nep-ino New Economics Papers
on Innovation
Issue of 2023‒05‒15
eight papers chosen by
Uwe Cantner
University of Jena

  1. The role of localised, recombinant and exogenous technological change in European regions By Mario A. Maggioni; Emanuela Marrocu; Teodora Erika Uberti; Stefano Usai
  2. Technology assessment for emerging technology: Meeting new demands for strategic intelligence By Douglas K. R. Robinson; David Winickoff; Laura Kreiling
  3. Cultural Configurations for International Innovativeness: A review and theoretical proposal By Yingying Zhang Zhang; Sylvia Rohlfer
  4. Share to Scare: Technology Sharing in the Absence of Strong Intellectual Property Rights By Jos Jansen
  5. Digitalization, Innovation and Productivity in South African Micro and Small Enterprises By Cyrielle Gaglio; Erika Kraemer-Mbula; Edward Lorenz
  6. Technological Change, Firm Heterogeneity and Wage Inequality By Cortes, Guido Matias; Lerche, Adrian; Schönberg, Uta; Tschopp, Jeanne
  7. The Pandemic Push: Digital Technologies and Workforce Adjustments By Gathmann, Christina; Kagerl, Christian; Pohlan, Laura; Roth, Duncan
  8. Neuroeconomics Hype or Hope? An Answer By Alexandre Truc

