nep-ino New Economics Papers
on Innovation
Issue of 2025–04–21
six papers chosen by
Uwe Cantner, University of Jena


  1. Patently peculiar: Patents and innovation in the United Kingdom of the Netherlands By Wagenaar, Homer; Colvin, Christopher L.
  2. Modularizing artefact knowledge promotes technological impact By Siddharth, L.
  3. Smart Specialisation Strategies and Mission-oriented approach: Bridging Theory and Practice By Molica Francesco; Cappellano Francesco; Makkonen Teemu; Hassink Robert
  4. The future of the EU's competitive position: The role of Central Eastern European countries By Matteo Ferrazzi; Francesca Guadagno; Doris Hanzl-Weiss; Jochen Schanz; Tomáš Slačík; Robert Stehrer
  5. The Brain’s Innovation Engine: Locus Coeruleus’ Function in Creative Thinking and Foresight By Roibu, Tib
  6. The Interplay of Digital Innovation and Cybersecurity from a Consumer and Organizational Perspective By Heierhoff, Sebastian

  1. By: Wagenaar, Homer; Colvin, Christopher L.
    Abstract: We examine the accessibility and functioning of the patent system in the United Kingdom of the Netherlands, a state that existed between 1815 and 1830. The country's patent law combined an examination process with significant government discretion over a patent's duration and cost. Using our hand-collected database of all patent applications-granted, withdrawn, and rejected-we analyse the determinants of success, and the conditions imposed on applicants by the system's administrators. We find that discretion optimised patent terms rather than causing bias. The system was accessible despite high fees. Our analysis suggests that social class, skills, and market orientation drove the demand for patents. Our research contributes to understanding the history of European patent institutions by adding high-quality patent data for the second economy in the world to experience an Industrial Revolution.
    Keywords: patents, innovation, industrialisation, discretion, Low Countries
    JEL: L51 N44 N74 O31 O34
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:qucehw:315206
  2. By: Siddharth, L.
    Abstract: Technological evolution depends not only on the invention of new artefacts but also on how their knowledge is structured, represented, and propagated. In this study, we examine how the modularity of artefact knowledge influences technological impact. We utilize a dataset of 33, 803 patents from the United States Patent & Trademark Office (USPTO) and their knowledge graphs constructed using the facts extracted from patent descriptions. Using a regression analysis controlling for several structural properties of the knowledge graphs, we establish a significant positive relationship between modularity of the graph structures—measured using the Louvain method and the technological impact, as quantified by normalized forward citations. To further examine this relationship, we develop a predictive framework integrating Graph Neural Networks (GNNs) and regression models to estimate normalized citation scores from patent knowledge graphs. We then apply this framework to conduct a counterfactual analysis, wherein, we tune the modularity of knowledge graphs and assess the enhancement in expected citations. The analysis reveals that patents with less or no citations could benefit the most from modularization of their knowledge, as a citation gain could help initiate their knowledge propagation. We also discuss with a few examples as to how re-representation of artefact knowledge is necessary in addition to re-designing artefacts for modularity.
    Date: 2025–03–24
    URL: https://d.repec.org/n?u=RePEc:osf:osfxxx:fd36m_v1
  3. By: Molica Francesco (European Commission - JRC); Cappellano Francesco; Makkonen Teemu; Hassink Robert
    Abstract: This paper explores the extent to which established policy frameworks, particularly Smart Specialisation Strategies (S3s), can incorporate a mission-oriented approach (MOA). We build an analytical framework based on MOA key features and apply it to three case studies of S3s with a transformative ambition (Catalonia, Northern Netherlands, Brussels). Our findings reveal that shifting regional innovation strategies towards a mission-led or challenge-oriented dimensions entails trade-offs between strategic directionality and the bottom-up flexibility and face challenges in engaging societal actors in the governance, as well as in aligning policies and diversifying policy instruments beyond cohesion policy ones.
    Date: 2025–03
    URL: https://d.repec.org/n?u=RePEc:ipt:trater:202501
  4. By: Matteo Ferrazzi; Francesca Guadagno (The Vienna Institute for International Economic Studies, wiiw); Doris Hanzl-Weiss (The Vienna Institute for International Economic Studies, wiiw); Jochen Schanz; Tomáš Slačík; Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: The Draghi Report recommended actions to secure the long-term EU competitive position but did not discuss the challenges related to specific countries or regional groups, including those of Central and Eastern European (CEE) countries. While CEE economies remain focused on manufacturing, especially the automotive industry, they are gradually shifting from being the EU's manufacturing hub to developing higher value-added activities. However, income convergence has slowed, suggesting the need to rethink their growth model. Our research highlights growth opportunities and suggests ways to reduce barriers to innovation. Policy should focus on three areas strengthening human capital, fostering innovation, and addressing energy intensity and its relatively high costs. Key actions include increasing labour market participation, ensuring access to start-up finance and risk capital, and reducing the region’s reliance on brown energy, particularly through grid and generation investment and the development of greener businesses.
    Keywords: Competitiveness, trade, innovation, Central Eastern Europe
    JEL: F14 F15 O11 O47 O52
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:wii:pnotes:pn:93
  5. By: Roibu, Tib
    Abstract: This paper explores the role of the locus coeruleus (LC) in driving innovation and adaptive thinking through its uncertainty-processing mechanisms. The research examines how this small brainstem nucleus orchestrates cognitive flexibility and creative problem-solving through targeted norepinephrine release. By understanding these neural mechanisms, a method is proposed—the Blue Spot Method—that systematically leverages LC-mediated cognitive processes through integrated cognitive modules, that work in harmony with the brain’s natural uncertainty-processing mechanisms.
