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on Innovation |
| By: | Martin, Ralf; Verhoeven, Dennis Johannes Mathijs |
| Abstract: | Innovation policy faces a tradeoff between growth and climate objectives when the knowledge spillover externality from clean innovation is low compared to other sectors. To make such a comparison, we use patent data to estimate field-specific spillover returns generated by R&D support. Supporting Clean presents itself as a win-win opportunity, yielding global returns one-eighth higher than those of an untargeted policy. Nevertheless, only a modest portion of the returns stays within country borders, raising the question of whether national interests distort efficient allocation. Our policy simulations underscore the benefits of supranational coordination in clean innovation policy, potentially boosting returns by approximately 25% for the EU and over 60% globally. Moreover, the EU benefits strongly from US Clean innovation spillovers, impacting the debate on the Inflation Reduction Act. Overall, we identify no explicit innovation policy tradeoff in tackling the twin challenges of economic growth and climate change but emphasize the necessity for international cooperation. |
| Keywords: | innovation; knowledge spillovers; clean technology; innovation policy; green transition; net-zero; patent data |
| JEL: | O31 O33 O34 O38 Q55 Q58 |
| Date: | 2023–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121306&r=ino |
| By: | Bergeaud, Antonin; Guillouzouic, Arthur |
| Abstract: | Following Bergeaud et al. (2022), we construct a new measure of proximity between industrial sectors and public research laboratories. Using this measure, we explore the underlying network of knowledge linkages between scientific fields and industrial sectors in France. We show empirically that there exists a significant negative correlation between the geographical distance between firms and laboratories and their scientific proximity, suggesting strongly localized spillovers. Moreover, we uncover some important differences by field, stronger than when using standard patent-based measures of proximity. |
| Keywords: | knowledge spillovers; technological distance; public laboratories |
| JEL: | O32 O38 R12 |
| Date: | 2023–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121289&r=ino |
| By: | Dugoua, Eugenie |
| Abstract: | This paper revisits one of the rare success stories in global environmental cooperation: the Montreal Protocol and the phase-out of ozone-depleting substances. I show that the protocol increased science and innovation on alternatives to ozone-depleting substances and argue that agreements can indeed be useful to solving global public goods problems. This contrasts with game-theoretical predictions that agreements occur only when costs to the players are low, and with the often-heard narrative that substitutes were readily available. I reconcile theory and empirics by discussing the role of induced innovation in models of environmental agreements. |
| Keywords: | induced innovation; directed technological change; green innovation |
| JEL: | O30 Q55 |
| Date: | 2023–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121317&r=ino |
| By: | Hémous, David; Lepot, Simon; Sampson, Thomas; Schärer, Julian |
| 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 F43 O34 |
| Date: | 2023–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121295&r=ino |
| By: | Merouani, Youssouf (Department of Economic History, Lund University); Perrin, Faustine (Department of Economic History, Lund University) |
| Abstract: | The gender patenting gap is well-established and is wide. Despite important progress made over the past decades, the gap remains. Why are women underrepresented in patenting activities? What are the roots of the gender patenting gap? How did the gap evolve since the ‘modern’ patenting system was established? Our knowledge of women’s contribution to innovative activities in the past is extremely scarce. We build an original dataset covering the entirety of French patents to investigate the extent to which women patented relative to men in France during the long nineteenth century and explores the factors behind the historical gender patenting gap. We find that despite the absence of scientific and technical education opportunities for women and the presence of institutional barriers, women, including those who were married, took an active part in the innovation process. The empirical analysis conducted in the paper suggests that explanations of the origins and persistence of the gender patenting gap have to be found outside of the patent system itself. |
| Keywords: | Patent; Innovation; Gender; Women; Nineteenth Century; France |
| JEL: | J16 N33 O30 |
| Date: | 2024–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:luekhi:0255&r=ino |
| By: | Bräuer, Richard |
| Abstract: | This paper proposes a model that explains both recently documented facts about the decline of disruptive innovation and the decline in productivity growth as the result of large firms trying to monopolize technologies by poaching inventors from disruptive activities. To come to this conclusion, the paper builds an endogenous growth model with inventor labor markets on which firms can interact strategically. To inform this model, I perform an event study of the effect of disruptive inventions on their technology fields using PATSTAT (1980-2010). I document that technology classes without disruption slowly trend towards incrementalism and that after a disruption, more patents get registered and research becomes less incremental. |
| Keywords: | disruptive innovation, general equilibrium, general purpose technology, innovation strategies, inventor labor markets, microeconometrics |
| JEL: | J24 J42 J44 O12 O33 O41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:281190&r=ino |
| By: | Yi Jiang; Richard S.J. Tol (Department of Economics, University of Sussex, BN1 9SL Falmer, United Kingdom) |
