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on Innovation |
| By: | Lluís Gimeno Fabra |
| Abstract: | This work develops the concept of procedural analysis to answer essential systemic questions of patenting at an international scale. Through a novel, public procedural metric, we characterize in-depth the World’s main patent examination services. By weighing how decisions are generated, rather than just their output, we challenge past perceptions on national bias, proving that patent offices do not discriminate foreign applicants. Despite strong qualitative differences in the stringency and thoroughness of patent offices, we also measure important degrees of substitution and convergence across patent systems, leading in particular areas to surprisingly high similarities in granted scopes. |
| Keywords: | Patents; Industrial Property; Technology; Patent System; Public Administration; European Patent Law; Industrial Policy; Innovation |
| Date: | 2025–06–06 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/391038 |
| By: | Sergio Palomeque |
| Abstract: | This paper examines the processes of generating new technical knowledge, aim- ing to contribute to an understanding of how less developed economies can diversify their knowledge base to support economic development. We study the structure of relatedness of required knowledge between technologies at a global level, conceived as a network where technologies are connected according to the intensity with which they co-occur in the inventors’ portfolios. Based on this, topological characteristics of the network are studied using node-level metrics to propose diversification strate- gies that alleviate the lock-in effects suffered by less developed economies. The paper contributes to the literature by proposing two indicators that can be used to analyse relevant dimensions of the innovation system of cities in less developed regions. One of the indicators enables us to compare the levels of stability of the technologies that comprise the knowledge base of the cities. The second provides a measure of the level of alternatives available to the city for each diversification decision. The results, based on the analysis of Latin American cities, show that the stability of the technologies present in a city, as well as the alternatives available to choose its diversification path, are relevant to designing diversification strategies that could contribute to overcoming the constraints generated by the characteristics of the knowledge base of those cities. |
| Keywords: | relatedness; innovation systems; patents; cities; Latin America; Evolu- tionary Economic Geography |
| JEL: | B52 D85 O31 O32 O34 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2515 |
| By: | Coelli, Federica (Dept. of Economics, University of Zurich); Pelzl, Paul (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | Using oil and gas shocks as an exogenous source of business cycles at the U.S. commuting zone level, we provide novel evidence that local booms increase local patenting, especially in non-metropolitan areas. This reflects agglomeration economies that make incumbent inventors more productive. In contrast to total patenting, innovation in oil and gas – the sector closest to the boom – is countercyclical, consistent with higher opportunity costs of innovation in a booming industry. Our findings shed new light on the spatial dimension of innovation, inform recent debates on place-based industrial policy, and help to reconcile mixed evidence on the cyclicality of innovation. |
| Keywords: | Innovation; patents; local economic booms; agglomeration; natural resources |
| JEL: | L71 O12 O31 |
| Date: | 2025–05–26 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhhfms:2025_020 |
| By: | Nobuya FUKUGAWA |
| Abstract: | Universities, embedded within regional innovation systems, promote entrepreneurship through intermediary functions, including resource provision, consulting, and networking. Drawing on perspectives from entrepreneurial ecosystems and innovation intermediation, this study examines how the effectiveness of these university functions varies according to regional innovation contexts and institutional types. The analysis integrates comprehensive panel data from 1, 027 universities (2019–2023) with detailed patent and basic research funding databases. Fixed-effects negative binomial regression models with lagged independent variables are employed to control for unobserved time-invariant heterogeneity and to mitigate simultaneity bias. The results show that basic research capacity is consistently and positively associated with startup formation, highlighting its foundational role in academic entrepreneurship. However, the effects of other support functions are highly context-dependent: human resource and knowledge service linkages promote startup activity only when universities are embedded within innovation agglomerations. Investor linkages show no significant overall effect but become positively associated with startup formation in peripheral regions where access to capital is limited. These findings underscore the need for differentiated, ecosystem-sensitive intermediation strategies and highlight the importance of aligning university support mechanisms with the structure and maturity of surrounding innovation environments. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25044 |
| By: | Diego A. Comin; Danial Lashkari; Martí Mestieri |
