nep-ino New Economics Papers
on Innovation
Issue of 2021‒08‒09
eight papers chosen by
Uwe Cantner
University of Jena

  1. Extending A Regional Innovation Network: A Technology Intelligence Approach By Johannes van der Pol; Jean-Paul Rameshkoumar; Sarah Teulière; Thierry Bazerque
  2. Innovation in Malmö after the Öresund Bridge By Olof Ejermo; Katrin Hussinger; Basheer Kalash; Torben Schubert
  3. Policy Influence in the Knowledge Space: a Regional Application By Stefano Basilico; Uwe Cantner; Holger Graf
  4. A method to reduce false positives in a patent query By Johannes van der Pol; Jean-Paul Rameshkoumar
  5. Dynamics of Imitation versus Innovation in Technological Leadership Change: Latecomers’ Catch-up Strategies in Diverse Technological Regimes By Chang, Sungyong; Kim, Hyunseob; Song, Jaeyong; Lee, Keun
  6. Technology sovereignty as an emerging frame for innovation policy: Defining rationales, ends and means By Edler, Jakob; Blind, Knut; Kroll, Henning; Schubert, Torben
  7. Trade and Innovation By Marc J Melitz; Stephen J Redding
  8. Location, Location, Location: Do Universities Matter for Foreign R&D? By Loles Añón Higón; Alfonso Díez-Minguela

