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on Innovation |
| By: | Barra Novoa, Rodrigo |
| Abstract: | The study examines the evolution of Chile’s industrial policy between 1990 and 2022 through the lens of state capacity, innovation, and endogenous development. In a global context where governments are reclaiming a proactive role in fostering innovation, Chile presents a paradox. It is a stable and open economy that has expanded investment in science, technology, and innovation but still faces structural barriers to turning that investment into sustainable capabilities. Drawing on the works of Mazzucato, Aghion, Howitt, Mokyr, Samuelson, and Sampedro, the research integrates evolutionary economics, public policy, and humanist ethics to assess Chile’s capacity for innovation-driven transformation. Using a longitudinal case study approach and official data, the study finds institutional progress but persistent coordination gaps, regional disparities, and a fragile culture of knowledge. It concludes that inclusive and sustainable innovation will require adaptive governance, long-term vision, and an ethical understanding of innovation as a public good. |
| Keywords: | State capacity, Innovation, endogenous development, industrial policy, Chile, entrepreneurial state |
| JEL: | O25 O1 O38 E02 L52 P42 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:330597 |
| By: | Cavalcanti, T.; Mohaddes, K.; Nian, H.; Yin, H. |
| Abstract: | This paper investigates the pass-through of environmental compliance costs along supply chains. We compile a firm-level dataset linking regulated firms in pollution-intensive industries with their top five clients and suppliers. We find that clients of regulated firms invest less in R&D, employ fewer skilled R&D staff, and produce fewer innovations than clients of less regulated firms, while no comparable effects are observed for suppliers. The pass-through is stronger with larger trade volumes, higher input prices faced by clients, and in markets where regulated firms hold greater market power or clients face intense competition. Policy simulations suggest that green technology incentives for regulated firms and R&D subsidies for their clients can mitigate these adverse effects and raise social welfare by enhancing both innovation and environmental quality. |
| Keywords: | Environmental Compliance, Supply Chains, Pass-Through, R&D, Innovation |
| JEL: | O30 Q01 Q55 |
| Date: | 2025–10–18 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camjip:2528 |
| By: | Lars Hornuf; Daniel Vrankar |
| Abstract: | Those seeking to drum up public support for the space industry frequently cite its potential to generate valuable spillovers to other industries. However, existing research on spillover effects overlooks differences in business models among commercial actors and focuses only on individual projects or specific space agencies. We analyze how evolving business models influence spillovers by comparing the dynamic capabilities of traditional aerospace conglomerates to those of new space firms, using a unique dataset of 35, 696 space-related patent applications. We find that, in addition to industries directly related to space, such as aeronautics, sectors like manufacturing and communication technology in particular benefit from space activities. At the firm level, we observe that new space business models present greater spillover potential and generate more spillovers than traditional aerospace conglomerates. However, traditional conglomerates such as Airbus or Boeing induce spillovers into digital systems and clean tech, while new space firms cannot translate their digital business models into digital spillovers and occupy more peripheral positions in the innovation network of space. Additionally, based on two different innovation metrics and more than 1.6 million additional patent applications, we find no evidence that the business models of the space industry have generally led to more spillovers than other high-tech industries. |
| Keywords: | new space business models, new space economy, innovation, dynamic capabilities, spillover, patent data |
| JEL: | D62 H57 L20 L21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12236 |
| By: | Ding, Liangping; Lawson, Cornelia; Shapira, Philip (The University of Manchester) |
| Abstract: | Artificial intelligence (AI) promises to transform science by accelerating knowledge discovery, automating processes, and introducing new paradigms for research. However, there remains a limited understanding of how AI is being utilized in scientific research. In this paper, we develop a framework based on GPT-4 and SciBERT to identify AI’s role in scientific papers, differentiating between Foundational, Adaptation, Tool and Discussion modes of AI research. This allows us to capture AI’s diverse contributions, from theoretical advances to practical applications and critical analysis. We examine AI’s trajectory across these modes by analyzing time series, field-specific, and country trends. This approach expands on search-term based identification of AI contributions and offers insights into how AI is being deployed in science. |
| Date: | 2025–11–02 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:7ed2b_v1 |
| By: | Fabio Franceschini |
| Abstract: | This paper provides robust empirical evidence that shocks to aggregate Research and Development (R&D) have persistent effects on macroeconomic dynamics and represent a significant risk for investors, as predicted by the 'long-run risk' literature. The analysis focuses on a single variable, 'effective R&D', which captures the entire contribution of R&D to productivity growth, flexibly accounting for knowledge spillovers and product proliferation effects. Deviations of effective R&D from its equilibrium level can be empirically identified leveraging the error correction term in the cointegration relationship among R&D, total factor productivity, and the labor force. In US data, structural effective R&D shocks affect productivity and consumption growth rates beyond business cycle horizons and are associated with a significant risk premium in a cross section of stock and bond portfolios (around 2% annually), with cash-flow sensitivities proving a key determinant. |
| JEL: | E32 E44 G12 O30 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:bol:bodewp:wp1215 |
| By: | Giovanna Ciaffi; Matteo Deleidi; Antonino LOfaro |
