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on Innovation |
| By: | Beraja, Martin; Peng, Wenwei; Yang, David Y.; Yuchtman, Noam |
| Abstract: | Venture capital plays an important role in funding and shaping innovation outcomes, characterized by investors’ deep knowledge of the technology, industry, and institutions, as well as their long-running relationships with the entrepreneurship and innovation community. China, in its pursuit of global leadership in AI innovation and technology, has set up government venture capital funds so that both national and local governments act as venture capitalists. These government-led venture capital funds combine features of private venture capital with traditional government innovation policies. In this paper, we collect comprehensive data on China’s government and private venture capital funds. We draw three important contrasts between government and private VC funds: (i) government funds are spatially more dispersed than private funds; (ii) government funds invest in firms with weaker ex-ante performance signals but these firms exhibit growth rates exceeding those of firms in which private funds invest; and (iii) private VC funds follow government VC investments, especially when hometown government funds directly invest on firms with weaker ex-ante performance signals. We interpret these patterns in light of VC funds’ traditional role overcoming information frictions and China’s unique institutional environment, which includes important frictions on mobility and information. |
| Keywords: | venture capital; artificial intelligence; innovation policy |
| JEL: | G24 G28 O38 |
| Date: | 2025–02–28 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124143 |
| By: | Sasso Simone (European Commission - JRC); Perpiña Castillo Carolina; Napolitano Lorenzo (European Commission - JRC) |
| Abstract: | This brief presents new JRC evidence on innovation performance across EU territories, with a focus on differences between urban, intermediate and rural regions. By building innovation indicators constructed and estimated for the first time at a sufficiently granular territorial level to capture differences between urban and rural regions on R&D investment, patents, trademarks and industrial designs, the analysis confirms urban–rural innovation gaps, while also revealing substantial heterogeneity not only between urban and rural regions, but also among rural regions themselves. While innovation activity remains highly concentrated in urban areas, the evidence also points to a limited number of rural regions that notably stand out in specific innovation dimensions, often linked to specialised industrial structures, public research capacity or proximity to urban innovation hubs. These findings highlight both the concentration of innovation activity in urban regions and the presence of pockets of strong innovation capacity in rural territories, pointing to the existence of innovation potential beyond urban centres and underscoring the importance of place-based policies that recognise territorial diversity and support more balanced innovation-driven competitiveness across EU regions |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc145387 |
| By: | Stenkula, Mikael (Research Institute of Industrial Economics (IFN)) |
| Abstract: | This essay examines the rise of “Green Deals” as large-scale state-sponsored active industrial policies to accelerate a transition toward climate neutrality. Building on the concept of mission-oriented innovation policy (MOIP), it documents how environmental and active industrial policies have converged across advanced economies, reshaping the policy toolkit toward direct public investment and publicly supported investment. The essay provides detailed accounts of the European Union’s Green Deal and the U.S. counterpart, situating them in the broader political economy of climate policy. It also highlights initiatives in the United Kingdom, Germany, and Sweden, which additionally illustrate Grean Deal initiatives and how the latter national strategies adapt EU-level frameworks and institutional constraints. A comparative analysis underscores key differences between the EU’s fragmented, case-by-case approach and the more streamlined but fiscally uncertain U.S. model. The essay concludes by stressing the need for greater scrutiny of these policies, including their economic efficiency and fiscal sustainability. |
| Keywords: | Climate neutrality; Climate policy; Green Deal; Mission-oriented innovation policy; Industrial policy |
| JEL: | H23 O38 P18 Q58 |
| Date: | 2026–02–26 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1554 |
| By: | Nicolas Langren\'e; Rui Liu; Xiangqin Wu; Tianhao Zhi |
| Abstract: | This paper synthesises the existing research on the dynamics of innovation diffusion, with a focus on Bass-type models and their extensions. The theoretical foundation of innovation diffusion proposed by Rogers (1962) and the seminal work of Bass (1969) serve as a starting point for the analysis. We identify and examine various generalizations and stochastic extensions of the Bass model, including counting processes, diffusion processes, and uncertain processes, as well as parameter estimation techniques, from classical statistical techniques to more advanced techniques such as Bayesian filtering and metaheuristic optimisation. We finally explore alternative models of innovation diffusion, with a particular focus on agent-based models. This overview of the evolution of Bass-type models illustrates the progress made in innovation diffusion research over the past decades. |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2602.19488 |
