nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2012‒08‒23
twenty-two papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. The role of human capital in lowering barriers to engage in innovation: evidence from the Spanish innovation survey By D'Este,Pablo; Rentocchini,Francesco; Vega Jurado,Jaider M.
  2. Knowledge Flows, Organization and Innovation: Firm-Level Evidence from Malaysia By Cassey LEE
  3. Firm technological innovation persistence: Organizational innovation matters By HANED Naciba; LE BAS Christian; MOTHE Caroline; NGUYEN Thi Thuc Uyen
  4. Quantity or Quality? Collaboration Strategies in Research and Development and Incentives to Patent By LOPES BENTO Cindy; HOTTENROTT Hanna
  5. Do labour mobility and networks foster geographical knowledge diffusion? The case of European regions By Ernest Miguele; Rosina Moreno
  6. Bringing About Curriculum Innovations By Kiira Kärkkäinen
  7. Inovation and the city: Review of the Auckland regional innovation system By Chen, EeMun
  8. Creative and adaptive responses in technological change By Cecere, Grazia
  9. Knowledge, Location, and Internationalization: Empirical Evidence for Manufacturing SMEs By Anna Lejpras
  10. The development of intangible assets through the cohesion policy By Roth, Anne-Marie Monika; Popescu (Stingaciu), Ana-Maria
  11. Connected innovation:An international comparative study that identifies mixed modes of innovation By Marion Frenz; Ray Lambert
  12. Open innovation for sustainability: Lessons from the GreenXchange experience By Ghafele , Roya; D. O’Brien, Robert
  13. Open innovation strategy of Japanese SMEs: From viewpoint of ICT use and innovative technology By Idota, Hiroki; Bunno, Teruyuki; Tsuji, Masatsugu
  14. Interview Survey Results and Analysis on New Trends in Open Innovation in Large Japanese Corporations (Japanese) By MOTOHASHI Kazuyuki; UEDA Yoji; MINO Motoyasu
  15. Economic crisis and innovation: is destruction prevailing over accumulation? By Daniele Archibugi; Andrea Filippetti; Marion Frenz
  16. Globalization and Innovation in Indonesia: Evidence from Micro-Data on Medium and Large Manufacturing Establishments By Ari KUNCORO
  17. Skills, social insurance, and changes in innovation investment after the onset of the financial crisis in Europe By Andrea Filippetti; Frederick Guy
  18. Green innovations and organizational change: Making better use of environmental technology By Hottenrott, Hanna; Rexhäuser, Sascha; Veugelers, Reinhilde
  19. Promoting intellectual property monetization in developing countries : a review of issues and strategies to support knowledge-driven growth By Ghafele, Roya; Gibert, Benjamin
  20. The Impact of the Economic Crisis on Innovation: Evidence from Europe By Daniele Archibugi; Andrea Filippetti; Marion Frenz
  21. Private Equity and the Innovation Strategies of Entrepreneurial Firms: Empirical Evidence from the Small Business Innovation Research Program By Link, Albert N.; Ruhm, Christopher J.; Siegel, Donald S.
  22. Schumpeterian Patterns of Innovation and the Sources of Breakthrough Inventions: Evidence from a Data-Set of R&D Awards By Roberto Fontana,; Alessandro Nuvolari,; Hiroshi Shimitzu,; Andrea Vezzulli.

  1. By: D'Este,Pablo; Rentocchini,Francesco; Vega Jurado,Jaider M.
    Abstract: This paper focuses on the role of human capital in attenuating the barriers that block firms from engaging in innovation activities. The paper distinguishes between firms facing deterring barriers to innovation (firms deterred from engaging in innovation activities) and firms confronting revealed barriers (firms that experience barriers alongside their engagement in innovation activities). We investigate whether human capital has a particularly strong impact in lowering barriers among the former group of firms, since a strong skill base is likely to compensate for the lack of previous experience in innovation-related activities or the necessary complementary assets associated to innovation. We draw on four waves of the Spanish Innovation Survey and examine the impact of human capital on three types of obstacles to innovation: cost, knowledge and market obstacles. Results reveal that human capital has a significant impact in attenuating deterring barriers to innovation associated to knowledge shortages and market uncertainties.
