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on Innovation |
| By: | Øivind Anti Nilsen; Arvid Raknerud |
| Abstract: | This paper investigates firm dynamics in the period before, during, and after an event consisting of a first published patent application. The analysis is based on patent data from the Norwegian Industrial Property Office merged with data from several business registers covering a period of almost 20 years. We apply an event study design and use matching to control for confounding factors. The first patent application by a young firm is associated with significant growth in employment, output, assets and public research funding. Moreover, our results indicate that economic activity starts to increase at least three years ahead of the first patent application. However, we find no evidence of additional firm growth after patent approval for successful applicants. Our findings indicate that the existence of a properly functioning patenting system supports innovation activities, especially early in the life cycle of firms. |
| Keywords: | patenting, firm performance, panel data, event study design |
| JEL: | C33 D22 O34 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9927&r= |
| By: | Ron Boschma; ; ; |
| Abstract: | The literature of Evolutionary Economic Geography (EEG) has received little attention in Evolutionary Economics, despite overwhelming evidence that time-space dimensions are crucial to understand economic evolution. This chapter will focus on the relationship between EEG and regional policy. We will discuss how evolutionary principles like proximity, relatedness and path dependency have been used to construct regional innovation policy in the European Union. |
| Keywords: | Evolutionary Economic Geography, regional innovation policy, Smart Specialization, relatedness, complexity |
| JEL: | O25 O38 R11 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2220&r= |
| By: | Andreas Lichter (DICE and HHU Düsseldorf); Max Löffler (Maastricht University); Ingo E. Isphording (IZA – Institute for Labor Economics); Thu-Van Nguyen (Stifterverband Essen); Felix Poege (Technology & Policy Research Initiative, Boston University and Max Planck Institute for Innovation and Competition); Sebastian Siegloch (University of Cologne) |
| Abstract: | We study how business taxes affect establishments’ R&D activities. Relying on geocoded panel data targeting the universe of R&D-active establishments in Germany, we exploit around 7,300 changes in the local business tax rate over the period 1987 2013 for identification. Using event study techniques, we find a sizable negative and statistically significant effect of an increase in the local business tax on establishments’ total R&D spending and patents filed. Zooming into the process of innovation production, we uncover substantial heterogeneity in the impact of business taxation for various R&D inputs, among establishment characteristics, and for different types of research projects. |
| Keywords: | corporate taxation, firms, R&D, innovation, patents |
| JEL: | H25 H32 O31 O32 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:202&r= |
| By: | Jinhee Kim; Keun Lee; ; |
| Abstract: | This study identifies the characteristics and types of the regional innovation systems (RIS) of regions and cities in emerging economies in comparison to those in advanced economies. It uses the citation data of the US patents filed by 30 regions. Some RIS variables are newly developed, and they include intra-regional, inter-regional, and inter-national sourcing of knowledge and local ownership of innovation. The cluster analysis of these variables enables us to identify four major types of RIS around the world and link them to regional economic performance. The four types are, in the descending order of their per capita income levels, as follows: large, mature RIS characterized by a combination of long cycle technology specialization and high local ownership (Group 1), mixed RIS characterized by a long cycle and low local ownership (Group 2), “strong catch-up†characterized by short cycle and high local ownership (Group 3), and “weak catch-up†characterized by short cycle and low local ownership (Group 4). Groups 3 and 4 include only the regions in emerging world. They similarly specialize in the same short cycle time of technologies (CTT)-based sectors but show different records of economic performance. The key differentiating variable is the degree of local ownership of knowledge, which can be a basis for increasing domestic sourcing of knowledge and sustained catching up. Another important variable is decentralization, of which the level is lower in the strong catch-up group than in the weak catch-up group. In this Group 3, catching up is led by big businesses. Several cities experiencing upgrading, like Moscow, Beijing, and Shanghai, also show an increasing trend of local ownership and centralization. |
| Keywords: | regional innovation systems, innovation, patents, economic growth, economic catch-up |
| JEL: | C23 O31 O32 O33 O50 R11 R58 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2219&r= |
| By: | Louise Lindbjerg; Theodor Vladasel |
| Abstract: | Technical human capital improves firms’ invention outcomes, but generating innovation revenue may require distinct skills in bringing new ideas to market. We argue that former founders are endowed with execution skills, a generalist ability to create and exploit market gaps by acquiring and mobilizing resources, so entrepreneurial human capital enhances innovation in established organizations. Combining register and Community Innovation Survey data from Denmark, we show that entrepreneur hires are associated with higher sales from new products and services. This result is driven by founder hires in middle management, a hierarchical position where broader decision rights and resource access increase execution skills’ effectiveness. Founder hires are more tightly linked to innovation new to the firm or market, rather than world, consistent with our prediction that execution skills help bring incremental improvements to market, but do not necessarily generate radical innovation. Together, our findings suggest that entrepreneurial human capital may help firms appropriate a larger share of the value their knowledge generates. |
| Keywords: | innovation, learning by hiring, entrepreneurship, execution skills, human capital, middle management |
| JEL: | J24 L23 M12 M21 M51 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1309&r= |
| By: | Lassi Ahlvik; Inge van den Bijgaart |
| Abstract: | Green innovation is essential for climate change mitigation, but not all innovative projects deliver equal social value. We consider innovator heterogeneity in a model where the policy maker cannot observe innovation quality and directly subsidize the socially most valuable green innovations. We find that carbon pricing works as an innovation screening device; this creates a premium on the optimal carbon price, raising it above the Pigouvian level. We identify conditions for perfect screening and generalize results to screening policies under alternative intellectual property regimes and complementary policies. |
| Keywords: | carbon pricing, green innovation, optimal policy, R&D, screening |
| JEL: | O30 H23 Q55 Q58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9931&r= |
| By: | Grillitsch, Markus (CIRCLE, Lund University); Asheim, Bjørn (CIRCLE, Lund University) |
| Abstract: | Understanding, explaining, and affecting regional economic resilience and transformation has become more important in recent years than a narrow economic growth perspective. The paper investigates why, how and to what consequences local actors engage in regional development during and after crisis times to understand the role of human agency for regional resilience. We identify the differences in the underlying processes that lead to adaptation – bouncing back to economic activities existing before the crisis, adaptability – bouncing forward or diversification into new economic activities, or transformation – bouncing beyond the current organization of the economy towards a more green and inclusive future. In our empirical study of the maritime industry in Sunnmøre/Norway, we found two starkly contrasting development rationales: a traditional, neoliberal economic rationale of globalization, and a progressive rationale combining regenerative regional development with responsible value chains. We trace the origin of these rationales and show how they differ in agentic orientation and time perspective. Subsequently, we engage in a theoretical discussion about the downsides of global value chains embedded in a neoliberal ideology, and how it would be possible to combine regenerative regional development with responsible value chains; including important elements of policy interventions to facilitate the shift. |
| Keywords: | Regional resilience; sustainability transformation; human agency; global value chains; automation and industry 4.0; innovation; industrial and innovation policy |
| JEL: | O30 R10 R11 R50 R58 |
| Date: | 2022–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2022_011&r= |