| By: | Radovanovic Nikola; Fabbri Emanuele (European Commission - JRC); Sanz Macarena; Predic Marina; Radovanovic Nikola; Fabbri Emanuele (European Commission - JRC) |
| Abstract: | This paper examines the effectiveness of Smart Specialisation strategies in addressing sustainability and competitiveness challenges in the Western Balkans, a region whose innovation performance is strongly tied to EU accession efforts. Emphasizing green and digital transitions as key drivers but also situating Smart Specialisation within the New European Innovation Agenda (NEIA), the Growth Plan for the Western Balkans, and their emphasis on building connected Regional Innovation Valleys (RIVs), it highlights the need for system-level innovation focused on inclusive growth. The involvement of local players and strategic resource allocation remain crucial for practical outcomes. Evidence shows progress in digital infrastructure and sectoral initiatives, yet persistent gaps in data availability, skills and regulatory frameworks hamper uptake. In addition to environmental considerations, the paper draws attention to ICT cooperation, sectoral knowledge and innovation systems and sustainability reporting alignment as critical enablers for resilient development. Strengthening regional cooperation and stakeholder trust emerges as the key to optimising Smart Specialisation strategies for sustainable, innovation-led growth in line with EU priorities |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143970 |
| By: | Imen Bouhlel (ESSEC Business School, France); Nathalie Lazaric (Université Côte d'Azur, CNRS, GREDEG, France); Paolo Zeppini (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | Climate change calls for a transition to a more sustainable economy. Incumbent technologies pose a barrier to the diffusion of innovative solutions. Furthermore, the benefits of novel sustainable practices, such as recycling, can be offset by the adoption of obsolete polluting technologies. Understanding the mechanism of competitive diffusion is crucial for designing policies that favour promising but underdeveloped technologies. We propose an agent-based model where adoption occurs in a social network by word-of-mouth, in a percolation framework. We study how learning affects competitive diffusion and find that small differences in technologies' costs lead to large differences in their diffusion sizes. In addition, increasing the number of early adopters can back-fire and hinder overall diffusion. We calibrate the model to data on plastic waste recycling, where alternative solutions such as mechanical and physical/chemical technologies compete for a new market. Green public procurement, tax exemption and R&D boost are implemented for triggering sustainable transitions. The direction of technical change is discussed, as well as the role of policymakers in creating a shift in the plastic value chain. |
| Keywords: | Agent-based modeling; Learning curves; Mission-oriented policies; Networks; Percolation |
| JEL: | O33 Q55 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2026-04 |
| By: | Benoît Desmarchelier (CEPN - Centre d'Economie de l'Université Paris Nord - Université Sorbonne Paris Nord); Faridah Djellal (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Faïz Gallouj (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This article is devoted to the question of innovation in libraries. Ignored by ‘service studies', this question occupies an important place in library and information science, but is all too often approached in a way that is factual and descriptive. Drawing on advances in service economics and management, this article adopts a perspective of the library as an ‘architectural' or ‘assembled' service bringing together a number of core and peripheral services, and mobilizing competences and different types of technology to collaboratively generate, utilities for the user or community. We discuss how such a representation of the product can systematically account for the full complexity of the forms and dynamics of innovation in libraries. We have thus identified and empirically illustrated three general innovation logics (horizontal, vertical and diagonal), which differ according to the components of the library service on which they act, and which operate according to different modalities, reflecting different innovation trajectories. |
| Keywords: | Library, services, Innovation |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05332287 |
| By: | Jan LukÅ¡iÄ; Jörg Peschner; Giuseppe Piroli |
