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on Innovation |
| By: | D'Allesandro, Francesco; Santarelli, Enrico; Vivarelli, Marco |
| Abstract: | In this paper we integrate the insights of the Knowledge Spillover Theory of Entrepreneurship and Innovation (KSTE+I) with Schumpeter's idea that innovative entrepreneurs creatively apply available local knowledge, possibly mediated by Marshallian, Jacobian and Porter spillovers. In more detail, in this study we assess the degree of pervasiveness and the level of opportunities brought about by AI technologies by testing the possible correlation between the regional AI knowledge stock and the number of new innovative ventures (that is startups patenting in any technological field in the year of their foundation). Empirically, by focusing on 287 Nuts-2 European regions, we test whether the local AI stock of knowledge exerts an enabling role in fostering innovative entry within AI-related local industries (AI technologies as focused enablers) and within non AI-related local industries, as well (AI technologies as generalised enablers). Results from Negative Binomial fixed-effect and Poisson fixed-effect regressions (controlled for a variety of concurrent drivers of entrepreneurship) reveal that the local AI knowledge stock does promote the spread of innovative startups, so supporting both the KSTE+I approach and the enabling role of AI technologies; however, this relationship is confirmed only with regard to the sole high-tech/AI-related industries. |
| JEL: | O33 L26 |
| Date: | 2024–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024016 |
| By: | Damioli, Giacomo; Van Roy, Vincent; Vértesy, Dániel; Vivarelli, Marco |
| Abstract: | Artificial intelligence (AI) is emerging as a transformative innovation with the potential to drive significant economic growth and productivity gains. This study examines whether AI is initiating a technological revolution, signifying a new technological paradigm, using the perspective of evolutionary neo-Schumpeterian economics. Using a global dataset combining information on AI patenting activities and their applicants between 2000 and 2016, our analysis reveals that AI patenting has accelerated and substantially evolved in terms of its pervasiveness, with AI innovators shifting from the ICT core industries to non-ICT service industries over the investigated period. Moreover, there has been a decrease in concentration of innovation activities and a reshuffling in the innovative hierarchies, with innovative entries and young and smaller applicants driving this change. Finally, we find that AI technologies play a role in generating and accelerating further innovations (so revealing to be “enabling technologies”, a distinctive feature of GPTs). All these features have characterised the emergence of major technological paradigms in the past and suggest that AI technologies may indeed generate a paradigmatic shift. |
| JEL: | O31 O33 |
| Date: | 2024–08–13 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024018 |
| By: | Lema, Rasmus (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Rabellotti, Roberta |
| Abstract: | The green transformation has profound implications for the global economy and, hence, for the prospects for latecomer development. In this paper we review the insights derived from case studies of developing countries’ green technology experience. We conduct a systematic literature review covering seven key technologies. This allows us to examine whether the green economy offers new opportunities for latecomer development and their ability to seize these opportunities. To understand how developing countries’ capacities to exploit these opportunities differ across cases, we focus on sectoral systems and, particularly, on (a) preconditions allowing exploitation of these opportunities, and (b) strategic responses of public and private actors in this respect. We identify four different scenarios: (1) effective opportunity exploitation; (2) missed opportunities; (3) active approach; and (4) distant opportunities. We conclude by assessing the options for policy to support developing countries in their efforts to encourage green development strategies, focusing on both the provision and augmentation of opportunities and construction of the requisite sectoral production and innovation systems. |
| JEL: | O14 O33 O38 Q55 Q56 |
| Date: | 2023–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2023012 |
| By: | Pezzoni, M.; Veugelers, Reinhilde; Visentin, Fabiana (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn) |
| Abstract: | This paper investigates how science affects the geographical evolution of technological trajectories. We define a technological trajectory as a series of inventions re-using the same technology, and we follow the geographical development of trajectories by geo-localizing inventors. Following 10, 782 trajectories, we find that technologies with a high scientific content travel longer distances and are more likely to generate new inventors’ clusters than technologies with low scientific content, especially in their growth and maturity phases. |
| JEL: | O30 O33 |
| Date: | 2023–10–16 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2023036 |