  1. By: Johannes van der Pol (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Jean-Paul Rameshkoumar; Sarah Teulière; Thierry Bazerque
    Abstract: In France, Regions do not make their own innovation policies, this is the role of the State. A Region implements national policies and uses grants and subsidies to create and dynamize innovation ecosystems important for its economic development. The Region's role is therefore largely influential. In order to influence one needs to how and when to exert this influence. A precise understanding of an innovation ecosystem is therefore of vital importance. On the occasion of the venue of a Nobel laureate to the French region of Nouvelle-Aquitaine the regional counsel aimed to connect her with the regional innovation ecosystem around her research. The purpose of this paper is to show methods and techniques using patents, scientific publications and non-patent literature citations that can help with the identification of an innovation ecosystem and how to integrate a researcher into this ecosystem .
    Keywords: NPL,Technology Intelligence,Patents,innovation networks
    Date: 2021–07–16
  2. By: Olof Ejermo; Katrin Hussinger; Basheer Kalash; Torben Schubert
    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
  3. By: Stefano Basilico (Friedrich Schiller University Jena, Economics Department); Uwe Cantner (Friedrich Schiller University Jena, Economics Department, and University of Southern Denmark, Odense); Holger Graf (Friedrich Schiller University Jena, Economics Department)
    Abstract: Cluster policies aim at improving collaboration between co-located actors to address systemic failures. As yet, cluster policy evaluations are mainly concerned with effects on firm performance. Some recent studies move to the system level by assessing how the structure of actor-based knowledge networks is affected by such policies. We continue in that direction and analyze how technology-based regional knowledge spaces structurally respond to the introduction of a cluster policy. Taking the example of the German BioRegio contest, we examine how such knowledge spaces in winning and non-winning regions evolved before, during and after the policy. Using a difference-in-differences approach, we identify treatment effects of increased knowledge space embeddedness of biotechnology only in the post-treatment period. Our findings imply that cluster policies can have long-term structural effects typically not accounted for in policy evaluations.
    Keywords: BioRegio contest, network analysis, knowledge space, difference in differences, patents
    JEL: O31 O38 R11
    Date: 2021–08–02
  4. By: Johannes van der Pol (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Jean-Paul Rameshkoumar
    Abstract: The aim of this paper is to present a method that allows researchers and analysts to reduce the number of false positives in a patent query. Patents are not only used for prior art searches but increasingly for competitive analyses and the analysis of the evolution of technology. When these case focus on specific technological domains, non-experts will aim to identify patents related to their focus-technology. In certain cases this can require complex queries to contain thousands of patents. It then becomes difficult to identify false positives. We present a method that allows researchers and analysts to refine their query on large datasets.
    Keywords: Patent Query,Patents,Competitive Intelligence,Technology Mapping,Information systems,Patent landscaping
    Date: 2021–07–16
  5. By: Chang, Sungyong (London Business School); Kim, Hyunseob (Jackson State University); Song, Jaeyong; Lee, Keun
    Abstract: We examine the role of latecomers’ optimal resource allocation between innovation and imitation in latecomers’ catch-up under diverse technological regimes. Building on Nelson and Winter (1982), we develop computational models of technological leadership change. The results suggest that one-sided dependency upon either imitation or innovation deters technological leadership change. At an early stage with low-level technologies, latecomers should focus on imitation; then, as the technological gap decreases, they should allocate more R&D resource to innovation. We also examine the role of several variables, such as appropriability, cumulativeness, and cycle time of technologies (CTT), as related to technological regimes. The simulation results show that while low appropriability tends to increase the probability of technological leadership change, it makes imitation a more e˙ective strategy compared to innovation; in addition, while a higher level of cumulativeness tends to reduce the probability of leadership change, it makes imitation a more valuable option because innovation becomes more diÿcult for latecomers. We also find an inverted U-shaped relationship between the CTT and the probability of technological leadership change. When the CTT is short, it makes sense for latecomers to allocate more resources to imitation, especially when their technology level is initially low.
    Date: 2021–07–29
  6. By: Edler, Jakob; Blind, Knut; Kroll, Henning; Schubert, Torben
    Abstract: In recent years, global technology-based competition has not only intensified, but become increasingly linked to a more comprehensive type of competition between different political and value systems. Against this background, the notion of technology sovereignty has gained prominence in national and international debates as an additional rationale for innovation policy, cutting across the established perspectives or paradigms of economic competitiveness and socio-technical transformation. In this paper, we propose and justify a concise yet nuanced concept of technology sovereignty to contribute to and clarify this debate. We offer a balanced perspective of a nation's legitimate interest in ascertaining the availability of and access to technologies on the one hand, and the dangers posed by autarky and protectionism on the other hand, which are detrimental to global trade and eventually welfare. In contrast to much of the initial policy discourse, we derive our concept from economic and sociological theories. In particular, we argue that technology sovereignty should be conceived as state-level agency within the international system, i.e. as sovereignty of governmental action, rather than (territorial) sovereignty over something. Against this background, we define technological sovereignty not as an end in itself, but as a means to achieve the central objectives of innovation policy - sustaining national competitiveness and building capacities for transformative policies. Based on this motivation, future policies will have to aim at establishing a stable, albeit dynamic, equilibrium between sovereignty and openness. To accomplish this, we propose three types of policies. First, new forms of strategic intelligence and foresight will be essential to understand the need for action to secure technology sovereignty and how to achieve it. Second, we propose to mobilise a set of traditional STI policies that have specific importance in the context of technology sovereignty, such as investing in research and the development of competences and high-level infrastructure as well as supporting entrepreneurial activities in emerging technologies, demand-side policies to establish technological lead markets, and international scientific and technological cooperation. Third, we propose a set of policies specifically targeted at securing technology sovereignty, such as international standardisation, strong regulatory frameworks, complementary competition, trade and investment policies and strengthening international institutions to safeguard rule-based trade and competition. We conclude by highlighting a number of challenges stemming from the political economy dynamics that are to be expected should technology sovereignty become a leading rationale for innovation policy.
    Date: 2021
  7. By: Marc J Melitz (Harvard University); Stephen J Redding (Princeton University, CEPR, NBER)
    Abstract: Two central insights from the Schumpeterian approach to innovation and growth are that the pace of innovation is endogenously determined by the expectation of future profits and that growth is inherently a process of creative destruction. As international trade is a key determinant of firm profitability and survival, it is natural to expect it to play a key role in shaping both incentives to innovate and the rate of creative destruction. In this paper, we review the theoretical and empirical literature on trade and innovation. We highlight four key mechanisms through which international trade affects endogenous innovation and growth: (i) market size; (ii) competition; (iii) comparative advantage; (iv) knowledge spillovers. Each of these mechanisms offers a potential source of dynamic welfare gains in addition to the static welfare gains from trade from conventional trade theory. Recent research has suggested that these dynamic welfare gains from trade can be substantial relative to their static counterparts.Discriminating between alternative mechanisms for these dynamic welfare gains and strengthening the evidence on their quantitative magnitude remain exciting areas of ongoing research.
    JEL: F13 O31
    Date: 2020–06
  8. By: Loles Añón Higón (Department of Applied Economics II and ERI-CES, Faculty of Economics, Universitat de València, Avda. Tarongers, s/n, 46022 Valencia (Spain).); Alfonso Díez-Minguela (Department of Economic Analysis, Faculty of Economics, Universitat de València, Avda. Tarongers, s/n, 46022 Valencia (Spain).)
    Abstract: This paper explores the extent to which the regional Higher Education System (HES) influences the location of foreign R&D. To do so, we use a dataset with information on the location choices of new foreign R&D establishments within Spain from 2005 to 2013. Likewise, we use a multiple measure of the university three missions, distinguishing between research capacity training, scientific research and technology transfer. We find that the probability of a foreign R&D establishment being located in a region is positively affected by the strength of the region’s HES missions, and more specifically by the quality of its scientific research, while its research training capacity and knowledge transfer activities do not seem to play a significant role.
    Keywords: Foreign R&D, universities, location, research activities, development
    JEL: F21 F23 O32
    Date: 2021–07

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