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on Innovation |
| By: | Robert, Marc |
| Abstract: | This review examines the pivotal role of entrepreneurship in fostering innovation within manufacturing industries. This article synthesises theoretical, empirical, and policy-oriented insights. I explore how entrepreneurial activities, whether through independent start-ups, SMEs, or intrapreneurship within established firms, act as critical catalysts for technological upgrading in manufacturing sectors. The analysis integrates innovation theory, the knowledge spillover perspective, and entrepreneurial ecosystem frameworks, while also emphasising the embedding of entrepreneurship within institutional contexts. Our findings reveal that the effectiveness of entrepreneurial-led manufacturing innovation is highly contingent on factors such as ecosystem health, networks, policy design, and cultural milieu. The review identifies key debates regarding the quality versus quantity of entrepreneurship, the optimal role of the state in ecosystem development, and contextual nuances influencing entrepreneurial outcomes. Emerging research frontiers including digital manufacturing entrepreneurship, comparative ecosystem studies, and multi-level dynamic analyses are proposed as promising avenues for future inquiry. In conclusion, the article asserts that entrepreneurship remains a linchpin of manufacturing innovation, but realising its full potential requires a nuanced orchestration of formal institutions, social capital, firm-level capabilities, and policy interventions aligned with sustainable development goals. |
| Keywords: | Manufacturing innovation; Entrepreneurship; Entrepreneurial ecosystems; Sustainable entrepreneurship; Industry 4.0. |
| JEL: | L6 M2 M21 |
| Date: | 2025–02–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124608 |
| By: | Ku, Hyejin (University College London); Mu, Tianrui (University College London) |
| Abstract: | This paper examines how China’s growing research capabilities impact global research universities across scientific fields. Using bibliometric data from 1980 to 2020, we assess the effects of the “China shock” on high-impact publications, novel concepts, and citation patterns. Our analysis reveals a positive net effect in Chemistry and Engineering & Materials Science (EMS), but a negative effect in Clinical & Life Sciences (CLS). In other fields, the effects are mostly positive but imprecise. We highlight the coexistence of competition and spillover effects, with their relative strength shaped by field characteristics, such as expansion potential and the quality of China’s research. |
| Keywords: | ideas, knowledge production, China shock in science, competition, spillovers |
| JEL: | J24 I23 O31 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17866 |
| By: | Ritzen, Jo (Mt Economic Research Inst on Innov/Techn) |
| Abstract: | This paper explores the transformative potential of intra-EU student mobility as a cornerstone for fostering social cohesion, economic resilience, and pan-European identity. By analyzing historical trajectories, policy frameworks (e.g., Erasmus+), and case studies from Denmark, the Netherlands, Germany, and Eastern Europe, we argue that achieving 50% intra-EU student mobility by 2035 could counteract nationalist fragmentation, address labor shortages, and catalyze innovation. However, systemic challenges—brain drain, political resistance, linguistic tensions, and funding inequities—necessitate asymmetric funding models, retention incentives, and phased implementation. Drawing on empirical data and policy evaluations, this study proposes a roadmap for harmonizing EU higher education while mitigating regional disparities. While moving forward towards more mobility attention needs to be paid in national policies for national concerns. |
| JEL: | I23 I25 I28 J60 L78 O10 O52 |
| Date: | 2025–04–22 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025012 |
| By: | Simone Vannuccini (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | In this paper, I use the case of artificial intelligence (AI) to analyse the challenges and opportunities in designing a European industrial policy that (i) adopts a pro-competitive posture, (ii) does not fall victim of the risk of double weaponization by pro-nationalistic and pro-oligopolistic narratives, and (iii) reorients its goals away from the AI 'arms race' and to the provision of public goods. At the moment, the AI industry is an infant industry, and the European digital stack enabling AI applications is controlled by non-European actors, which reduces European autonomy and justifies policy support. I suggest that while AI's economic impact are overestimated and hyped, AI should be a pillar of European industrial policy due to its strategic asset and dual-use nature. Through a series of proposals, I outline the contours of a European AI industrial policy; its features can be summarised by three keywords: public, as in the public assets that the EU should aim to build on the basis of open source technology and in the public interest; federated, through variety and the decentralisation of AI solutions conceived as a nonoligopolistic European alternative to large scale systems; and federal, realising decoupling across the technology stack, when possible and advisable, through supranational tools, institutions, and finances. |
