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on Innovation |
| By: | Jan Fagerberg (Centre for Technology, Innovation and Culture, University of Oslo) |
| Abstract: | Transforming the economy to a state consistent with net-zero emissions is a very demanding task. Extensive change, i.e., innovation, in the way energy is provided, distributed, and used across all parts of society will be required. An important question, discussed in this paper, is how policy – and particularly innovation policy - can contribute to mobilize innovation for this purpose. It is pointed out that while innovation solves problems (in response to challenges), it also creates novel opportunities that policymakers may exploit to further their aims. The analysis presented in the paper shows that a global green shift, centred on production and use of renewable energy, is - greatly helped by past policies in a few countries - already well underway, and it is argued that this may create very important opportunities for policy makers in their attempts to support (and speed up) the transition. It is concluded that for policy to succeed in its aims, two elements are essential, (1) a broadly supported vision or strategy for change, exploiting the opportunities offered by the global green shift, and (2) a set of projects – or missions – aimed at addressing specific challenges of relevance for the countries in question. However, for such projects or missions to be successful, relevant stakeholders – also outside national boarders – may need to be included, challenging received innovation policy governance. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20230108&r=ino |
| By: | Simon Bruhn; Thomas Grebel; Lionel Nesta (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | This paper argues that the typical practice of performing growth decompositions based on log-transformed productivity values induces fallacious conclusions: using logs may lead to an inaccurate aggregate growth rate, an inaccurate description of the microsources of aggregate growth, or both. We identify the mathematical sources of this log-induced fallacy in decomposition and analytically demonstrate the questionable reliability of log results. Using firm-level data from the French manufacturing sector during the 2009-2018 period, we empirically show that the magnitude of the log-induced distortions is substantial. Depending on the definition of accurate log measures, we find that around 60-80% of four-digit industry results are prone to mismeasurement. We further find significant correlations of this mismeasurement with commonly deployed industry characteristics, indicating, among other things, that less competitive industries are more prone to log distortions. Evidently, these correlations also affect the validity of studies that investigate the role of industry characteristics in productivity growth. |
| Keywords: | productivity decomposition, growth, log approximation, geometric mean, arithmetic mean |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03474838&r=ino |
| By: | Erik Hornung (University of Cologne); Julius Koschnick (London School of Economics); Francesco Cinnirella (University of Bergamo) |
| Abstract: | Sustained technological progress was at the heart of the Industrial Revolution. This column argues that access to knowledge was crucial for innovation and technological diffusion during this period. Inventors and entrepreneurs needed access to useful knowledge to generate new ideas and continue innovating. Such access was provided by the ‘economic societies’ – associations of individuals interested in improving the local economy. These societies became drivers of knowledge diffusion and innovation. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkpbs:041&r=ino |
| By: | Bergeaud, Antonin; Verluise, Cyril |
| Abstract: | Innovation is an important driver of potential growth but quantitative evidence on the dynamics of innovative activities in the long-run are hardly documented due to the lack of data, especially in Europe. In this paper, we introduce PatentCity, a novel dataset on the location and nature of patentees from the 19th century using information derived from an automated extraction of relevant information from patent documents published by the German, French, British and US Intellectual Property offices. This dataset has been constructed with the view of facilitating the exploration of the geography of innovation and includes additional information on citizenship and occupation of inventors. |
| Keywords: | history of innovation; patent; text as data |
| JEL: | R14 J01 J1 |
| Date: | 2022–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117858&r=ino |
| By: | Martin, Ralf; Verhoeven, Dennis |
| Abstract: | The UK government has committed to increase R&D support for clean technologies in an effort to meet its net-zero target by 2050. The opportunity cost of such programs crucially depends on the value of knowledge spillovers that accrue from clean relative to other (emerging) technologies. Using patent information to measure the value of direct and indirect knowledge spillovers, we derive estimates for the expected economic returns of subsidising a particular technology field. Our method allows comparing fields by the returns a hypothetical additional subsidy would have generated within the UK or globally. Clean technologies are top-ranked in terms of within-UK returns, with Tidal and Offshore Wind showing particularly high returns. In terms of global returns, emerging technologies such as Wireless, as well as Electrical Engineering outperform Clean by a small margin. We also find that cross-border knowledge spillovers are important for all technology fields, with global return rates over ten times larger than within-UK ones. In sum, our results suggest that the opportunity cost of R&D support programs for clean innovation in the UK is low at worst. |
| Keywords: | innovation; knowledge spillovers; clean technology; innovation policy; patent data |
| JEL: | R14 J01 J1 |
| Date: | 2022–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117804&r=ino |
| By: | Philippe Aghion; Antonin Bergeaud; Matthieu Lequien; Marc Melitz; Thomas Zuber |
| Abstract: | We decompose the “China shock” into two components that induce different adjustments for firms exposed to Chinese exports: an output shock affecting firms selling goods that compete with similar imported Chinese goods, and an input supply shock affecting firms using inputs similar to the imported Chinese goods. Combining French accounting, customs, and patent information at the firm-level, we show that the output shock is detrimental to firms' sales, employment, and innovation. Moreover, this negative impact is concentrated on low-productivity firms. By contrast, we find a positive effect - although often not significant - of the input supply shock on firms' sales, employment and innovation. |
| Keywords: | Competition Shock, Patent, Firms, Import |
