nep-ino New Economics Papers
on Innovation
Issue of 2021‒05‒17
ten papers chosen by
Uwe Cantner
University of Jena

  1. Driving Innovations, Leveraging Technology in Indian Business Ecosystem By Joffi Thomas; Dinesh Tiwari
  2. Licensing Life-Saving Drugs for Developing Countries: Evidence from the Medicines Patent Pool By Galasso, Alberto; Schankerman, Mark
  3. Patents on General Purpose Technologies: Evidence from the Diffusion of the Transistor By Nagler, Markus; Schnitzer, Monika; Watzinger, Martin
  4. Stronger Patent Regime, Innovation and Scientist Mobility By Ganguly, Madhuparna
  5. The Battle Over Patents: History and the Politics of Innovation By Stephen H. Haber; Naomi R. Lamoreaux
  6. Research and innovation policies and productivity growth By Reinhilde Veugelers
  7. Invention and the Life Course: Age Differences in Patenting By Mary Kaltenberg; Adam B. Jaffe; Margie E. Lachman
  8. Which Markets (Don't) Drive Pharmaceutical Innovation? Evidence From U.S. Medicaid Expansions By Craig Garthwaite; Rebecca Sachs; Ariel Dora Stern
  9. Innovation in Malmö after the Öresund Bridge By Ejermo, Olof; Hussinger, Katrin; Kalash, Basheer; Schubert, Torben
  10. British-French technology transfer from the Revolution to Louis Philippe (1791-1844): evidence from patent data By Nuvolari, Alessandro; Tortorici, Gaspare; Vasta, Michelangelo