| By: | Cowan, Robin (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Jonard, Nicolas; Samson, Ruth |
| Abstract: | Many scholars observed changes in the intellectual property rights systems in the 1980s and 1990s throughout the world. Patent systems in particular seemed to be expanding their scope, and the legal system seemed to be changing its attitudes towards intellectual property rights. At the same time, and probably in response, firms started to change their patenting behaviour by treating patents as tools of competition and bargaining rather than as a means to protect the fruits of intellectual labour. In this paper we present a simulation model that can be used to discuss that shift. Firms search for new technologies and patent what they find. But different firms have different strategies: one is to protect an invention; a second is to protect a technology space; the third is to attack others' technology spaces. In the literature the latter two have been described as different types of blocking. We examine different IPR regimes, characterized by who is able to infringe whose patent rights . This is an extreme case of who is able to extract rents from a given configuration of patent rights. |
| JEL: | O31 O34 C60 L50 |
| Date: | 2024–04–24 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024008 |
| By: | Menéndez de Medina, Maria (RS: GSBE MGSoG, Maastricht Graduate School of Governance); Nomaler, Önder (RS: UNU-MERIT); Verspagen, Bart (RS: GSBE MGSoG, RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn, RS: UNU-MERIT Theme 1) |
| Abstract: | This document provides a methodological procedure to identify the Fourth Industrial Revolution technologies using patent data. Attempts to distinguish these technologies have frequently relied on the European Patent Office (2017, 2020a) methods or have mainly leaned on technical codes and keyword classifications. Frequently, these studies have the limitation of collecting technologies arbitrarily and without a deep justification. Only the latest report from the European Patent Office (EPO, 2020b) attempts to detail the procedure to recognize the Fourth Industrial Revolution technologies. However, it does not offer the possibility of being replicated by scholars outside the organization. This article delivers a procedure to collect Fourth Industrial Revolution patents relying on key concepts from a detailed literature review - focused on whether they make up a new revolution and its conceptualization over time- and the EPO (2020b) report identification method. Subsequently, the evol ution of these technologies and the principal trends are exposed. Finally, the search queries and the list of identified patents are available (in the Appendix) to replicate or adapt for other academic purposes. |
| JEL: | O14 O30 O31 O33 |
| Date: | 2023–06–02 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2023023 |
| By: | Dirk Czarnitzki; Robin Lepers; Maikel Pellens |
| Abstract: | The circular economy represents a systematic shift in production and consumption, aimed at extending the life cycle of products and materials while minimizing resource use and waste. Achieving the goals of the circular economy presents firms with the challenge of innovating new products, technologies, and business models, however. This paper explores the role of artificial intelligence as an enabler of circular economy innovations. Through an empirical analysis of the German Community Innovation Survey, we show that firms investing in artificial intelligence are more likely to introduce circular economy innovations than those that do not. Additionally, the results indicate that the use of artificial intelligence enhances firms’ abilities to lower production externalities (for instance, reducing pollution) through these innovations. The findings of this paper underscore artificial intelligence’s potential to accelerate the transition to the circular economy. |
| Keywords: | Circular economy, Innovation, Artificial intelligence |
| Date: | 2025–01–23 |
| URL: | https://d.repec.org/n?u=RePEc:ete:ecoomp:758339 |
| By: | Andrew B. BERNARD; Andreas MOXNES; SAITO Yukiko |
| Abstract: | This paper examines the importance of economic integration on the production of innovation. During the late 1980s and-90s, Shikoku and Honshu, Japan’s largest and fourth largest islands, were connected for the first time by three different bridges. This greatly reduced travel times compared to previous modes of transport such as ferry. We examine the impact of bridge connections on team formation and the production of knowledge, as measured by patent data. Using the geolocation of inventors before the opening of the bridges, we find that inventors located close to the bridges increased knowledge production more than inventors located farther away from the bridges. The treated inventors matched to more productive inventors at greater distances. Inventors on Shikoku were more likely to change their innovation teams and add co-inventors from Honshu while dismissing collaborators from Shikoku. The results are robust to instrumenting for the location of the bridges using the minimum bridge span distances between Shikoku and Honshu. We present a parsimonious economic framework that is largely consistent with the empirical evidence. Our results suggest that economic integration can have sizable effects on idea creation and innovation. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25009 |
