|
on Innovation |
| By: | Marco Amendola; Francesco Lamperti; Andrea Roventini; Alessandro Sapio |
| Abstract: | Improvements in energy efficiency can help facing the on-going climate and energy crises, yet the energy intensity of economic activities at the global level in recent years has decreased more slowly than it is required to achieve climate goals. Based on this premise, the paper builds a macroeconomic agent-based K+S model to study the effects of different policies on energy efficiency. In the model, energy efficiency of capital goods improves as the outcome of endogenous, bottom-up technical change. Public policies analysed range from indirect policies based on taxes, incentives, and subsidies, rooted in the traditional role of the State as fixing market failures, to direct technological policies, akin to the entrepreneurial state approach, in which a public research laboratory invests in R&D with the aim to establish a new technological paradigm on energy efficiency. Simulation results show that while most policies tested are effective in reducing energy intensity, the public research lab is extremely effective in promoting energy efficiency without deteriorating macroeconomic and public finance conditions. The superiority of the national lab policy, however, emerges on a relatively long time-horizon, highlighting the importance of governments that are patient enough to wait for the returns of that policy and the necessity to complement this strategy with more ''ready to use'' indirect measures. Additionally, results indicate that the macroeconomic rebound effect induced by most of the policies is rather small. Concerns about macroeconomic rebound effects are, therefore, most likely often overstated. |
| Keywords: | Energy efficiency policies; Sustainability; Rebound effect; Agent-based modelling. |
| Date: | 2023–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2023/20&r=ino |
| By: | Ufuk Akcigit; Nathan Goldschlag |
| Abstract: | How are inventors allocated in the US economy and does that allocation affect innovative capacity? To answer these questions, we first build a model where an inventor with a new idea has the possibility to work for an entrant or incumbent firm. Strategic considerations encourage the incumbent to hire the inventor, offering higher wages, and then not implement her idea. We then combine data on 760 thousand U.S. inventors with the LEHD data. We find that when an inventor is hired by an incumbent, their earnings increases by 12.6 percent and their innovative output declines by 6 to 11 percent. |
| Keywords: | Inventors, innovation, R&D, firms, dynamism, reallocation |
| JEL: | O3 O4 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:23-17&r=ino |
| By: | Stefan Pauly (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Fernando Stipanicic (UC Berkeley - University of California [Berkeley] - UC - University of California) |
| Abstract: | Click here for the latest version This paper provides new causal evidence of the impact of air travel time on the creation and diffusion of knowledge. We exploit the beginning of the Jet Age as a quasi-natural experiment. We digitize airlines' historical flight schedules and construct a novel data set of the flight network in the United States. Between 1951 and 1966, travel time between locations more than 2, 000 km apart decreased on average by 41%. The reduction in travel time explains 33% of the increase in knowledge diffusion as measured by patent citations. The increase in knowledge diffusion further caused an increase in the creation of new knowledge. The results provide evidence that jet airplanes led to innovation convergence across locations and contributed to the shift in innovation activity towards the South and the West of the United States. |
| Date: | 2022–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-04067326&r=ino |
| By: | Andrea Orame (Bank of Italy); Daniele Pianeselli (Bank of Italy) |
| Abstract: | We study the European automotive industry in the 2013-2018 period. Volkswagen's Dieselgate scandal and the Paris Agreement, both in 2015, substantially caused a technological shock prompting firms to produce low-emissions cars. By using patent and mergers and acquisitions (M&A) data, we test how firms reacted to that shock. We provide evidence that Italian firms intensified their internal R&D activity but, unlike the rest of Europe, they did not increase their M&A activity. This can potentially reduce the speed of the green transition of Italian firms to the advantage of their competitors. |
| Keywords: | automotive, green transition, technical change, mergers and acquisitions, innovation, patents, electric car |
| JEL: | G34 L62 O14 O3 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_767_23&r=ino |
| By: | Basheer Kalash (Université Côte d'Azur, France; GREDEG CNRS; Sciences Po, OFCE, France); Sarah Guillou (OFCE Sciences Po. Paris); Lionel Nesta (Université Côte d'Azur, France; GREDEG CNRS; OFCE, SciencesPo; SKEMA Business School); Michele Pezzoni (Université Côte d'Azur, France; GREDEG CNRS) |
| Abstract: | This paper investigates how the intensity of competitive grant funding in public research labs affects the type of knowledge produced. The empirical analysis is conducted on 349 French research labs observed over 2011-2015. To assess the type of knowledge produced by labs, we look at the lab publications’ distance from the technological frontier: the closer a publication to the technological frontier, the more applied its knowledge content. To measure grant funding intensity within labs, we calculate the number of national and European grants per researcher. We also identify grants in partnership with private companies. We find that a higher intensity of national grants within the lab is associated with fewer publications close to the technological frontier, while European grant intensity has the opposite effect. We also find that companies being partners in the grant increase the share of lab publications at the technological frontier. |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2022-14&r=ino |
| By: | Raphaël CHIAPPINI; Sophie POMET |
