nep-ino New Economics Papers
on Innovation
Issue of 2023‒01‒23
twelve papers chosen by
Uwe Cantner
University of Jena

  1. Buyers’ role in innovation procurement: Evidence from U.S. military R&D contracts By Francesco Decarolis; Gaetan de Rassenfosse; Leonardo M. Giuffrida; Elisabetta Iossa; Vincenzo Mollisi; Emilio Raiteri; Giancarlo Spagnolo
  2. The Contribution of High-Skilled Immigrants to Innovation in the United States By Shai Bernstein; Rebecca Diamond; Abhisit Jiranaphawiboon; Timothy McQuade; Beatriz Pousada
  3. R&D and Regional Competitiveness: A Study of Global Entrepreneurial Firms By Link, Albert; Sardar, Rashedur
  4. Can electricity liberalisation foster the development of radical clean-energy technologies? By Matteo Romagnoli
  5. Self-Efficacy and Entrepreneurial Performance of Start-Ups By Marco Caliendo; Alexander Kritikos; Daniel Rodriguez; Claudia Stier
  6. Innovation in times of Covid-19 By Torsten Heinrich; Jangho Yang
  7. Productivity gains from migration: Evidence from inventors By Gabriele Pellegrino; Orion Penner; Etienne Piguet; Gaetan de Rassenfosse
  8. Discrimination in the patent system: Evidence from standard-essential patents By Gaetan de Rassenfosse; Emilio Raiteri; Rudi Bekkers
  9. Enhancing sustainability dimension in Smart Specialisation strategies: a framework for reflection By MIEDZINSKI Michal; COENEN Lars; LARSEN Henrik; MATUSIAK Monika; SARCINA Angela
  10. Chaebols and Firm Dynamics in Korea By Philippe Aghion; Sergei Guriev; Kangchul Jo
  11. The 2022 EU Survey on Industrial R&D Investment Trends By NINDL Elisabeth
  12. Media Competition and News Diets By Charles Angelucci; Julia Cagé; Michael Sinkinson

  1. By: Francesco Decarolis (Bocconi University); Gaetan de Rassenfosse (Ecole polytechnique federale de Lausanne); Leonardo M. Giuffrida (ZEW); Elisabetta Iossa (University of Rome Tor Vergata); Vincenzo Mollisi (University of Mannheim); Emilio Raiteri (Eindhoven University of Technology); Giancarlo Spagnolo (Stockholm School of Economics)
    Abstract: This study provides the first quantification of buyers' role in the outcome of R&D procurement contracts. We combine together four data sources on US federal R&D contracts, follow-on patented inventions, federal public workforce characteristics, and perception of their work environement. By exploiting the observability of deaths of federal employees, we find that managers' death events negatively affect innovation outcomes: a 1 percent increase in the share of relevant public officer deaths causes a decline of 32.3 percent of patents per contract, 20.5 percent patent citations per contract and 34.3 percent patent claims per contract. These effects are driven by the deaths occurring in the six months before the contract is awarded, thereby indicating the relevance of the design and award stage relative to ex-post contract monitoring. Lower levels of self-reported within-office cooperation also negatively impact R&D outcomes.
    Keywords: innovation; R&D; public procurement; patents; bureaucracy; competence; cooperation; state capacity
    JEL: H57 O31 O32
    Date: 2021–06
  2. By: Shai Bernstein; Rebecca Diamond; Abhisit Jiranaphawiboon; Timothy McQuade; Beatriz Pousada
    Abstract: We characterize the contribution of immigrants to US innovation, both through their direct productivity as well as through their indirect spillover effects on their native collaborators. To do so, we link patent records to a database containing the first five digits of more than 230 million of Social Security Numbers (SSN). By combining this part of the SSN together with year of birth, we identify whether individuals are immigrants based on the age at which their Social Security Number is assigned. We find immigrants represent 16 percent of all US inventors, but produced 23 percent of total innovation output, as measured by number of patents, patent citations, and the economic value of these patents. Immigrant inventors are more likely to rely on foreign technologies, to collaborate with foreign inventors, and to be cited in foreign markets, thus contributing to the importation and diffusion of ideas across borders. Using an identification strategy that exploits premature inventor deaths, we find that immigrant inventors create especially strong positive externalities on the innovation production of their collaborators, while natives have a much weaker impact. A simple decomposition illustrates that immigrants are responsible for 36% of aggregate innovation, two-thirds of which is due to their innovation externalities on their native-born collaborators.
