nep-ino New Economics Papers
on Innovation
Issue of 2023‒01‒09
nine papers chosen by
Uwe Cantner
University of Jena

  1. Mapping technologies to business models: An application to clean technologies and entrepreneurship By Dörr, Julian Oliver
  2. Trains of Thought: High-Speed Rail and Innovation in China By Georgios Tsiachtsiras; Deyun Yin; Ernest Miguelez; Rosina Moreno
  3. Shades of a Socialist Legacy? Innovation Activity in East and West Germany 1877-2014 By Michael Fritsch; Maria Greve; Michael Wyrwich
  4. The Influence of Start-up Motivation on Entrepreneurial Performance By Caliendo, Marco; Kritikos, Alexander S.; Stier, Claudia
  5. How Patent Rights Affect University Science By Laurent Bergé; Thorsten Doherr; Katrin Hussinger
  6. The Deep Historical Roots of Industrial Culture and Regional Entrepreneurship - A case study of two regions By Michael Fritsch; Maria Greve; Michael Wyrwich
  7. The determinants of parallel invention : Measuring the role of information sharing and personal interaction between inventors By Kang, Byeongwoo; Bekkers, Rudi
  8. An Evaluation of the French Innovation Tax Credit By Simon Bunel; Benjamin Hadjibeyli
  9. Characterising science-industry patent collaborations: knowledge base, impact and economic value By Ugo Rizzo; Valerio Sterzi

  1. By: Dörr, Julian Oliver
    Abstract: Theory suggests that new market entrants play a special role for the creation of new technological pathways required for the development and diffusion of more sustainable forms of production, consumption, mobility and housing. Unconstrained by past technological investments, entrants can introduce more radical environmental innovations than incumbent firms whose past R&D decisions make them locked into path-dependent trajectories of outdated technologies. Yet, little research exists which provides empirical evidence on new ventures' role in the technological transition towards decarbonization and dematerialization. This is mainly because patenting is rare among start-ups and also no historical track record about their R&D investments exists, both data sources commonly used to determine a company's technological footprint. To enable the identification of clean technology-oriented market entrants and to better understand their role as adopters and innovators for sustainable market solutions, this paper presents framework that systematically maps new ventures' business models to a set of well-defined clean technologies. For this purpose, the framework leverages textual descriptions of new entrants' business summaries that are typically available upon business registration and allow for a good indication of their technological orientation. Furthermore, the framework uses textual information from patenting activities of established innovators to model semantic representations of technologies. Mapping company and technology descriptions into a common vector space enables the derivation of a fine-granular measureof entrants' technological orientation. Applying the framework to a survey of German start-up firms suggests that clean technology-oriented market entrants act as accelerators of technical change: both by virtue of their existing products and services and through a high propensity to introduce additional environmental innovations.
    Keywords: Clean technologies,technological orientation,environmental innovation,sustainable entrepreneurship,text modeling,natural language processing
    JEL: C38 O13 Q55
    Date: 2022
  2. By: Georgios Tsiachtsiras; Deyun Yin; Ernest Miguelez (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Rosina Moreno
    Abstract: This paper explores the effect of the High Speed Rail (HSR) network expansion on local innovation in China during the period 2008-2016. Using exogenous variation arising from a novel instrument - courier's stations during the Ming dynasty, we find solid evidence that the opening of a HSR station increases cities' innovation activity. We also explore the role of inter-city technology diffusion as being behind the surge of local innovation. To do it, we compute least-cost paths between city-pairs, over time, based on the opening and speed of each HSR line, and obtain that an increase in a city's connectivity to other cities specialized in a specific technological field, through the HSR network, increases the probability for the city to specialize in that same technological field. We interpret it as evidence of knowledge diffusion.
