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on Innovation |
| By: | Ali-Yrkkö, Jyrki; Pajarinen, Mika; Ylhäinen, Ilkka |
| Abstract: | Abstract This study examines the outcomes of firms’ innovation cooperation activities. Using data from the Community Innovation Survey (CIS), we analyze Finnish-owned and foreign-owned firms operating in Finland. Our findings suggest a positive relationship between in-house R&D and innovation outcomes. However, the relationship between innovation cooperation and innovation outcomes appears more complex and varies by the type of cooperation. Specifically, for product innovation, the link between innovation cooperation and innovation outcomes seems to be limited for both domestic and foreign firms. |
| Keywords: | Innovation, R&D, Research, Development, Foreign, Domestic, Ownership |
| JEL: | F23 O3 |
| Date: | 2024–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:rif:report:153 |
| By: | Ludovic Dibiaggio (SKEMA Business School); Lionel Nesta (Université Côte d'Azur, CNRS, GREDEG, France; SKEMA Business School; Sciences Po Paris, OFCE, France); Simone Vannuccini (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | We present a first-of-its-kind empirical study of technological sovereignty in artificial intelligence, adopting a competence-based perspective. We use patents and publication data to map competencies across AI techniques, functions and applications, and develop a novel measure of integration based on relative specializations and complementarities. We argue that our measure approximates technological sovereignty by capturing local capabilities to innovate in AI. We use our novel measure to explain AI innovation, and unpack integration determinants. Our focus is on the European Union, given its lagging position yet key role in a global landscape increasingly characterized by growing rivalries and fragmentation. |
| Keywords: | Greening value chains, Firm internal markets failures, Transfer pricing, Fiscal compliance and the environment, environmental governance |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2024-34 |
| By: | Siddharth, L.; Luo, Jianxi |
| Abstract: | Design and innovation processes primarily generate knowledge upon retrieving and synthesising knowledge of existing artefacts. Understanding the basis of knowledge governing these processes is essential for theoretical and practical advances, especially with the growing inclusion of Large-Language Models (LLMs) and their generative capabilities to support knowledge-intensive tasks. In this research, we analyse a large, stratified sample of patented artefact descriptions spanning the total technology space. Upon representing these descriptions as knowledge graphs, i.e., collections of entities and relationships, we investigate the linguistic and structural foundations through frequency distribution and motif discovery approaches. From the linguistic perspective, we identify the generalisable syntaxes that show how most entities and relationships are constructed at the term level. From the structural perspective, we discover motifs, i.e., statistically dominant 3-node and 4-node subgraph patterns, that show how entities and relationships are combined at a local level in artefact descriptions. Upon examining the subgraphs within these motifs, we understand that artefact descriptions primarily capture the design hierarchy of artefacts. We also find that natural language descriptions do not capture sufficiently precise knowledge at a local level, which can be a limiting factor for relevant innovation research and practice. Moreover, our findings are expected to guide LLMs in generating knowledge pertinent to domain-specific design environments, to inform structuring schemes for future knowledge management systems, and to advance design and innovation theories on knowledge synthesis. |
| Date: | 2024–12–26 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:ncqz3 |
| By: | Leogrande, Angelo; Drago, Carlo; Mallardi, Giulio; Costantiello, Alberto; Magaletti, Nicola |
| Abstract: | This article focuses on the propensity to patent across Italian regions, considering data from ISTAT-BES between 2004 and 2019 to contribute to analyzing regional gaps and determinants of innovative performances. Results show how the North-South gap in innovative performance has persisted over time, confirming the relevance of research intensity, digital infrastructure, and cultural employment on patenting activity. These relations have been analyzed using the panel data econometric model. It allows singling out crucial positive drivers like R&D investment or strongly negative factors, such as limited mobility of graduates. More precisely, given the novelty of approaches applied in the used model, the following contributions are represented: first, the fine grain of regional differentiation, from which the sub-national innovation system will be observed. It also puts forward a set of actionable policy recommendations that would contribute to more substantial inclusive innovation, particularly emphasizing less-performing regions. By focusing on such dynamics, this study will indirectly address how regional characteristics and policies shape innovation and technological competitiveness in Italy. Therefore, it contributes to the debate on regional systems of innovation and their possible role in economic development in Europe since the economic, institutional, and technological conditions are differentiated between various areas in Italy. |
| Date: | 2024–12–27 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nftv3 |
| By: | Sabrina Di Addario; Michela Giorcelli; Agata Maida |
| Abstract: | The share of female inventors remains significantly lower than that of men in both developed and developing countries. This paper studies gender bias in patenting activity, using a unique dataset that matches Italian administrative employer-employee records both to patent data from the European Patent Office (1987-2005) and to municipality-level information on medieval guilds from the Italian Central Archive of State. We empirically verify whether women's low propensity to patent can be explained by the historical local conception of women's role in society, which we measure with the share of women in guild founders from the Middle Ages. The results indicate that the presence of women in Medieval guilds is associated with a higher probability of observing a female inventor and a higher number of yearly patent submissions by women. |