    JEL: J6 O31
    Date: 2022–12
  3. By: Link, Albert (University of North Carolina at Greensboro, Department of Economics); Sardar, Rashedur (University of North Carolina at Greensboro, Department of Economics)
    Abstract: We quantify, using data from the World Bank’s Enterprise Surveys and the World Economic Forum’s Global Competitiveness Index, the empirical relationship between global competitiveness and R&D investment activity as well as the independent relationship between global competitiveness and R&D investments across geographic regions of economic development. We also explore alternative measures of the effectiveness of R&D investments. Our findings suggest that R&D investments are a possible policy target variable in high-income regions for policy makers to consider for increasing firms’ global competitiveness.
    Keywords: R&D; global competitiveness; entrepreneurship; regional growth; program management;
    JEL: H11 L26 O32 O38
    Date: 2023–01–04
  4. By: Matteo Romagnoli (Department of Economics, Management and Statistics, Università degli Studi di Milano-Bicocca)
    Abstract: The paper investigates the effect of electricity liberalisation on the variety of clean energy patent’ search space to asses whether a more competitive electricity market can foster the development of radical clean-energy technologies. This idea is tested using a cross-section of patents filed in the period 1990-2017, a set of patent-level indicators and an instrumental variable approach. Results show that electricity liberalisation pushes clean-energy patents to cite knowledge from technological fields other than their own. However, the reform does not significantly affect the overall breath of the knowledge base of these patents. Additional insights are drawn by looking at the correlation between electricity liberalisation and an indicator of novelty in patents’ search space. The results are consistent with the claim that electricity liberalisation has a positive effect on the development of radical clean-energy technologies. At the same time, by describing how the reform changes clean-energy patents’ search space, they define this effect more precisely.
    Keywords: Clean-energy Technologies, Electricity Liberalisation, Climate Change, Patent Data
    JEL: L94 O31 Q42 Q55
    Date: 2022–12
  5. By: Marco Caliendo (University of Potsdam, IZA, DIW, IAB); Alexander Kritikos (DIW Berlin, University of Potsdam, IZA, IAB); Daniel Rodriguez (University of Potsdam); Claudia Stier (University of Potsdam)
    Abstract: Self-efficacy reflects the self-belief that one can persistently perform difficult and novel tasks while coping with adversity. As such beliefs reflect how individuals behave, think, and act, they are key for successful entrepreneurial activities. While existing literature mainly analyzes the influence of the task-related construct of entrepreneurial self-efficacy, we take a different perspective and investigate, based on a representative sample of 1, 405 German business founders, how the personality characteristic of generalized self-efficacy influences start-up performance as measured by a broad set of business outcomes up to 19 months after business creation. Outcomes include start-up survival and entrepreneurial income, as well as growth-oriented outcomes such as job creation and innovation. We find statistically significant and economically important positive effects of high scores of self-efficacy on start-up survival and entrepreneurial income, which become even stronger when focusing on the growth-oriented outcome of innovation. Furthermore, we observe that generalized self-efficacy is similarly distributed between female and male business founders, with effects being partly stronger for female entrepreneurs. Our findings are important for policy instruments that are meant to support firm growth by facilitating the design of more target-oriented offers for training, coaching, and entrepreneurial incubators.
