nep-ino New Economics Papers
on Innovation
Issue of 2023‒07‒10
six papers chosen by
Uwe Cantner
University of Jena

  1. The dark side of green innovation? Green transition and regional inequality in Europe By Nils Grashof; Stefano Basilico;
  2. Healthcare Procurement and Firm Innovation: Evidence from AI-powered Equipment By Sofia Patsali; Michele Pezzoni; Jackie Krafft
  3. Evaluation and Learning in R&D Investment By Alexander P. Frankel; Joshua L. Krieger; Danielle Li; Dimitris Papanikolaou
  4. Capacities for transformative innovation in public administrations and governance systems: Evidence from pioneering policy practice By JANSSEN Matthijs; WANZENBÖCK Iris; FÜNFSCHILLING Lea; PONTIKAKIS Dimitrios
  5. The disruption index is biased by citation inflation By Alexander M. Petersen; Felber Arroyave; Fabio Pammolli
  6. Covid-19 and Entrepreneurship By Sorgner, Alina

  1. By: Nils Grashof; Stefano Basilico;
    Abstract: This study explores the regional diversification processes into green technologies (2000- 2017) and their implications for regional inequalities. Utilizing patent and Eurostat data, we analyze these processes along the economic strength of regions and the nature of their knowledge base. Our findings reveal that both structurally strong and weak regions can successfully diversify into green technologies if they possess related technological capabilities. However, brown regions cannot do so. Already existing patterns of divergence between these two types of regions are unlikely to be exacerbated by a green transition, but new regional disparities between brown regions and other regions could emerge.
    Keywords: dark side of innovation, inequality, regional diversification, regional inequality, green innovation, green transition
    JEL: O32 O33 R11
    Date: 2023–06
  2. By: Sofia Patsali (Université Côte d'Azur, France; CNRS, GREDEG); Michele Pezzoni (Université Côte d'Azur, France; CNRS, GREDEG; Observatoire des Sciences et Techniques, HCERES, France; ICRIOS, Bocconi University, Italy); Jackie Krafft (Université Côte d'Azur, France; CNRS, GREDEG)
    Abstract: In line with the innovation procurement literature, this work investigates the impact of becoming a supplier of a national network of excellence regrouping French hospitals on the supplier's innovative performance. It investigates whether a higher information flow from hospitals to suppliers, proxied by the supply of AI-powered medical equipment, is associated with higher innovative performance. Our empirical analysis relies on a dataset combining unprecedented granular data on procurement bids and equipment with patent data to measure the firm's innovative performance. To identify the firm's innovative activities relevant to the bid, we use an advanced neural network algorithm for text analysis linking firms' equipment descriptions with relevant patent documents. Our results show that firms becoming hospital suppliers have a significantly higher propensity to innovate. About the mechanism, we show that supplying AI-powered equipment further boosts the suppliers' innovative performance, and this raises potential important policy implications.
    Keywords: Innovation performance, public procurement, medical equipment, hospitals, artificial intelligence
    JEL: H57 D22 O31 C81
    Date: 2023–03
  3. By: Alexander P. Frankel; Joshua L. Krieger; Danielle Li; Dimitris Papanikolaou
    Abstract: We examine the role of spillover learning in shaping the value of exploratory versus incremental R&D. Using data from drug development, we show that novel drug candidates generate more knowledge spillovers than incremental ones. Despite being less likely to reach regulatory approval, they are more likely to inspire subsequent successful drugs. We introduce a model where firms are better able to evaluate the viability of incremental drugs, but where investing in novel drugs helps firms learn about future projects. Firms appear to put more value on evaluation versus learning, and those patterns are in-part driven by the appropriability of spillovers.
    JEL: G11 L65 O31 O32 O34
    Date: 2023–05
  4. By: JANSSEN Matthijs; WANZENBÖCK Iris; FÜNFSCHILLING Lea; PONTIKAKIS Dimitrios (European Commission - JRC)
