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on Innovation |
| By: | Katrin Hussinger (DEM, Université du Luxembourg); Wunnam Issah (University of Leicester School of Business, UK) |
| Abstract: | This paper shows that the American Inventor’s Protection Act, which introduced the disclosure of patent applications after 18 months, i.e. before a grant decision is taken and, hence, before it is known whether the respective technology receives legal protection, is associated with a reduction of family firms’ research and development (R&D) investment. This suggests that early disclosure of patent applications is perceived as a threat to family firms’ innovation activity and discourages their R&D investment. This finding deserves our attention because family firms account for a large share of the U.S. economy and a reduction of their R&D investment can have long-term consequences. |
| Keywords: | R&D investments, AIPA, Family firms, Socio-emotional wealth (SEW) |
| JEL: | O30 O34 O38 G32 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:23-17&r=ino |
| By: | Sharma, Gautam (CIRCLE, Lund University) |
| Abstract: | This study explores makerspaces and fablabs within India's informal innovation context, traditionally associated with grassroots innovators, frugal innovations, and 'jugaad' practices. It introduces a Global South perspective to the largely Global North-dominated discourse on makerspaces and fablabs, highlighting how these spaces function in a unique socio-economic context in India. The research examines the foundational reasons for establishing makerspaces and fablabs in India, their role in fostering innovation networks, and the specific challenges they face, especially in terms of their operations. This paper contrasts with the existing literature, which often focuses on perspectives and experiences from more advanced regions. Using in-depth, semi-structured interviews with 20 respondents, including founders, managers, employees, and users of various makerspaces, the study provides an insightful understanding of the Indian scenario. Findings reveal that these spaces in India primarily support startups and entrepreneurial initiatives, marking a shift from the original maker movement's DIY focus. Efforts to include rural, artisan, and grassroots innovator communities are evident, reflecting a commitment to broader innovation inclusivity. This paper contributes to the understanding of the changing dynamics of makerspaces and fablabs in the context of India's innovation landscape. It emphasizes the need for strategies to ensure equitable access and participation, crucial for the sustainability and growth of these innovation spaces. The insights are valuable for policymakers, educators, and makerspaces practitioners in fostering inclusive innovation ecosystems. |
| Keywords: | makerspaces; fabrication laboratories; fablabs; innovation; informal innovation; India |
| JEL: | O30 O31 O53 |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2024_002&r=ino |
| By: | Aghion, Philippe; Bergeaud, Antonin; Gigout, Timothee; Lequien, Matthieu; Malitz, Marc |
| Abstract: | We examine the effect of entry by French firms into a new export market on the dynamics of their patents' citations received from that destination. Applying a difference-in-differences identification strategy with a staggered treatment design, we show that: (i) entering a new foreign market has a significant impact on the long-run flow of citations; (ii) the impact is mostly driven by the extensive margin; (iii) inventors in destination countries patent mostly in products that do not directly compete with those of the exporting firm; (iv) the spillover intensity decreases with the technological distance between the exporting firm and the destination. |
| Keywords: | international trade; spillover; innovation; patent |
| JEL: | O33 O34 O40 F10 F14 |
| Date: | 2023–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121291&r=ino |
| By: | Pinkus, David (Department of Economics, Copenhagen Business School); Pozzoli, Dario (Department of Economics, Copenhagen Business School); Schneider, Cédric (Department of Economics, Copenhagen Business School) |
| Abstract: | We use a unique database on domestic pension fund investment to analyze the re-lationship between pension fund investment and innovation within Danish firms. We find a significant positive association between pension fund investment and various measures of innovation, including green technologies for climate change mitigation and adaptation. However, this relationship is much weaker in highly competitive indus-tries, suggesting that pension funds encourage innovation by monitoring and holding managers accountable. Our analysis also shows that pension funds foster innovation by providing stable long-term capital. Overall, our study highlights the important role of pension funds in driving firm innovation, particularly by reducing managerial slack and by supplying stable, long-term capital. |
