nep-ino New Economics Papers
on Innovation
Issue of 2022‒11‒14
seven papers chosen by
Uwe Cantner
University of Jena

  1. Filling the Gap: The Consequences of Collaborator Loss in Corporate R&D By Pöge, Felix; Gaessler, Fabian; Hoisl, Karin; Harhoff, Dietmar; Dorner, Matthias
  2. Innovation with and without patents By Josef Taalbi
  3. Disentangling regional innovation capability: what really matters? By Ganau, Roberto; Grandinetti, Roberto
  4. Platform Liability and Innovation By Doh-Shin Jeon; Yassine Lefouili; Leonardo Madio
  5. A New Empirical Index to Track the Technological Novelty of Inventions: A Sector Level Analysis By Yuan Gao; Emiliya Lazarova
  6. Harmonized Latin American innovation Surveys Database (LAIS) By Vargas, F.; Guillard, Charlotte; Salazar, Monica; Crespi, G.A.
  7. Agricultural Technology: Why Does the Level of Agricultural Production Remain Low Despite Increased Investments in Research and Extension? By Baconguis, Rowena T.

  1. By: Pöge, Felix (Boston University); Gaessler, Fabian (Max Planck Institute for Innovation and Competition); Hoisl, Karin (Max Planck Institute for Innovation and Competition); Harhoff, Dietmar (University of Munich); Dorner, Matthias (Institute for Employment Research (IAB), Nuremberg)
    Abstract: We examine how collaborator loss affects knowledge workers in corporate R&D. We argue that such a loss affects the remaining collaborators not only by reducing their team-specific capital (as argued in the prior literature) but also by increasing their bargaining power over the employer, who is in need of filling the gap left by the lost collaborator to ensure the continuation of R&D projects. This shift in bargaining power may, in turn, lead to benefits, such as additional resources or more attractive working conditions. These benefits can partially compensate for the negative effect of reduced team-specific capital on productivity and influence the career trajectories of the remaining collaborators. We empirically investigate the consequences of collaborator loss by exploiting 845 unexpected deaths of active inventors. We find that inventor death has a moderate negative effect on the productivity of the remaining collaborators. This negative effect disappears when we focus on the remaining collaborators who work for the same employer as the deceased inventor. Moreover, this group is more likely to be promoted and less likely to leave their current employer.
    Keywords: collaboration, mobility, innovation, inventors, patents, teams
    JEL: J62 O32 J24
    Date: 2022–10
  2. By: Josef Taalbi
    Abstract: A long-standing discussion is to what extent patents can be used to monitor trends in innovation activity. This study quantifies the amount and quality of information about actual innovation contained in the patent system, based on 4,460 Swedish innovations (1970-2015) that have been matched to international patents. The results show that most innovations were not patented and that among those that were, 43.9% of all innovations, only a fraction can be identified with patent quality data. The best-performing models identify 17% of all information about innovations, equivalent to an information loss of at least 83%. Econometric tests also show that the fraction of innovations responding to strengthened patent laws during the period were on average 8% percent. The overlap between the patent and innovation systems is hence more modest than often assumed. This accentuates the need to, alongside patents, develop versatile approaches in order to induce and monitor various aspects of innovation.
    Date: 2022–10
  3. By: Ganau, Roberto; Grandinetti, Roberto
    Abstract: Where does innovation come from? And do all regions innovate similarly? We deal with these questions by highlighting the complexity of the concepts of innovation capability and performance, and by testing their association at the European Union regional level. We disentangle inputs of innovation capability, and consider regional heterogeneity in institutional quality, to understand the relative endowment of what innovation inputs is associated with higher relative innovation performance. We find that ‘formal’ inputs–public and business R&D expenditure–do not work unconditionally and everywhere, and that less ‘formal’ ones–e.g., non-R&D expenditure and firms collaborating for innovation–matter particularly in regions with relative low-quality institutions. Moreover, institutional quality emerges as an innovation productivity-enhancing factor.
    Keywords: European Union; Innovation capability; innovation performance; institutional quality; regions
    JEL: O30 O52 R11
    Date: 2021–07–03
  4. By: Doh-Shin Jeon; Yassine Lefouili; Leonardo Madio