| Abstract: | We document the structural transformation of innovation using historical patent data since the 1850s, along with R&D expenditure and TFP growth for the post-war period. Over time, innovation has shifted from agricultural sectors to manufacturing, and, more recently, to services. We develop and quantify a multi-sector semi-endogenous growth model of structural change in innovation and production, incorporating the classical demand-pull and technology-push drivers of innovation. Sectors differ in their innovation technologies, and the extent to which they benefit from knowledge spillovers (technology-push). Nonhomothetic demand shifts the market shares toward income-elastic sectors along the growth process (demand-pull). A calibrated version of our model replicates the structural transformations of innovation and production observed in the US data. Using the model, we evaluate the future impact of Baumol’s disease on aggregate productivity and find it to be minimal. Our results suggest that aggregate productivity growth may recover in the coming decades as the service sector becomes increasingly innovation-driven. |
| JEL: | E02 O1 O4 O5 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33855 |
| By: | Ron Boschma |
| Abstract: | The paper reviews how the concept of institutional complementarities has been approached in the Varieties of Capitalism and Policy Mix literatures. Based on a critical review, we propose instead an evolutionary framework to analyze institutional complementarities that is inspired by the principle of relatedness. We discuss promising future applications in economic geography, such as how complementarities across institutions may promote regional diversification in regions, how this institutional complementarity framework may shed light on the question what is feasible when implementing institutional change in specific territorial contexts, and how it may contribute to understand better how regional innovation policy may become effective in particular institutional contexts. |
| Keywords: | institutions, institutional complementarities, institutional relatedness, institutional change, institutional space, varieties of capitalism, policy mix, policy space, regional diversification, Evolutionary Economic Geography |
| JEL: | B15 B52 P51 R11 R58 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2514 |
| By: | Katrin Hussinger (DEM, Université du Luxembourg); Issah Wunnam (University of Leicester, UK) |
| Abstract: | We investigate whether family ownership is associated with a preference for patents or trade secrets. Using a sample of S&P 500 firms, we show that family ownership is negatively associated with patenting and positively associated with the usage of trade secrets. We further show that both relationships are moderated by firm performance below the aspiration level, i.e. the performance benchmark level that an organization sets. These results can be explained with a mixed gambles behavioral agency framework. When family firms perform below their aspiration level, prospective financial gains become relatively more important as compared to current socio emotional wealth so that patents become more and trade secrets less attractive. |
| Keywords: | Family firms, patents, trade secrets, mixed gambles, aspiration gap. |
| JEL: | O34 O32 G32 M14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:25-11 |
| By: | Elodie Carpentier; Alexander Cuntz; Alessio Muscarnera; Julio Raffo |
| Abstract: | Scientific progress relies on access to prior knowledge, yet costly access to academic literature can hinder researchers, particularly in marginalized positions of academia and developing economies. This paper examines the impact of free or lower-cost access to scientific literature on gender representation in research. Leveraging the staggered adoption of the Hinari program, which provides digital access to health science research, we analyze its effects on women’s participation in research production and academic publishing across more than 600 institutions in 80 countries. Using a triple difference approach, we find that improved digital access to knowledge increases the share of women scientists in publishing faculty and enhances their research output. The program's effects are most pronounced in countries with lower gender balance in educational attainment, where it appears to help overcome attainment gaps and activate women's potential in academic labor markets. Our study contributes to the literature on digitization, access to knowledge and gender disparities in academia, while also helping to inform science and innovation policy and human capital development. |
| Keywords: | Open science, Development, Health Science, Gender studies, Triple difference, Impact evaluation |
| JEL: | J16 L17 O31 O33 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:wip:wpaper:88 |
| By: | Andrea Recine; Massimiliano Tancioni |
| Abstract: | We use narrative R&D appropriation shocks to investigate the transmission mechanism of government R&D. We document that a non-defense R&D shock boosts innovation, the stock market and labor productivity while prices decrease. We show that NASA's R&D contracting during the Space Race contributes to our results, with effects concentrated in transportation, electrical and computer equipment, and even more persistent in business services. In contrast, a defense R&D shock leads to mixed effects on innovation and labor productivity and, as a military news shock, generates a hump-shaped increase in defense equipment sector production. These results are robust in the post-Korea sample. Our findings on the macroeconomic transmission mechanism of non-defense R&D are consistent with theoretical models with endogenous productivity mechanisms and learning by doing. |
| Keywords: | government R&D, non-defense R&D, NASA, Space Race, local projections, narrative identification |
| JEL: | C32 E62 H25 O30 O38 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:sap:wpaper:wp262 |
| By: | Kim Kaivanto |
