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on Innovation |
| By: | Mitra, Alessio; Di Girolamo, Valentina; Canton, Erik |
| Abstract: | This paper studies the firm-level drivers of product, process, organisation and marketing innovation in the EU with panel data from 2009 to 2021. Employing conditional logit and linear probability models we investigate how firms’ characteristics, firms’ sources of financing, and firm perception of different challenges influence their likelihood to innovate. In line with the academic literature, we find that firms’ size and profit level improve firms’ innovation performance, while firms’ age decreases it. We also observe that the effectiveness of different financing instruments varies considerably depending on whether the company is pursuing product, process, organisation or marketing innovation. Finally, innovative firms more frequently report access to finance and regulations as important challenges for their future, while the relevance of other challenges (e.g. the availability of skilled staff or finding customers) varies depending on what type of innovation activities companies are engaged in. |
| Keywords: | Access to finance, Financing instruments, Innovation challenges, Firm innovation |
| JEL: | G20 G23 O30 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:283909&r=ino |
| By: | Michael Fritsch; Maria Greve; Michael Wyrwich |
| Abstract: | The unification of the East and West German states in 1990 initiated the integration of two distinct innovation systems. In this process, the poorly functioning socialist system of East Germany adopted the formal institutions and organization of West Germany, a western-style market economy. We investigate the effect of this integration on patenting activity in the short, medium and long run by applying a difference-in-difference approach. The most important and remarkable finding is that the gap between East and West Germany widened considerably over time. This divergence in innovation activity suggests that current East-West differences may be indirectly rooted in this socialist legacy and the sudden shock transformation that occurred upon reunification. We also find that the similarity of the technology profile of the East and West German innovation systems is crucial to understand the divergence. So, East German innovation activity fell behind especially in technologies where both East and West Germany were specialized in before re-unification. The same applies to technologies where only West Germany was specialized in. Our findings indicate that integrating the two innovation systems mainly benefited the West. |
| Keywords: | innovation, socialism, transformation, Germany |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:2302&r=ino |
| By: | Giovanni Dosi; Anna Snaidero |
| Abstract: | This paper delves into geographical agglomeration patterns of economic activities focusing on the connection between these agglomeration tendencies and sectoral patterns of innovative activities. Within a broad evolutionary perspective, we refine upon incumbent statistical models, trying to distinguish between intra- and inter-sectoral agglomerative forces, conditional on different types of sectoral innovative activities. Utilizing data spanning three distinct years, a decade apart, we investigate the systematic nature of spatial distributions, the relationship between agglomeration drivers and technological paradigms, and shifts in agglomerative tendencies over time. Our findings suggest that economic space is far from uniform, but the spatial heterogeneity differs across sectors as it is driven by various factors, including increasing returns, urbanization advantages, and sector-specific forms of knowledge generation and diffusion. |
| Keywords: | spatial agglomeration, evolutionary economic geography, increasing returns, externalities, knowledge specificities, Pavitt taxonomy |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/07&r=ino |
| By: | Scaini, Anna; Mulligan, Joseph; Berg, Håkan; Brangarí, Albert; Bukachi, Vera; Carenzo, Sebastian; Chau Thi, Da; Courtney-Mustaphi, Colin; Ekblom, Anneli; Fjelde, Hanne; Fridahl, Mathias; Hansson, Anders; Hicks, Lettice; Höjer, Mattias; Juma, Benard; Kain, Jaan-Henrik; Kariuki, Rebecca W.; Kim, Soben; Lane, Paul; Leizeaga, Ainara; Lindborg, Regina; Livsey, John; Lyon, Steve W.; Marchant, Rob; McConville, Jennifer R.; Munishi, Linus; Nilsson, David; Olang, Luke; Olin, Stefan; Olsson, Lennart; Rogers, Peter Msumali; Rousk, Johannes; Sandén, Hans; Sasaki, Nophea; Shoemaker, Anna; Smith, Benjamin; Thai Huynh Phuong, Lan; Varela Varela, Ana; Venkatappa, Manjunatha; Vico, Giulia; Von Uexkull, Nina; Wamsler, Christine; Wondie, Menale; Zapata, Patrick; Zapata Campos, María José; Manzoni, Stefano; Tompsett, Anna |
| Abstract: | Drawing on collective experience from ten collaborative research projects focused on the Global South, we identify three major challenges that impede the translation of research on sustainability and resilience into better-informed choices by individuals and policy-makers that in turn can support transformation to a sustainable future. The three challenges comprise: (i) converting knowledge produced during research projects into successful knowledge application; (ii) scaling up knowledge in time when research projects are short-term and potential impacts are long-term; and (iii) scaling up knowledge across space, from local research sites to larger-scale or even global impact. Some potential pathways for funding agencies to overcome these challenges include providing targeted prolonged funding for dissemination and outreach, and facilitating collaboration and coordination across different sites, research teams, and partner organizations. By systematically documenting these challenges, we hope to pave the way for further innovations in the research cycle. |