    Keywords: entrepreneurship, firm performance, general self-efficacy, survival, job creation, innovation
    JEL: L26 M13 D91
    Date: 2023–01
  6. By: Torsten Heinrich (Department of Economics and Business Administration, Chemnitz University of Technology); Jangho Yang (Institute of New Economic Thinking at the Oxford Martin School, University of Oxford)
    Abstract: Did the Covid-19 pandemic have an impact on innovation? Past economic disruptions, anecdotal evidence, and the previous literature suggest a decline with substantial differences between industries. We leverage USPTO patent application data to investigate and quantify the disturbance. We assess differences by field of technology (at the CPC subclass level) as well as the impact of direct and indirect relevance for the management of the pandemic. Direct Covid-19 relevance is identified from a keyword search of the patent application fulltexts; indirect Covid-19 relevance is derived from past CPC subclass to subclass citation patterns. We find that direct Covid-19 relevance is associated with a strong boost to the growth of the number of patent applications in the first year of the pandemic at the same order of magnitude (in percentage points) as the percentage of patents referencing Covid-19. We find no effect for indirect Covid-19 relevance, indicating a focus on applied research at the expense of more basic research. Fields of technology (CPC mainsections) have an additional significant impact, with, e.g., mainsections A (human necessities) and C (chemistry, metallurgy) having a strong performance.
    Keywords: Innovation, Covid-19, Patent applications, Technological change
    JEL: I18 O31 O32 O33
    Date: 2022–12
  7. By: Gabriele Pellegrino (Università Cattolica del Sacro Cuore); Orion Penner (Ecole polytechnique federale de Lausanne); Etienne Piguet (University of Neuchatel); Gaetan de Rassenfosse (Ecole polytechnique federale de Lausanne)
    Abstract: This paper studies the relationship between migration and the productivity of high-skilled workers, as captured by inventors listed in patent applications. Using machine learning techniques to identify inventors across patents uniquely, we are able to track the worldwide migration patterns of nearly one million individual inventors. Migrant inventors account for more than ten percent of inventors worldwide. The econometric analysis seeks to explain the recurring finding in the literature that migrant inventors are more productive than non-migrant inventors. We find that migrant inventors become about thirty-percent more productive after having migrated. The disambiguated inventor data are openly available.
    Keywords: inventor; productivity; skilled migration
    JEL: F22 J61 O30
    Date: 2023–01
  8. By: Gaetan de Rassenfosse (Ecole polytechnique federale de Lausanne); Emilio Raiteri (Eindhoven University of Technology); Rudi Bekkers (Eindhoven University of Technology)
    Abstract: This paper tests for traces of discrimination against foreigners in the patent system. It focuses on patent applications filed in China, and for which the owner has made a public disclosure that they are or may become essential to the implementation of a technical standard. Such potentially standard-essential patents are of particularly high importance to their owner. We use the timing of disclosure to a leading standard-setting organization as a source of econometric identification and carry out extensive tests to ensure the exogeneity of timing. We find that foreign patent applications are significantly less likely to be granted by the Chinese patent office if their owners disclose them to be potentially essential to a standard before the substantive examination starts. Furthermore, the patent office spends, on average, one more year on the examination of such patents, and the scope of the patents are also more extensively reduced. Our findings contribute to the emerging discussion on technology protectionism.
    Keywords: discrimination; indigenous innovation; national treatment principle; standard-essential patent; technology protectionism
    JEL: F53 F68 K39 L52 L63
    Date: 2023–01
  9. By: MIEDZINSKI Michal (European Commission - JRC); COENEN Lars; LARSEN Henrik; MATUSIAK Monika (European Commission - JRC); SARCINA Angela (European Commission - JRC)
    Abstract: This report introduces a tested reflection framework addressed to policy practitioners and experts working in regions and countries willing to strengthen the sustainability dimension of their Smart Specialisation strategies. The framework features reflection questions based on extensive theoretical research and tested in practice. The questions are illustrated with examples of current practices and practical insights from policy makers about each step of the Smart Specialisation process. The framework was co-developed in a close collaboration with more than 30 policy practitioners from 12 regions and countries in Europe and beyond. It was designed to sparkle inspiration on how to mobilise research and innovation to address the SDGs in diverse territorial contexts, including places facing institutional and structural challenges. The framework is underpinned by an inclusive approach to thinking about innovation and innovation policy considering them fundamental for fostering sustainability transition in all territories.