| Abstract: | This article examines the impact of two types of financial support for innovation granted by French public institutions to French SMEs on a set of firm performance measures. Using an original database that provides information on repayable advances and subsidies obtained by 5, 448 French SMEs over the period 2010-2016, we evaluate the effectiveness of such financial support using a quasi-experimental design. Our findings indicate that both repayable advances and subsidies significantly improve targeted SMEs’ turnover, level of intangible assets and total employment at one year and three years after support is granted. The impact on firm-level TFP is only positive and significant after three years, while being negative in the very short run. Our results also provide evidence that the combination of both instruments for a given innovation project within a year does not entail significantly higher effects. A heterogeneous analysis reveals that the impact of financial support instruments for innovation is significantly higher for young, micro and small firms. Furthermore, our analysis shows that innovation support benefits more to firms located in the Paris region than in other regions and this tends to exacerbate regional inequalities. Finally, our findings indicate that the transformation of Oséo into Bpifrance in December 2012 has led to an increase in the effectiveness of the innovation policy. |
| Keywords: | Innovation policy, firm performance, policy evaluation, Mahalanobis distance matching, difference-in-difference. |
| JEL: | O33 O38 C14 C21 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:grt:bdxewp:2023-06&r=ino |
| By: | Shoyeb Khan; Satyendra Kumar Sharma; Arnab Kumar Laha |
| Abstract: | Indian Universities and Research Institutions have been the cornerstone of human resource development in the country, nurturing bright minds and shaping the leaders of tomorrow. Their unwavering commitment to excellence in education and research has not only empowered individuals but has also made significant contributions to the overall growth and progress of the nation. Despite the significant strides made by Indian universities and research institutions, the country still lags behind many developed nations in terms of the number of patents filed as well as in the commercialization of the granted patents. With 34 percent1 of students choosing STEM fields in India, and over 750 Universities and nearly 40, 000 colleges, the concentration of patent applications in only a few top 10 institutions raises concerns. Innovation and technological advancement have become key drivers of economic growth and development in modern times. Therefore, our study aims to unravel the patent landscape of Indian Universities and Research Institutions, examining it through the lens of supply and demand for innovations and ideas. Delving into the dynamics of patent filing and innovation trends, this study seeks to shed light on the current state of intellectual property generation in the country's academic and research ecosystem. |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2304.12176&r=ino |
| By: | Ernesto Nieto-Carrillo (University of Coimbra, Centre for Business and Economics Research, CeBER and Faculty of Economics); Carlos Carreira (Univ of Coimbra, CeBER, Faculty of Economics); Paulino Teixeira (niversity of Coimbra, Centre for Business and Economics Research, CeBER and Faculty of Economics) |
| Abstract: | Increasing evidence shows that business dynamism has weakened in most developed economies. However, except for the US literature, most previous research has only portrayed the new century’s changes in firm dynamics. Instead, we focus on a longer period, 1986-2018, assembling an extensive longitudinal database with a time-consistent industry classification covering the population of Portuguese firmsin the manufacturing and service sectors. The BaiPerron estimate for unknown break dates in time series indicates two structural changes in industrial dynamics, one in its ascending wave (1993) and another in the declining phase (2003). Accordingly, our (HP) estimated trends show that, after an initial period of intense creative destruction, firm dynamics have become less turbulent since 2003, with lower entry, declined job reallocation, and decreased growth rates. Furthermore, survival and counterfactual firm-level regressions suggest that an otherwise-equal post-2003 start-up faced a significantly higher exit hazard than its pre-1993 counterpart (i.e., without any structural change). As a result, new and young companies have seen their share in aggregate employment and net job creation decline, notwithstanding the increasingly higher performance of young, high-growth firms. Lower labour and firm turnover suggest a weakened contribution of reallocation to productivity growth. On the other hand, decreased entry and the higher exit hazard have likely undermined the disruptive potential of transformative entrepreneurship |
| Keywords: | Firm dynamics; Entry; High-growth firms; Resource reallocation; Survival. |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:papers:2023-03&r=ino |
| By: | Daunfeldt, Sven-Olov (Confederation of Swedish Enterprise); McKelvie, Alexander (Syracuse University, New York, United States.); Seerar Westerberg, Hans (Institute of Retail Economics (Handelns Forskningsinstitut)) |
| Abstract: | Hiring new employees is an important part of a new venture’s growth. However, we still have limited understanding of the human capital needs of high-growth new ventures, and how their pace of growth relates to whom they hire. We contribute to the literature by investigating 64, 404 hires among growing new ventures in Sweden from 2008 to 2015, finding that individuals with higher educational attainment and previous management experience are more likely to be hired by high-growth new ventures. In contrast, we find no indications that unemployed individuals or people that are outside the labor force are more likely to be hired by the fastest growing new ventures. High-growth new ventures are thus more selective in their hiring decisions than new ventures with lower sales growth rates, suggesting that ‘the right person’ is more important than ‘the right time’. These differences in hiring practices are most prevalent during new ventures’ first three years of operation and become more negligible as the ventures age. |
| Keywords: | Hiring; High-growth new ventures; Firm growth; Human capital |
| JEL: | D21 D22 J63 L25 |
| Date: | 2023–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hfiwps:0025&r=ino |