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on Innovation |
| By: | Federico Moscatelli; Christian Chacua; Shreyas Gadgin Matha; Matte Hartog; Eduardo Hernandez Rodriguez; Julio Raffo; Muhammed A. Yildirim |
| Abstract: | Recent years have witnessed a resurgence of industrial policies globally. Through various industrial policy instruments, governments make critical scientific and technological choices that shape innovation paths and resource allocations. Our paper explores innovation capabilities as essential drivers of competitive outcomes, spanning science, technology, and production domains. Based on the economic complexity literature, we propose a methodological framework to measure the innovation capabilities empirically, leveraging data on scientific publications, patents, and trade. Our findings highlight the multidimensional nature of innovation capabilities and underscore the importance of understanding both the specialization and quality of these capabilities. Our results are in line with the complexity literature, as we also find: (i) positive correlations between the innovation complexity and economic growth; and, (ii) the predictive power of existing innovation capabilities for fostering new ones. Based on these findings, we propose novel indicators informing innovation policymaking on the innovation potential across science, technology, and production fields of an ecosystem. We suggest that innovation policymaking needs to be informed by deeper insights into innovation capabilities that are crucial for long-term growth and competitiveness improvement. |
| Keywords: | Innovation capabilities, Complexity metrics, Innovation ecosystems, Science and technology policy, Industrial policy, Economic development, Smart specialization |
| JEL: | O25 O31 O33 O30 O11 O14 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:81&r= |
| By: | Ricardo Hausmann; Muhammed A. Yildirim; Christian Chacua; Matte Hartog; Shreyas Gadgin Matha |
| Abstract: | Technological know-how in a country shapes its growth potential and competitiveness. Scientific publications, patents, and international trade data offer complementary insights into how ideas from science, technology, and production evolve, combine, and are transformed into capabilities. Analyzing their trajectories enables a more comprehensive and multifaceted understanding of the whole innovation process, from generating ideas to internationally commercializing products. We analyze the production patterns in these three domains, documenting the differences between advanced and emerging market economies. We find that future income, patenting, and publishing growth correlate with the economic complexity indices calculated from these domains. Capabilities embedded in the country also shape future diversification opportunities and make the innovation process path dependent. Lastly, we also show that diversification opportunities can be inferred across innovation domains. |
| Keywords: | Economic complexity, Innovation complexity, Scientific complexity |
| JEL: | O25 O30 O38 F60 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:80&r= |
| By: | Intan Hamdan-Livramento; Gregory D. Graff; Alica Daly |
| Abstract: | This paper illustrates successful policies and incentives that build on local innovation capabilities across three agricultural innovation hubs at different income levels and across different geographical regions. It makes the case for how countries highly complex innovation ecosystems, which refer to the diversity and sophistication of local innovators and the types of innovation they produce, tend to have more opportunities to shift their technological path to the frontier. The paper focuses on three agricultural hubs across different income levels and geography to illustrate how smart policies that focus on building local capabilities can help countries diversify and create their own agricultural technological paths. These hubs include: São Paulo in Brazil, Nairobi in Kenya and Colorado in the United States of America. |
| Keywords: | Agriculture, Innovation complexity, Technologies, Intellectual property |
| JEL: | O25 O31 O33 O30 O11 O14 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:82&r= |
| By: | Ricardo Hausmann; Muhammed A. Yildirim; Christian Chacua; Matte Hartog; Shreyas Gadgin Matha |
| Abstract: | Recent geopolitical challenges have revived the implementation of industrial and innovation policies. Ongoing discussions focus on supporting cutting-edge industries and strategic technologies but hardly pay attention to their impact on economic growth. In light of this, we discuss the design of innovation policies to address current development challenges while considering the complex nature of productive activities. Our approach conceives economic development and technological progress as a process of accumulation and diversification of knowledge. This process is limited by the tacit nature of knowledge and by countries' binding constraints to growth. Consequently, effective innovation policies should be place-based and multidimensional, leveraging countries' existing capabilities and addressing countries’ current problems. This contrasts policies that lead to economic efficiencies, such as copying other countries' solutions to problems that countries do not currently have. |
| Keywords: | Innovation policy, Industrial policy, Economic complexity, Know-how |
| JEL: | O25 O30 O38 F60 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:79&r= |
| By: | Alexander Cuntz; Frank Mueller-Langer; Alessio Muscarnera; Prince C. Oguguo; Marc Scheufen |
