nep-ino New Economics Papers
on Innovation
Issue of 2021‒11‒15
nine papers chosen by
Uwe Cantner
University of Jena

  1. Medical Innovations and Ageing: A Health Economics Perspective By Volker Grossmann
  2. Cross-Border Institutions and the Globalization of Innovation By Bian, Bo; Meier, Jean-Marie; Xu, Ting
  4. Exploring the Concept of Geographies of Innovation By Victoria Galan-Muros; Fatime Barbara Hegyi; Alep Blancas; Andrea Sagredo
  5. Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda By Ron Boschma; ;
  6. Regional and national results on entrepreneurship using GEM data By Velilla, Jorge
  7. Reforming Patent Law: The Case of Covid‐​19 By Michele Boldrin; David K Levine
  8. How innovative EU firms faced the COVID-19 downturn By DI MININ Alberto; DE MASSIS Alfredo; MONCADA PATERNO' CASTELLO Pietro; MARQUES SANTOS Anabela; HAEGEMAN Karel
  9. Geography of eco-innovations vis-à-vis geography of sustainability transitions: Two sides of the same coin? By Hendrik Hansmeier

  1. By: Volker Grossmann
    Abstract: This paper discusses the relationship between medical innovations and ageing from a health economics perspective and surveys empirical evidence on medical R&D incentives, R&D costs of pharmaceuticals, and the cost-effectiveness of health innovations. Particular focus is on the endogeneity of medical technological progress to expected market size and on the conceptualization of ageing as an accumulation of health deficits. The paper also discusses the role of medical progress for longevity and health inequality and presents a framework to assess the effect of increased longevity on the value of life.
    Keywords: healthcare, health deficits, health innovations, medical technological progress, longevity
    JEL: I10 O30
    Date: 2021
  2. By: Bian, Bo; Meier, Jean-Marie; Xu, Ting
    Abstract: We identify strong cross-border institutions as a driver for the globalization of in-novation. Using 67 million patents from over 100 patent offices, we introduce novel measures of innovation diffusion and collaboration. Exploiting staggered bilateral in-vestment treaties as shocks to cross-border property rights and contract enforcement, we show that signatory countries increase technology adoption and sourcing from each other. They also increase R&D collaborations. These interactions result in techno-logical convergence. The effects are particularly strong for process innovation, and for countries that are technological laggards or have weak domestic institutions. Increased inter-firm rather than intra-firm foreign investment is the key channel.
    Keywords: Innovation,technology diffusion,globalization,cross-border institutions,bilateral investment treaties
    JEL: F21 F61 G18 G38 K33 O31 O33
    Date: 2021
    Abstract: In this article we estimate the determinants of broadband penetration in Europe. We use data from the European Innovation Scoreboard of the European Commission for 37 countries in the period 2010-2019. We apply Panel Data with Fixed Effects, Panel Data with Random Effects, WLS, OLS and Dynamic Panel. We found that the level of “Broadband Penetration” in Europe is positively associated to “Enterprises Providing ICT Training”, “Innovative Sales Share”, “Intellectual Assets”, “Knowledge-Intensive Service Exports”, “Turnover Share SMEs”, “Innovation Friendly Environment” and negatively associated with “Government procurement of advanced technology products”, “Sales Impact”, “Firm Investments”, “Opportunity-Driven Entrepreneurship”, “Most Cited Publications”, “Rule of Law”. In adjunct we perform a clusterization with k-Means algorithm optimized with the Silhouette Coefficient and we find the presence of three different clusters. Finally, we apply eight machine learning algorithms to predict the level of “Broadband Penetration” in Europe and we find that the Polynomial Regression algorithm is the best predictor and that the level of the variable is expected to increase of 10,4%.
    Keywords: General; Innovation and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Technological Change: Choices and Consequences; Intellectual Property and Intellectual Capital.
    JEL: O30 O31 O32 O33 O34
    Date: 2021–10–31
  4. By: Victoria Galan-Muros (Innovative Futures Institute); Fatime Barbara Hegyi (European Commission - JRC); Alep Blancas; Andrea Sagredo
    Abstract: In the last decades, so-called geographies of innovation have emerged worldwide as vehicles to drive economic development. These urban areas are planned and actively managed spatial clustering of a wide range of innovative organisations and intermediaries to undertake collaborative innovation activities. However, the concept of geography of innovation (or innovation geography) remains ambiguous. In addition, there are no commonly accepted definitions or classifications of different models of geographies of innovation. Terms such as park, hub, district, cluster, and ecosystem are used interchangeably, and their definitions can be far-reaching and adaptable. The key question addressed in this research is the main challenges of current policies for geographies of innovation in Europe, offering a view on how governments can better support the emergence and development of geographies of innovation in Europe.Hence, this report aims to explore the concept of geographies of innovation as an evolution of industrial and business clustering combining theoretical and practical approaches. The authors propose a definition and classification of the different models of geographies of innovation, highlighting some of the main challenges in implementing this identification and measurement. The comparative case study analysis containing thirteen case studies from four cities provide evidence supporting the development of European, national, or regional policies, enabling current and future geographies of innovation to enhance their performance and their contributions to greener, cleaner, socially more just, and overall to more developed cities and regions in Europe and beyond.