| Keywords: | upscaling; climate change adaptation; knowledge co-creation; knowledge transfer; resilience; sustainable development goals; 2016-06359; 2016-06355; 2016-06297; 2016-06300; 2016-06327; 2016-06329; 2016-06334; 2016-06289; 2016-06313; 2016-06389 |
| JEL: | R14 J01 N0 |
| Date: | 2024–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122096&r=ino |
| By: | Malte Schlosser (University of Zurich); Ester Trutwin (University of Zurich); Thorsten Hens (University of Zurich - Department of Banking and Finance; Norwegian School of Economics and Business Administration (NHH); Swiss Finance Institute) |
| Abstract: | We examine whether a company’s green and high–quality innovative strength is related to its environmental impact and what the implications are for its financial performance. By analyzing WIPO patent data and MSCI ESG data, we reveal a notable positive and statistically significant impact of possessing more green patents on a company’s carbon emissions score. Further, we find that the patent related increase in carbon emissions score is driven by the high–quality green patents. Our analysis validates the positive influence of green and high–quality innovation strength on both the E and ESG scores. Despite the positive impact on the environment, investors do not need to sacrifice returns. Investment strategies which invest in companies within the top decile of green patents or green patents ratio do not perform worse than the market. |
| Keywords: | WIPO, Green Innovations, Carbon Emissions Score, ESG Scores, Correlation Analysis, Performance Analysis, Fama–French Analysis |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2418&r=ino |
| By: | Ramirez Chaparro, Maria Nathalia; Chacón Mejía, Catalina |
| Abstract: | This research paper examines the role of industrial policies and innovation strategies in Latin America's quest for economic development. Despite the region's potential, persistent challenges such as coordination deficits and limited technology absorption continue to impede progress. Through a review of productivity data and historical perspectives on industrial policies in four Latin American countries, this paper highlights the complexities of state intervention and the importance of strategic alignment with innovation agendas. Additionally, it explores the interplay between industrial policies and innovation strategies, emphasizing the need to nurture indigenous capabilities and promote inclusive innovation. By challenging conventional views on informality in the labor market, this paper advocates for a holistic approach that integrates targeted industrial policies with innovation strategies to drive sustainable growth and inclusive prosperity in Latin America. |
| Keywords: | innovation strategies, structural change, industrial policies, Latinamerica |
| JEL: | O1 O3 O35 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120240&r=ino |
| By: | Mitra, Alessio; Niakaros, Konstantinos |
| Abstract: | This paper evaluates the causal impact of the Horizon 2020 Framework Programme for Research and Innovation on financial firm-level outcomes using a Difference-in-Differences (DiD) approach. We use administrative data from CORDA and financial data from ORBIS spanning from 2010 to 2022, for a sample of approximately 40 thousand unique private companies that applied for Horizon 2020 funding. The findings suggest that firms receiving Horizon 2020 grants exhibit an average increase of 20% in employment and about 30% in total assets and revenues, compared to comparable companies in the control group, in the years after receiving their first grant. Positive effects persist even after 2.5 years, which is the average duration of a project in our sample. Companies in the “Information and communication” and “Professional, scientific and technical activities” NACE sectors are driving the results, while other sectors show insignificant effects. |
| Keywords: | Horizon 2020, Difference-in-Differences, European Union, Innovation policy |
| JEL: | G38 L52 O38 D22 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:283906&r=ino |
| By: | Josh Lerner; Junxi Liu; Jacob Moscona; David Y. Yang |
| Abstract: | Global innovation and entrepreneurship has traditionally been dominated by a handful of high-income countries, especially the US. This paper investigates the international consequences of the rise of a new hub for innovation, focusing on the dramatic growth of high-potential entrepreneurship and venture capital in China. First, using comprehensive data on global venture activities, we show that as the Chinese venture industry rose in importance, entrepreneurship increased substantially in other emerging markets, particularly in sectors dominated by Chinese companies. Using a broad set of country-level economic indicators, we find that this effect was driven by country-sector pairs most similar to their counterparts in China. Second, turning to mechanisms, we show that the baseline findings are driven by local investors and by new firms that more closely resemble existing Chinese companies. Third, we find that this growth in emerging-market investment had wide-ranging positive consequences, including a rise in serial entrepreneurship, cross-sector spillovers, innovation, and broader measures of socioeconomic well-being. Together, our findings suggest that developing countries benefited from more “appropriate” businesses and technology pioneered by China, and that a system where only rich countries lead in innovation could limit entrepreneurial activity in large parts of the world. |
| JEL: | O11 O33 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32193&r=ino |