| Abstract: | TWe examine the implications of lowering barriers to online access to scientific publications for science and innovation in developing countries. We investigate whether and how free or low-cost access to scientific publications through the UN-led Research For Life (R4L) initiative leads to more scientific publications and clinical trials of authors affiliated with research institutions in developing countries. We find that free or reduced-fee access to the health science literature through Hinari (WHO-led subprogramme) increases the scientific publication output and clinical trials output of institutions in developing countries. In contrast, once we control for selection bias, we do not find empirical support for a positive Hinari effect on knowledge spillovers and local institutions’ research input into global patenting, as measured by paper citations in patent documents. Main findings can be generalized to other R4L subprogrammes and are likely to also apply to the WIPO-led Access to Research for Development and Innovation (ARDI) programme. |
| Keywords: | Scientific publications, Science, Innovation |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:78&r= |
| By: | Milad Abbasiharofteh; Tom Broekel; Lars Mewes; |
| Abstract: | This paper examines how geographical proximity affected interregional co-patenting links in various technologies in the USA from 1836 to 2010. We classify technologies by their complexity and test whether that moderates the impact of distance on collaboration. Contrary to the ‘death of distance’ hypothesis, distance still matters for knowledge creation and exchange. Moreover, we show that the role of complexity has changed over time. However, this pattern reversed by the late 20th century, with collaborations in complex technologies becoming more resilient to distance than those in simpler technologies. However, this pattern reversed by the late 20th century, with collaborations in complex technologies becoming more resilient to distance than those in simpler technologies. |
| Keywords: | network evolution, interregional collaboration, geographical proximity, technological complexity |
| JEL: | O33 R12 N70 L14 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2414&r= |
| By: | Saheel A. Chodavadia; Sari Pekkala Kerr; William R. Kerr; Louis J. Maiden |
| Abstract: | Immigrants contribute disproportionately to entrepreneurship in many countries, accounting for a quarter of new employer businesses in the US. We review recent research on the measurement of immigrant entrepreneurship, the traits of immigrant founders, their economic impact, and policy levers. We provide updated statistics on the share of US entrepreneurs who are immigrants. We utilize the Annual Business Survey to quantify the greater rates of patenting and innovation in immigrant-founded firms. This higher propensity towards innovation is only partly explained by differences in education levels and fields of study. We conclude with avenues for future research. |
| JEL: | F22 F6 J15 J61 L26 M13 O15 O3 R23 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32400&r= |
| By: | Pierluigi Angelino; Dirk Czarnitzki; Astrid Volckaert |
| Abstract: | The Flemish government launched its Spearhead Cluster (SHC) policy in 2017. The aim is to boost strategic sectors by setting up cluster initiatives which coordinate collaborative R&D initiatives. In this paper, we analyze whether becoming a member of such a cluster initiative has an impact on the Total Factor Productivity (TFP) of the firm. We exploit firm-level data between 2013 and 2020 to estimate TFP and apply a difference-in-differences approach to assess the programs’ treatment effects. We find that becoming a member of a cluster has an average positive impact on firmlevel TFP of between 1 to 4.4 percent, depending on the econometric specification. These results are the first to provide an insight into the impact of the Flemish SHC policy on productivity. |
| Keywords: | cluster associations, cluster policy, innovation policy, total factor productivity, conditional difference-in-difference |
| Date: | 2024–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:ete:msiper:741800&r= |
| By: | Eliasson, Kent (Swedish Agency for Growth Policy Analysis); Hansson, Pär (Swedish Agency for Growth Policy Analysis); Lindvert, Markus (Swedish Agency for Growth Policy Analysis) |
| Abstract: | In the paper, we break down business sector R&D at an appropriate regional level (functional analysis regions, FA-regions) in Sweden. We describe the variation and development at the regional level. In an econometric analysis, we examine what affects the location and size of enterprise groups’ R&D activities in different FA-regions. We find that enterprise groups concentrate their R&D to the same regions, which are also regions with significant academic R&D (external agglomeration). Moreover, colocation of R&D and manufacturing within an enterprise group in a region (internal agglomeration) appears to be a significant location factor. Last but not least, the local availability of qualified R&D labor is another important localization factor for business sector R&D. Finally, when we compare the results from the econometric analysis with what enterprise groups themselves states as important motives for location, we find that they match quite well. |
| Keywords: | business sector R&D; regional location; external agglomeration; colocation of R&D and production; abundance of qualified labor |
| JEL: | J24 O32 R11 R12 |
| Date: | 2024–05–28 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:oruesi:2024_004&r= |
| By: | Schrape, Jan-Felix |
| Abstract: | This paper provides a brief overview of the concepts of collective invention, user innovation, and open innovation. All three terms describe variants of distributed innovation processes and can be linked to further ideas of socio-economic decentralization. First, the conceptual differences between collective invention, user innovation, and open innovation are elaborated. Second, exemplary case studies from the past decades are presented before more recent forms of distributed innovation in the development of information technologies are discussed. In this context, it becomes evident that distributed innovation processes and internal research and development activities in public and private sector organizations are not in competition with each other but rather in a complementary relationship. |