| Keywords: | Pension Fund Investment; Innovation; R&D |
| JEL: | J24 J60 L20 |
| Date: | 2024–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_001&r=ino |
| By: | Charles Hoffreumon; Chris CM Forman; Nicolas van Zeebroeck |
| Abstract: | While the adoption and use of artificial intelligence (AI) are now significant, overall adoption rates remain low (Kazakova et al 2020; McElheran et al 2023; Zolas et al 2020). One recent line of work has argued that AI represents a type of general-purpose technology (GPT) (Bresnahan and Trajtenberg 1995; Trajtenberg 2019; Furman and Seamans 2019), and so requires significant downstream innovation to adapt general solutions to unique user needs (Brynjolfsson, Rock, and Syverson 2019, 2021; Goldfarb, Taska, and Teodoridis 2023). At the firm level, this will require a combination of business process innovation but also the development of software that will fit the unique needs of firms. This need for complementary adaptation and innovation has historically proven to be difficult (Bresnahan and Greenstein 1996). |
| Keywords: | Artificial Intelligence, Technology Adoption, Complementarities |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:ict:wpaper:2013/368089&r=ino |
| By: | Nicolas Ameye; Jacques Bughin; Nicolas van Zeebroeck |
| Abstract: | This paper studies the diffusion of artificial intelligence (AI) within firms, from exploration to local adoption to full-scale exploitation. The optimal timing of technology adoption represents a balance between preempting the risk of competition and time needed to acquire necessary complements, to ensure a successful return on investment. We formulate and test the idea that this balance changes along the adoption curve from experimentation to exploitation. We first model the decision of a firm facing Cournot competition to explore then exploit AI and assess the role of a variety of internal complements (technological and organizational) as well as competitive rivalry in these processes. Based on this theoretical model, a reduced form model of internal diffusion of AI is then estimated. Three results emerge: (1) rivalry triggers a competitive technology race that prevails in the exploitation more than in the exploration phase; (2) direct AI complements (such as machine learning) favor both adoption and exploitation, while indirect complements (such as cloud and big data) matter more for the experimentation than for the exploitation phase; (3) organizational complements are important for exploiting AI at scale, while technological ones drive exploration and adoption more than exploitation. |
| Keywords: | Artificial Intelligence, Adoption, Exploitation, Diffusion, Competition, Complements |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:ict:wpaper:2013/368095&r=ino |
| By: | Kock, Alexander; Gemünden, Hans Georg |
| Abstract: | Innovation project portfolio management (IPPM) is a key task in R&D management because this decision‐making process determines which R&D projects should be undertaken and how R&D resources are allocated. Previous research has developed a good understanding of the role of IPPM in R&D strategy implementation and of successful IPPM practices. But the fundamental orientations that drive the strategy formation and implementation process have never been investigated in the context of IPPM, and it is unclear whether successful practices are equally valid for different strategic orientations. This study, therefore, investigates the moderating impact of a firm’s entrepreneurial orientation on the relationship between strategic portfolio management practices and portfolio success. An empirical analysis of 257 firms shows that both innovativeness and risk taking as entrepreneurial orientation’s dimensions positively moderate the relationship between managerial practices and performance. Specifically, we find that firms high in innovativeness profit more from stakeholder engagement compared to firms low in innovativeness. Firms high in risk‐taking profit more from a clearly formulated strategy. With increasing innovativeness and risk‐taking propensity, firms also profit more from business case monitoring and agility in portfolio steering. The results suggest that a firm’s entrepreneurial orientation can leverage the effect of IPPM practices. Vice versa, a lacking entrepreneurial orientation can render these practices ineffective. Strategic orientation and IPPM practices should, therefore, be aligned with each other to enable firms to better implement their strategy and generate competitive advantage. |
| Date: | 2024–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:142184&r=ino |