    Abstract: Despite mounting interest in transformative innovation policies, there are only few studies that provide insights with regards to their implementation. The present study asks which policy design features make a policy transformative and what capacities public administration and the broader governance system need in order to provide such transformative policies. The study is centred on a comparative and in-depth analysis of the development of 12 transformative policy initiatives selected on account of possessing characteristics that literature suggests can be transformative. The study includes a synthesis of findings on how transformative policies emerge, what governance capacities (and underlying practices) they typically involve, which features of transformative policies can be strengthened, and what difficulties policy makers might encounter. A key practical contribution of this study is the empirically-grounded identification of distinct possible pathways for transformative capacity development and deployment for the three stylised models of governance systems encountered at present across Europe: administration-based governance, network-based governance and society-based governance. The typical development sequences encountered in each of these stylised paths can provide inspiration to policy makers looking to develop legitimacy and capacities ahead of implementing transformative innovation policies.
    Keywords: transformative innovation, systems innovation, innovation governance
    Date: 2023–05
  5. By: Alexander M. Petersen; Felber Arroyave; Fabio Pammolli
    Abstract: A recent analysis of scientific publication and patent citation networks by Park et al. (Nature, 2023) suggests that publications and patents are becoming less disruptive over time. Here we show that the reported decrease in disruptiveness is an artifact of systematic shifts in the structure of citation networks unrelated to innovation system capacity. Instead, the decline is attributable to 'citation inflation', an unavoidable characteristic of real citation networks that manifests as a systematic time-dependent bias and renders cross-temporal analysis challenging. One driver of citation inflation is the ever-increasing lengths of reference lists over time, which in turn increases the density of links in citation networks, and causes the disruption index to converge to 0. A second driver is attributable to shifts in the construction of reference lists, which is increasingly impacted by self-citations that increase in the rate of triadic closure in citation networks, and thus confounds efforts to measure disruption, which is itself a measure of triadic closure. Combined, these two systematic shifts render the disruption index temporally biased, and unsuitable for cross-temporal analysis. The impact of this systematic bias further stymies efforts to correlate disruption to other measures that are also time-dependent, such as team size and citation counts. In order to demonstrate this fundamental measurement problem, we present three complementary lines of critique (deductive, empirical and computational modeling), and also make available an ensemble of synthetic citation networks that can be used to test alternative citation-based indices for systematic bias.
    Date: 2023–06
  6. By: Sorgner, Alina
    Abstract: This chapter presents the results of a systematic review of literature (SLR) on impacts of Covid-19 on entrepreneurship published in the first three years since the outbreak of the Covid-19 pandemic, covering the period between January 2020 and January 2023. Main developments in the literature over time, space and themes are identified. The literature body has been growing constantly over time, with most studies included in this SLR published in 2022 that remained unconsidered in previous SLRs. In terms of spatial distribution of published research, a significant number of studies focus on North American and European countries, while low-income countries and countries in Latin American, Sub-Saharan and South Asian regions are underrepresented. Six main themes (and multiple sub-themes) were identified in the literature: entrepreneurial process, resilience and opportunity, entrepreneurial finance, policy responses to the Covid-19 crisis, gender, and well-being. Research on the impact the pandemic has had on entrepreneurial process, sources of financing, resilience of start-up firms, and opportunities emerging from the crisis has been dominating the literature since the early days of the pandemic and has been growing since then. Emerging themes include policy responses to the Covid-19 crisis and their (unintended) consequences for entrepreneurship, as well as differential impact of Covid-19 on female and male entrepreneurs. Studies on well-being of entrepreneurs, including their physical and mental health, represent a relatively low share of the literature on Covid-19 and entrepreneurship. Implications of the results for entrepreneurship research and practice are discussed.
    Keywords: Entrepreneurship, Covid-19, Systematic literature review
    JEL: L26
    Date: 2023

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