nep-ino New Economics Papers
on Innovation
Issue of 2024‒01‒01
eleven papers chosen by
Uwe Cantner, University of Jena


  1. Governance arrangements for the implementation of transformative innovation policy: Insights from a comparative case study By Janssen, Matthijs; Wanzenböck, Iris; Fünfschilling, Lea; Pontinakis, Dimitris
  2. Capturing the system-level effects of innovation policy: an assessment of publicly funded innovative entrepreneurship in Sweden By Laatsit, Mart; Lindholm-Dahlstrand, Åsa; Nilsson, Magnus
  3. Bureaucratic Frictions and Innovation Procurement By Leonardo M. Giuffrida; Emilio Raiteri; Leonardo Maria Giuffrida
  4. Trade, Innovation and Optimal Patent Protection By David Hémous; Simon Lepot; Thomas Sampson; Julian Schärer
  5. Standard-essential patents, innovation, and competition By Wipusanawan, Chayanin
  6. Unlocking co-creation for green innovation: An exploration of the diverse contributions of universities By OECD
  7. The Past and Future of Work: How History Can Inform the Age of Automation By Benjamin Schneider; Hillary Vipond
  8. The EU’s competitive advantage in the "clean-energy arms race" By Dahlström, Petter; Lööf, Hans; Sjöholm, Fredrik; Stephan, Andreas
  9. Scoring and Funding Breakthrough Ideas: Evidence from a Global Pharmaceutical Company By Joshua Krieger; Ramana Nanda; Ian Hunt; Aimee Reynolds; Peter Tarsa
  10. Unveiling Structure and Dynamics of Global Digital Production Technology Networks: A new digital technology classification and network analysis based on trade data By Antonio Andreoni; Guendalina Anzolin; Mateus Labrunje; Danilo Spinola
  11. Does innovation stimulate employment in Africa? New firm-level evidence from the Worldbank Enterprise Survey By Keraga, Mezid N.; Stephan, Andreas

  1. By: Janssen, Matthijs (Utrecht University); Wanzenböck, Iris (Utrecht University); Fünfschilling, Lea (CIRCLE, Lund University); Pontinakis, Dimitris (Joint Research Centre, Seville, European Commission)
    Abstract: There has been great interest in the rationales for transformative innovation policies (TIP), including those following a mission-oriented logic. However, few studies have investigated how public administration can effectively implement TIP. To study this, we first identify from existing literature four TIP governance tasks (creating legitimacy and leadership, coordination across levels/instruments/actors, reflexivity, resolving conflicts) and three distinct governance modes (administrative-, network-, system-oriented). In a comparative study, we then ask how the different governance modes shape the implementation of the TIP governance tasks, including the opportunities and boundaries related to a specific mode. Empirical insights are obtained from seven regional and national policy programmes across Europe with an ambition to promote system-wide transformation. Our analysis highlights similarities and differences between transformative policy designs, and identifies challenges related to implementing the TIP tasks within certain modes. The findings serve to inform and inspire the further uptake of transformative and mission-oriented innovation policies.
    Keywords: innovation policy; societal challenges; governance; public administration; transitions
    JEL: O32 O33 O38
    Date: 2023–11–29
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2023_013&r=ino
  2. By: Laatsit, Mart (CIRCLE, Lund University); Lindholm-Dahlstrand, Åsa (CIRCLE, Lund University); Nilsson, Magnus (CIRCLE, Lund University)
    Abstract: A new generation of innovation policies has placed renewed attention on understanding the innovation processes taking place on and affecting the system level. On one hand, there is a growing demand for policy instruments addressing the need for system change. On the other hand, there is still a lack of understanding of how innovation policy instruments contribute to a system-level impact. We address this gap by taking a programme perspective and proposing an analytical framework for assessing three types of effects: first-order, second-order, and system-level. Our approach is inspired by the functions of technological innovation system literature (TIS). We apply the analytical framework to the analysis of an innovative entrepreneurship instrument, the Swedish Innovation Agency VINNOVA’s Innovative SME programme. We find that the public support programmes contributed significantly to SMEs’ ability to influence system functions. Based on the findings, we argue that the analysis of innovation policy programmes should move beyond a narrow assessment of direct effects and consider more the second-order and system-level effects.