| By: | Vallejo, Bertha |
| Abstract: | Despite the interest in African industrialization, sub-Saharan Africa’s path towards science, technology and innovation (STI)-led development has been slow. The underdeveloped capacity for dynamic interactions among the actors in the innovation system (i.e., firms, knowledge centers, governments, and civil society) has contributed to this slow development. Innovation capacity results from technological efforts by firms over time, but these efforts should align with the firms’ characteristics and environment. The large pool of small and medium firms in African manufacturing should be considered when designing STI policies. The context within which these policies are implemented is critical for the evolution of the innovation system and the dynamism of its actors. |
| JEL: | O14 O39 O55 |
| Date: | 2024–08–13 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024019 |
| By: | Gabor Katay (European Commission, Directorate†General for Economic and Financial Affairs); Palma Filep-Mosberger (Magyar Nemzeti Bank (Central Bank of Hungary)); Francesco Tucci (Sapienza Università di Roma) |
| Abstract: | The paper evaluates the impact of the European Commission’s Seventh Framework Programme (FP7) grants on profit†oriented firms’ post†treatment performance. Using a quasi†experimental design and a dataset covering applicants from 46 countries, we find that FP7 grants increase firms’ sales and labour productivity by about 18%. However, there is no significant impact on employment levels, pointing to potential growth barriers that prevent firms from scaling production despite improved productivity. The effectiveness of these grants varies significantly based on factors such as financial constraints, project risk profiles, market structure, and the innovation environment. Smaller, less productive firms with tighter financial constraints in technologyintensive sectors operating in concentrated markets and favourable innovation environments, particularly those undertaking longer and riskier projects, tend to benefit more. |
| Keywords: | EU funds for research and innovation; firm productivity; regression†discontinuity design. |
| JEL: | C31 G28 H57 O31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:mnb:wpaper:2025/1 |
| 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: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11649 |
| By: | Lema, Rasmus (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Bonaglia, Davide (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Hansen, Ulrich Elmer |
| Abstract: | Wind power has ascended from being a niche technology developed by enthusiastic idealists, to being a pivotal element in global energy transitions led by multinational corporations. It has thus emerged rapidly as a leading renewable energy source globally, driven by imperatives to mitigate greenhouse gas emissions and achieve energy security, on the one hand, and rapidly evolving technological trajectories and declining turbine costs, on the other. This paper examines the nature and characteristics of wind energy innovation by tracing the historical evolution of wind energy innovation, examining key milestones from 19th-century turbine development to contemporary advancements. Drawing on patent data, it reveals critical innovation trajectories, including the consolidation of modern turbine design, as being critical to the emergence of wind energy as a competitive technology. Moreover, the paper shows how rapid innovation has been rooted in the emergence of global production and innovation networks among leading wind turbine manufacturers. Yet, despite wind energy's substantial contributions to decarbonization efforts, persisting innovation challenges demands continued advancement. To respond to this challenge, the sector is increasingly focused on ‘post turbine’ wind innovation in which advanced digital technologies take centre stage. |
| JEL: | O13 O31 O34 O38 |
| Date: | 2024–08–30 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024020 |
| By: | Corrocher, Nicoletta; Moschella, Daniele; Staccioli, J.; Vivarelli, Marco |
| Abstract: | This paper deals with the complex relationship between innovation and the labor market, analyzing the impact of new technological advancements on overall employment, skills and wages. After a critical review of the extant literature and the available empirical studies, novel evidence is presented on the distribution of labor-saving automation (namely robotics and AI), based on natural language processing of US patents. This mapping shows that both upstream high-tech providers and downstream users of new technologies—such as Boeing and Amazon—lead the underlying innovative effort. |
| JEL: | O33 |
| Date: | 2023–05–31 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2023021 |
| By: | Kaushik, Rituparna; Paul, Sourabh Bikas; Sartorello Spinola, Danilo (RS: UNU-MERIT) |
