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on Innovation |
| By: | Gugler, Klaus; Szücs, Florian; Wiedenhofer, Thomas |
| Abstract: | This article evaluates if and to which extent policy can steer innovation towards eco-friendly technologies. We construct a cross-country dataset on sectoral green innovation and complement it with data on policies designed to address environmental market failures: environmental taxes, regulation, and R&D subsidies. While all of these tools exert a positive effect on green innovation, our IV estimates reveal substantial heterogeneities across policies. Overall, green innovation reacts most strongly to R&D subsidies for renewables, but interaction effects between different policies need to be considered. |
| Keywords: | climate change; environmental policies; directed technological change; green patents; regulation; taxes; R&D |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:59343718&r=ino |
| By: | Hädrich, Tobias; Reher, Leonie; Thomä, Jörg |
| Abstract: | The promotion of innovation-driven development in lagging regions is currently on the regional policy agenda, so a sound understanding of how learning and innovation can be successful under the conditions there is crucial. In this context, this paper demonstrates the potential of an innovation mode approach at the micro level of regional innovation systems. Based on a conceptual framework on the relationship between knowledge bases and innovation modes in the field of regional development, a systematic literature review is used to analyse whether this potential has already been exploited in previous innovation studies on lagging regions. The results show that some important steps have already been taken in this direction. However, the potential gain in terms of insights has so far only been realised to a limited extent. Against this background, the authors formulate several avenues for future research on firm-level innovation modes in lagging regions. |
| Keywords: | Regional innovation, STI innovation mode, DUI innovation mode, Lagging regions, Systematic literature review |
| JEL: | O18 O30 O38 R11 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:280971&r=ino |
| By: | Bischoff, Thore Sören; Runst, Petrik; Bizer, Kilian |
| Abstract: | Previous studies have found that generalized trust positively affects innovation at the country and regional level. We extend this literature by arguing that there are four reasons to believe that the trust-innovation relationship is heterogeneous across geographic space. First, there is a saturation effect where regions in the lower half of the trust distribution are more likely to benefit from an increase in trust than regions in the upper half. Second, trust is more important in regions with less developed innovation capacities as it fosters cooperation and knowledge transfer, which is known to be especially relevant in lagging regions. Third, generalized trust and institutional trust can serve as substitutes: when institutional trust is low, generalized trust can be used as an alternative facilitator of cooperation. Finally, as smaller firms lack the legal capacities for sophisticated contractual arrangements and therefore resort to informal cooperation, the trust-innovation relationship is stronger in regions with a large share of small firms. Our results mostly support the small-firm and lower-trust region hypothesis. These findings underline the fact that regional innovation systems work differently and different mechanisms of cooperation can be leveraged to achieve innovation success depending on the regional characteristics. |
| Keywords: | Innovation, trust, regional innovation systems |
| JEL: | D02 D83 O12 O18 O31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:280972&r=ino |
| By: | Peter Claeys (Universidad Pontificia Comillas); Juan Jung; Gonzalo Gómez-Bengoechea |
| Abstract: | The decision to innovate or to adopt existing technologies is driven by productivity levels. Large productive incumbents may have an advantage over new entrants and laggards and lead innovation, yet depending on the type of technology, the latter may catch up by pursuing more advanced technologies. Different technologies can therefore widen or shrink the distribution of productivity across firms (Benhabib et al., 2021). Using a novel dataset of around 60, 000 Spanish firms from different industries between 2017-2019, we show that investment in a particular technological innovation – online sales – is indeed pursued by the sector’s most productive and largest firms, yet laggard firms do try to catch up by investing more in new technologies, despite starting at lower productivity levels. This suggests that costly innovation and easy adoption may actually curb overall productivity growth as more firms’ free ride on innovation efforts by the leaders in each sector. |
| Keywords: | Innovation, adoption, diffusion, Probit, productivity, ICT |
| JEL: | L O |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:inf:wpaper:2024.01&r=ino |
| By: | LaBelle, Jesse (Northwestern University); Martinez-Zarzoso, Inmaculada (Univerity of Göttingen & Universitat Jaume I); Santacreu, Ana Maria (Federal Reserve Bank of St. Louis); Yotov, Yoto (Drexel University) |
| Abstract: | We build a stylized model that captures the relationships between cross-border patenting, globalization, and development. A byproduct of our theory is a gravity equation for cross-border patents. To test the model’s predictions, we compile a new comprehensive dataset that tracks patents within and between countries and industries, for 1980-2019. The econometric analysis reveals a strong, positive impact of policy and globalization on cross-border patent flows, especially from rich (North) to poor (South) countries. A counterfactual welfare analysis suggests that the increase in patent flows from North to South has benefited both regions, with South gaining more than North post-2000, thus lowering real income inequality in the world. |
| Keywords: | Cross-border Patents; Gravity; Policy; Globalization; Development |
| JEL: | F63 O14 O33 O34 |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:ris:drxlwp:2023_007&r=ino |
| By: | Llanos Paredes, Pedro |
| Abstract: | This study examines the impact of the Fraunhofer Society, Europe’s largest network of applied research institutes, on patent applications. A difference-in-differences strategy was employed exploiting the establishment of five new Fraunhofer centres in the 2000s. The panel includes 65, 963 European applicants (both firms and independent inventors) between 1980 and 2019. The results show that establishing a centre increases patent output by at least 13%, robust to using applicants of cities that established a centre by the end of the 2010s as an alternative control group. The effect is driven by an increase in applicants’ productivity and not by agglomeration dynamics. |
| Keywords: | European Union’s Horizon 2020 research and innovation programme under the Marie Sklodowska-Curie grant agreement No 860887; OUP deal |
| JEL: | R14 J01 J1 |
| Date: | 2023–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120473&r=ino |