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on Innovation |
| By: | Adelia Fatikhova; Fabrizio Fusillo; Sandro Montresor; |
| Abstract: | This work investigates the role of external exchanges of green knowledge on the regional development of new green technological specializations. We extend the recombinant knowledge framework to commodity-embodied knowledge and posit that inter-industry inter-regional flows of commodities, in which new green knowledge gets incorporated, are a channel through which regions can increase their opportunities of specializing in new green technologies and diversify in a more exploratory manner. We further expect these dynamics to be stronger when foreign rather than domestic embodied flows are concerned. By combining the EUREGIO input-output database with patent data, we test our hypotheses on a sample of 237 EU (NUTS2) regions over the period 2000-2019. We measure the regions’ centrality in the network of inter-regional flows of embodied green knowledge (GreenFlowNet) and exploit regional network centrality in a model of related diversification for green technologies. Results show that the centrality of regions in the network is positively associated with green diversification, making this process more exploratory. We also find that the regional ability to acquire new green-techs is mainly associated with the centrality in outward flows of green knowledge towards other regions rather than inward ones. Lastly, we find that regions’ green-tech diversification seems to be enabled (at the extensive margin) primarily by their centrality in the foreign network and accelerated (at the intensive margin) by their centrality in the domestic one. Policy implications are drawn accordingly. |
| Keywords: | green technologies, diversification, relatedness, knowledge networks |
| JEL: | R11 R15 O52 O33 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2413&r= |
| By: | HARDING Richard; NAUWELAERS Claire |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies articulated in the same report. The case study research comprises overall 14 case study reports covering 16 different territories from across the EU and beyond, casing various institutional contexts, a variety of biogeographical regions within different climate risks, different ranges of population sizes, and representing a diversity of approaches to CCA and transformative innovation. The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach where the features are understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. This Report provides the findings for Gorenjska region in Slovenia, as at October 2023 and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137320&r= |
| By: | DIENHART Christina; KORNEEVA Ekaterina |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies articulated in the same report. The case study research comprises overall 14 case study reports covering 16 territories from across the EU and beyond, casing various institutional contexts, a variety of biogeographical regions within different climate risks, different ranges of population sizes, and representing a diversity of approaches to CCA and transformative innovation. The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach where the features are understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. This Report provides the findings for Espoo region in Finland, as at October 2023 and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137316&r= |
| By: | MORALES Diana |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies articulated in the same report. The case study research comprises overall 14 case study reports covering 16 different territories from across the EU and beyond, casing various institutional contexts, a variety of climate risks within different biogeographical regions, different ranges of population sizes, and representing a diversity of approaches to CCA and transformative innovation. The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach where the features are understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation features. This Report provides the findings for the regions of Blekinge and Värmland, Sweden, as at November 2023 and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137318&r= |
| By: | KORNEEVA Ekaterina; DIENHART Christina |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies articulated in the same report. The case study research comprises overall 14 case study reports covering 16 different territories from across the EU and beyond, casing various institutional contexts, a variety of biogeographical regions within different climate risks, different ranges of population sizes, and representing a diversity of approaches to CCA and transformative innovation. The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach where the features are understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. This report provides the findings for the city of Leuven, Belgium, as at October 2023, and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137313&r= |
| By: | GRASSANO Nicola; NAPOLITANO Lorenzo (European Commission - JRC); M'BAREK Robert (European Commission - JRC); RODRIGUEZ CEREZO Emilio (European Commission - JRC); LASARTE LOPEZ Jesus (European Commission - JRC) |
| Abstract: | In this document, we focus on innovation in biotechnologies (biotech), as captured by patented invention worldwide. To this aim, we focus on international patents filed at multiple offices, at least one of which belonging to the IP5 consortium (see methodological box for more details). Moreover, we rely on expert knowledge collected by the OECD to select the inventions connected to biotech. The analysis aims to produce a bird’s eye view on the evolution of patenting in this technological area over time and its relevance across the geographical and technological dimensions. The key points emerging from this analysis are: Biotech patents represent around 5% of all the IP5 patents in the period 2001-2019. The US are by far the country with the highest share of biotech patents, the EU is lagging behind (with an increasing gap with the US) , while China seem to have started catching Up with the EU; The majority of the biotech patents are withe (industrials) and red (medical) biotechnologies. Japanese, Chinese, and EU applicants show relatively high specialization in white biotech patents, while UK and US applicants are relatively specialized in horizontal and red biotech patents. Germany and France have the highest number of biotech patent applicants in the EU, accounting for slightly over 50% of all EU biotech patents; The single biotechnology most patented is C12Q 1/66, "Measuring or testing processes involving luciferase", which alone represents 6.4% of all the biotech patents analysed; Preliminary analysis suggests that the competition among regions in biotech patents revolves around the number of patents in each of the main biotechnological domains, rather than the different types of biotechnologies patented. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137266&r= |