| JEL: | F14 O19 O31 O33 O34 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:899&r=ino |
| By: | Cesare Righi; Davide Cannito; Theodor Vladasel |
| Abstract: | Despite their growing importance for rm innovation strategy and frequent appearance in U.S. patent policy debates, how continuing patent applications are used remains unclear. Turn-of-the-century reforms strongly limited opportunities to extend patent term and surprise competitors, but continuing applications have steadily risen since. We argue that they retain a subtle use, as applicants can file continuations to keep prosecution open and change patent scope after locking in gains with the initial patent. We document a sharp drop in parent abandonment and rise in continuations per original patent after the reforms. Continuing applications are more privately valuable than original patents, are led in more uncertain contexts, for higher value technologies, by more strategic applicants, and react strongly to the notice of allowance. The evidence supports a current strategic use of continuing applications to craft claims over time. |
| Keywords: | intellectual property, patent scope, continuation, divisional, innovation |
| JEL: | O31 O34 O38 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1382&r=ino |
| By: | Matthias Huegel (Friedrich Schiller University Jena, Department of Economics); Philip Doerr (Friedrich Schiller University Jena, Department of Economics); Martin Kalthaus (Friedrich Schiller University Jena, Department of Economics) |
| Abstract: | The transfer of knowledge and technology from academia to industry is usually understood as a process. While previous research focuses on phenomena along the process and its outcomes, the starting point of the process – the initiation of a transfer activity – remains unstudied. We provide first empirical insights on the initiation of the transfer process and conceptualize this initiation as a simultaneous recognition of a transfer opportunity and the choice of a transfer channel. We focus on Science-Industry collaboration, Intellectual Property Rights and spin-off creation as relevant channels. We use survey data from 1, 149 scientists from the German state of Thuringia and utilize seemingly unrelated regressions to account for selection and multiple channel choices in our econometric approach. Our results show a positive relationship between scientists’ probability to recognize a transfer opportunity and different kinds of prior knowledge. Contrary to our expectation, scientific quality reduces the likelihood of recognizing a transfer opportunity. For the choice of the transfer channel, the results show a positive relationship between choosing the spin-off channel and risk willingness, as well as basic research. Applied research increases the likelihood to choose Intellectual Property Rights as a channel. Furthermore, role models are positively associated with these two channels. |
| Keywords: | Transfer Process, Transfer Initiation, Opportunity Recognition, Transfer Channel, Science-Industry Collaboration, Intellectual Property Right, Academic Spin-off |
| JEL: | L26 O31 O33 O34 |
| Date: | 2023–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2023-002&r=ino |
| By: | Caliendo, Marco (University of Potsdam); Kritikos, Alexander S. (DIW Berlin); Rodriguez, Daniel (University of Potsdam); Stier, Claudia (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 growthoriented 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 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15848&r=ino |
| By: | Robert S. Chirinko; Daniel J. Wilson |
| Abstract: | This paper reviews selected fiscal policy initiatives undertaken by US states to encourage job creation and innovation. We begin with a discussion of some general considerations about the design of tax policies summarized in a tax policy design table. Four policies are reviewed: job creation tax credits, research and development tax credits, a set of tax policies targeted to the biotechnology industry, and a broad set of tax policies that attract star scientists. The experiences at the state level are used to evaluate the effectiveness of these employment and knowledge-capital tax incentives in creating jobs and spurring innovation. The paper concludes with four other considerations need to be taken into account in selecting policies. |
| Keywords: | targeted state fiscal policies, employment tax incentives, job creation, knowledge-capital tax incentives, innovation |
| JEL: | H71 H25 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10158&r=ino |
| By: | Wang, Shanchao; Alston, Julian M.; Pardey, Philip G. |
| Abstract: | Quite different R&D lag structures predominate in studies of agricultural R&D compared with studies of R&D in other industries, and compared with studies of economic growth more broadly. Here we compare the main models and their implications using long-run data for U.S. agriculture. We reject the models predominantly used in studies of economic growth and industrial R&D both on prior grounds and using various statistical tests. The preferred model is a 50-year gamma lag distribution model. The estimated elasticity of MFP with respect to the knowledge stock is 0.28 and the implied marginal benefit-cost ratio is 23:1. |
| Keywords: | Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods |
| Date: | 2023–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umaesp:330085&r=ino |
| By: | Alberto Corsini (UCA - Université Côte d'Azur); Michele Pezzoni (UCA - Université Côte d'Azur, Observatoire des Sciences et Techniques - HCERES - Haut Conseil de l'Evaluation de la Recherche et de l'Enseignement Supérieur, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po, ICRIOS - ICRIOS, Bocconi University, Italy - Bocconi University [Milan, Italy]) |
| Abstract: | Over the last fifteen years, European countries have increasingly relied on competitive grants to allocate research funding, replacing the more traditional block funding model. Policymakers are interested in assessing the effectiveness of the grant funding model in producing impactful research. However, the literature aiming to quantify the effect of grants on the resulting research's impact is scant. In the French context, we compare the impact of scientific articles resulting from the support of competitive grants from the main national funding agency with the impact of articles not supported by grants. We rely on publication acknowledgments to retrieve funding information and on citation data to assess the articles' impact. We find that articles supported by competitive grants receive more citations than articles not supported by grants in the long run, while the difference is not statistically significant in the short run. We find heterogeneity in the effect of grant funding on citations across fields. |
| Keywords: | Competitive funding, Research impact, French funding agency |
| Date: | 2022–12–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03912647&r=ino |