    Keywords: Barriers to innovation, Innovative firms, Human Capital
    JEL: O31 O32 O33
    Date: 2012–08–03
  2. By: Cassey LEE (Cassey LEE School of Economics, University of Wollongong, Australia)
    Abstract: Technological upgrading of a countryfs manufacturing sector requires the enhancement of firm-level capabilities. Knowledge flows within firms and those between firms and other entities are important aspects of this process. The nature and significance of such knowledge flows for innovation-related activities (such as in-house R&D, acquisition of technology-embedded investments and training) are likely to differ for each type of activity. The links between innovation and knowledge flows are particularly important for innovation activities in the form of acquisition of machinery, equipment and software. There is also some weak evidence that globalization-related variables such as foreign direct investment and exporting can affect certain types of innovation activities such as training and acquisition of machinery, equipment and software. This study also finds that firm-level organizational dimensions and innovations are related to both internal and external knowledge flows. However, there is evidence that the links between innovative firms in Malaysia and other firms abroad in terms of co-operative activities are relatively weak. This raises the issue of whether such firms are able to tap the global technological-pool effectively.
    Date: 2012–06–01
  3. By: HANED Naciba; LE BAS Christian; MOTHE Caroline; NGUYEN Thi Thuc Uyen
    Abstract: Organizational innovation favors technological innovation, but does it also influence technological innovation persistence? This article investigates empirically the pattern of technological innovation persistence and tests the potential impact of organizational innovation using firm-level data from three waves of the French Community Innovation Surveys. Evidence shows a positive effect of organizational innovation on technological innovation persistence, according to various measures of organizational innovation. Moreover, this impact is more significant for complex innovators (i.e., those who innovate in both products and processes). These results highlight the complexity of managing organizational practices with regard to the firm?s technological innovation. They also add to comprehension of the drivers of innovation persistence, through a focus on an often forgotten dimension of innovation in a broader sense.
    Keywords: organizational innovation; technological innovation; persistence
    Date: 2012–06
    Abstract: Using count data models controlling for unobserved heterogeneity, this study shows for a large sample of R&D-active manufacturing firms in Flanders that collaborative R&D has a positive effect on firms? patenting in terms of both quantity and quality. However, when distinguishing between alliances that aim at joint creation of new knowledge and alliances that aim at the exchange of existing knowledge, the results suggest that the positive effect on patenting quantity is to a large extent driven by knowledge exchange alliances rather than joint R&D. Firms engaged in creation alliances, on the other hand, receive more forward citations per patent which indicates that joint R&D enhances patent quality. In the light of the literature on strategic patenting, our results may further suggest that creation alliances lead to patents that are filed to protect valuable intellectual property, while exchange alliances drive ?portfolio patenting? which has been shown to result in fewer citations for the individual patent.
    Keywords: R&D collaboration; Knowledge Exchange; Innovation; Patents; Count Data Models
    JEL: O31 O32 O33 O34
    Date: 2012–06
  5. By: Ernest Miguele (Economics and Statistics Division, WIPO; AQR-IREA, University of Barcelona.); Rosina Moreno (AQR-IREA, University of Barcelona)
    Abstract: The goal of this paper is twofold: first, we aim to assess the role played by inventors’ cross-regional mobility and networks of collaboration in fostering knowledge diffusion across regions and subsequent innovation. Second, we intend to evaluate the feasibility of using mobility and networks information to build cross-regional interaction matrices to be used within the spatial econometrics toolbox. To do so, we depart from a knowledge production function where regional innovation intensity is a function not only of the own regional innovation inputs but also external accessible R&D gained through interregional interactions. Differently from much of the previous literature, cross-section gravity models of mobility and networks are estimated to use the fitted values to build our ‘spatial’ weights matrices, which characterize the intensity of knowledge interactions across a panel of 269 regions covering most European countries over 6 years.
    Keywords: inventors’ spatial mobility, co-patenting, gravity models, weights matrix, knowledge production function.
    JEL: C8 J61 O31 O33 R0
    Date: 2012–07
  6. By: Kiira Kärkkäinen
    Abstract: The ways in which curriculum decision making is organised reflects different implicit approaches on how educational systems pertain to promote innovation in education. Curriculum holds an outstanding place when seeking to promote innovation in education, as it reflects the vision for education by indicating knowledge, skills and values to be taught to students. It may express not only what should be taught to students, but also how the students should be taught. Curriculum innovations can include new subjects, combinations of old subjects or cross-cutting learning objectives. They may also take a form of new content, concepts, sequencing, time allocation or pedagogy.<BR>Les politiques sur les programmes scolaires reflètent de manière implicite les façons par lesquelles les systèmes éducatifs cherchent à promouvoir l’innovation dans l’éducation. En effet, les programmes scolaires occupent une place centrale lorsqu’il s’agit de favoriser l’innovation dans l’éducation, puisqu’ils indiquent une direction pour l’éducation en spécifiant les connaissances, les compétences et valeurs à enseigner aux élèves. Ils concernent non seulement le contenu de l’apprentissage mais également la pédagogie à appliquer. Les innovations curriculaires peuvent intégrer de nouvelles matières, des combinaisons de matières traditionnelles ou encore un apprentissage transversal. Elles peuvent également concerner de nouveaux contenus ou concepts, une réorganisation du séquençage de l’apprentissage ou une nouvelle approche pédagogique.