  1. By: Joffi Thomas (Indian Institute of Management Kozhikode); Dinesh Tiwari (Broadpeak Capital Advisors)
    Abstract: Emergence of a Vibrant Innovation Ecosystem: Rapid penetration of digital technologies over the last two decades has ushered in business innovations in both incumbent firms and in startups. By the end of 2020, India found its place among the top four countries with a vibrant startup ecosystem with 36 unicorns. Confluence of Enabling Factors: A confluence of enabling factors of technology, talent, capital and supportive policy environment has led to the growth of the start-ups through the introduction phase (2006-2010), early growth phase (2011-2015) and accelerated growth phase (2016-2020). Growth of Indian Start-up Ecosystem: Venture capital investments of $ 19.85 B went into 3,442 firms funding innovations during 2006-2020. The investment of $3.9 B in 2006-2010 grew by 65% to $6.4 B in 2011-2015 period and further by 48% to $9.5 B in 2016-2020 period. Ecommerce and Fintech sectors received larger share of the investments contributing 11 of the 36 unicorns.Accelerating Innovation led Economic Growth: An enabling environment to further accelerate innovation led growth requires continuous focus on key enabling factors: (a) Technology-ensuring affordable digital technology access to rural population, adoption of deep technologies across start-ups (b) Talent - designing innovative mechanisms to attract and support talented entrepreneurs (c) Capital - accelerating investment flows by triggering investment-innovation-investor returns spirals in multiple sectors and (d) Policy Support-formulating proactive supportive policies with a fifteen year and five year planning horizon focussed on all round development of the rural economy leveraging novel technologies; providing institutional support to exploit global market opportunities involving industry and academe.
    Date: 2021–03
  2. By: Galasso, Alberto; Schankerman, Mark
    Abstract: We study the effects of a patent pool on the licensing and adoption of life-saving drugs in low- and middle-income countries. Using data on licensing and sales for HIV, hepatitis C and tuberculosis drugs, we show that there is an immediate and large increase in licensing by generic firms when a patent is included in the Medicines Patent Pool (MPP). This finding is robust to identification strategies to deal with endogeneity of MPP patents and countries. The impact of the MPP is especially large for small, non-Sub-Saharan countries. The impact on actual entry and sales, however, is much smaller than on licensing, which is due to geographic bundling of licenses by the MPP. More broadly, the paper highlights the potential of pools in promoting technology diffusion of biomedical innovation.
    Keywords: developing countries; HIV; licensing; Patent pool; patents; pharmaceuticals; Public health
    JEL: I18 O31 O34
    Date: 2020–12
  3. By: Nagler, Markus; Schnitzer, Monika; Watzinger, Martin
    Abstract: How do patents influence the spread of General Purpose Technologies? To answer this question, we analyze the diffusion of the transistor, one of the most important technologies of our time. We show that the transistor diffusion and cross-technology spillovers increased dramatically after AT&T began licensing its transistor patents on standardized terms in 1952. This suggests that standardized licensing of the transistor patents helped jumpstart the positive feedback loop between innovations upstream and in applications. A subsequent reduction in royalties did not lead to a further increase, suggesting that standardized licensing in itself is more important than the specific royalty rates.
    Keywords: General Purpose Technololgies; Innovation; Intellectual Property; Standardized Licensing; Transistor
    JEL: O3 O33 O34
    Date: 2021–01
  4. By: Ganguly, Madhuparna
    Abstract: This paper analyzes the effects of a stronger patent regime on innovation incentives, patenting propensity and scientist mobility when an innovating firm can partially recover its damage due to scientist movement from the infringing rival. The strength of the patent system, which is a function of litigation success probability and damage recovery proportion, stipulates expected indemnification. We show that stronger patents fail to reduce the likelihood of infringement and further, decrease the innovation's expected profitability. Higher potential reparation also reduces the scientist's expected return on R&D knowledge, entailing greater R&D investment. Our results suggest important considerations for patent reforms.
    Keywords: Damage rules; Infringement; Patent strength; Scientist mobility
    JEL: J60 K40 L13 O34
    Date: 2021
  5. By: Stephen H. Haber; Naomi R. Lamoreaux
    Abstract: This essay is the introduction to a book of the same title, forthcoming in summer of 2021 from Oxford University Press. The purpose is to document the ways in which patent systems are products of battles over the economic surplus from innovation. The features of these systems take shape as interests at different points in the production chain seek advantage in any way they can, and consequently, they are riven with imperfections. The interesting historical question is why US-style patent systems with all their imperfections have come to dominate other methods of encouraging inventive activity. The essays in the book suggest that the creation of a tradable but temporary property right facilitates the transfer of technological knowledge and thus fosters a highly productive decentralized ecology of inventors and firms.
    JEL: N4 N41 N42 N43 N44 O3 O34
    Date: 2021–05
  6. By: Reinhilde Veugelers
    Abstract: This Working Paper is an output from the MICROPROD project, which received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 822390. We review the evidence on the impact of public intervention on private research and innovation, and how research and innovation and R&I policies affect growth in the applied macro models most commonly used in European Union policy analysis. The evidence suggests that...
    Date: 2021–05
  7. By: Mary Kaltenberg; Adam B. Jaffe; Margie E. Lachman
    Abstract: Previous research suggests creative ability peaks in the age decades of the 30s and early 40s, and declines thereafter, with some variation across fields. Building from the cognitive aging literature, we expect differences in the rate of creation and qualitative nature of creative works by age. Cognitive processes show aging-related changes with increases in experience-based knowledge (pragmatics or crystallized abilities) and decreases in the ability to process novel information quickly and efficiently (mechanics or fluid abilities). We describe a new database created by combining the publicly available patent data with information on inventor ages scraped from directory websites on the web for approximately 1.2 million U.S.-resident inventors patenting between 1976 and 2017. Our results suggest that cross-sectional and within-inventor patenting rates are similar, peaking at around the early 40s for both women and men. We find varying results for attributes of patents in relation to age, some of which are consistent with cognitive aging theory. For solo inventors, backward citations and originality, which are connected to experience, were found to increase with age. Forward citations, number of claims, and generality measures, as well as a citation-based measure of disruptiveness decline on average with inventor age. A similar pattern was found for performance in teams based on the average age of inventors in the team. Exploration of age diversity showed that teams with a wider age range had patents that are slightly more important (i.e., with more forward citations). The findings have the potential to advance scholarship on the life course of innovation with implications for workplace policies.
    JEL: O31 O34
    Date: 2021–05
  8. By: Craig Garthwaite; Rebecca Sachs; Ariel Dora Stern
    Abstract: Pharmaceutical innovation policy involves managing a tradeoff between high prices for new products in the short-term and stronger incentives to develop products for the future. Prior research has documented a causal relationship between market size and pharmaceutical research and development (R&D) activities. The existing literature, however, provides no evidence of how this relationship varies across markets. We investigate whether recent expansions in state Medicaid programs caused an increase in R&D. We find no evidence of a response, potentially a result of Medicaid’s low reimbursement for pharmaceuticals, suggesting low(er) price markets may have different dynamics with respect to innovation policy.
    JEL: H0 I1 L43 L5 O3
    Date: 2021–05
  9. By: Ejermo, Olof; Hussinger, Katrin; Kalash, Basheer; Schubert, Torben
    Abstract: We analyze the effect of the Öresund Bridge, a combined railway and motorway bridge between Swedish Malmö and the Danish capital Copenhagen, on inventive activity in the region of Malmö. Applying difference-in-difference estimation on individual-level data, our findings suggest that the Öresund Bridge led to a significant increase in the number of patents per individual in the Malmö region as compared to the two other major regions in Sweden, Gothenburg and Stockholm. We show that a key mechanism is the attraction of highly qualified workers to the Malmö region following the construction of the bridge.
    Keywords: transportation infrastructure,innovation,Öresund Bridge,cross-border regions,patents,inventors,agglomeration effects
    JEL: O31 O33 R11 L91
    Date: 2021
  10. By: Nuvolari, Alessandro; Tortorici, Gaspare; Vasta, Michelangelo
    Abstract: This paper examines the patterns of technology transfer from Britain to France during the early phases of industrialization; it does so by making use of a dataset comprising all patents granted in France during the period 1791-1844. Exploiting the peculiarities of the French legislation, we construct an array of patent quality indicators and econometrically investigate their determinants. We find that patents filed by British inventors or French inventors personally linked with British ones were of relatively higher quality. Overall, our results show that the French innovation system was effectively capable of attracting and absorbing key technologies from Britain.
    Keywords: Britain; France; industrial revolution; patents; Technology Transfer
    JEL: N73 O3
    Date: 2020–12

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