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on Innovation |
| By: | Flavio L. Pinheiro; Pierre-Alexandre Balland; Ron Boschma; Dominik Hartmann |
| Abstract: | As regions evolve, their economies become more complex, and they tend to diversify into related activities. Although there is a bright side to this diversification process in terms of economic development, there may also be a dark side to it, as it possibly contributes to regional inequalities. The paper uses data on industries and patents to analyze the diversification patterns of 283 regions in 32 European countries over the past 15 years. We find that only the most economically advanced regions have the opportunity to diversify into highly complex activities. These regions tend to focus on related high-complex activities, while lagging regions focus on related low-complex activities, creating a spatial inequality feedback loop. This pattern creates a wicked problem for innovation policy: the strategy needed to improve the innovativeness of the European knowledge system might disproportionately benefit regions that are already developed and foster disparities. |
| Keywords: | dark side of innovation, geography of innovation, regional diversification, complexity, regional inequality, Smart Specialisation Policy |
| JEL: | O25 O33 R11 O31 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2202&r= |
| By: | Koski, Heli; Fornaro, Paolo |
| Abstract: | Abstract Research and development (R&D) tax credits are widely employed among the OECD countries to promote business sector investments in innovation. The implementation of R&D tax credit schemes, however, varies across countries. The empirical research on the effectiveness of R&D tax incentives suggests that the strength of company responses (in R&D expenditures) to more generous tax incentives substantially differ across countries. We use data from 25 OECD countries, collected from 2010 to 2018, to explore the relationship between a set of R&D tax scheme features and innovation performance. Our estimation results show that the business sector R&D expenditure is higher among those countries that have implemented either an R&D tax credit scheme with an incremental deduction basis or a hybrid scheme with both volume-based and incremental tax relief components. The input additionality is highest when the R&D tax incentives are based on the incremental deduction. Further, the hybrid tax credit scheme positively relates to innovation output. The business sector R&D investment are higher in the countries with an R&D tax credit scheme that provides favorable treatment for SMEs or option to carry forward unclaimed R&D tax credits. |
| Keywords: | R&D tax incentives, R&D investments, Innovation policy, Patents |
| JEL: | K34 L5 O3 O31 |
| Date: | 2022–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:123&r= |
| By: | Cantner, Uwe (University of Jena); Doerr, Philip (University of Jena); Göthner, Maximilian (University of Jena); Huegel, Matthias (University of Jena); Kalthaus, Martin (University of Jena) |
| Abstract: | We analyze the influence of two contradicting settings on the success in the academic spin-off creation process. Scientists, who are embedded in the academic setting, have to reach out and adapt to the logics of the commercial setting to successfully found their firm. However, along this process, many scientists fail because they cannot overcome the contradictions between these logics. We provide the first empirical evidence on the relevance of these two contradicting logics along the spin-off creation process. Based on a phase-based conceptualization of the spin-off process, we hypothesize a decreasing relevance of the academic setting and an increasing relevance of the commercial setting for successful transitions between the process phases. We test these relationships with a representative sample of German scientists using dominance analysis to determine the relative importance of the two settings. Our findings show a decreasing relative importance of the academic setting along the spin-off creation process, in line with our hypotheses. The relevance of the commercial setting initially increases before it decreases in the latest stage of the process, contrary to our hypothesis. Additionally, we find that the commercial setting is generally more important than the academic setting, especially in the beginning of the process. Our results provide a deepened understanding of the academic spin-off creation process and extend existing theories. Furthermore, they provides intervention points for policy along the spin-off creation process. |
| Keywords: | academic entrepreneurship, transition process, phase model, dominance analysis |
| JEL: | L26 O31 O33 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14928&r= |
| By: | Czarnitzki, Dirk; Giebel, Marek |
| Abstract: | We utilize a new survey experiment to evaluate the existence and degree of financial constraints for R&D in the economy. The experiment does not only allow to deduct the presence of financial constraints, but also to evaluate their economic significance. Using data on German companies, we find that financial constraints for R&D exist but that their relevance might have been overestimated in the literature. Most R&D projects that have not been implemented because of financial constraints turn out to have low expected marginal rates of return. While this findings stands in some contrast to other studies, we also find several results that are in line with the literature: young firms are most constrained and the constraints occur at the intensive margin, i.e. our results do not suggest that non-innovative companies are deterred from innovation. Instead, highly innovative companies are restricted by the capital market. |