    Date: 2025–03–25
    URL: https://d.repec.org/n?u=RePEc:osf:osfxxx:e9xfc_v1
  6. By: Heierhoff, Sebastian
    Abstract: The rapidly evolving technological landscape does, in the form of digital innovations, create opportunities for organizations and consumers alike. At the same time, it does, however, confront both parties with increasing cybersecurity challenges. This dissertation deals with the conflicting demands of maintaining competitive advantage and leveraging the benefits of digital innovation while ensuring cybersecurity. It explores the resulting tensions and potential trade-offs from both a consumer and organizational perspective, seeking to provide theoretical and practical contributions on how the interplay between digital innovation and cybersecurity can be optimized and how the two domains can be balanced effectively. Thereby, the dissertation is guided by three overarching research questions: First, how do consumers' attitudes towards innovation and cybersecurity influence their acceptance of digital innovations? Second, how do organizations perceive and navigate the trade-offs between digital innovation and cybersecurity? Third, what are the implications of organizational design in general and organizational ambidexterity in specific for the interplay of digital innovation and cybersecurity capabilities? These research questions are dealt with in four empirical studies. The first study focuses on the consumer perspective and the trade-offs they make in their technology acceptance decisions. Therefore, the Technology Acceptance Model is extended by four constructs - Personal innovation affinity, personal risk appetite, perceived innovativeness, and perceived cybersecurity risk. Participants of an online survey are presented with three fictitious products from the mobility sector, where digital innovations such as connected vehicles and smart mobility solutions are emerging rapidly. The findings from the first study underline that consumers sometimes neglect cybersecurity when innovative product characteristics promise substantial benefits. For certain product types, consumers do, however, seem to have increased cybersecurity concerns that organizations need to consider. The study suggests that consumer education and transparency about a product’s cybersecurity maturity are essential for informed technology acceptance decisions. Studies two, three, and four deal with the organizational perspective of the interplay between digital innovation and cybersecurity. The second study focuses on the automotive industry, exploring how organizations perceive the conflicting demands and balance them through organizational ambidexterity. The study follows a qualitative research approach drawing on nine experts questioned in semi-structured interviews. Its findings confirm the perception of a trade-off between the two domains in the automotive industry, with factors like the importance of time-to-market for digital innovations leading organizations to deprioritize and postpone cybersecurity aspects. The study suggests that strategic and operational elements of organizational ambidexterity, including corporate culture, management commitment, communication, and early integration of cybersecurity, can help minimize trade-offs and even turn cybersecurity into a competitive advantage. The third study focuses on the German logistics industry in a comparable research approach using semi-structured interviews with 14 experts for digital innovation and cybersecurity. Their analysis suggests that there are different types of tensions between digital innovation and cybersecurity capabilities negatively influencing innovation efforts in three ways: by slowing down (temporally), requiring more resources (economically), or restricting innovative freedom (functionally). Furthermore, triggers like rapid technological changes and increased market competition as well as resolving factors like flexible governance structures and an early integration of cybersecurity into digital innovation efforts are identified. Awareness of these factors helps organizations achieve a digital innovation-cybersecurity equilibrium. The fourth and final study included in this dissertation investigates how organizations can achieve ambidexterity and integrate the two domains in the context of digital innovation units. The cross-industry interview study, analyzed following the Grounded Theory methodology, leverages Galbraith’s star model as a frame of reference. Embedded within this frame, different types of innovation units and three organizational design patterns that impact the consideration of cybersecurity within these types of units, are identified. The findings underline that, depending on strategic, structural, and processual aspects, the different types of digital innovation units are more or less likely to ill- or over-consider cybersecurity. Besides the study's theoretical contribution to organizational design literature, this framework has practical implications for the setup of innovation units in practice. Collectively, the four studies contribute to a deeper understanding of the interplay between digital innovation and cybersecurity. Theoretically, while contributing to technology acceptance, organizational design, and ambidexterity theory in general, this dissertation advances the literature on digital innovation management and cybersecurity in specific by advocating for a more integrated approach that considers the conflicting demands of the two domains. Practically, it provides insights for consumers and organizations trying to navigate the resulting tensions, for example, by promoting consumer awareness or by creating an organizational culture that equally promotes both digital innovation and cybersecurity. The frameworks developed in the four studies provide a foundation for future studies on the digital innovation-security nexus, for example in further industries, and offer practical guidance, for example, concerning product marketing or digital innovations strategy. In conclusion, this dissertation highlights the importance of considering digital innovation and cybersecurity as complementary instead of opposing forces of an organization’s digital transformation. Organizations should not restrict cybersecurity to being a technical issue but see it as a strategic necessity to be embedded into their digital innovation efforts. In the long run, this will lead to more secure digital innovations, increased consumer trust, and competitive advantages.
    Date: 2025–03–17
    URL: https://d.repec.org/n?u=RePEc:dar:wpaper:153541

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