    Keywords: innovation policy; Sweden; public funding
    JEL: O33 O38
    Date: 2023–11–28
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2023_012&r=ino
  3. By: Leonardo M. Giuffrida; Emilio Raiteri; Leonardo Maria Giuffrida
    Abstract: Is work overload a friction to public agencies? Using data on R&D procurements, patents, and contracting units from a US federal agency, we investigate how officer workload impacts innovation procurement outcomes. Unanticipated retirement shifts provide an exogenous source of variation that we exploit as an instrument for workload. When workload declines, we find a significant increase in patent rates. One additional officer leads to a 28 percent increase in the probability that a contract will generate a patent. Our findings suggest that officers burdened with excessive workloads may not provide adequate guidance to R&D suppliers when it is most needed.
    Keywords: workload, procurement, bureaucrats, R&D, patents, instrumental variable
    JEL: D23 D73 H57 J24 O31
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10775&r=ino
  4. By: David Hémous; Simon Lepot; Thomas Sampson; Julian Schärer
    Abstract: This paper provides a first comprehensive quantitative analysis of optimal patent policy in the global economy. We introduce a new framework, which combines trade and growth theory into a tractable tool for quantitative research. Our application delivers three main results. First, the potential gains from international cooperation over patent policies are large. Second, only a small share of these gains has been realized so far. And third, the WTO’s TRIPS agreement has been counterproductive, slightly reducing welfare in the Global South and for the world. Overall, there is substantial scope for policy reform.
    Keywords: trade policy, innovation, growth, patents, TRIPS
    JEL: F13 D43 O34
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10777&r=ino
  5. By: Wipusanawan, Chayanin (Tilburg University, School of Economics and Management)
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:tiu:tiutis:292e319a-9e6a-4465-8f8f-717f3f002bd4&r=ino
  6. By: OECD
    Abstract: In the context of the green transition, universities have much to offer in joint green innovation projects with business, government and citizens. As hubs of diverse expertise, universities are uniquely placed to build interdisciplinary teams and bridge gaps between society and industry. Their regional ties also enable them to engage with the local ecosystem. This paper draws from ten international case studies of university partnerships with industry and society in green mobility, green energy and green products, services and processes. The comparative evidence gathered from interviews with representatives from these initiatives examines universities’ practices for green co-creation. Additionally, the paper outlines policy recommendations crucial to supporting these initiatives, essential for the global success of sustainable development efforts.
    Keywords: civil society, co-creation, Green transition, Industry-science linkages, Innovation, Innovation policy, STI policy, universities
    JEL: O30 O36 O38
    Date: 2023–12–04
    URL: http://d.repec.org/n?u=RePEc:oec:stiaac:163-en&r=ino
  7. By: Benjamin Schneider; Hillary Vipond
    Abstract: Debates about the future of work frequently reference past instances of transformative innovation to preface analysis of how automation and artificial intelligence could reshape society and the economy. However, technological shifts in history are rarely considered in depth or used to improve predictions and planning for the coming decades. In this paper we show that a deeper understanding of history can expand knowledge of possibilities and pitfalls for employment in the future. We open by demonstrating that evidence from historical events has been used to inform responses to present-day challenges. We argue that history provides the only way to analyze the long-term impacts of technological change, and that the scale of the First Industrial Revolution may make it the only precedent for emerging transformations. Next, we present an overview of the current debates around the potential effects of impending labor-replacing innovation. We then summarize existing historical research on the causes and consequences of technological change and identify areas in which salient historical findings are overlooked. We close by proposing further research into past technological shocks that can enhance our understanding of work and employment in an automated future.
    Keywords: technological change, innovation, automation, future of work, technological unemployment, labor displacement
    JEL: J23 J64 J81 N31 N33 N71 N73 O31 O33
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10766&r=ino
  8. By: Dahlström, Petter (Royal Institute of Technology); Lööf, Hans (Royal Institute of Technology); Sjöholm, Fredrik (Research Institute of Industrial Economics); Stephan, Andreas (Linnaeus University)
    Abstract: The net-zero agreement on carbon emission from Paris 2015 gives a key role to fossil-free energy technologies with an expected multifold growth rate over the coming decades, when successively replacing oil, coal, and gas. In this paper, we delve into the EU’s competitive advantage in the evolving trade war in clean energy, investigate European strengths and weaknesses in innovation and production, and discuss the impact of the upcoming trade war on the global warming challenge. Our results show that the EU has a strong position in innovation capabilities in the strategic net-zero technologies. However, this is not matched by production capabilities: EU has only a few firms among the leading manufacturers in net-zero technologies.
