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on Innovation |
| By: | Mehmet Furkan Karaca, Mehmet Furkan Karaca (Michigan State University); Minetti, Raoul (Michigan State University, Department of Economics); Murro, Pierluigi (Luiss University) |
| Abstract: | This paper studies the dynamic process of credit reallocation and its interaction with aggregate innovative activity. To draw out theoretical predictions, we build a discrete time model to investigate the consequences of lenders’ decision on reallocating credit and borrowers’ choice on innovating. We show that an escalation in credit reallocation disrupts innovative activities. Using a novel dataset on bank balance sheets and the aggregate number of patents for Italy, we examine the effect of credit reallocation on innovation. We construct measures of credit reallocation and collect data on the aggregate number of patents as a measure of innovative activity across Italian provinces. We find that an increase in credit reallocation reduces innovative activity while aggregate credit growth helps to expand it. |
| Keywords: | Credit Market; Credit Reallocation; Technological Change; Innovation |
| JEL: | E44 G21 O30 |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:msuecw:2022_006&r=ino |
| By: | Link, Albert (University of North Carolina at Greensboro, Department of Economics); Swann, Christopher (University of North Carolina at Greensboro, Department of Economics); van Hasselt, Martijn (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | In 2000 and again in 2012, the U.S. Congress charged the National Research Council (NRC) within the U.S. National Academies of Sciences, Engineering, and Medicine to study how the Small Business Innovation Research (SBIR) program has stimulated technological innovation and used small businesses to meet Federal research and development needs, and to make recommendations for improvements in the SBIR program. Using project data collected by the NRC, we assert that an important assessment metric not previously considered by the NRC in its reports to Congress relates to the failure rate of funded Phase II research projects. Our paper identifies a number of covariates associated with project failure, and we make a recommendation that program managers might decrease the likelihood of project failure if funded firms can be given relevant information about how to contact angel investors, venture capitalists, and private investors, and how to present to them a proposal to obtain additional research investment dollars. |
| Keywords: | Small Business Innovation Research (SBIR); project failure; R&D; program assessment; |
| JEL: | O22 O31 O32 O38 |
| Date: | 2022–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2022_007&r=ino |
| By: | Milene Simone Tessarin; Carlos Roberto Azzoni; ; |
| Abstract: | This study explores the importance of labour pool and geographical concentration as essential factors that help shape pathways for innovation and influence the speed with which technological change can occur. To do so, we propose an approach based on human capital and the workers’ skills that contribute to innovation. Being able to capture this broader range of professionals is crucial to assess regional innovation in Less Developed Countries, such as Brazil and other Latin American countries, as their productive structure concentrates on lower technological industries and innovative activities not centred on R&D. We created a measure of innovative potential that can be used at different levels of regional disaggregation. We analyze 374 relevant Brazilian Labour Market Areas (LMA), employing data on occupations from the Annual Report of Social Information, from 2003 to 2018. Although innovative activities are heavily concentrated in a few regions, empirical evidence suggests that a shift has occurred since the early 2000s, with lagging regions making progress faster. Nonetheless, our results show that such convergence is still slight, given the distance between the leading and lagging regions’ innovative performance. Factors related to the region’s previous capacities, such as the stock of workers with innovative skills, manufacturing industry share, and the number of large firms have a positive association with innovative activity in a region. Although the convergence in the innovative potential among Brazilian regions, the movement is too slow to indicate a transformation of the country as a whole to levels similar to those of developed nations. |
| Keywords: | regional innovation, regional inequality, skills of workers, structural change |
| JEL: | O30 O33 R11 J24 L16 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2227&r=ino |
| By: | Cetrulo, Armanda; Cirillo, Valeria; Landini, Fabio |
| Abstract: | This paper investigates the impact of firm-level collective bargaining on firms' investment in intangible assets and, specifically R&D. While standard hold-up theories predict a negative effect of organized labour on intangible investments, the inclusion of pay-for-performance schemes in complementary negotiation can actually invert the prediction. Moreover, the industrial relation literature suggests that, in presence of asymmetric power relations, firm-level collective bargaining can allow workers to make their voice heard and induce management to invest in assets that drive competition away from wages, including R&D. We exploit a rich and representative survey on Italian non-agricultural companies conducted by the National Institute for the Analysis of Public Policies (INAPP) to test these predictions. Baseline estimates suggest that the presence of second-level collective bargaining is associated with higher investments in R&D and that power relation is the main mechanism driving this result. These findings are confirmed also in a robustness check where we exploit size contingent legislation governing the creation of employee representative bodies involved in firm-level bargaining in a regression discontinuity design (RDD) framework. The implications for the design of innovation policy are discussed. |
| Keywords: | R&D,Intangibles,Unions,Collective Bargaining,Complementary Negotiation |
| JEL: | J50 O32 O33 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1195&r=ino |
| By: | Link, Albert (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | This paper describes the U.S. Small Business Technology Transfer (STTR) program. The legislative history of the program is presented as is a descriptive analysis of the program based on data collected by the National Research Council (NRC) within the National Academies of Sciences, Engineering, and Medicine (the National Academies). The descriptive analysis presented herein is designed to characterize dimensions of an assessment and evaluation of the program. Under the expectation that Congress will request that the NRC conduct an in-depth study of the STTR program in the coming years, a number of suggestions are offered for improvements in the data collected and how they could be analyzed in an effort to ensure that a more complete assessment and evaluation of the program is possible. |
| Keywords: | Small Business Technology Transfer (STTR) program; program assessment; program evaluation; program management; small firms; entrepreneurship; |
| JEL: | G28 H11 L26 M48 |
| Date: | 2022–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2022_008&r=ino |