    Keywords: High speed rail, Innovation, Technology diffusion, Patents, Specialization
    Date: 2022–12–09
  3. By: Michael Fritsch (Friedrich Schiller University Jena, Germany); Maria Greve (Utrecht University, The Netherlands, and Friedrich Schiller University Jena, Germany); Michael Wyrwich (University of Groningen, The Netherlands, and Friedrich Schiller University Jena, Germany)
    Abstract: The unification of the East and West German states in 1990 initiated the integration of two distinct innovation systems. In this process, the poorly functioning socialist system of East Germany adopted the formal institutions and organization of West Germany, a western-style market economy. We investigate the effect of this integration on patenting activity by applying a difference-in-difference approach. While patenting activity increased in both parts of the country until recently, the gap between East and West Germany widened considerably over time. This divergence in innovation activity suggests that current East-West differences may be indirectly rooted in this socialist legacy and the sudden shock transformation that occurred upon reunification. We also find that the similarity of the technology profile of the East and West German innovation systems is crucial to understand the divergence. So, East German innovation activity fell behind especially in technologies where both East and West Germany were specialized in before re-unification. The same applies to technologies where only West Germany was specialized in. Our findings indicate that integrating the two innovation systems mainly benefitted the West.
    Keywords: Innovation, Socialism, Transformation, Germany
    JEL: O31 O52 P27
    Date: 2022–12–20
  4. By: Caliendo, Marco (University of Potsdam); Kritikos, Alexander S. (DIW Berlin); Stier, Claudia (University of Potsdam)
    Abstract: Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives of becoming an entrepreneur influence the subsequent entrepreneurial development. In our analysis, we examine a broad range of business outcomes including survival and income, as well as job creation, expansion and innovation activities for up to 40 months after business formation. Using self-determination theory as conceptual background, we aggregate the start-up motives into a continuous motivational index. We show – based on a unique dataset of German start-ups from unemployment and non-unemployment – that the later business performance is better, the higher they score on this index. Effects are particularly strong for growth oriented outcomes like innovation and expansion activities. In a next step, we examine three underlying motivational categories that we term opportunity, career ambition, and necessity. We show that individuals driven by opportunity motives perform better in terms of innovation and business expansion activities, while career ambition is positively associated with survival, income, and the probability of hiring employees. All effects are robust to the inclusion of a large battery of covariates that are proven to be important determinants of entrepreneurial performance.
    Keywords: entrepreneurship, push and pull theories, start-up motivation, survival, job creation, firm growth, innovation
    JEL: L26 C14
    Date: 2022–12
  5. By: Laurent Bergé (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Thorsten Doherr; Katrin Hussinger
    Abstract: How do intellectual property rights influence academic science? We investigate the consequences of the introduction of software patents in the U.S. on the publications of university researchers in the field of computer science. Difference-in-difference estimations reveal that software scientists at U.S. universities produced fewer publications (both in terms of quantity and quality) than their European counterparts after patent rights for software inventions were introduced. We then introduce a theoretical model that accounts for substitution and complementarity between patenting and publishing as well as for the direction of research. In line with the model's prediction, further results show that the decrease in publications is largest for scientists at the bottom of the ability distribution. Further, we evidence a change in the direction of research following the reform towards more applied research.
    Keywords: Patent rights, Publications, Economics of science, Difference-in-difference estimation, Model of science production
    Date: 2022–12–09
  6. By: Michael Fritsch (Friedrich Schiller University Jena, Germany); Maria Greve (Utrecht University, The Netherlands, and Friedrich Schiller University Jena, Germany); Michael Wyrwich (University of Groningen, The Netherlands, and Friedrich Schiller University Jena, Germany)
    Abstract: We describe and compare the development trajectories of two German regions, South Saxony and Mecklenburg, with a special focus on entrepreneurship and innovation. South Saxony has a long history of self-employment and knowledge generation that results in a persistent culture of innovative entrepreneurship. In Mecklenburg, such a culture did never emerge. Differences between the entrepreneurial ecosystems in the two regions especially pertain to the level of knowledge production and its link to new business formation in innovative and knowledge-intensive industries.