    Keywords: geographies of innovation, innovation districts, economic development, social development, policy development, policy support
    Date: 2021–11
  5. By: Ron Boschma; ;
    Abstract: The research agendas of Evolutionary Economic Geography (EEG) and Global Value Chains (GVC) have developed more or less independently from each other, with little interaction so far. This is unfortunate because both streams of literature have a lot to offer to each other. This paper explores how, looking at four strands in the GVC literature. Promising crossovers between EEG and the GVC literature are identified but also some missing links that need to be taken up in future research. These new research avenues, promoting the adoption of an evolutionary perspective on GVCs, are expected to enrich both literatures in mutual ways.
    Keywords: Evolutionary Economic Geography, Global Value Chains, Global Production Networks, Global Innovation Systems, regional diversification, relatedness
    JEL: B52 F23 O19 O33 R10
    Date: 2021–11
  6. By: Velilla, Jorge
    Abstract: In this paper, we use different sources of data from the GEM to show a descriptive and comparative analysis of the different dimensions of the entrepreneurial activity, in the Spanish regions, and at international level. We also study the individual determinants of the entrepreneurial activity in Spain, and Europe, using bootstrapping techniques to avoid overfitted results. The results indicate that entrepreneurial levels in Spain are below the average of European countries, and also below the levels of United States, Canada, and Australia. However, the determinants of entrepreneurship appear to be similar in all the regions studied.
    Keywords: Entrepreneurship; GEM data; Spain
    JEL: L26
    Date: 2021–10
  7. By: Michele Boldrin; David K Levine
    Date: 2021–10–20
  8. By: DI MININ Alberto; DE MASSIS Alfredo; MONCADA PATERNO' CASTELLO Pietro (European Commission - JRC); MARQUES SANTOS Anabela (European Commission - JRC); HAEGEMAN Karel (European Commission - JRC)
    Abstract: The Covid-19 pandemic has triggered many challenges, but also opportunities, for businesses across Europe. We examine how the innovation and growth of firms in the EU have been affected by the Covid-19 pandemic, and how as “European Innovation Champions”, SMEs reacted to the resultant shock. We find that compared to non-innovative firms, the economic performance of innovative firms in the EU has been considerably less affected by the pandemic. We also identify five different paradoxical behaviours of ‘European Innovation Champions” during the peak of the Covid-19 pandemic. Industrial policies targeting SMEs should be flexible and allow companies to adapt their investment plans in line with the evolving conditions to preserve and succeed through the crisis. EU instruments, such as the Recovery and Resilience Facility and Horizon Europe, offer wide opportunities for firms to exit from the Covid-19 crisis and boost their future competitiveness.
    Keywords: COVID-19, innovation, growth, firms
    Date: 2021–11
  9. By: Hendrik Hansmeier (Fraunhofer Institute for Systems and Innovation Research ISI, Karlsruhe, Germany)
    Abstract: The need to develop and disseminate solutions to address environmental challenges such as climate change or resource depletion is more urgent than ever. However, the spatial dimension of pathways towards sustainability has only attracted scholarly interest in recent years, particularly through largely parallel research on the geography of eco-innovations and the geography of sustainability transitions. By systematically reviewing the literature, this article aims to compare both lines of research, devoting special attention to the role of regions and actors. While the geography of eco-innovations field focuses on local and regional conditions that enable the emergence of environmentally friendly technologies and industries, research on the geography of sustainability transitions highlights the place-specific but multiscalar nature of socio-technical change, taking into account the role of different actor groups. The review identifies numerous complementarities between both fields that may serve as starting points to further integrate geographical work on eco-innovations and transformative change.
    Keywords: geography, eco-innovations, sustainability transitions, green technologies, socio-technical systems, systematic literature review
    Date: 2021

This nep-ino issue is ©2021 by Uwe Cantner. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.