    Keywords: energy geopolitics; net-zero technologies; patents; innovation
    JEL: F02 O18 Q50 R10
    Date: 2023–11–30
    URL: http://d.repec.org/n?u=RePEc:hhs:cesisp:0495&r=ino
  9. By: Joshua Krieger (Harvard Business School, Entrepreneurial Management Unit); Ramana Nanda (Imperial College London); Ian Hunt (NIBR); Aimee Reynolds (NIBR); Peter Tarsa (NIBR)
    Abstract: We study resource allocation to early-stage ideas at an internal startup program of one the largest pharmaceutical firms in the world. Our research design enables us to elicit every evaluator’s scores across five different attributes, before seeing how they would allocate capital to the projects in a head-to-head comparison. In head-to-head comparisons, evaluators displayed a systematically higher preference for projects that scored high on execution-related attributes, compared to the organization’s proposed weight on these attributes. Because of this, projects of similar overall quality perceived as being high risk and high reward were systematically penalized relative to projects perceived as less transformational, but safer bets. Our results shed light on a potential mechanism for why breakthrough ideas are handicapped in R&D funding.
    Date: 2022–08
    URL: http://d.repec.org/n?u=RePEc:hbs:wpaper:23-014&r=ino
  10. By: Antonio Andreoni (Department of Economics, SOAS University of London); Guendalina Anzolin (Centre for Science, Technology and Innovation Policy, Institute for Manufacturing, University of Cambridge); Mateus Labrunje (Centre of Development Studies and Cambridge Industrial Innovation Policy, University of Cambridge); Danilo Spinola (College of Accounting, Finance and Economics, Birmingham City Business School; Maastricht Economic Research Institute for Innovation and Technology (UNU-Merit); and South African Research Chair in Industrial Development, University of Johannesburg)
    Abstract: This research pioneers the construction of a novel Digital Production Technology Classification (DPTC) based on the latest Harmonised Commodity Description and Coding System (HS2017) of the World Customs Organisation. The DPTC enables the identification and comprehensive analysis of 127 tradable products associated with digital production technologies (DPTs). The development of this classification offers a substantial contribution to empirical research and policy analysis. It enables an extensive exploration of international trade in DPTs, such as the identification of emerging trade networks comprising final goods, intermediate components, and instrumentation technologies and the intricate regional and geopolitical dynamics related to DPTs. In this paper, we deploy our DPTC within a network analysis methodological framework to analyse countries' engagements with DPTs through bilateral and multilateral trade. By comparing the trade networks in DPTs in 2012 and 2019, we unveil dramatic shifts in the global DPTs' network structure, different countries' roles, and their degree of centrality. Notably, our findings shed light on China's expanding role and the changing trade patterns of the USA in the digital technology realm. The analysis also brings to the fore the increasing significance of Southeast Asian countries, revealing the emergence of a regional hub within this area, characterised by dense bilateral networks in DPTs. Furthermore, our study points to the fragmented network structures in Europe and the bilateral dependencies that developed there. Being the first systematic DPTC, also deployed within a network analysis framework, we expect the classification to become an indispensable tool for researchers, policymakers, and stakeholders engaged in research on digitalisation and digital industrial policy.
    Keywords: Digital Production Technology (DPT), DPT Classification, Network Analysis, Bilateral Trade, Digitalisation patterns.
    JEL: O14 O33 F14
    Date: 2023–12
    URL: http://d.repec.org/n?u=RePEc:soa:wpaper:261&r=ino
  11. By: Keraga, Mezid N. (Addis Ababa University); Stephan, Andreas (Linnaeus University)
    Abstract: This paper provides novel evidence on the question of whether innovation expands or reduces employment using firm-level data from the World Bank Enterprise Survey (ES) for six African economies. The results of the difference-in-differences estimations combined with propensity score matching confirm that both product and process innovations significantly expand job opportunities in Africa. In addition, the findings show significant intra-industry innovation spillover effects on employment. In sum, this study supports the view that innovation enhances employment in the analyzed African economies.
    Keywords: Innovation; Employment; Sub-Saharan; Spillover effects; DID; Matching approach
    JEL: J20 O30
    Date: 2023–11–30
    URL: http://d.repec.org/n?u=RePEc:hhs:cesisp:0494&r=ino

This nep-ino issue is ©2024 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.
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