|
on Innovation |
| By: | Arenas Díaz, Guillermo; Piva, Mariacristina; Vivarelli, Marco |
| Abstract: | This study investigates the relationship between Artificial Intelligence (AI) and innovation inputs in Spanish manufacturing firms. While AI is increasingly recognized as a driver of productivity and economic growth, its role in shaping firms' innovation strategies remains underexplored. Using firm-level data, our analysis focuses on whether AI complements innovation inputs - specifically R&D and Embodied Technological Change (ETC) - and whether AI can be considered as a Method of Invention, able to trigger subsequent innovation investments. Results show a positive association between AI adoption and both internal R&D and ETC, in a static and a dynamic framework. Furtheremore, empirical evidence also highlights heterogeneity, with important peculiarities affecting large vs small firms and high-tech vs low-tech companies. These findings suggest that AI may act as both a complement and a catalyst, depending on firm characteristics. |
| Keywords: | Artificial Intelligence, Method of Invention, R&D, Innovation Inputs, Innovative Complementarities |
| JEL: | O31 O32 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1676 |
| By: | Dubois, Pierre |
| Abstract: | We examine pharmaceutical regulations and incentives for innovation from an international perspective, highlighting the public good nature of healthcare innovation and its cross-border diffusion. We summarize the empirical evidence on how push and pull incentives shape R&D investment, innovation, and global access. We emphasize the role of strategic interdependencies and spillovers, including free-riding in R&D financing, learning-by-doing effects, drug shortages, reference pricing, and parallel trade. We then provide new evidence on the international spillovers of pull incentives on innovation, showing that international cooperation and innovative institutions are necessary to better align national regulations with the global objective of sustaining pharmaceutical innovation. |
| Keywords: | Pharmaceutical Regulation, Innovation, R&D, International Spillovers |
| JEL: | L10 L20 I10 I11 I18 |
| Date: | 2025–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:131002 |
| By: | Martinez Cillero Maria (European Commission - JRC); Napolitano Lorenzo (European Commission - JRC); Rentocchini Francesco (European Commission - JRC); Seri Cecilia; Zaurino Elena (European Commission - JRC) |
| Abstract: | "Rising market concentration and the dominance of `superstar' firms have sparked concerns about declining competition and innovation. While technological change and globalisation are key drivers, mergers and acquisitions (M&As) may also play a role. This paper investigates whether firms use technological M&As — acquisitions of innovative subsidiaries with patent portfolios — to enhance market power. Using a global panel of 8, 314 publicly listed firms from 2008 to 2020 and a staggered difference-in-differences approach, we find that such acquisitions increase acquiring firms’ markups by 2% on average. Effects are stronger among top R&D investors, US-based firms, and those in high-tech manufacturing. The main mechanism appears to be greater insulation from competitors via acquired patents, which limit knowledge spillovers and raise entry barriers. These findings highlight the need for antitrust policies that balance innovation incentives with the risks of growing market power." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:wpaper:202503 |
| By: | Konrad Adler (University of St. Gallen - School of Finance; Swiss Finance Institute); JaeBin Ahn (International Monetary Fund (IMF)); Mai Dao (International Monetary Fund (IMF)) |
| Abstract: | We study how trade liberalization affects financial and innovation decisions of large firms across major G7 countries. We document how firms increase their cash holdings when their country's trading partners lower their import tariffs, while we find no effect of a decrease in the country's own import tariffs. Specifically, we find that the increase in cash holdings occurs before tariff cuts by trading partners and is associated with higher R&D spending and patent filing after the cuts. Our results are consistent with the predictions of a model in which higher expected returns to innovation from enhanced export market access lead to higher cash buffers. |
| Keywords: | Trade, MFN tariff, Cash Holdings, R&D, Patents |
| JEL: | F12 G31 O32 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2571 |
| By: | Sillero Illanes Carmen (European Commission - JRC); Magagna Davide (European Commission - JRC); Torrecilla Salinas Carlos (European Commission - JRC); Fernandez Gavilanes Gerardo |
| Abstract: | "This policy brief presents two fundamental ideas: first, that European cohesion funds can effectively support agile and efficient place-based transformative innovation policies, which boost competitive and sustainable ecosystems in areas such as circularity and reducing fossil fuel dependency. This is achieved through multilevel government and a strong stakeholder involvement, as demonstrated by the experiences of Finland and Denmark. Second, regions can enhance their capacity for transformative innovation through structured capacity-building processes, including study visits and exchanges. The study visit conducted by the Andalusian government to Finland and Denmark, designed by the Joint Research Centre (JRC) and supported by the TAIEX-REGIO instrument, serves as a clear example presented in this report. The insights and lessons learned from this experience could be valuable to other European regions seeking opportunities for transformation and aspiring to collaborate in this journey." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143279 |
| By: | Pontikakis Dimitrios (European Commission - JRC); Papachristos Georgios (European Commission - JRC); Janssen Matthijs; Norlen Hedvig; Miedzinski Michal (European Commission - JRC) |
