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on Innovation |
| By: | Paul H\"unermund; Ann Hipp |
| Abstract: | This study examines the inter-organizational and spatial mobility patterns of East German inventors following the fall of the Berlin Wall. Existing research often overlooks the role of informal institutions in the mobility decisions of inventors, particularly regarding access to and transfer of knowledge. To address this gap, we investigate the unique circumstances surrounding the dissolution of the German Democratic Republic, which caused a significant shock to establishment closures and prompted many inventors to change their jobs and locations. Our sample comprises over 25, 000 East German inventors, whose patenting careers in reunified Germany post-1990 are traced using a novel disambiguation and matching procedure. Our findings reveal that East German inventors in technological fields where access to Western knowledge was facilitated by industrial espionage were more likely to pursue inter-organizational mobility and continue their inventive activities in reunified Germany. Additionally, inventors from communities with strong political support for the ruling socialist party encountered difficulties in sourcing knowledge through weak ties, resulting in a lower likelihood of continuing to patent. However, those who overcame these obstacles and continued to produce inventions were more likely to relocate to West Germany, leaving their original social contexts behind. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.01861 |
| By: | Su Jung Jee; Kerstin H\"otte |
| Abstract: | Escaping the middle-income trap requires a country to develop indigenous technological capabilities for high value-added innovation. This study examines the role of second-tier patent systems, known as utility models (UMs), in promoting such capability acquisition in less developed countries. UMs are designed to incentivize incremental and adaptive innovation through lower novelty standards than patents, but their long-term impact on the capability acquisition process remains underexplored. Using South Korea as a case study and drawing on the characteristics of technological regimes in catching-up economies, we present three key findings: First, the country's post-catch-up frontier technologies (U.S. patents) are more impactful (highly cited) when they build on Korean domestic UMs. This suggests that UM-based imitative and adaptive learning laid the foundation for the country's globally competitive capabilities. Second, the impact of UM-based learning diminishes as the country's economy develops. Third, frontier technologies rooted in UMs contribute more to the country's own specialization than to follow-on innovations by foreign actors, compared to technologies without UM linkages. We discuss how technological regimes and industrial policies in catching-up economies interact with the UM system to bridge the catching-up (imitation- and adaptation-based) and post-catching-up (specialization- and creativity-based) phases. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.14205 |
| By: | Michael Fritsch (Friedrich Schiller University Jena) |
| Abstract: | This article discusses the concept of entrepreneurial ecosystems. In particular, three propositions are made for further development of the concept. First, it is argued that entrepreneurial ecosystems should be regarded a part of the regional innovation system. Second, the scope of the concept should be expanded beyond high-performance start-ups and their founders to include the entire universe of "‘everyday" entrepreneurship. Third, the concept should account for the incumbent firms and the regional workforce. The paper then outlines main challenges of further development of the concept. |
| Keywords: | Regional entrepreneurship, entrepreneurial ecosystems, regional development, entrepreneurship policy |
| JEL: | L26 R11 O2 |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:jrp:jrpwrp:2024-0067 |
| By: | Hipólito, Inês |
| Abstract: | This paper applies complex systems theory to examine generative artificial intelligence (AI) as a contemporary wicked problem. Generative AI technologies, which autonomously create content like images and text, intersect with societal domains such as ethics, economics, and governance, exhibiting complex interdependencies and emergent behaviors. Using methodologies like network analysis and agent-based modeling, the paper maps these interactions and explores potential interventions. A mathematical model is developed to simulate the dynamics between key components of the AI-society system, including AI development, economic concentration, labor markets, regulatory frameworks, public trust, ethical implementation, global competition, and distributed AI ecosystems. The model demonstrates non-linear dynamics, feedback loops, and sensitivity to initial conditions characteristic of complex systems. By simulating various interventions, the study provides insights into strategies for steering AI development towards more positive societal outcomes. These include strengthening regulatory frameworks, enhancing ethical implementation, and promoting distributed AI ecosystems. The paper advocates for using this complex systems framework to inform inclusive policy and regulatory strategies that balance innovation with societal well-being. It concludes that embracing complexity enables stakeholders to better navigate the evolving challenges of generative AI, fostering more sustainable and equitable technological advancements. |
| Date: | 2024–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:aq4tw |
| By: | Enrique Ide; Eduard Talam\`as |
| Abstract: | Do improvements in Artificial Intelligence (AI) benefit workers? We study how AI capabilities influence labor income in a competitive economy where production requires multidimensional knowledge, and firms organize production by matching humans and AI-powered machines in hierarchies designed to use knowledge efficiently. We show that advancements in AI in dimensions where machines underperform humans decrease total labor income, while advancements in dimensions where machines outperform humans increase it. Hence, if AI initially underperforms humans in all dimensions and improves gradually, total labor income initially declines before rising. We also characterize the AI that maximizes labor income. When humans are sufficiently weak in all knowledge dimensions, labor income is maximized when AI is as good as possible in all dimensions. Otherwise, labor income is maximized when AI simultaneously performs as poorly as possible in the dimensions where humans are relatively strong and as well as possible in the dimensions where humans are relatively weak. Our results suggest that choosing the direction of AI development can create significant divisions between the interests of labor and capital. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.16443 |
| By: | Azzeddine Allioui (ESCA Ecole de Management, Morocco) |
| Abstract: | This research investigates the complex dynamics of innovation postures inside family businesses, revealing a typology that combines a predilection for risk with a strong adherence to tradition. The diverse routes illuminated by the Seasoner, Re-enactor, Digger, and Adventurer attitudes inside family enterprises have a distinctive impact on the innovation atmosphere. Through an examination of the relationship between these positions and the aspects of the family system, namely aim variety and coherence, we can decipher the paradox of innovation willingness in family businesses. Moreover, succession presents a critical occasion for reorientation, providing insight into how intergenerational family enterprises manage the intricate equilibrium between risk-taking and tradition. |
| Keywords: | innovation dynamics, tradition, family-owned firms, intergenerational family enterprises |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0395 |