nep-ino New Economics Papers
on Innovation
Issue of 2023‒01‒02
seven papers chosen by
Uwe Cantner
University of Jena

  1. Personality and regional innovativeness: An empirical analysis of German patent data By Reher, Leonie; Runst, Petrik; Thomä, Jörg
  2. Cap-and-Innovate: Evidence of regulation-induced innovation in California By Vanessa da Cruz
  3. Skilled Immigration, Task Allocation and the Innovation of Firms By Anna Maria Mayda; Gianluca Orefice; Gianluca Santoni
  4. R&D Subsidies and Technological Progress in the Chinese ICT Manufacturing Industry By Li, Junjun
  5. Many are called, few are chosen: The role of science in drug development decisions By Linde Colen; Rene Belderbos; Stijn Kelchtermans; Bart Leten
  6. Directed Technical Change and the Resource Curse By Mads Greaker; Tom-Reiel Heggedal; Knut Einar Rosendahl
  7. Entangled Modes: Boundaries to effective international knowledge sourcing through technology alliances and technology-based acquisitions By Jojo Jacob; Rene Belderbos; Boris Lokshin

  1. By: Reher, Leonie; Runst, Petrik; Thomä, Jörg
    Abstract: This paper contributes to the new literature on the role of personality for regional innovativeness by examining whether this role varies between different types of regions. Building on regionally aggregated levels of individual Big Five personality traits, we find that only extraversion has a positive effect on patenting in German regions. Its impact is particularly important in lagging regions. We interpret this result as an indication of the compensatory role of collaboration for the innovativeness of lagging regions characterized by low levels of (business) R&D, which demonstrates the need for place-sensitive policies that take into account different modes of innovation.
    Keywords: Innovation,Big Five,Personality,Lagging regions
    JEL: J24 O18 O30 R1
    Date: 2022
  2. By: Vanessa da Cruz (CER-ETH Centre of Economic Research at ETH Zurich, Switzerland)
    Abstract: The paper applies the synthetic control method to examine the effects of California’s Cap-and-Trade Program on environmental innovation. The analysis exploits the International Patent Classification system to identify patents relating to environmentally sound technologies. This enables the study to focus on the effects of the policy intervention on green patent filings. A counterfactual is constructed by the combination of other states in the US which allows the comparison of patent applications in California to the estimated counterfactual situation in the absence of a Cap-and-Trade program. The study finds that the number of patents related to green technologies increased by approximately 22.5% after the passing of the Cap-and-Trade regulation. This result is robust to alternative specifications of the synthetic control method.
    Keywords: Induced Innovation, Environmental Policy, Climate Change, California Cap-and-Trade Program
    JEL: Q55 Q58 O31 O38
    Date: 2022–12
  3. By: Anna Maria Mayda; Gianluca Orefice; Gianluca Santoni
    Abstract: This paper analyses the impact of skilled migrants on the innovation (patenting) activity of French firms between 1995 and 2010, and investigates the underlying mechanism. We present district-level and firm-level estimates and address endogeneity using a modified version of the shift-share instrument. Skilled migrants increase the number of patents at both the district and firm level. Large, high-productivity and capital-intensive firms benefit the most, in terms of innovation activ-ity, from skilled immigrant workers. Importantly, we provide evidence that one channel through which the effect works is task specialization (as in Peri and Sparber, 2009). The arrival of skilled immigrants drives French skilled workers towards language-intensive, managerial tasks while foreign skilled workers specialize in technical, research-oriented tasks. This mechanism manifests itself in the estimated increase in the share of foreign inventors in patenting teams as a consequence of skilled migration. Through this channel, greater innovation is the result of productivity gains from specialization.
    Keywords: skilled immigration, innovation, patents
    JEL: F22 J61
    Date: 2022
  4. By: Li, Junjun
    Abstract: In the past decades, the Chinese ICT industry has received fiscal, taxation, and financial policy support in technology R&D. This research adopts causal inference methods for mediation analysis with interaction to empirically examine the direct and indirect effects of R&D subsidies in the Chinese ICT manufacturing industry. We found that the impact of R&D subsidies on private R&D expenditure and innovation outputs is positive and statistically significant. However, higher subsidy intensity crowds out private R&D expenditures. Second, in the Eastern region, firms invest more in R&D but more in incremental rather than radical innovation. And, the enterprise average private R&D expenditure is insufficient in the ECE sector. Finally, openness and information levels positively contribute to innovation outputs. Based on the findings, we propose several policy suggestions.
