nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2007‒07‒07
fourteen papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Knowledge Flows, Patent Citations and the Impact of Science on Technology By Verspagen, Bart; Nomaler, Onder
  2. Collusion and research joint ventures By Kaz Miyagiwa
  3. External technology sourcing: The effect of uncertainty on governance mode choice By Duysters, Geert; Vanhaverbeke, Wim; Vrande, Vareska van de
  4. R&D offshoring and technology learning in emerging economies: Firm-level evidence from the ICT industry By Huang, Can; Qu, Zhe; Zhang, Mingqian; Zhao, Yanyun
  5. Technological capability building through networking strategies within high-tech industries By Duysters, Geert; Vanhaverbeke, Wim; Beerkens, Bonnie
  6. A National Systems View of University Development: Towards a Broadened Perspective on the Entrepreneurial University Based on the German and US Experience By Mark Lehrer; Phillip Nell; Lisa Gärber
  7. Access (not) granted: What kinds of firms participate in technology programs? By Tommy Clausen
  8. Open Source Software and Economic Growth: A Classical Division of Labor Perspective By Garzarelli, Giampaolo; Limam, Yasmina Reem; Thomassen, Bjørn
  9. A Test of Perpetual R and D Races By Yves Breitmoser; Jonathan H. W. Tan; Daniel John Zizzo
  10. Creative destruction in a model of competitive innovation By Staley, Mark
  11. Exploration and Exploitation in Technology-based Alliance Networks By Duysters, Geert; Vanhaverbeke, Wim; Beerkens, Bonnie; Gilsing, Victor
  12. The Innovation System of Norwegian Aquacultured Salmonids By Heidi Wiig Aslesen
  13. The development of the Norwegian Petroleum Innovation System: A historical overview By Ole Andreas Engen
  14. Innovation and production in the Norwegian aluminium industry By Svein Erik Moen

  1. By: Verspagen, Bart (Eindhoven University of Technology); Nomaler, Onder (Eindhoven University of Technology)
    Abstract: Technological innovation depends on knowledge developed by scientific research. The num-ber of citations made in patents to the scientific literature has been suggested as an indicator of this process of transfer of knowledge from science to technology. We provide an intersec-toral insight into this indicator, by breaking down patent citations into a sector-to-sector ma-trix of knowledge flows. We then propose a method to analyze this matrix and construct vari-ous indicators of science intensity of sectors, and the pervasiveness of knowledge flows. Our results indicate that the traditional measure of the number of citations to science literature per patent captures important aspects intersectoral knowledge flows, but that other aspects are not captured. In particular, we show that high science intensity implies that sectors are net suppli-ers of knowledge in the economic sector, but that science intensity does not say much about pervasiveness of either knowledge use or knowledge supply by sectors. We argue that these results are related to the specific and specialized nature of knowledge.
    Keywords: Knowledge, Input-Output Analysis, Knowledge Flow Matrices, Science-to-Technology Transfer, Patents
    JEL: D83 C67 O33
    Date: 2007
  2. By: Kaz Miyagiwa
    Abstract: We examine whether cooperation in R&D leads to product market collusion. Suppose firms compete in a stochastic R&D race while maintaining the collusive equilibrium in a repeated-game framework. Innovation creates a cost asymmetry and destabilizes the collusive equilibrium. Firms forming an R&D joint venture can maintain cost symmetries through technology sharing agreement, thereby stabilizing collusion. The stability of post-discovery collusion makes collusion stable in pre-discovery periods. However, formation of R&D cooperatives may increase social welfare because firms share an efficient technology. Interestingly, a welfare improvement is less likely if innovation leads to a large cost reduction.
    Date: 2007–03
  3. By: Duysters, Geert (UNU-MERIT); Vanhaverbeke, Wim (Technical University Eindhoven); Vrande, Vareska van de (Technical University Eindhoven)
    Abstract: This study examines the effect of external and relational uncertainty on the governance choice for inter-organizational technology sourcing. We develop a number of hypotheses about the impact of environmental turbulence, technological newness, technological distance and prior cooperation on the choice between different governance modes. Data about external technology sourcing transactions in the pharmaceutical industry do not provide evidence for a continuum from less to more integrated sourcing modes. However, we find that the ranking depends on the type of uncertainty, indicating that firms tackle different types of uncertainty with different governance modes.
