nep-ino New Economics Papers
on Innovation
Issue of 2023‒03‒06
four papers chosen by
Uwe Cantner
University of Jena

  1. Playing the innovation subsidy game: experience, clusters, consultancy, and networking in regional innovation support By Rodríguez-Pose, Andrés; Belso-Martinez, Jose Antonio; Díez-Vial, Isabel
  2. Distorted Innovation: Does the Market Get the Direction of Technology Right? By Daron Acemoglu
  3. The Science of Research Grants: A Scoping Review of Journal Articles in Grantology Published in 1970-2020 By Yan, Zheng; Yang, Panpan; Liu, Qingyang; Erickson, Joan J.
  4. DiGA, an Innovation Made in Germany – Status Quo and a Perspective of Potential Users By Jacquemin, Philippe; Reuter-Oppermann, Melanie

  1. By: Rodríguez-Pose, Andrés; Belso-Martinez, Jose Antonio; Díez-Vial, Isabel
    Abstract: Government support to promote firm-level innovation is seen as a crucial factor for economic growth. This support is frequently channeled through firm-level subsidies. Despite their relevance within the policy portfolio, there is an open academic debate on whether subsidies are effective for innovation. This is by no means related to a potential inadequacy of subsidies, but because the mechanisms of assignment may be unsatisfactory. We argue that this may be the case when subsidies are awarded to larger firms with a solid international and innovative trajectory or to those that know how toplay the system, ” rather than to the most deserving firms and projects. To test whether this is the case, we use data from 17, 866 applicants for innovation subsidies managed by the Valencian Institute of Competitiveness. We find that firms with specific knowledge accrued through previous submissions, public funding and grant consultancy or cluster location, are the main beneficiaries of public innovation support, generally at the expense of more promising candidates that lack the know-how to navigate a complex and often flawed process. This inertia gets policy-makers stuck in a sub-optimal assignment system that should be deeply reconsidered.
    Keywords: clusters; consultancy services; innovation policy; networks; previous subsidy experience
    JEL: R14 J01 J1
    Date: 2021–12–01
  2. By: Daron Acemoglu
    Abstract: In the presence of markup differences, externalities and other social considerations, the equilibrium direction of innovation can be systematically distorted. This paper builds a simple model of endogenous technology, which generalizes existing comparative static results and characterizes potential distortions in the direction of innovation. I show that empirical findings across a number of different areas are consistent with this framework's predictions and I use data from several studies to estimate its key parameters. Combining these numbers with rough estimates of differential externalities and markups, I provide suggestive evidence that equilibrium distortions in the direction of technology can be substantial in the context of industrial automation, health care, and energy, and correcting these distortions could have sizable welfare benefits.
    JEL: C65 J23 J24 L65 O14 O31 O33
    Date: 2023–02
  3. By: Yan, Zheng; Yang, Panpan; Liu, Qingyang; Erickson, Joan J.
    Abstract: Research grants are a critical means for research policy, research management, and research administration to generate scientific breakthroughs, technical innovations, and social impacts. Currently, the exponential growth of the research literature on research grants has been scattered across diverse outlets and disciplines. The present paper is the first scoping review to generate an overall coherent picture of the science of research grants or grantology by focusing on the basic literature published from 1970 to 2020. Based on both a process-based conceptual framework and 275 identified important research articles, we synthesize the current knowledge in seven key areas, i.e., grant writers, grant writing, grant agents, grant review, grant projects, grant management, and grant impacts. Our review indicates that three major topics, grant writing practices, grant review, and scientific impacts, have dominated the existing literature, Future research should examine four key topics, development of grant writers, grant resubmission, grant professionals, and grant use, to further advance the science of research grants. Limitations and implications of the study are discussed.
    Date: 2023–01–30
  4. By: Jacquemin, Philippe; Reuter-Oppermann, Melanie
    Date: 2023

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.