| Keywords: | Innovation,Financial Constraints,Survey Experiment |
| JEL: | G30 O30 O31 O32 L21 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:21084&r= |
| By: | Laureti, Lucio; Costantiello, Alberto; Matarrese, Marco Maria; Leogrande, Angelo |
| Abstract: | In this article we evaluate the determinants of the Employment in Innovative Enterprises in Europe. We use data from the European Innovation Scoreboard of the European Commission for 36 countries in the period 2000-2019 with Panel Data with Fixed Effects, Panel Data with Random Effects, Dynamic Panel, WLS and Pooled OLS. We found that the “Employment in Innovative Enterprises in Europe” is positively associated with “Broadband Penetration in Europe”, “Foreign Controlled Enterprises Share of Value Added”, “Innovation Index”, “Medium and High-Tech Product Exports” and negatively associated to “Basic School Entrepreneurial Education and Training”, “International Co-Publications”, and “Marketing or Organizational Innovators”. Secondly, we perform a cluster analysis with the k-Means algorithm optimized with the Silhouette Coefficient and we found the presence of four different clusters. Finally, we perform a comparison among eight different machine learning algorithms to predict the level of “Employment in Innovative Enterprises” in Europe and we found that the Linear Regression is the best predictor. |
| Keywords: | Innovation and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Technological Change: Choices and Consequences • Diffusion Processes; Intellectual Property and Intellectual Capital. |
| JEL: | O30 O31 O32 O33 O34 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111335&r= |
| By: | Felix Bracht; Dennis Verhoeven |
| Abstract: | Existing estimates of the economic costs of air pollution do not account for its effect on inventive output. Using two weather phenomena as instruments, we estimate this effect in a sample of 1,288 European regions. A decrease in exposure to small particulate matter of 0:17 g=m3 – the average yearly reduction in Europe – leads to 1.7% more patented inventions. After ruling out reallocation of human capital, inventor mortality and R&D expenditures as drivers of the effect, we conclude that air pollution’s harm to economic output increases by at least 10% when accounting for innovation. |
| Keywords: | Air Pollution, Air Quality, Innovation, Patent, Productivity |
| Date: | 2021–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:ete:msiper:685945&r= |
| By: | Haji Ali Beigi, Maryam |
| Abstract: | There are different determinants for organizational innovation. By taking an encompassing look into dynamics of organizational innovation, this paper examines how organizational innovation is an outcome to interaction of knowledge search strategies and underlying market conditions. Although the role of knowledge management capabilities on organizational innovation have been studied in literature but the effects of external knowledge strategies as an external KM enabler on different parts of organizational innovation has not been covered. To fill that gap and to capture deep dynamics of organizational innovation this paper analyzes the relationship between external knowledge diversity and organizational innovation under the influence of competition intensity and uncertain demand trends which is the second contribution of this study. It is demonstrated that the effects of competition intensity or uncertain demand trends on organizational innovation are diminished through their interactive manifestation with knowledge search diversity. By applying quantile regression in different levels, we additionally indicate that such diminishing effect varies among different industries depending on their organizational innovation intensity as the third novel analytics of this paper. |
| Keywords: | Organizational innovation,External Search diversity,Competition intensity,Uncertaindemand |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:159&r= |
| By: | Dieter F. Kogler; Ronald B. Davies; Changjun Lee; Keungoui Kim |
| Abstract: | This paper aims to uncover the mechanism of how the network properties of regional knowledge spaces contribute to technological change from the perspective of regional knowledge entry-relatedness and regional knowledge entry-potential. Entry-relatedness, which has been previously employed to investigate the technology evolution of regional economies, is advanced by introducing a knowledge gravity model. The entry-potential of a newly acquired regional specialisation has been largely ignored in the relevant literature; surprisingly given the high relevance that is attributed to the recombination potential of new capabilities. In other words, just adding new knowledge domains to a system is not sufficient alone, it really depends on how these fit into the existing system and thus can generate wider economic benefits. Based on an empirical analysis of EU Metro and non-Metro regions from 1981 to 2015, we find that entry-relatedness has a significant negative association with novel inventive activities, while entry-potential has a significant positive association with the development of novel products and processes of economic value. This highlights that regions’ capacity to venture into high-potential areas of technological specialization in the knowledge space outperforms purely relatedness driven diversification that is frequently promoted in the relevant literature. |