| Abstract: | This paper evaluates the impact of Mission–Oriented Innovation Policies (MOIPs) and public R&D investment by quantifying the responses of GDP, private investment, hours worked, labour productivity, and the real hourly wage. We combine a Bartik–type identification strategy with the Local Projections method on a novel dataset with a sectoral–regional dimension, covering 333 European NUTS–2 regions over 1995–2019. Results show that R&D government spending exerts robust and persistent expansionary effects, crowding in private investment, raising employment, and boosting productivity. Sectoral heterogeneity emerges, with high multiplicative effects in construction and finance, while employment effects are concentrated in construction and market services. |
| Keywords: | Fiscal policy; Mission-Oriented Innovation Policies; R&D government spending; Sectoral heterogeneity; Regional economics; Local Projections; European regions. Jel Classification: R11; E62; H50; O38 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:934 |
| By: | Heng-fu Zou (Institute for Advanced Study, Wuhan University; World Bank) |
| Abstract: | This paper advances the idea of a republic of entrepreneurs - a spontaneous, rule-governed order in which many people repeatedly propose, test, and diffuse improvements-and argues that it is the main engine of modern prosperity. We braid this republic with the republic of letters and the republic of science, contending that open discourse, self-governed inquiry, and contestable enterprise reinforce one another to convert useful knowledge into useful industry. The analytical backbone in- tegrates Cantillon's functional entrepreneur, Mises's economic calculation and residual claimancy, Hayek's discovery procedure and dispersed knowl edge, Kirzner's alertness and equilibration, Mokyr's Industrial Enlightenment and "market for ideas, " McCloskey's rhetoric of bourgeois dignity, and Phelps's grassroots dynamism. Historical cases-Britain, the United States, France, Germany, and biomedicine show that breakthrough eras depended less on elite R&D and more on dense portfolios of small, decentralized experiments under general rules that kept feedback honest and im itation lawful. We contrast this republican view with outcome-targeting elite-centric growth models, derive testable implications (proposal den- sity, feedback speed, diffusion breadth), and sketch a policy stance that privileges general over discretionary rules, interoperability and open stan dards, reputation systems that make quality legible, and intellectual property that teaches while remaining finite. Reframing innovation as a civic practice explains both the magnitude and inclusiveness of the Great Enrichment and recommends "republic of entrepreneurs" as a term of art for growth and development economics. |
| Date: | 2025–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:cuf:wpaper:798 |
| By: | Roth, Felix; Rammer, Christian |
| Abstract: | Intangible assets have increasingly been identified as a main source of productivity gains. Since the pioneering work by Corrado, Hulten, and Sichel (2005), empirical research has largely focused on macro and industry-level studies, while firm-level studies have often been confined to a limited set of intangible assets, especially Research and Development (R&D). This paper employs a unique firm-level panel database that contains information on four types of intangible assets: R&D, software & databases (S&D), firm-specific human capital (HC), and brand value (BV). For R&D, we find much lower productivity returns than for S&D and HC. R&D even loses significance once controlling for other intangibles, except for high-tech manufacturing. In contrast to R&D, we find that S&D and HC tend to be the primary drivers of productivity gains, particularly in services. Our findings have implications for research policy, suggesting a stronger focus on supporting investment in non-R&D intangibles, including S&D and HC. |
| Keywords: | Non-R&D intangibles, Productivity, R&D, Digitalisation, Firm-specific human capital, Brand value, Firm-level panel data |
| JEL: | E22 O33 O38 D24 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:uhhhdp:20 |
| By: | Gaurav Khanna |
| Abstract: | This paper examines the rise of high-skill migration from Asia to the United States over the past three decades and its consequences for both sending and receiving economies. Between 1990 and 2019, migrants from five Asian countries—India, China, South Korea, Japan, and the Philippines—accounted for over one-third of the growth in US software developers and a quarter of the increase in scientists, engineers, and physicians. Drawing on census microdata, visa records, and administrative sources, I show how US demand for talent in information technology, higher education, and healthcare interacted with Asia’s demographic and educational transformations to generate this migration boom. Policy reforms (notably the H-1B, F-1, and J-1 visa programs) and sectoral shifts—such as the internet revolution, declining public support for universities, and aging-related healthcare demand—created persistent needs for foreign students and workers. Asian economies were uniquely positioned to meet this demand through rapid tertiary expansion, strong STEM institutions, English proficiency, and diaspora networks. These inflows boosted US innovation, entrepreneurship, and service-sector productivity while fostering “brain gain” and “brain circulation” in Asia. Together, these trends reveal how talent flows from Asia have become central to the structure and growth of the modern US economy. |
| JEL: | J24 J60 O34 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34449 |
| By: | Mariagiovanna Baccara; Gilat Levy; Ronny Razin |
| Abstract: | Competing research waves start and grow as scientists choose their specialization driven by career incentives. We build a strategic experimentation framework where agents irreversibly choose between two risky fields, and information arrives faster as more agents specialize in a field. In the "bad news" case, if no news arrives, all agents join a bandwagon wave into one field. In the "good news"' case, both fields are explored in two sequential surges, followed by slow entry into the initially inferior field. We describe how the equilibrium depends on the information-production technology, and assess the impact of first-mover advantages, congestion, and deadlines. |
| Keywords: | strategic experimentation, research specialisation |
| JEL: | D7 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12248 |