nep-ino New Economics Papers
on Innovation
Issue of 2022‒11‒21
seven papers chosen by
Uwe Cantner
University of Jena

  1. Countries' research priorities in relation to the Sustainable Development Goals By Confraria, Hugo; Ciarli, Tommaso; Noyons, E.
  2. Green Technological Diversification and Local Recombinant Capabilities: The Role of Technological Novelty and Academic Inventors. By Author-Name: Orsatti, Gianluca; Quatraro,Francesco; Scandura, Alessandra
  3. The Ossified Economy: The Case of Germany, 1870-2020 By Naudé, Wim; Nagler, Paula
  4. Endogenous Innovation Scale and Patent Policy in a Monetary Schumpeterian Growth Model By Yu, Po-yang; Lai, Ching-Chong
  5. To Be or Not to Be: The Entrepreneur in Neo-Schumpeterian Growth Theory By Henrekson, Magnus; Johansson, Dan; Karlsson, Johan
  6. Green Start-ups and the Role of Founder Personality By Chapman, Gary; Hottenrott, Hanna
  7. Mission-oriented R&D and growth of Japan 1988-2016 By Ziesemer, Thomas

  1. By: Confraria, Hugo; Ciarli, Tommaso (RS: GSBE MGSoG, Maastricht Graduate School of Governance, RS: UNU-MERIT); Noyons, E.
    Abstract: We analyse the extent to which countries' research priorities align with their greatest SDG challenges and whether misalignments are worse in certain SDGs. We develop a new method to identify research that is related to an SDG by examining research areas in WoS with a higher share of publications that contain text that is related to SDG policy outlets. Then, we use the SDG indicators to create a new score to assess the performance of countries in SDGs in relation to the top performers. We found that most research in the world focuses on issues unrelated to the SDGs and that, within SDG-related research, more than 90% is carried out in high and upper-middle income countries, where SDG challenges tend to be smaller. At the SDG level, our findings indicate a positive relation (alignment) between countries’ research priorities and SDG challenges only for SDG1 (No poverty), SDG2 (Zero hunger), SDG6 (Clean water and sanitation) and SDG9 (Industry, innovation and infrastructure); meaning that countries with higher SDG challenges are relatively (or becoming) more involved in research related to those SDGs. For all other SDGs, we found a misalignment or inconclusive relationship between SDG challenges and research prioritisation. A particularly severe misalignment happens in SDG12 (Responsible consumption and production), where the countries that have the most unsustainable consumption/production patterns are high income countries that are not specialized in research related to SDG12.
    JEL: O10 O33
    Date: 2022–10–03
  2. By: Author-Name: Orsatti, Gianluca; Quatraro,Francesco; Scandura, Alessandra (University of Turin)
    Abstract: This paper studies the entry of regions in new green technological specializations, specifically investigating the role of local recombinant capabilities and the involvement of academic inventors in patenting activities, as well as the interplay between the two. We test our hypotheses on a dataset of Italian NUTS 3 regions over the period 1998-2009. The results show that both recombinant capabilities and the presence of academic inventors are positively associated to new entries in green technological specializations, and that their interaction provides a compensatory mechanism in regions lacking adequate novel combinatorial capabilities. The findings of this work are relevant for policy makers involved in the elaboration of successful regional specialization strategies in green technological domains.
    Date: 2021–10
  3. By: Naudé, Wim (RWTH Aachen University); Nagler, Paula (Erasmus University Rotterdam)
    Abstract: We describe Germany's rise as an industrial power in the late 19th century through radical innovation and entrepreneurship, and contrast this with the post-World War II period. This latter period, although it contained the German economic miracle, was nevertheless a period during which innovation slowed down - a somewhat surprising conclusion, but consistent with the decline in business dynamism noted in a growing number of advanced economies. We document this decline using several innovation indicators, and offer four broad, interrelated explanations in a historical context: (i) the innovation system is locked into incremental innovation, (ii) the diffusion of technology is slowing down, (iii) the education system is subject to weaknesses, and (iv) entrepreneurship is stagnating. Implications for policy are noted. Our paper contributes to the literature on the decline in business dynamism and the "great stagnation", to the literature on the historical forces that determine innovation outcomes, and to the literature that seeks to identify what makes an entrepreneurial state.
    Keywords: innovation, Germany, entrepreneurship, technology
    JEL: N13 N14 O31 O33
    Date: 2022–09
  4. By: Yu, Po-yang; Lai, Ching-Chong
    Abstract: This paper develops a monetary R&D-driven endogenous growth model featuring endogenous innovation scales and the price-marginal cost markup. To endogenize the step size of quality improvement, we propose a trade-off mechanism between the risk of innovation failure and the benefit of innovation success in R&D firms. Several findings emerge from the analysis. First, a rise in the nominal interest rate decreases economic growth; however, its relationship with social welfare is ambiguous. Second, either strengthening patent protection or raising the professional knowledge of R&D firms leads to an ambiguous effect on economic growth. Third, the Friedman rule of a zero nominal interest rate fails to be optimal in view of the social welfare maximum. Finally, our numerical analysis indicates that the extent of patent protection and the level of an R&D firm’s professional knowledge play a crucial role in determining the optimal interest rate.
    Keywords: Intellectual property rights; Economic growth; Endogenous innovation scales; Endogenous markups; Inflation
    JEL: E41 L11 O30 O40
    Date: 2022–10–17
  5. By: Henrekson, Magnus (Research Institute of Industrial Economics); Johansson, Dan (Örebro University); Karlsson, Johan (Jönköping University, Sogang University)
    Abstract: Based on a review of 700+ peer-reviewed articles since 1990, identified using text mining methodology and supervised machine learning, we analyze how neo-Schumpeterian growth theorists relate to the entrepreneur-centered view of Schumpeter (1934) and the entrepreneurless framework of Schumpeter (1942). The literature leans heavily towards Schumpeter (1942); innovation returns are modeled as following an ex ante known probability distribution. By assuming that innovation outcomes are (probabilistically) deterministic, the entrepreneur becomes redundant. Abstracting from genuine uncertainty, implies that central issues regarding the economic function of the entrepreneur are overlooked such as the roles of proprietary resources, skills, and profits.
    Keywords: creative destruction, economic growth, entrepreneur, innovation, judgment, Knightian uncertainty
    JEL: B40 O10 O30
    Date: 2022–09
  6. By: Chapman, Gary; Hottenrott, Hanna
    JEL: G24 L26 O25 O31
    Date: 2022
  7. By: Ziesemer, Thomas (RS: GSBE MORSE, Macro, International & Labour Economics)
    Abstract: We analyze the dynamic interaction of Japan's total factor productivity (TFP), GDP, stocks of domestic and foreign private and public as well as mission-oriented R&D, called GBARD in OECD statistics, in a vector-error-correction model (VECM) for Japan with stock data for the period 1987-2016. Permanent policy changes show the following main results: (i) GBARD as well as private and public R&D each encourage growth rates of the other R&D stocks and of TFP and GDP, and all have high internal rates of return; (ii) Japan's R&D policies affect and are affected by foreign R&D; in particular, Japan's public R&D has a positive impact on European private R&D, whereas other OECD countries' R&D has a negative one; (iii) permanent foreign public R&D changes are detrimental to Japan's growth of TFP and GDP. Japan's R&D policies should be supported by education policies enhancing especially the number of PhDs and IT personnel.
    JEL: F43 O19 O47 O53
    Date: 2022–10–20

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