    Keywords: Open Innovation, Corporate Venture Capital, Mergers and Acquisitions
    JEL: O32 O31 G34 G24
    Date: 2007
  4. By: Huang, Can (UNU-MERIT); Qu, Zhe (College of Management, Georgia Institute of Technology); Zhang, Mingqian (School of Economics, Hebei University of China); Zhao, Yanyun (Center for Applied Statistic and School of Statistics, Renmin University of China)
    Abstract: This paper studies the impact of the R&D offshoring of multinational enterprises on the firms in host emerging economies. We develop a two-stage non-cooperative game to analyze the strategic interaction between multinational and host country enterprises engaged in R&D investment. An empirical analysis of 12,309 manufacturing firms in the ICT industry in China shows that R&D offshoring has a positive effect on the intensity of the R&D of host country firms. However, the magnitude of the impact depends on both the technological and geographical distance between the multinational and host country firms. The policy implications of these findings are that the governments of host country should be cautious about allowing advanced multinational R&D investment in under-developed sectors, but they should encourage such investment in developed sectors; and that local governments should be involved in R&D policy making because the positive impact of multinational R&D offshoring diminishes as the geographical distance between the multinational and host country firms increases.
    Keywords: Research and Development, Offshoring, Spillovers, Emerging Economies
    JEL: F23 L23 O32 O33
    Date: 2007
  5. By: Duysters, Geert (UNU-MERIT); Vanhaverbeke, Wim (Technical University Eindhoven); Beerkens, Bonnie (Technical University Eindhoven)
    Abstract: Learning through networks has been considered as an important research topic for several years now. Technological learning is more and more based on a combination of internal and external learning and firms need to develop both technological and social capital for that purpose. This paper analyses the relationship between both types of capital and their impact on the technological performance of companies in high-tech industries. We claim and find empirical evidence for decreasing marginal returns on social capital. Technological capital and social capital mutually reinforce each other's effect on the rate of innovation for companies with small patent and alliance portfolios. However, when the patent portfolio and network of alliances are extensive, companies risk to over-invest since optimal levels of social capital become smaller at higher levels of technological capital and the marginal benefits of investing in technological capital decreases the higher the levels of social capital. Finally, we find empirical evidence that companies that explore novel and pioneering technologies have higher levels of innovation performance in subsequent years than companies that solely invest in incremental innovations.
    Keywords: Strategic Alliances, Networks, Innovation
    JEL: O32 O31
    Date: 2007
  6. By: Mark Lehrer; Phillip Nell; Lisa Gärber
    Abstract: This paper postulates a life cycle model of university entrepreneurialism at the national level. Based on the analysis, this paper identifies two fundamental sources of such entrepreneurialism: 1) the institutional anchoring of the university of a public-private hybrid form in organization and finance; 2) decentralization of the system in such a way as to encourage a high level of competition and differentiation. We hypothesize that when national university systems grow and exhibit signs of demand overload, political pressures for system homogenization increase; system homogenization weakens both sources of entrepreneurialism and leads to decline. The sources of decline are thus unintended consequences of policy choices to cope with the side effects of demand overload within national university systems. Implications for the ascendant Chinese university system are derived.
    Keywords: Entrepreneurial University, German University System, US University System, National Systems of Innovation, Interregional Competition, R&D Reform
    JEL: I23 N30 N32 N33
    Date: 2007–06
  7. By: Tommy Clausen (Centre for Technology, Innovation and Culture, University of Oslo)
    Abstract: In this paper we focus on the participation stage and analyze what kinds of firms that are granted access to the 5 most important technology programs in Norway. Based upon a combination of logistic regression and factor analysis we find that the public support system for R&D in Norway is built around export oriented, innovative and larger firms. Technology programs support these firms with “research” and “development” subsidies in order to support the development of national champions.
    Date: 2007–07
  8. By: Garzarelli, Giampaolo; Limam, Yasmina Reem; Thomassen, Bjørn
    Abstract: The article turns to classical economic insights on the division of labor and to institutional reasoning to identify some costs and benefits of Open Source Software (OSS) and proprietary software production. It suggests that, thanks to its licenses, OSS favors market expansion more than proprietary software does by tapping into spontaneous work input. The spontaneous tapping leads to a division of labor that exhibits what the article calls redundant economies. By generating a circle of knowledge growth, reuse, and sharing, redundant economies lead to increasing returns, which are crucial for economic growth.
    Keywords: Division of Labor; Extent of the Market; Increasing Returns; Institutions; Knowledge; Open Source Software; Redundant Economies.
    JEL: O34 D20 O33 L23 L17
    Date: 2007–06–22
  9. By: Yves Breitmoser (Institute of Microeconomics, European University Viadrina); Jonathan H. W. Tan (Institute of Microeconomics, European University Viadrina); Daniel John Zizzo (Centre for Competition Policy, University of East Anglia)
    Abstract: This paper presents an experimental study of dynamic indefinite horizon R and D races with uncertainty and multiple prizes. The theoretical predictions are highly sensitive: small parameter changes determine whether technological competition is sustained over time of converges into a market structure with an entrenched leadership and lower aggregate R and D research. The subjects' strategies are far less sensitive. In three out of four treatments (with the exception being a control treatment), the R and D races tend to converge to entrenched leadership. Investment is highest when rivals are close, and there is evidence of average over-investment.