| Keywords: | Regional knowledge space; Entry-relatedness; Entry-potential; Technological change; Economic growth; Patent analysis |
| JEL: | O33 O31 R11 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:oapubs:10197/12731&r= |
| By: | Haji Ali Beigi, Maryam |
| Abstract: | This study gives a new identity to a knowledge search mode named search diversity and investigates how it is more rigorous in capturing knowledge heterogeneity in comparison to general assessment of search breadth. By distinguishing between diversifying and expanding search domain as building blocks of broadening search scope, this study proposes a hybrid search strategy when it comes to analysis of the link between external search and innovation performance. While a positive trend is found for search breadth and innovation in this review, search diversity indicates a curvilinear pattern but with a steeper positivity than search breadth's. A prerequisite extension of this paper is to utilize a clustering method among different external sources acting as a reference to codify a diversity index for measuring the new search scheme. Also, the effect of usage of each cluster on innovation is empirically illustrated. This paper suggests that the optimal hybrid search outlook in respect to innovation is built up by initially increasing diversity in search up to the downturn point and then shifting into usage of same source clusters without helping diversity. This analysis provides practitioners with additional insights for managing external sourcing strategies and leveraging innovativeness. |
| Keywords: | Search breadth,External search diversity,Search scope,Knowledge heterogeneity,Source clustering,Innovation performance |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:156&r= |
| By: | Haji Ali Beigi, Maryam |
| Abstract: | Purpose: This paper analyzes the association of searching diversely as a strategy to capture external knowledge and that of competition intensity with innovation in logistics. Secondly it studies how these associations interact by examining whether they intensify or mitigate one another when jointly occur. Thirdly, it is explored whether correlations of search diversity, competition intensity and their interaction effect with logistics innovation demonstrate differences in their strength depending on logistics innovativeness of target industries. Design/methodology/approach: By discriminating between diversifying and expanding search scope, a new search mode is identified which is more precise in examining diversity of acquired external knowledge in comparison to search breadth. External search diversity is formulated based on a classification of external sources according to similarities in their knowledge supply. Quantile regression is applied for the purpose of this study due to its ability in estimating different models in different quantiles of the response variable. |
| Keywords: | logistics innovation,search diversity,competition intensity,knowledge management |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:157&r= |
| By: | Nicola Grassano (European Commission - JRC); Hector Hernandez (European Commission - JRC); Peter Fako (European Commission - JRC); Alexander Tuebke (European Commission - JRC); Sara Amoroso (European Commission - JRC); Aliki Georgakaki (European Commission - JRC); Lorenzo Napolitano (European Commission - JRC); Francesco Pasimeni (European Commission - JRC); Francesco Rentocchini (European Commission - JRC); Ramon Compano (European Commission - JRC); Serena Fatica (European Commission - JRC); Roberto Panzica (European Commission - JRC) |
| Abstract: | The main objective of the EU Industrial R&D Investment Scoreboard (the Scoreboard) is to benchmark the performance of EU innovation-driven industries against major global counterparts and to provide an R&D investment database that companies, investors and policymakers can use to compare individual company performances against the best global competitors in their sectors.The 2021 edition of the Scoreboard analyses the 2500 companies that invested the largest sums in R&D worldwide in 2020. These companies, with headquarters in 39 countries, and more than 800k subsidiaries all over the world, each invested over €36 million in R&D in 2020. The total investment across all 2500 companies was €908.9bn, an amount equivalent to 90% of the world’s business-funded R&D.This report analyses companies' R&D, patents and other financial performance indicators over recent years, focusing on the comparative performance of EU companies and their global counterparts. Moreover, it includes a patent-based analysis showing the positioning of the EU in green technology for energy intensive industries; and a study exploring the role of the Scoreboard companies in achieving the UN’s sustainable development goals (SDGs).The results of this report highlight the challenges and opportunities facing the EU as it seeks to improve its R&D capability and reinvigorate its industrial base, in line with the priorities of the new industrial and innovation EU policy, particularly in the context of the digital and green transitions. |
| Keywords: | Industrial R&D, top R&D investors, innovation, company performance, economic and innovation performance |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc127360&r= |