    Keywords: R&D subsidies,innovation output,private R&D investment,Chinese ICT manufacturing,causal mediation analysis
    Date: 2022
  5. By: Linde Colen; Rene Belderbos; Stijn Kelchtermans; Bart Leten
    Abstract: Pharmaceutical firms are extremely selective in deciding which patented drug candidates are taken up into clinical development, given the high costs and risks involved. We argue that the scientific base of drug candidates, and who was responsible for that scientific research, are key antecedents of take-up into clinical trials and whether the patent owner (‘internal take-up’) or another firm (‘external take-up’) leads the clinical development effort. We hypothesize that patented drug candidates that refer to scientific research are more likely to be taken up in development, and that in-house conducted scientific research is predominantly associated with internal take-up due to the ease of knowledge transfer within the firm. Examining 18,360 drug candidates patented by 136 pharmaceutical firms we find support for these hypotheses. In addition, drug candidates referring to in-house scientific research exhibit a higher probability of eventual drug development success. Our findings underline the importance of a ‘rational drug design’ approach that explicitly builds on scientific research. The benefits of internal scientific research in clinical development highlight the potential downside of pervasive organizational specialization in the life sciences in either scientific research or clinical development.
    Keywords: R&D, patents, science, drug development, pharmaceutical industry
    Date: 2022–11–21
  6. By: Mads Greaker (Oslo and Akershus University College - Oslo Business School); Tom-Reiel Heggedal (BI Norwegian Business School); Knut Einar Rosendahl (Norwegian University of Life Sciences; Statistics Norway - Research Department)
    Abstract: The "resource curse" is a potential threat to all countries relying on export income from abundant natural resources. The early literature hypothesized that easily accessible natural resources would lead to lack of technological progress. In this article we instead propose that abundance of petroleum can lead to the wrong type of technological progress. We build a model of a small, open economy having specialized in export of fossil fuels. R&D in fossil fuel extraction technology competes with R&D in clean energy technologies. Moreover, technological progress is path dependent as current R&D within a technology type depends on past R&D within the same type. Finally, global climate policy may reduce the future value of fossil fuel export. We find that global climate policy may lead to a resource curse. The ripeness of the clean energy technologies is essential for the outcomes: If the clean technology level is not too far beyond the fossil fuel technology, a shift to exporting clean energy is optimal independent of global climate policy. While if the clean technology is far behind, a shift should only happen as a response to global climate policy, and the government should intervene to accelerate this shift.
    Keywords: environment, directed technological change, innovation policy, resource curse
    Date: 2022–10–10
  7. By: Jojo Jacob; Rene Belderbos; Boris Lokshin
    Abstract: In today’s globalized era, corporate technology strategy is increasingly oriented towards accessing international sources of knowledge that can improve the novelty and variety of firms’ knowledge bases. Technology alliances and technology-based acquisitions have become two ubiquitous modes used in pursuing such an internationally-oriented technology strategy. We propose two boundaries to the effectiveness of pursuing geographically dispersed portfolios of alliances and acquisitions, arising from managerial complexities and knowledge redundancies that the combined portfolio of these modes may engender. We find support for our predictions in an analysis at the technology level of 165 leading firms across multiple industries. The findings of this paper highlight the need for managing the interrelatedness of diverse alliance and acquisition portfolios for their effective performance.
    Keywords: alliance portfolios, acquisitions, complexity, redundancy, geographic diversity, technological performance
    Date: 2022–11–21

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