  1. By: Mario A. Maggioni; Emanuela Marrocu; Teodora Erika Uberti; Stefano Usai
    Abstract: How do regions develop and evolve along their productive and technological path is a central question. Within an evolutionary perspective, a given region is likely to develop new technologies closer to its pre-existing specialization. We adopt the approach of Hidalgo et al. (2007) to map the regional European technology/knowledge space to investigate the pattern and the evolution of regional specialisation in the most innovative EU countries. These dynamics depend on the interaction of three factors: (i) localised technological change, (ii) endogenous processes of knowledge recombination, and (iii) exogenous technological paradigm shifts while accounting for spatial and technological spillovers. Our paper maps the technological trajectories of 198 EU regions over the period 1986-2010 by using data on 121 patent sectors at the NUTS2 level for the 11 most innovative European countries, plus Switzerland and Norway. The results show that regional technological specialization is mainly shaped by localised technological change and exogenous technological paradigm shifts, whereas recombinant innovation contributes to a lower extent and that these effects largely depends on the increasing, decreasing or stable regional dynamics.
    JEL: C23 O14 O31 O33 O52 R11 R12
    Date: 2023
  2. By: Douglas K. R. Robinson; David Winickoff; Laura Kreiling
    Abstract: The rapid pace of technological change, coupled with a pressing need for solutions to address grand societal challenges and global crises, heightens the challenge for policy makers to develop science, technology and innovation policies at speed, in situations of high uncertainty and, in some cases, around potentially controversial technology fields. Technology assessment (TA) has a long history of providing decision-makers with timely strategic intelligence on emerging technologies. Current demands are pushing TA to evolve in order to fulfil diverse functions: to illuminate the societal, economic, environmental and other consequences of new technologies; to inform public opinion; and to guide research and development. Drawing on nine case studies, this report analyses the response of TA practices to these changing drivers and demands to support policies for new and emerging technologies. It also identifies a set of principles to guide good contemporary TA practice.
    Keywords: anticipatory governance, emerging technologies, responsive research and innovation, strategic intelligence, technology assessment, technology futures
    Date: 2023–04–26
  3. By: Yingying Zhang Zhang (IUJ Research Institute, International University of Japan); Sylvia Rohlfer (CUNEF University)
    Abstract: The accelerated international business context with the multiple sourced dynamic factors such as technology, emerging market rules and COVID-19 alike crisis demands innovativeness to survive and sustain competitive advantages. Culture as a complex construct adds complications to the international business, but may also provide a response as a soft organizational element. In this paper we explore the relationship between two the culture and innovation with systematic literature review to identify cultural configurations in affecting innovation. We deployed quality social science citation indexed journal publications identified in the Web of Science (WoS) database with a set of keywords. The identified search results were reduced to 697 articles from an initial 7, 097 items with inclusion and exclusion criteria. Utilizing Python machine learning tools and PHP language scripting, we clustered 697 items into 7 topic groups with 94 keywords spotted. We further analyze the seven clusters, with a comprehensive theoretical framework to unfold the underlying influences of culture on innovation in an international business context. Research gaps are also recognized for future research directions.
    Keywords: Cultural distance, corporate culture, national culture, innovation, knowledge, R&D, globalization, creativity, new product development, multinationals
    Date: 2023–04
  4. By: Jos Jansen (Department of Economics and Business Economics, Aarhus University)
    Abstract: I study the incentives of Cournot duopolists to share their technologies with their competitor in markets where intellectual property rights are absent and imitation is costless. The trade-off between a signaling effect and an expropriation effect determines the technology-sharing incentives. In equilibrium, there tends to be at most one firm that shares technologies. For similar technology distributions, there exists an equilibrium in which nobody shares. If the technology distributions are skewed towards efficient technologies, then there may exist equilibria in which one firm shares all technologies, only the best technologies, or only intermediate technologies. Further, I consider several extensions.
    Keywords: Cournot duopoly, strategic disclosure, indivisibility, innovation, trade secret, open source, skewed distribution
    JEL: D82 L13 L17 O32 O34
    Date: 2023–05–03
  5. By: Cyrielle Gaglio (University of Helsinki; Sciences Po, OFCE, France); Erika Kraemer-Mbula (University of Johannesburg); Edward Lorenz (Université Côte d'Azur, France; GREDEG CNRS)
    Abstract: This paper aims to study the links between the use of digital communication technologies, innovation performance and productivity for a sample of micro and small enterprises (MSEs) in a middle-income country, South Africa. Based on the results of an original survey carried out in 2019, we investigate these links for a sample of 711 manufacturing MSEs located in Johannesburg. We estimate the relations sequentially, first estimating the relation between digitalization and innovation, and secondly the relation between innovation and productivity. Our results show that selected digital communication technologies including the use of social media and the use of a business mobile phone for browsing the internet have a positive effect on innovation, and that innovation conditional on the use of these technologies has a positive impact on labor productivity.
    Keywords: Digital communication technologies, Product innovation, Productivity, MSEs, Johannesburg
    JEL: O14 O31 O4
    Date: 2022–06
  6. By: Cortes, Guido Matias (York University, Canada); Lerche, Adrian (LMU Munich); Schönberg, Uta (University College London); Tschopp, Jeanne (University of Bern)
    Abstract: We argue that skill-biased technological change not only affects wage gaps between skill groups, but also increases wage inequality within skill groups, across workers in different workplaces. Building on a heterogeneous firm framework with labor market frictions, we show that an industry-wide skill-biased technological change shock will increase between-firm wage inequality within the industry through four main channels: changes in the skill wage premium (as in traditional models of technological change); increased employment concentration in more productive firms; increased wage dispersion between firms for workers of the same skill type; and increased dispersion in the skill mix that firms employ, due to more sorting of skilled workers to more productive firms. Using rich administrative matched employer-employee data from Germany, we provide empirical evidence of establishment-level patterns that are in line with the predictions of the model. We further document that industries with more technological adoption exhibit particularly pronounced patterns along the dimensions highlighted by the model.
    Keywords: skill-biased technological change, heterogeneous firms, between-firm inequality
    JEL: J31
    Date: 2023–04
  7. By: Gathmann, Christina (LISER); Kagerl, Christian (Institute for Employment Research (IAB), Nuremberg); Pohlan, Laura (Institute for Employment Research (IAB), Nuremberg); Roth, Duncan (Institute for Employment Research (IAB), Nuremberg)
    Abstract: Based on a unique survey and administrative employer-employee data, we show that the COVID-19 pandemic acted as a push factor for the diffusion of digital technologies in Germany. About two in three firms invested in digital technologies, in particular in hardware and software to enable decentralized communication, management and coordination. The investments encouraged additional firm-sponsored training despite pandemic-related restrictions indicating that investments in digital technologies and training are complements. We then demonstrate that the additional investments helped firms to insure workers against the downturn during the pandemic. Firms that made additional investments relied less on short-time work, had more of their regular employees working normal hours and had to lay off fewer marginal workers. Male, younger and medium-skilled workers benefitted the most from the insurance effect of digital investments.
    Keywords: innovation, digital technologies, COVID-19, pandemic, investment, training, employment, worker flows
    JEL: D22 E22 J23 J63
    Date: 2023–04
  8. By: Alexandre Truc (Université Côte d'Azur, CNRS, GREDEG, France)
    Abstract: In June of 2010, a special issue in the Journal of Economic Methodology was introduced with the question "Neuroeconomics: hype or hope?" (Marchionni and Vromen, 2010). More than ten years later, we think it is time to provide an answer. Using a variety of sources ranging from Web of Science to Econlit, we assess the importance of neuroeconomics as a research program in economics. We show that after a very rapid increase in interest in the early 2000s, neuroeconomics decreased in importance after the 2010s especially when compared to the continuing rise of behavioral economics. After exploring a few explanations regarding this decreasing interest, we compare neuroeconomics and behavioral economics to emphasize key points in the ways these two programs at the frontiers of economics were constructed. Most notably, we show that neuroeconomists were more confrontational in their approach of economics, more focused on programmatic writings with few theoretical contributions, and more importantly, more oriented towards neurosciences than economics. Overall, we do find that the first 20 years of neuroeconomics as a research program in itself can be qualified to be more hype than hope.
    Keywords: Interdisciplinarity, Neuroeconomics, Behavioral Economics, Psychology, Neuroscience
    Date: 2022–08

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