| Keywords: | patents, women, inventors, guilds |
| JEL: | J60 |
| Date: | 2024–12–20 |
| URL: | https://d.repec.org/n?u=RePEc:csl:devewp:500 |
| By: | Gustavo de Souza; Ruben Gaetani; Martí Mestieri |
| Abstract: | How does international trade affect technology diffusion? We show that tariff increases in Brazil lead to more international technology transfers to Brazilian firms and more citations to foreign patents. The highest increase in citations occurs among firms located near those receiving technology transfers, and it is driven largely by citations to firms transferring technology to Brazil. These findings suggest that import tariffs can facilitate the diffusion of foreign technology by promoting technology transfers. We quantify this effect in a growth model that incorporates trade, technology transfers, and their effect on diffusion. When tariffs in Brazil rise, foreign firms transfer their technology rather than export their products, boosting the diffusion of foreign knowledge. An optimal subsidy to technology transfers significantly amplifies the welfare gains from trade liberalization. |
| Keywords: | Technology diffusion; Growth; technology transfer; International trade |
| JEL: | O33 O40 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedhwp:99305 |
| By: | OECD |
| Abstract: | Mission-oriented innovation policies (MOIPs) offer a strategic approach to address complex societal challenges like climate change, health crises, and digital transformation. For MOIPs to succeed, tailored governance structures are essential, enabling coordination across sectors and policy areas. This policy paper identifies key governance challenges, such as overcoming institutional silos, integrating funding streams, and managing trade-offs in leadership. It highlights the need for adaptive, flexible governance mechanisms that evolve alongside the mission's life cycle. The paper proposes a framework of five core governance principles: structure, orientation, coordination, implementation, and resources. By following this framework, policymakers can design effective governance systems that align with the mission's theory of change, ultimately enhancing the transformative potential of MOIPs. The recommendations emphasise viewing mission governance as a critical enabler, fostering collaborative and impact-oriented policymaking to tackle complex issues. |
| Keywords: | Collaboration, Governance structures, Mission-oriented policies, missions, Sustainability, Systemic change |
| JEL: | H11 O33 O38 Q54 I18 |
| Date: | 2024–12–06 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaac:168-en |
| By: | Coupland, Stephen John Mr |
| Abstract: | The Cognitive Gradient Innovation Index (CGII) introduces a novel, interdisciplinary framework to measure and optimize innovation potential across a nine-level cognitive gradient. Unlike existing models, CGII integrates neurodiversity, whole-brain functionality, and modern psychological insights to create a comprehensive tool for assessing individual and systemic innovation capacity. By analyzing the contributions of neurotypical and neurodivergent individuals, and incorporating left-right brain dynamics alongside IQ, EQ, and personality traits, CGII addresses societal and organizational imbalances in innovation. It provides actionable pathways to bridge cognitive gaps, ensuring inclusive and sustainable progress. The CGII offers governments, organizations, and researchers a groundbreaking method for unlocking untapped human potential and fostering systemic transformation. |
| Date: | 2024–12–19 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:2u3e5 |
| By: | Emanuele Ciola (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia); Enrico M. Turco (Fondazione Eni Enrico Mattei and Department of Economics and Finance, Catholic University of Sacred Heart, Milan); Massimiliano Rizzati (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia); Davide Bazzana (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia); Sergio Vergalli (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia) |
| Abstract: | This paper evaluates the macroeconomic and financial risks of the energy transition using an extended MATRIX model, a multi-agent, multi-sector integrated assessment framework for the Euro Area. The model features endogenous, directed technical change in the energy sector and a decentralized electricity market based on merit-order rule. Energy firms switch technologies based on relative profitability, capturing feedback loops between R&D, productivity gains, and competitiveness, which may lead to either brown lock-in or green energy transition. We compare conventional policies – brown tax (BT), unconditional green subsidy (GS), and conditional green subsidy (CGS) linked to R&D – with alternative policy mixes, such as coordinated monetary policy, green finance and green industrial policy. Results show that while conventional policies modestly increase transition likelihood, they entail GDP losses due to production and financial constraints. These can be mitigated with green industrial policy and green finance, which alleviate sectoral bottlenecks and foster a more effective transition. |
| Keywords: | Energy Sector, Agent-Based Models, Macroeconomic Dynamics, Directed Technological Change, Green Transition |
| JEL: | C63 E61 O33 Q43 Q55 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2024.27 |
| By: | Elizabeth Webster (Melbourne Institute: Applied Economic & Social Research, University of Melbourne); Alfons Palangkaraya (Centre for Transformative Innovation, Swinburne University of Technology); Paul H. Jensen (Faculty of Business and Economics, University of Melbourne); Russell Thomson (Centre for Transformative Innovation, Swinburne University of Technology) |
