that was launched in 2007 and adapted to accommodate smart specialisation in 2014. An analysis of project characteristics reveals that during the programming period 2014-2020, financial support to corporate R&D investment aligned with S3 priorities has been more concentrated on cooperation between regions and sectors. A higher diversification of R&D and Innovation funds across sectors, regions and beneficiaries, in comparison with 2007-2013, is also observed. As more cooperation and diversification are two important features of smart specialisation, these findings suggest improved investment choices in the programming period 2014-2020. Furthermore, after controlling for the existence of potential geographical spillover effects by applying a spatial econometric analysis, the results display a positive effect on regional productivity from the R&D and Innovation subsidies over the last two programming periods. Furthermore, a higher rate of return of RDI subsidy in the second period is also observed, which suggests that smart specialisation was able to generate an additional effect in comparison with a situation without this place-based policy. Nevertheless, we also found that – in the case of Portugal - smart specialisation has only been able to generate this additional effect in regional productivity when the R&D funding instrument is combined with other types of innovation subsidies. This finding provides additional weight to the argument for broader and more integrated smart specialization policy mixes in the new programming period.
    Keywords: Productivity, Innovation, Smart Specialisation Strategies, Portugal
    JEL: O31 R11 H71
    Date: 2021–03
  2. By: Hackober, Christian
    Abstract: This dissertation consists of three essays that address important and very recent issues in the field of entrepreneurial finance. The first essay, examines the reasons that drive recently emerging multibillion-dollar valuation levels of so-called ‘unicorns’. The second essay, investigates the current status of collaborations between incumbent firms and ventures in order to cope with the ongoing digital transformation. Based on empirical findings, this dissertation develops a collaboration model between incumbents and ventures depending on the venture’s development stage. The third essay, draws from Initial Coin Offering (ICO) data to explore how early stage investors influence the outcomes of ICOs and the overall survival rate of blockchain technology-based firms. This dissertation contributes to the research on entrepreneurial finance and entrepreneurship and more specifically to the understanding on recent phenomena concerning the influence of investors’ characteristics on finance decisions and collaborations and subsequently their influence on ventures’ success. First, it is presented that being founded within a cluster region and in particular within the Silicon Valley area, increases significantly the chances for ventures to achieve ultra-high valuation levels. Furthermore, the results show empirically that a considerable share of ultra-high valuation levels is devoted to aggressive and inorganic growth strategies in order to gain large market shares rapidly and achieve a market-dominating role. Thereby, it is found that corporate investors play a decisive role for ventures to become successful. Second, this dissertation provides evidence from the German market that corporate investments are mainly driven by the ambition of incumbents to gain momentum within the digital transformation of existing business models. However, based on the empirical findings, the trend is identified that incumbents collaborate increasingly with more nascent ventures and apply non-equity-based approaches. Third, it is demonstrated that the beneficial influences of venture capital investors hold also in the context of the blockchain technology. Particularly, evidence is provided that the specialization and the reputation of investors has a positive influence on the success probability of blockchain technology-based firms. Thereby, it is show again the dispositive role of corporate investors. Each essay, discusses the theoretical and practical contributions and provides novel insights on recent phenomena in the area of entrepreneurial finance.
    Date: 2021
  3. By: Massimiliano Coda Zabetta (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Christian Mauricio Chacua Delgado (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Francesco Lissoni (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Ernest Miguelez (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); J. Raffo (WIPO - World Intellectual Property Organization); Deyun Yin (HIT - Harbin Institute of Technology, WIPO - World Intellectual Property Organization)
    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
    Date: 2021–03–08
  4. By: Gianluca Orsatti; Francesco Quatraro; Alessandra Scandura
    Abstract: This paper investigates the association between region-level recombinant capabilities and the generation of green technologies (GTs), together with their interplay with the intensity of academic involvement in innovation dynamics. The analysis focuses on Italian NUTS 3 regions, over the period 1998-2009. We show that the local capacity to introduce novel combinations is positively and strongly associated to the generation of GTs, while the involvement of academic inventors in local innovation dynamics shows an interesting compensatory role when local contexts lack such capacity.
    Keywords: green technologies, academic inventors, recombinant novelty.