    Abstract: We study a platformâs incentives to delist IP-infringing products and the effects of holding the platform liable for the presence of such products on innovation and consumer welfare. For a given number of buyers, platform liability increases innovation by reducing the competitive pressure faced by innovative products. However, there can be a misalignment of interests between innovators and buyers. Furthermore, platform liability can have unintended consequences, which overturn the intended effect on innovation. Platform liability tends to increase (decrease) innovation and consumer welfare when the elasticity of participation of innovators is high (low) and that of buyers is low (high).
    Keywords: platform, liability, intellectual property, innovation
    JEL: K40 K42 K13 L13 L22 L86
    Date: 2022
  5. By: Yuan Gao (School of Economics, University of East Anglia); Emiliya Lazarova (School of Economics, University of East Anglia)
    Abstract: We propose the Knowledge Origin Re-Combination Index (KORCI) to measure the ex-ante technological novelty of inventions at the sectoral level. The index is developed through the intertemporal comparison of a sequence of networks, which represents the complex 10 connections between the technological components listed in subsequent cohorts of patent applications in the sector. Using patent data from three sectors, we are the first to document the cyclical nature of the evolution of ex-ante technological novelty. Further investigation into the correlation between KORCI and patent application growth rates suggests that this relation, however, is sector-specific. This suggests that the relation between the degree of ex-ante 15 technological novelty and invention activities depends on the specific drivers of innovation in the sector – whether it is process-based or application-based.
    Date: 2022–10
  6. By: Vargas, F.; Guillard, Charlotte; Salazar, Monica; Crespi, G.A.
    Abstract: This paper provides the methods through which the first version of the Harmonized Latin American Innovation Surveys database (LAIS) was built. LAIS, which is made freely available through the Inter-American Development Bank, contains nearly 690 variables and 119,900 observations at the firm level from 30 national innovation surveys conducted between 2007 and 2017 in 10 Latin American countries, increasing the number of countries of the region with publicly available microdata. This paper describes how, starting from significantly different survey methods and questionnaires between countries, criteria were applied to identify and select variables from different surveys measuring the same underlying concept. It also discusses and guides how differences in survey methodologies may affect comparisons even after the harmonization of variables. LAIS includes data on innovation activities expenditures, sources of information and collaborations for innovation, innovation obstacles, outputs and effects, protection of innovation results, and general firm characteristics. Since LAIS significantly decreases the cost of making data comparisons between countries, it will allow more scholars to research innovation in Latin American firms and to tackle long-standing unanswered questions about the importance of framework conditions in LAC for innovation decisions in firms. The dataset and supporting documentation are available at:
    JEL: O10 O12 O31 O32 C81
    Date: 2022–06–02
  7. By: Baconguis, Rowena T.
    Abstract: Adoption of new practices and technologies influences farm productivity and agricultural growth. Countries invest in research and extension to ensure continuous growth both at the farm and industry level. This paper investigates agricultural technology production, its knowledge transfer, and farm and industry level performance. The study used the agricultural innovation systems (AIS) as lens in investigating the agricultural performance of the country, focusing on rice and swine industry. The governance of research, development, and extension continues to be negatively affected by the overlaps among research and development institutions and fragmentation of extension. The government continues to underinvest in research, the bulk of which goes to the rice program. Extension programs focus primarily on the distribution of private goods. The promotion of hybrid rice and farm machinery represented sizable investments, but adoption of these had not been widespread. The swine industry, on the other hand, continues to rely on imported inputs for nutrition and biologics. Recommendations focus on further minimizing inefficiencies in the research and extension functions of the government institutions. Comments to this paper are welcome within 60 days from the date of posting. Email
    Keywords: agricultural growth;technological promotion; technological adoption; agricultural innovation systems; agricultural performance
    Date: 2022

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