| Abstract: | "In times of radical socio-technical change, system-level or transformative innovation (hereafter simply system innovation) is necessary in order to achieve, or maintain, economic prosperity, in ways compatible with environmental sustainability and a cohesive society. There is growing policy interest and experimentation with transformative innovation policies, which seek to address pressing societal challenges, including global ones, such as climate change, and domestic ones, such as successful industrial transitions. Existing tools for measuring, modelling and evaluating innovation policy inputs and outcomes are unable to capture crucial features of transformative innovation policy, including synergies, tipping points, multi-level interactions, sequencing and rebound effects. This report documents an exploratory, one-year research project to build the knowledge base and assess the feasibility of a system dynamics model of system innovation. The project centred around the development of a proof-of-concept version of POLYTRoPOS (a POLYvalent model for the evaluation of TRansformative POlicy Scenarios), a system dynamics model focused on the interactions between technology deployment and productive capability accumulation. The prototype, in this early form, cannot yet provide policy guidance, but is meant to illustrate key concepts, demonstrate policy relevance and generate lessons for the later development of a more fully-featured model.Large heterogeneity in the framings of system-level innovation relevant to each production sector, and uncertainty about their future transition paths have been important stumbling blocks to aggregate measurement and evaluation that is internationally comparable. The project sought to reconceptualise system innovation processes in general ways that are more receptive of aggregate and internationally comparable measurement, in order to model them quantitatively. To do so it was necessary to contain the analytical boundary of the model in processes which combine high policy interest, for which economics and social science theory offer adequate guidance, and which exhibit sufficient statistical regularity to permit meaningful modelling. The report contains an overview of background literature providing a theoretical basis for the construction of the model (section 2); the rationale for the choice of the case study, namely the current episode of Renewable Energy Sources (RES) deployment-capability accumulation as it is unfolding in the EU, and some key definitions (sections 3.1 and 3.2); global and European metrics of the RES transition in the EU from internationally comparable statistics (section 3.3); develops the overall structure and boundaries of the model and the substantive and policy stakes of case study of RES (sections 4.1 and 4.2); showcases a computer simulation model, partially calibrated on empirical data on RES deployment and production capability accumulation for the EU27. This stylised system dynamics model has been expressed in Causal Loop and Stock and Flow diagrams. We have documented our calibration data and parameters (sections 4.3-4.5) and provided some illustrative simulations of relevance to current policy debates (section 4.6). Lessons from the exploratory project can inform the future development of policy measurement and evaluation tools in the JRC, including a more fully-fledged and versatile version of the POLYTRoPOS model." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143019 |
| By: | Signorelli Serena (European Commission - JRC); Fernández Cruzado Ana (European Commission - JRC); De Prato Giuditta (European Commission - JRC) |
| Abstract: | "The Science for Policy Brief explores the digital ecosystem in EU regions through the DGTES approach, focusing on research, innovation, and startups. It first highlights key NUTS 3 regions where research organizations are concentrated and discusses strategies to enhance competitiveness in Europe. The brief then identifies top NUTS 3 regions for research and innovation activities and examines economic indicators (GDP, employment and number of startups) to uncover potential growth opportunities." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143080 |
| By: | Croce, Annalisa; Gvetadze, Salome; Toschi, Laura; Ughetto, Elisa |
| Abstract: | This working paper provides a comprehensive overview of Europe's cleantech innovation landscape, highlighting both the sector's substantial maturity and the key challenges holding back the scale-up of clean technologies. It distils insights from four interlinked research studies - mapping the cleantech ecosystem, surveying industry perspectives, analysing venture capital's impact, and evaluating policy frameworks - to examine how cleantech companies can reach their full potential and what support they need to thrive. The paper reflects the EIF's commitment to bridging financing gaps and fostering sustainable growth across Europe. The EIF Working Papers are designed to make available to a wider readership selected topics and studies in relation to EIF's business. The Working Papers are edited by EIF's Market Assessment & Research and are typically authored or co-authored by EIF staff or are written in cooperation with EIF. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eifwps:328253 |
| By: | Taekyun Kim (School of Business, Chungnam National University); Gabriela Fuentes (Graduate School of Economics and Management, University Cote d'Azur); Simone Vannuccini (Graduate School of Economics and Management, University Cote d'Azur) |