| Abstract: | We quantify how competitive funding programs that promote university-industry (U-I) research partnerships affect firm performance. To do this, we estimate staggered difference-indifference models using data from more than 5, 000 funded and unfunded Australian Research Council Linkage Project grant applications from 2002 until 2015. Our results show grant funding led to a 12 percent increase in employment over a five-year period with both employment and turnover trending upward relative to untreated firms over our five-year posttreatment window. |
| Keywords: | university, industry, research, collaboration |
| JEL: | O31 O32 O34 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iae:iaewps:wp2024n14 |
| By: | Gerresheim, Nils; Krahé, Max |
| Abstract: | The US semiconductor company Intel is planning to build two ultra-modern chip factories near Magdeburg. This project was promised the largest industrial policy subsidy that the German government has ever approved for an individual company: almost 10 billion euros. Is this money well-spent? To answer this question, we developed guidelines for the evaluation of government investments (BESTInvest). This paper sets out these guidelines and applies them to Intel-Magdeburg. Our conclusion is that the subsidy is controversial. Although learning curve-, cluster- and innovation effects can create path dependencies in semiconductor production, there are uncertainties surrounding the size of these effects, and the impact of a single subsidy is likely to be moderate. Accordingly, it remains unclear whether the support would suffice to make Intel-Magdeburg competitive in the long term. In addition, relatively few jobs would be created, in a local labour market where there is currently a shortage of skilled workers. This calls into question the effects of the project on the regional and wider economy. In addition to economic factors, there are also relevant climate and sovereignty factors, which are positive but moderate. The over-all assessment therefore depends on the respective weights given to individual factors, as well as, if necessary, on the willingness to promote cluster formation and the competitiveness of the semiconductor industry in Germany and Magdeburg with further measures. |
| Keywords: | intel-magdeburg, semiconductors, industrialpolicy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dzimps:307093 |
| By: | Jaedo Choi; Younghun Shim |
| Abstract: | We study how one-time subsidies for adoption of modern technology drove Korea's industrialization in the 1970s. Leveraging unique historical data, we provide causal evidence consistent with coordination failures: adoption improved adopters' performance and generated local spillovers, with firms more likely to adopt when other local firms had already adopted. We incorporate these findings into a quantitative model, where the potential for multiple steady states depends on parameters mapped to the causal estimates. In our calibrated model, Korea's one-time subsidies shifted its economy to a more industrialized steady state, increasing heavy manufacturing's GDP share by 8.6% and export intensity by 16.2%. Larger market access amplifies the effects of these subsidies, as the gains from adoption increase with firms' scale. |
| Keywords: | Big push; Industrialization; Coordination failure; Complementarity; Local spillover; Market access |
| Date: | 2024–12–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/259 |
| By: | Michel Beine; Giovanni Peri; Morgan Raux |
| Abstract: | In this paper, we estimate the effect of increasing the share of foreign-born Master graduates on the creation of innovative start-ups in the US. We combine information on international students graduating from Master's programs by university cohort with data on start-ups created in the US between 1999 and 2020 by graduates of those cohorts. To establish a causal link, we use idiosyncratic variation in out-of-state relative to in-state fees charged by universities across Master's cohorts, resulting in differential foreign students' enrollment. We also use changes in the share of foreign students predicted by a shift-share instrument, based on university-level past networks, as an additional identification strategy. For each additional ten percentage points of foreign students graduating in a Master's cohort, we find 0.4 additional start-ups in that cohort. Then, using a name-based attribution of the origin of creators of start-ups, we find that between 30 and 45% of the total start-up creation effect is attributable to a positive spillover of foreign-born on start-up founders of US origin. |
| JEL: | F22 M13 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33314 |
| By: | Marie Obidzinski (Université Paris Panthéon Assas, CRED, Paris, France); Yves Oytana (Université de Franche-Comté, CRESE, Besançon, France) |
| Abstract: | We characterize the socially optimal liability sharing rule in a situation where a manufacturer develops an artificial intelligence (AI) system that is then used by a human operator (or user). First, the manufacturer invests to increase the autonomy of the AI (i.e., the set of situations that the AI can handle without human intervention) and sets a selling price. The user then decides whether or not to buy the AI. Since the autonomy of the AI remains limited, the human operator must sometimes intervene even when the AI is in use. Our main assumptions relate to behavioral inattention. Behavioral inattention reduces the effectiveness of user intervention and increases the expected harm. Only some users are aware of their own attentional limits. Under the assumption that AI outperforms users, we show that policymakers may face a tradeoff when choosing how to allocate liability between the manufacturer and the user. Indeed, the manufacturer may underinvest in the autonomy of the AI. If this is the case, the policymaker can incentivize the latter to invest more by increasing his share of liability. On the other hand, increasing the liability of the manufacturer may come at the cost of slowing down the diffusion of AI technology. |
| Keywords: | K4 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:afd:wpaper:2406 |