| Abstract: | Das vorliegende Diskussionspapier bietet einen kompakten Überblick über die Konzepte der Collective Invention, User Innovation und Open Innovation, die unterschiedliche Ausprägungen verteilter Innovationsprozesse beschreiben. Nach einer Aufarbeitung ihrer jeweiligen konzeptuellen Schwerpunkte wird ihr praktisches Zusammenspiel anhand exemplarischer Fallstudien aus den letzten Jahrzehnten illustriert. Daran anknüpfend erfolgt die Diskussion neuerer Entwicklungen auf dem Feld der Informationstechnologien sowie eine kritische Würdigung. Dabei wird ersichtlich, dass verteilte Innovationsprozesse und interne Forschungs- und Entwicklungsaktivitäten in öffentlichen und privatwirtschaftlichen Organisationen in der Regel nicht in einem konkurrierenden, sondern in einem komplementären Verhältnis zueinander stehen. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:stusoi:295232&r= |
| By: | Boeing, Philipp; Mueller, Elisabeth |
| Abstract: | The global economic landscape has fundamentally shifted from the paradigm of globalization to renewed concerns regarding the risks and rewards of technological interdependence. This shift has sparked a critical discussion on technology sovereignty. This concept refers to a country's ability to provide essential technologies for competitiveness and welfare, and to develop or acquire them from other geographic areas without being unilaterally dependent on any particular one. We analyze the technology sovereignty of the world's leading innovators, including Europe, the US, China, Japan and Korea. By examining citation data from the universe of PCT patent applications, we determine the strength and direction of inventions' influence at global and bilateral levels to assess each geographic area's technology sovereignty. Our analysis shows that the US holds substantial technology sovereignty due to its leading global and bilateral influence. Despite ongoing US-European integration, their global positions differ, as Europe is dependent on all other areas except China. Although China has globally filed the most patent applications in recent years, bilaterally it remains dependent on all other geographic areas. Moreover, only Japan and Korea show a recent decline in their global influence. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewpbs:294873&r= |
| By: | Homonenko, Vladyslava; Suprun, Ivan; Platonovska, Vladyslava |
| Abstract: | This research paper explores the determinants of countries' innovation levels as measured by the Global Innovation Index, focusing on the essential factors that strengthen a country's innovative capabilities. Through a comprehensive cross-country regression analysis, the findings highlight the role of GDP per capita, Median age and the Share of the population aged 25-49 as significant factors of innovation. Contrary to our initial hypotheses, the analysis demonstrates that other variables such as the democracy level, birth rate, net migration, and life expectancy, initially provided in our model, do not significantly influence the innovation process. This indicates that economic prosperity, a youthful age profile, and a significant part of the population within their most productive years are crucial in enhancing a nation's innovation. The results are particularly significant for Ukraine, emphasizing the need to enhance technological progress in its post-war recovery efforts. This study confirms the importance of a relatively young population and stable economic health in fostering technological progress, providing guidance for policymakers aiming to enhance innovation strategies. |
| Keywords: | Global Innovation Index, Technological progress, Age distribution, Economic health. |
| JEL: | O30 O31 O33 |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120909&r= |
| By: | d'Andria, Diego |
| Abstract: | We study the relationship between tax progressivity and the size of the R&D workforce, using a panel of European countries in 2000-2019. We review the theoretical literature which provides opposing predictions about such a relationship. We then demonstrate that such relationship exists as a "within" effect, it is negative, meaning that a larger tax progressivity is associated with smaller shares of employment in R&D activities, and it remains statistically significant after performing a number of robustness tests. Differently to previous studies based on patenting inventors, we find no effect due to top tax rates on the size of R&D employment. |
| Keywords: | Tax progressivity; R&D; Labour force structure |
| JEL: | H24 J21 J24 O3 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120937&r= |
| By: | Pierre Azoulay; Joshua L. Krieger; Abhishek Nagaraj |
| Abstract: | Drawing insights from the field of innovation economics, we discuss the likely competitive environment shaping generative AI advances. Central to our analysis are the concepts of appropriability—whether firms in the industry are able to control the knowledge generated by their innovations—and complementary assets—whether effective entry requires access to specialized infrastructure and capabilities to which incumbent firms can ration access. While the rapid improvements in AI foundation models promise transformative impacts across broad sectors of the economy, we argue that tight control over complementary assets will likely result in a concentrated market structure, as in past episodes of technological upheaval. We suggest the likely paths through which incumbent firms may restrict entry, confining newcomers to subordinate roles and stifling broad sectoral innovation. We conclude with speculations regarding how this oligopolistic future might be averted. Policy interventions aimed at fractionalizing or facilitating shared access to complementary assets might help preserve competition and incentives for extending the generative AI frontier. Ironically, the best hopes for a vibrant open source AI ecosystem might rest on the presence of a “rogue” technology giant, who might choose openness and engagement with smaller firms as a strategic weapon wielded against other incumbents. |
| JEL: | L17 L86 O32 O38 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32474&r= |