| Abstract: | This article studies the innovation effort in India through the education of corporate board members obtained from prestigious STEM higher education institutes known as the Indian Institute of Technology (IITs). Our primary aim is to enquire whether firms with director/s having an IIT-Bachelors’ degree in their corporate boards positively impact the firm’s innovation effort. To answer this question, we build a novel dataset merging two micro-level databases: CMIE-Prowess (firm innovation) and NSE-Infobase (board of directors' characteristics). Based on the sample of 6151 Indian firms for 2006-2015, we find that overall, having board members with IIT-Bachelor’s qualifications do enhance innovation efforts to some extent. However, the positive effect on innovation effort becomes more robust when the director has a research degree over their IIT- Bachelors’ degree. The paper highlights that when it comes to innovation efforts, the dominant narrative of relying solely on IIT-STE M elite undergraduate education (IIT-Bachelor’s) is insufficient and should also focus on and prioritize research education. |
| JEL: | O31 G30 I23 |
| Date: | 2023–04–17 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2023014 |
| By: | Boutros, Pierre; Pezzoni, Michele; Shibayama, Sotaro; Visentin, Fabiana (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn) |
| Abstract: | In contexts involving teachers and students, knowledge transfer is commonly assumed from the former to the latter. However, what if teachers learn from students? This paper investigates the bidirectional knowledge transfer between PhD students and their supervisors. We consider 51, 826 PhD students who graduated in the STEM fields in France between 2010 and 2018. Focusing on Artificial Intelligence (AI) knowledge transfer, we find evidence that a student supervised by a supervisor with AI knowledge is 12 percentage points more likely to write a thesis in AI than a student with a supervisor with no AI knowledge, denoting an AI knowledge transfer from supervisors to students. We also find that a supervisor with no AI knowledge, if exposed to a student with AI knowledge, is 19 percentage points more likely to publish an article with AI content in the three years after the student’s graduation, denoting an AI knowledge transfer from students to supervisors. Those results confirm the bidirectionality of the learning process. |
| JEL: | I20 J24 O30 |
| Date: | 2024–09–16 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024025 |
| By: | Ziesemer, Thomas (Mt Economic Research Inst on Innov/Techn, RS: GSBE MORSE) |
| Abstract: | The empirical investigation of properties of an endogenous growth model by Huang, Lai, and Peretto (2023) in this paper confirms important assumptions and results of the model for OECD countries. Labour-augmenting technical change is enhanced through private and public R&D stocks in FMOLS and DOLS mean-group estimations, and pooled mean-group (PMG) estimation, also when adding the number of enterprises. The CES spillover functions in the growth models functions for R&D stock dynamics are supported through nonlinear estimation under the assumptions of identical or different spillover parameters for private and public R&D. We suggest strong public-to-private spillovers and weak private-to-public spillovers as well as high elasticities of substitution for private-public R&D stocks for private R&D processes and low CES for public R&D processes. We confirm the existence of private-public researcher interaction effects in the private R&D knowledge growth function and provide tentative evi dence for the linear relation between public researchers and firm-level R&D and the hump-shaped relation between public and private researchers (both as % labour force). A vector-autoregressive (VAR) panel model in growth rates produces results, which are in accordance with the impact of public R&D cuts on the steady state and the transitional dynamics of the HLP model. |
| JEL: | O41 O38 O47 |
| Date: | 2024–02–19 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024002 |
| By: | GNAMUS Ales (European Commission - JRC); CHIONCEL Mariana |
| Abstract: | The objective of this report is to investigate the potential for harnessing key features of Transformative Innovation (TI) to improve the design and the implementation of Climate Change Adaptation (CCA) strategies in the specific territory - region Nord-Vest and the city of Cluj-Napoca in Romania.The report belongs to a series of case studies which all draw on the conceptual framework on transformative innovation for better CCA previously defined in the JRC report, that also articulated the methodology for territorial case studies. The series of case studies comprises various biogeographical regions with a variety of climate risks, various institutional contexts, different ranges of population sizes, and demonstrating a diversity of approaches to transformative innovation and CCA, based on empirical analyses. A full list of the case studies is provided in Annex 3. The framework of the analysis against conceptual framework of transformative innovation for better CCA takes the form of an analytical grid, structured into seven dimensions, each of them representing one of