| Abstract: | We find that patents registered by multinational enterprises (MNEs) in tax havens help avoid taxes in the EU but fail to increase the total factor productivity (TFP) of EU-located group members. We conclude that many of those patents' prime purpose is not to make technology available and then diffuse it smoothly within the group. It is rather to avoid taxes in the EU by shifting profits to low-tax offshore entities. We suggest that implementing a comprehensive system of withholding taxes on outbound royalty payments could reduce profit-shifting associated with patents, thereby fostering more innovative and efficient uses of intellectual property. |
| Keywords: | Multinational enterprises, taxes, TFP, innovation. |
| JEL: | D24 F38 H21 H25 O32 |
| Date: | 2026–01–04 |
| URL: | https://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2026_04 |
| By: | Nicolas Crouzet; Pulak Ghosh; Apoorv Gupta; Filippo Mezzanotti |
| Abstract: | We show that the age composition of the population can shape the speed at which businesses adopt new technologies, using evidence from mobile payments in India. Consumers' propensity to use new payment technologies declines with age, creating stronger incentives for businesses serving younger customers to accept these technologies. We document this pattern in the rollout of a mobile payment option by a major fintech company. A model where consumer attitudes toward technology vary by age implies that business adoption is inefficiently low, with the young bearing disproportionate welfare losses from network externalities. Jointly subsidizing transaction and adoption costs restores efficiency. |
| JEL: | G23 J11 O33 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34885 |
| By: | Kateryna Tkach (Gran Sasso Science Institute); Alberto Marzucchi (Gran Sasso Science Institute); Ugo Rizzo (Department of Mathematics and Computer Science, University of Ferrara); Michela Borghesi (Department of Economics and Management, University of Ferrara) |
| Abstract: | We contribute to the literature on the green, digital and twin transitions by providing novel evidence on their implications for industrial dynamics. In particular, we investigate whether the local supply of skills in the green, digital and twin domains is related to firm entry and exit at the NUTS3 level in Italy. We exploit a recently created dataset on the near-universe of Italian university programme descriptions to capture the skills provided through higher education. We find that the supply of green, digital and twin skills enhances opportunities for firm entry. We rule out the possibility that this effect simply reflects the supply of high-skilled labour in general. The supply of green skills may induce higher industrial renewal, being it also correlated with higher exit rates. |
| Keywords: | skill supply; university graduates; industrial dynamics; local economic performance |
| JEL: | O33 Q55 J24 R11 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:srt:wpaper:0726 |
| By: | Fichter, Klaus; Neumann, Thomas; Olteanu, Yasmin; Grothey, Tim; Block, Jörn |
| Abstract: | Der Green Startup Report 2026, herausgegeben vom Borderstep Institut für Innovation und Nachhaltigkeit, analysiert die aktuelle Entwicklung der grünen Gründungslandschaft in Deutschland und setzt die seit 2013 kontinuierlich durchgeführte wissenschaftliche Beobachtung der Szene fort. Die Langzeitperspektive ermöglicht eine belastbare Einordnung struktureller Trends, technologischer Entwicklungen und Veränderungen der Gründungsdynamik. Die grüne Start-up-Community ist weiter gewachsen und umfasst inzwischen 4.668 Unternehmen (Gründungszeitraum 2016 - 2025). Grüne Start-ups leisten einen zentralen Beitrag zur technologischen Innovationsfähigkeit und zur Klimaschutzleistung des Wirtschaftsstandorts Deutschland. Sie zeichnen sich durch eine hohe Patentquote, überdurchschnittliche Forschungsintensität und ein erhebliches CO2-Minderungspotenzial aus. Im Durchschnitt reduzieren ihre Lösungen Treibhausgasemissionen um mehr als 70 Prozent gegenüber marktüblichen Technologien. Gleichzeitig zeigt der Report erstmals seit Jahren eine rückläufige Gründungsdynamik. Trotz stabiler und wachsender GreenTech-Märkte bremsen Aufmerksamkeitsverschiebungen in Politik und Öffentlichkeit sowie regulatorische Unsicherheiten insbesondere in kapitalintensiven Sektoren das weitere Wachstum. Der Green Startup Report 2026 liefert damit eine zentrale Datengrundlage für die strategische Weiterentwicklung der deutschen Start-up-, Innovations- und Klimapolitik. |
| Keywords: | grüne Start-ups, Gründungen, Kapital, Einhorn, Klimaschutzpotenzial, Finanzierung, Start-ups mit Investment, Patent, Nachhaltigkeit und Wettbewerbsfähigkeit, Innovationskraft, Scale-up-Strategie, Klimaschutzmaßnahmen, Förderung, Green-Startup-Ökosystem, Marktzugang, Künstliche Intelligenz KI, Geschäftsmodell, nachhaltiges Geschäftsmodell, Volatilität, Branchen, Green-Tech-Geschäftsmodell, Wirkungspotenzial, Frauenanteil, Business Angels, Venture Capital, Corporate Investment, Crowd-Investment, Kooperation, Purpose, Finanzierungsrunde, Technologie, Umweltinnovation, Energiewende, nachhaltige Chemie, Förderinstrumente, Klimaschutz, doppelte Dividende, Naturschutz, CO2-Emissionen, Impact, Materialkreislauf, Produktlebensweg, Lieferkette, Hackathon, Biodiversität, Skalierung, Nachhaltigkeit, GreenTech, Grand Challenges, Transformation, EU, Monitoring, Gründungsförderprogramme, Climate Forward Financing |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esrepo:337499 |