| By: | HARDING Richard; NAUWELAERS Claire; HAEGEMAN Karel (European Commission - JRC) |
| Abstract: | This report looks at the key features of territorial Climate Change Adaptation (CCA) strategies, as they are developing throughout the EU, and examines whether and how the adoption of a Transformative Innovation (TI) approach could add value to these strategies and their implementation. The analysis is based on a literature review covering the two fields. Starting from rationales for linking TI and CCA strategies, seven key TI features are identified which are further explored in this report, in order to form a picture of the possible beneficial contributions TI might make to the design and implementation of CCA strategies. For each feature, potential contributions to climate adaptation are identified. Also, barriers to integrating TI in CCA strategies are formulated, both to strategy formulation and strategy implementation. Infusing TI approaches into the design and implementation of CCA strategies holds a promise to raise their effectiveness, and calls for more experimentation. As a way to start such experimentation, the framework developed in this report has been applied to 16 territories, covered in 14 separate case study reports listed in annex 2, drawing meaningful insights per territory as regards accelerating climate adaptation through transformative innovation. It targets public authorities in EU territories (and beyond) at different governance levels (from national to local), as well as other territorial stakeholders involved in or affected by climate adaptation policies and transformative innovation policies. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137300&r= |
| By: | Yoshiki Ando (University of Pennsylvania) |
| Abstract: | The role that venture capital (VC) plays in helping promising startups achieve high growth is examined. Three facts are documented from administrative US Census data and proprietary VC datasets. First, VC-backed firms achieve substantial growth in employment and payroll compared to non-VC-backed firms. Second, VC-backed firms typically raise funding more than 10 times their revenue at age 0 and intensively invest in research and development. Third, venture capitalists acquire around 3.3% extra equity stakes relative to Angel investors. Based on the evidence, I develop a firm dynamics model with endogenous firm productivity and choice of financing from VC, Angel (non-VC-equity) investors, and banks. Venture capitalists provide equity-based funding and managerial advice, but they are in limited supply. The model shows the benefit of VC and Angel financing over bank financing for high-potential firms because of their large investment in innovation, which creates a debt repayment issue with bank financing when innovation is unsuccessful. VC-backed firms achieve substantial growth as a result of endogenous sorting, equity-based funding, and managerial advice. The calibrated model implies that venture capitalists’ advice accounts for around 24% of the growth of VC-backed firms. Finally, policy experiments predict that subsidies to innovation expenditures or equity investments enhance aggregate output and consumption in the steady state in contrast to bank loan subsidies. |
| Keywords: | Venture capital, firm dynamics, innovation, upfront investment, equity, debt, default, endogenous sorting |
| JEL: | D22 D25 E22 G24 G30 O32 |
| Date: | 2024–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:pen:papers:24-012&r= |
| By: | James Cloyne (University of California Davis, NBER and CEPR); Joseba Martinez (London Business School and CEPR); Haroon Mumtaz (School of Economics and Finance, Queen Mary, University of London); Paolo Surico (London Business School and CEPR) |
| Abstract: | Using a narrative identi cation of tax changes in the United States over the post-WWII period, we document that a temporary cut in corporate income tax rates leads to a long-lasting increase in innovation and productivity, whereas changes in personal income tax rates only have short-term e ects. We show that the results on corporate taxes are consistent with theories of endogenous growth that feature tax amortisation allowances on intellectual property purchases, as in the tax code of most countries in the world. In contrast, personal taxes work primarily through the response of labour supply, which is as transient as the tax change itself. |
| Keywords: | corporate taxes, narrative identi cation, TFP, R&D, technological adoption. |
| JEL: | E23 E62 O32 O34 O38 |
| Date: | 2024–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:979&r= |
| By: | Bonvillian, William B. |
| Abstract: | Amid the backdrop of advanced technology competition from China, climate change and a global pandemic, the United States —traditionally averse to industrial policy— embraced major industrial policy programmes between 2020 and 2022. These programmes focused on fostering technology innovation and are prime examples of industrial innovation policy. The scale of these initiatives and their focus on non-defence sectors are unprecedented. This study reviews six major examples of new United States industrial innovation policies involving federal government interventions in post-research phases of innovation, from development to prototyping, testing, demonstration and production. These policies reflect different approaches, for example top-down strategies, whereby the government selects and supports specific companies, and bottom-up strategies, through which the government offers incentives for companies to meet government technology goals. However, gaps remain in areas such as scale-up financing, advanced manufacturing support and cross-agency coordination, although some efforts are under way to address them. While the United States has a highly developed economy, it has been experimenting with industrial policy models that may be relevant to developing nations in their efforts to meet the challenges of the twenty-first century. |
| Date: | 2024–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:69186&r= |