the key features of the TI approach where the dimensions are understood as essential conditions for the design and implementation of the transformative CCA strategies. These TI dimensions are as follows: - Directionality; - Articulating instrument portfolios and defining synergies between funding sources; - Ensuring cross-domain synergies; - Increasing breadth and depth of stakeholder involvement; - Setting up effective multi-level governance models; - Making room for experimentation; and - Securing high levels of policy intelligence, learning and strategic capacity. Each section sets out the main questions to be addressed in the territory in relation to its respective transformative innovation feature. This Report provides the findings for the city of Cluj-Napoca and the region of Nord-Vest in Romania, taking into account multilevel governance also at national level, as at November 2023 and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. The revision of the policy documents, of measures introduced and the interviews with the policy makers signposted that despite numerous CCA measures have been put in place in Cluj-Napoca and the Nord-Vest region, lots of actions linked to the established TI for CCA conceptual framework will still need to be put in place in order to assure climate resilience of the territory. While this study proposes numerous specific practical ways forward within each TI dimension, an overall recommendation is that a systematic, quantitative climate risk and adaptation assessments will be needed at various territorial levels in order to make the CCA more transformative. For that aim, the JRC has developed a Self-Assessment Framework that will be thoroughly explained in the upcoming policy brief. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138586 |
| By: | Lema, Rasmus (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Perez, Carlota |
| Abstract: | Green is now emerging, albeit not fast enough, as a new direction shaping innovation, investment and lifestyles. Indeed, the requirements of the green transformation give rise to the emergence of entirely new technologies, and it changes the parameters of competitiveness across industry, agriculture and services. These changes have profound implications for latecomer development, both positive and negative. The identification of strategies for seizing opportunities and overcoming challenges in the green economy is a central concern for policy makers and business managers alike. We argue that the theoretical framework of techno-economic paradigms shifts is particularly useful for understanding the dynamics of large-scale transformation and its associated institutional change. To fully grasp the nature of the green transformation, it is necessary to take a step back and locate it in relation to the history of technological revolutions and their regular patterns of diffusion. In this respect, we argue that the ongoing debate about the green transformation and latecomer development must consider two key conditions. First, it must recognize that the green transformation is primarily a direction-driven phenomenon, shaped by aspirational, political, and institutional changes, rather than a technology-driven phenomenon per se. Second, it must acknowledge the potential of information and communication technology (ICT) not only to accelerate and deepen the green transition itself but also to foster latecomer development within it. |
| JEL: | O44 Q55 O38 O33 |
| Date: | 2024–02–05 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024001 |
| By: | Michael R. Douglas; Sergiy Verstyuk |
| Abstract: | We study long-run progress in artificial intelligence in a quantitative way. Many measures, including traditional ones such as patents and publications, machine learning benchmarks, and a new Aggregate State of the Art in ML (or ASOTA) Index we have constructed from these, show exponential growth at roughly constant rates over long periods. Production of patents and publications doubles every ten years, by contrast with the growth of computing resources driven by Moore's Law, roughly a doubling every two years. We argue that the input of AI researchers is also crucial and its contribution can be objectively estimated. Consequently, we give a simple argument that explains the 5:1 relation between these two rates. We then discuss the application of this argument to different output measures and compare our analyses with predictions based on machine learning scaling laws proposed in existing literature. Our quantitative framework facilitates understanding, predicting, and modulating the development of these important technologies. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.17894 |
| By: | Fusillo, Fabrizio; Nenci, Silvia; Pietrobelli, Carlo (RS: UNU-MERIT); Quatraro, F. |