| Abstract: | In policy debates concerning the governance and regulation of Artificial Intelligence (AI), both the Precautionary Principle (PP) and the Innovation Principle (IP) are advocated by their respective interest groups. Do these principles offer wholly incompatible and contradictory guidance? Does one necessarily negate the other? I argue here that provided attention is restricted to weak-form PP and IP, the answer to both of these questions is “No.†The essence of these weak formulations is the requirement to fully account for type-I error costs arising from erroneously preventing the innovation’s diffusion through society (i.e. mistaken regulatory redlighting) as well as the type-II error costs arising from erroneously allowing the innovation to diffuse through society (i.e. mistaken regulatory green-lighting). Within the Signal Detection Theory (SDT) model developed here, weak-PP red-light (weak-IP green-light) determinations are optimal for sufficiently small (large) ratios of expected type-I to type-II error costs. For intermediate expected cost ratios, an amber-light ‘wait-and-monitor’ policy is optimal. Regulatory sandbox instruments allow AI testing and experimentation to take place within a structured environment of limited duration and societal scale, whereby the expected cost ratio falls within the ‘wait-and-monitor’ range. Through sandboxing regulators and innovating firms learn more about the expected cost ratio, and what respective adaptations — of regulation, of technical solution, of business model, or combination thereof, if any — are needed to keep the ratio out of the weak-PP red-light zone. |
| Keywords: | artificial intelligence, foundational AI, general-purpose AI systems, AI governance, precautionary principle, innovation principle, countervailing risk, scientific uncertainty, signal detection theory, misclassification costs, discriminability, ROC curve, de minimis risk, trust and polarization, protected values, non-comparable values, continuity axiom, regulatory sandboxes |
| JEL: | D81 O31 O33 O38 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:lan:wpaper:423283411 |
| By: | Amy Wenxuan Ding (EM - EMLyon Business School); Shibo Li (Indiana University [Bloomington] - Indiana University System) |
| Abstract: | Scientists are interested in whether generative artificial intelligence (GenAI) can make scientific discoveries similar to those of humans. However, the results are mixed. Here, we examine whether, how and what scientific discovery GenAI can make in terms of the origin of hypotheses and experimental design through the interpretation of results. With the help of a computer-supported molecular genetic laboratory, GenAI assumes the role of a scientist tasked with investigating a Nobel-worthy scientific discovery in the molecular genetics field. We find that current GenAI can make only incremental discoveries but cannot achieve fundamental discoveries from scratch as humans can. Regarding the origin of the hypothesis, it is unable to generate truly original hypotheses and is incapable of having an epiphany to detect anomalies in experimental results. Therefore, current GenAI is good only at discovery tasks involving either a known representation of the domain knowledge or access to the human scientists' knowledge space. Furthermore, it has the illusion of making a completely successful discovery with overconfidence. We discuss approaches to address the limitations of current GenAI and its ethical concerns and biases in scientific discovery. This research provides insight into the role of GenAI in scientific discovery and general scientific innovation. |
| Keywords: | Scientific discovery, Generative artificial intelligence, Large Language models, ChatGPT |
| Date: | 2025–03–20 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05053017 |
| By: | Riku Watanabe |
| Abstract: | This study introduces two heterogeneous industries into an endogenous growth model in a circular economy. In our model, there are two types of industries, brown industries using exhaustible resources for production, and green industries using recycled goods which are reproduced from the used final good by a recycling firm. Each industry switches the state as a result of R&D activities for innovation and greening. Innovation improves the level of productivity and occurs in both industries. In contrast, only firms in brown industries invest in R&D activities for greening, which transfers the brown industries toward the green industries. This paper examines the effect of recycling and the share of green industries on the growth rate. We show that an increase in the recycling rate does not have a negative effect on the economy, and improves the welfare of households. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:dpr:wpaper:1286 |
| By: | Meier, Andre Klaus; Kock, Alexander |
| Abstract: | Firms increasingly apply agile approaches in their development processes, and therefore researchers started investigating how agility affects innovation performance. However, previous research on agility often only considers software development or approaches the concept only from an outcome perspective (i.e. increased adaptability to changes) instead of from a capability perspective (i.e. how to organise for adaptability to be successful). Consequently, research failed to investigate how the organisation of agile research and development (R&D) units in physical new product development (NPD) affects innovation performance. We apply structural equation modelling on 162 R&D units in a large industrial firm and analyse the interplay of agile R&D units' organisation, the resulting agility, front‐end success and NPD success. Moreover, we consider contingency factors of environmental turbulence. The study extends research on agility's neglected capability perspective in innovation management, thus providing a better understanding of agility's relationship with innovation performance and showing managers how to increase their unit's NPD success. |
| Date: | 2025–05–12 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:154762 |