| Keywords: | artificial intelligence, strategic asset, industrial policy, European Union, geopolitical rivalries |
| JEL: | L40 L50 O33 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-21 |
| By: | Boulieris, Petros; Carballa-Smichowski, Bruno; Fourka, Maria Niki; Lianos, Ioannis |
| Abstract: | Following a period during which the two fields evolved separately, a consensus has emerged that competition and industrial policy are not inherently incompatible. This reflects broader intellectual shifts. Industrial policy is now viewed more favorably, not only for traditional development goals but also to strengthen technological capabilities for national security and secure global economic dominance. "Techno-nationalist'' approaches to industrial policy may conflict with global technology diffusion efforts addressing issues like climate change ("techno-globalism''). Despite recent developments in the intersection of competition and industrial policy, there is a lack of evidence on how techno-nationalist and techno-globalist approaches interact with competition policy goals. This article fills this gap by empirically assessing the competitive effects of policy measures. We use a text-as-data approach, combining AI-driven document analysis with structured classification criteria. The data show that techno-globalist industrial policies are generally more pro-competitive than techno-nationalist ones, due to their broader scope and ability to lower entry costs. Moreover, we find that certain policy instruments are primarily associated with anti-competitive criteria, while others tend to exhibit predominantly pro-competitive features. Our results provide a fine-grained characterization of new industrial policy design in light of competition policy goals. |
| Keywords: | Industrial policy, competition, techno-globalism, techno-nationalism, text-as-data, large language models, data analysis. |
| JEL: | D02 L0 L50 O25 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124187 |
| By: | Stefan Buechele (University of Kassel, INCHER and Institute of Economics); Matthias Huegel (University of Kassel, INCHER and Institute of Economics); Valon Kadriu (University of Kassel, INCHER and Institute of Economics); Johannes Koenig (AB Institute for Employment Research, University of Kassel, INCHER and Institute of Economics) |
| Abstract: | This study examines the dynamics of the German university system, focusing on the competition between public and private universities and the impact of institutional boundaries. Utilizing concepts from organizational, institutional, and competition theory, we conceive a framework to explore university input and output measures over two decades. We find that public universities have larger faculties and greater access to public funding, while private universities are more market-oriented and exhibit faster growth in research productivity. Despite their initial disadvantages, private universities have outpaced public universities in publication quantity and quality since 2010. Our research indicates that both types of universities have led to a form of institutional isomorphism, converging in strategies for publication and recruitment, though not in funding. |
| Keywords: | Private Universities, Public Universities, Performance Analysis, Publication Outcome, University System, Competition |
| JEL: | I23 L20 J40 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:mar:magkse:202506 |
| By: | Hiroshi Inokuma (Director, Institute for Monetary and Economic Studies, Bank of Japan (E-mail: hiroshi.inokuma@boj.or.jp)); Mitsuru Katagiri (Associate Professor, Faculty of Business Administration, Hosei University (E-mail: mitsuru.katagiri@hosei.ac.jp)); Nao Sudo (Deputy Director-General, Financial System and Bank Examination Department (E-mail: nao.sudou@boj.or.jp)) |
| Abstract: | This study revisits the old and ongoing challenge of identifying the optimal trend inflation rate, using a novel model that incorporates a firm's innovation choices, product life cycles, and the interplay of the two factors. We construct an endogenous growth model with sticky prices, where firms have two options: to be an innovator or to be a follower. An innovator causes creative destruction, forcing all the incumbents to exit, and becomes a monopolist in its sector. A follower enters an existing sector by offering a product that is slightly different from the incumbent's products, inducing a product life cycle within the sector. Trend inflation impacts the firm's decision regarding which of the two options to choose by changing expected markups and profits. We show that the optimal trend inflation rate could exceed zero as it mitigates potential innovator losses upon the entry of followers, which in turn depresses the incentives for firms to be followers, promoting creative destruction and faster economic growth. |
| Keywords: | Sticky prices, Optimal inflation, Product life cycle, Innovation, Productivity growth, Markups |
| JEL: | E31 O31 O41 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ime:imedps:24-e-17 |