| Abstract: | We study the emerging technology of vision-language-action models (VLAMs), a potential breakthrough for the robotics industry. VLAMs connect artiï¬ cial intelligence’s large language models with robots: they are a software innovation that increases flexibility and expand capabilities of robotic hardware. As the technology is yet in its infancy, we focus our analysis on three directions. First, we study the technological trajectory of VLAMs in scientiï¬ c publications using scientometric techniques. Second, in order to assess market transformations associated with VLAMs and potential migration in the locus of value generation in robotics, we collect information and offer insights on the actors developing the technology ‘in the wild’. Third, we discuss the strategies put in place by a leading actor in the ï¬ eld to gatekeep the competitive landscape. We then generalise and rationalise our ï¬ ndings through established theoretical frameworks. The paper is the ï¬ rst to single out the forces at work in the development of an innovation poised to rejuvenate the robotics industry, one of the backbones of contemporary economies. |
| Keywords: | Robotics; Artiï¬ cial Intelligence; Vision-Language-Action Models; VLA; Embodied AI |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:bdj:smioir:2025-03 |
| By: | Janssen Matthijs; Miedzinski Michal (European Commission - JRC); Vankan Arthur |
| Abstract: | "The growing prominence of transformative innovation policy (TIP) necessitates a rethinking of the methodologies, metrics, and practices used in policy monitoring, evaluation, and learning. This article explores the methodological implications of applying theory-based evaluation (TBE) to the assessment of TIP initiatives. TBE emphasizes the identification and validation of causal mechanisms linking policy inputs to outcomes, while accounting for the contextual factors shaping these relationships. We examine key concepts and approaches for empirically testing theories of change, with particular focus on contribution analysis and process tracing as integrative frameworks for combining diverse analytical techniques and data sources. Using the EU Joint Research Centre’s Preparatory Action on place-based TIP as an illustrative case, we demonstrate how these methods can be operationalized in practice. The discussion highlights the critical role of fostering an evaluation culture oriented toward reflexive policy learning. We conclude by underscoring the potential of theory-based evaluation to clarify mechanisms of change, assess the realization of intended outcomes, and strengthen the foundations for continuous policy learning and improvement." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142629 |
| By: | Ban, Cornel; Liu, Imogen T. |
| Abstract: | Why did Sweden’s Northvolt—Europe’s most celebrated green industrial startup—collapse, while France managed to stabilise its local aspiring champions in the same cleantech sector? This paper uses these contrasting trajectories to interrogate the EU’s more assertive industrial policy turn. Drawing on the developmental network state (DNS) framework, we argue that while the EU has shifted from market neutrality to vertical industrial policy activism in a global context marked by geopolitical competition, its capacity to sustain strategic firms through crises remains underdeveloped. However, domestic capabilities and strategies mediated EU resourcing, brokering, facilitation, and protection, the main functions of the DNS. Where Sweden lacked credible financial, fiscal and institutional mechanisms of internal protection for the beleaguered Northvolt, France deployed a more robust economic statecraft toolkit, combining strategic finance, firm-level coordination, and public investment. Northvolt’s collapse illustrates the limits of Europe’s institutional orchestration of ambitious industrial policies: a regime that can incubate innovation but cannot stabilise it commercially. We conclude that without repurposed macro-financial institutions, Europe’s role as a competitive supplier of decarbonisation technologies will remain vulnerable. |
| Date: | 2025–10–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:ax56z_v1 |
| By: | Soguero Escuer Jorge (European Commission - JRC); Abendroth Dias Kulani (European Commission - JRC); Aldave De Las Heras Laura (European Commission - JRC); De Prato Giuditta (European Commission - JRC); Fernández Cruzado Ana (European Commission - JRC); Fuetterer Michael (European Commission - JRC) |
| Abstract: | "This report provides an overview on the state of play for small modular reactors (SMRs) in a techno-economic perspective by presenting a preliminary mapping of the SMR ecosystem using the Techno-Economic Ecosystem (TES) approach. This methodology allows for a comprehensive mapping of the complex ecosystem constituting the SMR industrial landscape. Through the identification of activities and public and private actors interplaying, we can outline the EU strategic positioning as well as interdependencies, vulnerabilities, and opportunities for the development of these types of advanced reactors. The study offers insights on the EU role in the SMR network through collaboration and participation in the information flows.The main findings exhibit the critical need to transform European research into innovation to stay at the competitive forefront. A well-developed research network is a valuable asset to keep up with SMR technological progress, but the EU needs to foster its business network. Observing SMR activities that are related to other industrial ecosystems, we highlight the importance of these reactors to support the development and decarbonisation of energy-intensive industries and meet other objectives of the Clean Industrial Deal.While the present study offers a first overview of the results of the SMR techno-economic ecosystem mapping, the TES approach allows for exploring further analytical avenues and fine-tuning classification criteria. This novel analysis could provide strategic guidance to support public policies and international collaboration initiatives for further SMR development and deployment." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142326 |