    Keywords: Entrepreneurship, entrepreneurial ecosystems, economic history, culture, regional development
    JEL: L26 M13 O1 O3 R11
    Date: 2022–12–20
  7. By: Kang, Byeongwoo; Bekkers, Rudi
    Abstract: Historical accounts describe numerous cases of parallel invention. Nowadays, with over half a million inventions yearly that apply for patent protection at the USPTO alone, it is likely that there are a lot of parallel inventions among these. Yet, the mechanisms behind creating similar knowledge remain unstudied. From both a theoretical and practical perspective, it is an interesting question to what degree parallel inventions take place truly independent of each other, or whether they are the result of the exchange of knowledge and ideas between inventors. In our empirical study, we use the unique setting of technical standardization, where it is possible to systematically observe knowledge sharing as well as knowledge exchanges between inventors in detail. This study presents two novel analyses, one focussing on the determinants of similar inventions (using an AI-based approach) and one on the determinants of identical inventions (exploiting data from the patent granting procedure). In both analyses, we find positive and significant effects for knowledge sharing as well as for inventor interaction as determinants. The latter effect is the strongest: if meet in person and discuss their ideas, the likelihood of similar inventions increases up to a factor of approximately five, to up to 2.3 percentage points. Empirically confirming the theoretical work of Amabile (1983, 1988) on knowledge creation at the individual level and that of Nonaka (1994, 2006) on knowledge creation at the organizational level, we reflect on the implications of our findings for companies wishing to increase their inventive efforts.
    Keywords: Creativity, Idea twin, Knowledge creation, Patent similarity, Similar knowledge
    JEL: O31 D82
    Date: 2022–11
  8. By: Simon Bunel; Benjamin Hadjibeyli
    Abstract: The Innovation tax credit (crédit d’impôt innovation, CII) is an extension of the Research tax credit (crédit d’impôt recherche, CIR) intended to boost the incentive effect of the latter on SMEs to encourage them to engage in the creation of new products via the development of prototypes or pilot plants. Introduced in 2013, it amounted to €120 million of tax credit in 2014 for some 5,300 recipients. This article seeks to measure the impact of the introduction of this scheme on its beneficiaries over the period from 2013 to 2016. Using a difference-in-differences method following propensity score matching, we find a greater increase in employment in the short term for firms benefiting from the scheme, along with a more pronounced increase in their sales turnover in the medium term. A greater increase in the number of new products produced by the beneficiaries is also observed. Finally, the introduction of the CII went along with a reduction in the research expenditure reported under the CIR.
    Keywords: Innovation, Tax credit, Evaluation, Products
    JEL: C21 D22 H32 L25 O31
    Date: 2022
  9. By: Ugo Rizzo; Valerio Sterzi (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In this article, we analyse the characteristics of science-industry patents with respect to noncollaborative industry patents and industry-industry collaborative patents. This analysis covers patents filed in the years 1978-2015 (and granted up to 2020) at the European Patent Office (EPO) in four large European countries (Germany, France, Italy and the UK) and in the US. We consider three dimensions to assess the characteristics of patents: the knowledge base, the technological impact, and the economic value. Science-industry collaborative patents are averagely more sophisticated and similar or higher impact than other industry patents. However, depending on the proxy chosen, they are of similar or lower economic value compared to non-collaborative industry patents and to industry-industry collaborative patents. When we control for the experience of private companies in collaborating with academic institutions, we observe that more experienced collaborations produce slightly less sophisticated and impactful patents, but with higher economic value. We discuss different explanations of these findings.
    Abstract: Dans cet article, nous analysons les caractéristiques des brevets collaboratifs science industrie par rapport aux brevets industriels non collaboratifs et aux brevets collaboratifs industrie‐industrie. Cette analyse porte sur les brevets déposés au cours des années 1978‐2015 (et accordés jusqu'en 2020) à lʹOffice européen des brevets (OEB) dans quatre grands pays européens (Allemagne, France, Italie et Royaume‐Uni) et aux États‐Unis. Nous considérons trois dimensions pour évaluer les caractéristiques des brevets : la base de connaissances, l'impact technologique et la valeur économique. Les brevets de collaboration science‐industrie sont en moyenne plus sophistiqués et ont un impact similaire ou supérieur aux autres brevets industriels. Cependant, selon l'indicateur choisi, leur valeur économique est similaire ou inférieure à celle des brevets industriels non collaboratifs et des brevets collaboratifs industrie‐industrie. Lorsque nous contrôlons l'expérience des entreprises privées en matière de collaboration avec les institutions académiques, nous observons que les collaborations plus expérimentées produisent des brevets légèrement moins sophistiqués et moins impactant, mais avec une valeur économique plus élevée. Nous discutons les différentes explications de ces résultats.
    Keywords: University patent, Patent value, Patent collaboration, Science- Industry
    Date: 2022–12–13

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