    Keywords: Smart specialisation, SDGs, innovation for sustainability
    Date: 2022–12
  10. By: Philippe Aghion (LSE - London School of Economics and Political Science, Chaire Economie des institutions, de l'innovation et de la croissance - CdF (institution) - Collège de France); Sergei Guriev (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR); Kangchul Jo (BOK ERI - Bank of Korea Economic Research Institute)
    Abstract: We study firm dynamics in Korea before and after the 1997/8 Asian crisis and pro-competitive reforms that reduced the dominance of chaebols. We find that in industries that were dominated by chaebols before the crisis, labour productivity and total factor productivity of non-chaebol firms increased markedly after the reforms (relative to other industries). Furthermore, entry of non-chaebol firms increased significantly in all industries after the reform. After the crisis, the non-chaebol firms also dramatically increased their patenting activity. Finally, markups of chaebol firms declined substantially, especially within industries dominated by chaebols before the crisis. These results suggest that the crisis had the virtue of helping Korea move from catching-up growth based on investment in existing technologies to innovation-based growth.
    Date: 2021–10–01
  11. By: NINDL Elisabeth (European Commission - JRC)
    Abstract: This report presents the results of the 2022 survey of the top 1 000 EU companies by R&D investment in 2020, conducted between June and September 2022. The survey is intended to provide insights into the research and development activities of the R&D investors listed in the 2021 EU Industrial R&D Investment Scoreboard (Scoreboard 2021). The objective of this survey is to gather future expectations for R&D investment and gain first-hand information on barriers and drivers and the role of various activities that influence the level and direction of R&D investment. The survey addresses financing and collaboration, technology transfer and open innovation, and the effects of COVID-19 and the war in Ukraine. The response rate stood at 12%. The number of responses increased by 31.5% compared to the previous year, and the respondents accounted for over 26% of the R&D investment of the top 1 000 EU corporate investors in R&D. The results show a strong recovery in R&D investment after the COVID-19 pandemic, and the respondents expect this positive development to continue in 2022 and 2023. The main drivers of R&D investment are environmental sustainability and digitalisation. The respondents’ capital investment is largely driven by technologies to reduce emissions and to adapt to Industry 4.0. The survey thus confirms that innovative EU companies are actively helping to meet the targets set out in the European Green Deal and the green and digital transformation (the Twin Transition).
    Keywords: R&D, Survey, EU Industrial R&D Scoreboard, Innovation, Growth
    Date: 2022–12
  12. By: Charles Angelucci (MIT - Massachusetts Institute of Technology); Julia Cagé (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR); Michael Sinkinson (Yale University [New Haven], NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research)
    Abstract: Technological innovations in content delivery, such as the advent of broadcast television or of the Internet, threaten local newspapers' ability to bundle their original local content with third-party content such as wire national news. We examine how the entry of television-with its initial focus on national news-affected local newspapers as well as consumer news diets in the United States. We construct a novel dataset of U.S. newspapers' economic performance and content choices from 1944 to 1964 and exploit quasi-random variation in the rollout of television to show that this new technology was a negative shock in both the readership and advertising markets for newspapers. Newspapers responded by providing less content, particularly local news. We tie this change towards increasingly nationalized news diets to an increase in party vote share congruence between Congressional and Presidential elections.
    Keywords: Media,Local News,Television,Newspapers,Advertising,Bundling,Split-Ticket Voting
    Date: 2022

This nep-ino issue is ©2023 by Uwe Cantner. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.