    JEL: O33 R11
    Date: 2020
  5. By: Harriet Duleep (William & Mary, IZA, and GLO); David A. Jaeger (University of St. Andrews, CReAM, IZA, and CEPR); Peter McHenry (William & Mary and GLO)
    Abstract: We present a novel theory that immigrants facilitate innovation and entrepreneurship by being willing and able to invest in new skills. Immigrants whose human capital is not immediately transferable to the host country face lower opportunity costs of investing in new skills or methods and will be more exible in their human capital investments than observationally equivalent natives. Areas with large numbers of immigrants may therefore lead to more entrepreneurship and innovation, even among natives. We provide empirical evidence from the United States that is consistent with the theory's predictions.
    Keywords: immigration, innovation, entrepreneurship, human capital
    JEL: J15 J24 J39 J61 L26
    Date: 2021–03
  6. By: Simplice A. Asongu (Yaounde, Cameroon); Peter Agyemang-Mintah (Abu Dhabi, United Arab Emirate); Rexon T. Nting (London, UK)
    Abstract: This study investigates how the rule of law (i.e. law) modulates demand- and supply-side drivers of mobile money to influence mobile money innovations (i.e. mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money) in developing countries. The following findings from Tobit regressions are established. First, from the demand-side linkages, law modulates: (i) bank accounts and automated teller machine (ATM) penetration for negative interactive relationships with mobile money innovations and (ii) bank sector concentration for a positive interactive relationship with mobile money accounts. Second, from supply-side linkages, law interacts with: (i) mobile subscriptions for a negative relationship with the mobile phone used to send money; (ii) mobile connectivity coverage for a negative nexus on the mobile phone used to receive money and (iii) mobile connectivity performance for a negative influence on the mobile phone used to send/receive money. Policy implications are discussed in the light of enhancing the rule of law as well as improving mobile phone subscription, connectivity and performance dynamics.
    Keywords: Mobile money; technology diffusion; financial inclusion; inclusive innovation
    JEL: D10 D14 D31 D60 O30
    Date: 2021–01
  7. By: Xiangfei Yuan; Haijing Hao; Chenghua Guan; Alex Pentland
    Abstract: Since the 1980s, technology business incubators (TBIs), which focus on accelerating businesses through resource sharing, knowledge agglomeration, and technology innovation, have become a booming industry. As such, research on TBIs has gained international attention, most notably in the United States, Europe, Japan, and China. The present study proposes an entrepreneurial ecosystem framework with four key components, i.e., people, technology, capital, and infrastructure, to investigate which factors have an impact on the performance of TBIs. We also empirically examine this framework based on unique, three-year panel survey data from 857 national TBIs across China. We implemented factor analysis and panel regression models on dozens of variables from 857 national TBIs between 2015 and 2017 in all major cities in China and found that a number of factors associated with people, technology, capital, and infrastructure components have various statistically significant impacts on the performance of TBIs at either national model or regional models.
    Date: 2021–03
  8. By: Matteo Laffi; Ron Boschma;
    Abstract: The aim of the paper is to shed light on the role played by regional knowledge bases in Industry 3.0 in fostering new technologies in Industry 4.0 in European regions (NUTS3) over the period 1991-2015. We find that 4.0 technologies appear to be quite related to 3.0 technologies, with some heterogeneity among different technology fields. The paper investigates the geographical implications. We find that the probability of developing Industry 4.0 technologies is higher in regions that are specialised in Industry 3.0 technologies. However, other types of knowledge bases also sustain regional diversification in Industry 4.0 technologies.
    Keywords: Fourth Industrial Revolution, Industry 4.0, regional innovation, patents, knowledge space, relatedness, EU regions
    JEL: B52 O33 R11
    Date: 2021–03
  9. By: Sofia Patsali (Université Côte d'Azur, CNRS, GREDEG,; BETA – Bureau d'Economie Théorique et Appliquée, Université de Strasbourg)
    Abstract: This paper introduces a new perspective about the economic role of research by focusing on the impact of university procurement on firm innovation. We discuss how universities play a leading role in scientific equipment innovation, akin to the one portrayed for US and European government agencies in the context of military equipment and driven by specific missions. The key difference is that missions in university procurement emerge in a bottom-up fashion, and they are driven by the scientific agenda of university researchers. Furthermore, we discuss the basic ingredients of such a "university procurement-led innovation" and we support our claims with field-study evidence about the development of five advanced equipment co-developed by researchers at the University of Strasbourg (France) together with their suppliers.
    Keywords: Public procurement, Public Research, Scientific equipment, Technological Change, Search, Knowledge transmission
    JEL: D22 D83 H57 O32 O33
    Date: 2021–03

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