| Abstract: | Although evolutionary economics has extensively analyzed the evolution of industries in relation to innovation and technology lifecycles, the interplay between industry lifecycles and evolutionary patterns of knowledge networks has not been fully explored yet. This work aims to bridge this gap by analyzing the co-evolutionary patterns of knowledge and trade flows in the mining industry, using social network tools in combination with the Schumpeterian tradition of analysis. The study focuses on three Latin American countries: Brazil, Chile, and Peru, where the mining sector plays a significant role in the economy, particularly in the context of energy and digital transitions. Our findings suggest that the innovation network and the global value chain-trade network display divergent co-evolutionary patterns: while the former tends to be stable and concentrated, the latter shows increasing fragmentation and turbulence. The analysis also shows remarkable evolutionary evidence at the country level. |
| JEL: | L10 L72 O30 F14 N56 |
| Date: | 2023–10–27 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2023037 |
| By: | Soete, Luc (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Stierna, Johan |
| Abstract: | This paper offers a Schumpeterian perspective on the policy responses to the current polycrisis environment, the European Union (EU) finds itself confronted with. Joseph Schumpeter developed most of his insights into long-term economic and political development while being confronted himself with major transformative, societal changes: political, economic and technological ones. From this perspective, the current turbulent times of rising geo-political tensions, unsustainable development resulting in out-of-control climate change and declining biodiversity, and widespread application of Artificial Intelligence (AI), have a lot in common with the period in which Schumpeter developed his thoughts and hence might benefit from a closer look at those Schumpeterian insights. Times of turbulence require transformative policies integrating various policy areas. However, while ‘transformation’ will often be perceived as essential at a global level: “transform or be transformed”, it w ill also be understood by citizens living in concrete places as a threat or a sudden unexpected confrontation with new uncertainties. In this context, ‘places’ need to become increasingly recognized as important for industrial policy, just as they are for climate, energy, agriculture, and innovation policy. The analysis presented here highlights following Schumpeter’s insights, the need for an open industrial transformation approach less based on old, national industrial policy notions but adopting a new vision on the role of place-based industrial innovation in strengthening Europe’s long-term resilience to political, economic and technological change. |
| JEL: | F63 L52 N74 O25 P19 Q48 |
| Date: | 2023–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2023022 |
| By: | Ziesemer, Thomas (RS: GSBE MORSE, Macro, International & Labour Economics, RS: UNU-MERIT) |
| Abstract: | In this paper we evaluate vector-error-correction model (VECM) estimations and simulations of a companion paper to show (i) internal rates of return to public R&D shocks of 17 OECD countries, (ii) the related payback periods, gain/GDP ratios, and discounted (at 4%) net present values, (iii) the underlying effects of public R&D shocks on domestic and foreign private and public R&D stocks. 14 countries show high internal rates of return from positive public R&D shocks if projects are stopped when gains get negative. Three countries show crowding out effects and require (initial) reductions of public R&D before showing positive results through crowding in of private R&D. |
| JEL: | H43 H54 O32 O47 |
| Date: | 2023–07–19 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2023026 |
| By: | Mita, Kaori; Iizuka, Michiko |
| Abstract: | The energy transition is said to create emerging “green windows of opportunity (GWO)” in developing countries. On the other hand, many latecomer countries remain importers and users of renewables and clean energy technologies. Renewable energy deployment projects are considered complex systems and products (CoPS) that are capital-intensive, client-driven, and complex economic activities. Previous research on catching up in CoPS has concentrated on large engineering projects, focusing on technological aspects and the role of government interventions at different developmental stages, especially the creation of domestic markets. As many latecomer countries are users of emerging renewable energy technologies, the creation of domestic markets through government interventions is considered essential for successful transitions and capability upgrading to take place. However, capability upgrading and the transition to renewable energy can also occur without the initial presence of a domestic market and strong governmental support, as demonstrated by the case of ACWA Power, a project developer in a latecomer country, in Saudi Arabia. This case shows that upgrading of organizational capabilities took place as the firm engaged in projects in the external market to deploy renewable energy, taking advantage of the GWO. The case suggests that the CoPS can be a viable pathway for catching up in the emerging renewable energy sector, enabling firms to transition and build their organizational capabilities from project-based learning when GWOs are effectively leveraged. |
| JEL: | O31 O32 O33 |
| Date: | 2024–07–12 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024015 |