| Abstract: | In the era of sustainability, firms grapple with the decision of how much to invest in green innovation and how it influences their economic trajectory. This study employs the Crepon, Duguet, and Mairesse (CDM) framework to examine the conversion of R&D funds into patents and their impact on productivity, effectively addressing endogeneity by utilizing predicted dependent variables at each stage to exclude unobservable factors. Extending the classical CDM model, this study contrasts green and non-green innovations' economic effects. The results show non-green patents predominantly drive productivity gains, while green patents have a limited impact in non-heavy polluting firms. However, in high-pollution and manufacturing sectors, both innovation types equally enhance productivity. Using unconditional quantile regression, I found green innovation's productivity impact follows an inverse U-shape, unlike the U-shaped pattern of non-green innovation. Significantly, in the 50th to 80th productivity percentiles of manufacturing and high-pollution firms, green innovation not only contributes to environmental sustainability but also outperforms nongreen innovation economically. |
| Keywords: | Green innovation, Crowding-out effects, Productivity, CDM framework, Quantile regression, Recentered influence function |
| JEL: | D24 O31 Q55 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:0124&r=ino |
| By: | Valentina Peruzzi (Sapienza University of Rome) |
| Abstract: | This paper investigates the impact of family ownership on firms’ adoption of open innovation strategies. Using data from the VIII UniCredit survey on medium-sized enterprises, we find that family ownership is positively and significantly associated with the adoption of open innovation models by firms. The propensity to engage in open innovation by family firms is particularly pronounced in firms involved in product innovation and in collaborations with suppliers. The paper also delves into the inherent characteristics of family owners, emphasizing that the positive association between family ownership and open innovation is largely driven by their long-term perspective and relational abilities. |
| Keywords: | open innovation; family firms; product innovation; process innovation; relational capital |
| JEL: | O36 G32 D22 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:lui:casmef:2401&r=ino |
| By: | L. Serafini; E. Marrocu; R. Paci |
| Abstract: | This paper focuses on the impact of the Smart Specialisation Strategy (S3) and Industry 4.0 (I4) initiatives during the 2014-2020 programming period on firms' performance in Italy. By analysing European Regional Development Fund (ERDF)-funded projects under these frameworks, we use OpenCoesione data and a Difference-in-Differences approach to assess the effectiveness of S3 and I4 initiatives. Our results reveal that projects integrating I4 technologies within the S3 framework (S3I4 projects) significantly enhance firms' performance. This is particularly evident when compared to projects funded under other ERDF initiatives. The study highlights the importance of aligning S3 and I4 strategies with regional economic profiles and innovation capacities to maximise their impact. Our analysis underscores the role of these initiatives in driving innovation and economic growth. The results offer key insights for policymakers, suggesting that focused and strategic investment in S3 and I4 can lead to more effective regional innovation and development. |
| Keywords: | Industry 4.0;Innovation and firm Performance;Cohesion Policy;Counterfactual Impact Analysis;Smart Specialisation Strategy |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:202403&r=ino |
| By: | Dugoua, Eugenie; Gerarden, Todd D. |
| Abstract: | We study how individual inventors respond to incentives to work on 'clean' electricity technologies. Using natural gas price variation, we estimate output and entry elasticities of inventors and measure the medium-term impacts of a price increase mirroring the social cost of carbon. We find that the induced clean innovation response primarily comes from existing clean inventors. New inventors are less responsive on the margin than their average contribution to clean energy patenting would indicate. Our findings suggest a role for policy to increase the supply of clean inventors to help mitigate climate change. |
| Keywords: | inventors; energy technology; induced innovation |
| JEL: | Q31 Q55 Q40 |
| Date: | 2023–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121309&r=ino |
| By: | Marcelo S. Tedesco; Francisco Javier Ramos Soria |
| Abstract: | This study offers an examination of grassroots innovation actors and their integration within larger economic ecosystems. Through a comparative analysis in Oaxaca, Mexico; La Plata, Argentina; and Araucania, Chile, this research sheds light on the vital role that grassroots innovation plays in broader economic ecosystems. Using Complex Network Analysis and the TE-SER model, the study unveils how these actors interact, collaborate, and influence major economic ecosystems in the context of complex social challenges. The findings highlight that actors from the grassroots innovation ecosystem make up a significant portion of the larger innovation-driven entrepreneurial economic ecosystem, accounting for between 20% and 30% in all three cases and are strategically positioned within the ecosystem's structural network. Additionally, this study emphasizes the potential for greater integration of grassroots innovation actors to leverage resources and foster socio-economic development. The research concludes by advocating for further studies in similar socio-economic contexts to enhance our understanding of integration dynamics and mutual benefits between grassroots innovation ecosystems and other larger economic systems. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.06163&r=ino |