    Keywords: R&D race, innovation, dynamics, experiment
    JEL: C72 C91 O31
    Date: 2006–07
  10. By: Staley, Mark
    Abstract: This paper presents a scale-invariant model of endogenous growth built on the premise that delays in the diffusion of technologies allow innovators to capture temporary rents. The economy consists of two sectors: a final goods sector that follows constant returns to scale, and an innovative capital sector consisting of a large number of price-taking firms that make incremental improvements to embodied technologies. The model has the property that as one increases the rate of diffusion of innovations, the growth rate of the economy increases even though the level of R&D spending decreases. A process of selection, mathematically similar to Darwinian selection, drives both the diffusion of innovations and the accumulation of capital. The paper shows that by reversing the roles of capital and labour the model can also be used to describe the pre-industrial economy.
    Keywords: creative destruction; competitive innovation; endogenous growth; Schumpeterian; selection; Darwinism; diffusion
    JEL: O40 O30 N00
    Date: 2007–07–02
  11. By: Duysters, Geert (UNU-MERIT); Vanhaverbeke, Wim (ECIS, Technical University Eindhoven); Beerkens, Bonnie (ECIS, Technical University Eindhoven); Gilsing, Victor (ECIS, Technical University Eindhoven)
    Abstract: Although the literature converges regarding the reasons why and how networks of technology alliances are formed, there is still lack of agreement on what constitutes an optimal network structure, once it has been formed. The aim of this paper is to fill this void and to determine what constitutes an optimal network structure for exploration and exploitation within the context of technological innovation. We differentiate among a firm's direct ties, indirect ties and degree of redundancy and analyze their role in the pharmaceutical, chemical and automotive industry. Regarding the role of direct ties, in combination with indirect ties, we find two alternative alliance network structures that are effective for both exploitation and exploration. We also find that redundancy in a firm's alliance network has a positive effect on exploitation. This is not the case for exploration, however, which seems to reveal a new insight into the role of redundancy when firms explore new technological fields. A final point is that our findings remain largely invariant across the three industries, enhancing the generalisability of our results.
    Keywords: Networks, Strategic Alliances, Innovation, Learning
    JEL: O32 O31 D85
    Date: 2007
  12. By: Heidi Wiig Aslesen (Norwegian Institute for Studies in Research and Education - Centre for Innovation Research)
    Abstract: This paper is about one of the most important export products in Norway, “Norwegian salmon”, focusing especially on the innovation system of aquaculture of salmon and trout in Norway, the aim of the paper is to describe the sector in a national and global context, for thereafter highlight in particular how different aquaculture firms operate and carry out innovation by looking at what kind of external relations and interactive learning processes are involved in innovation, and as such suggesting input to policy makers on how to strengthen the sectoral innovation system, a sector with the potential to become even more knowledge intensive and innovative than today. By differentiating aquaculture according to knowledge base and degree of structured and functionally differentiated organisations, the empirical material presented in this paper shows that aquaculture firms have very different approaches to innovation; from antiinnovation strategies to strategies of being in the fore-front of innovation in the industry. The empirical material has shown that firms with very operative innovation systems exists side-by-side and the overall functioning of the sectoral innovation system of aquaculture is influenced by all the different layers of firm types.
    Date: 2007–07
  13. By: Ole Andreas Engen (University of Stavanger)
    Abstract: This paper addresses the development of the Norwegian Petroleum Innovation System. The characteristics of the Norwegian Petroleum Innovation System were on the one hand the increasing ability to solve bottlenecks connected to production and operation on the Norwegian shelf, and on the other a gradual learning process which enabled a large portion of Norwegian participation in the petroleum business. While the initial phase of the petroleum development of Norway in the sixties was characterised by an absorptive capacity of receiving new technology, the building of Norwegian competence in the seventies and eighties was in certain respects directly shaped by public policy in order to participate. With the Condeep design it became possible to speak of an independent Norwegian petroleum industry. The development of Norwegian producer and supplier companies signified that petroleum activity in Norway was entering a new phase. In the R/D System of Norway petroleum education and research were introduced at several levels. Due to new cost efficient technologies introduced in the nineties, we may say that the adjustment was concluded by the beginning of 21st century. The Norwegian oil and gas actors perceived themselves ready to fully participate in the international system of energy producers.
    Date: 2007–07
  14. By: Svein Erik Moen (Centre for Technology, Innovation and Culture, University of Oslo)
    Abstract: The paper analyses the path of the Norwegian primary aluminium industry. From the industry’s initiation in 1908 it has relied upon the close interaction with foreign aluminium MNEs with regard to knowledge, technological innovation and market access. After 1945 it has also been strongly supported by Norwegian institutions. The case gives important insights to the innovation system literature regarding how the drivers of innovation are influenced by the interaction between the national and the sectoral level; this also necessitates an international perspective of the industry’s innovation and production system. The character of these linkages has change through time.
    Date: 2007–07

This nep-ipr issue is ©2007 by Roland Kirstein. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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