    Date: 2012–07–20
  7. By: Chen, EeMun (Ministry of Economic Development, New Zealand)
    Abstract: Place matters in innovation. New ideas – and the capability to translate them into innovative goods, services, processes or markets – rely on the sharing of knowledge and resources by a diverse range of players, including firms, suppliers, employees, universities and government research institutes. For this paper, a review was undertaken to examine the extent to which Auckland has all the actors, linkages, inputs and framework conditions required for innovation. A regional innovation system approach was used. The review found that innovation in Auckland is constrained by business and management capability; a general lack of collaboration between business, and between industry and education/research organisations; and a lack of coordinated planning and investment to address the growth needs in areas of competitive strength. A number of recommendations for action are made for central, regional and local government to improve Auckland’s innovation performance, and thus New Zealand’s innovation performance.
    Keywords: regional innovation; innovation system; Auckland
    JEL: O10 O20 R11
    Date: 2012–05–01
  8. By: Cecere, Grazia
    Abstract: Drawing on Schumpeterian concept of creative and adaptive responses literature the article analyses how different firms' behaviour can influence structural and knowledge change at both firm and industry levels. We use this theoretical framework to analyse a qualitative case study analysing the transformation occurred in the telecommunication industry on the bounce of Voice over Internet Protocol (VoIP) in the consumer voice market segment. Both new entrants and incumbents have used and developed the technology but they have had different responses to the development of VoIP. The analysis of the case study shows that transformation in the industry structure takes place only once firms intentionally react creatively to change by exploiting all innovation features while adaptive responses reduce the pace of changes. --
    Keywords: creative and adaptive responses,technological change,VoIP
    JEL: L26 O32 O33
    Date: 2012
  9. By: Anna Lejpras
    Abstract: This paper investigates the links between locational conditions, innovative capabilities and internationalization of manufacturing SMEs. Two modes of foreign market servicing are explored: exporting activity and relocating of selected business activities abroad. The empirical analysis employs two probit models based on survey of about 3,000 firms. The results reveal that the outputs of SMEs' innovative activities-i.e., product innovations and patent applications-enhance exporting propensity as expected. Nevertheless, the input-side indicator-R&D intensity-appears to exert no impact. Further, the locational factor proximity to research institutions promotes SMEs' engagement in exporting. Regarding the determinants of selective relocations abroad, the findings show that SMEs with a high degree of R&D are less likely to separate production from other operations and relocate it abroad. Moreover, manufacturing SMEs assessing the proximity to research facilities, as well as support from various regional authorities and other bodies as important and good-quality locational conditions, exhibit a significantly lower likelihood to relocate selected activities abroad. Indeed, emphasizing the role of institutional setting in firm activity, our findings coincide in this respect with the previous literature focused on innovative milieu, learning regions and regional innovation systems.
    Keywords: Export, innovation, location, manufacturing SMEs, selective relocation abroad
    JEL: R30 O30 M16 L25
    Date: 2012
  10. By: Roth, Anne-Marie Monika; Popescu (Stingaciu), Ana-Maria
    Abstract: Intangible assets in general and intellectual capital in particular are important to both society and organizations. It can be a source of competitive advantage for business and stimulate innovation that leads to wealth generation. Technological revolutions, the rise of the knowledge-based economy and the networked society have all led to the same conclusion that intangibles and how they contribute to value creation have to be appreciated so that the appropriate decisions can be made to protect and enhance them. The Cohesion Policy represents the main EU measure to ensure a balanced and sustainable growth in Europe by promoting harmonious development and reducing the regional disparities. The general objective of the paper is to highlight the important role of the Cohesion Policy in the development of intangible assets. The objectives and the instruments of the Cohesion Policy are designed to support programs on regional development, economic change, enhanced competitiveness and territorial cooperation through the European Union, to develop human resources and employability. The article also attempts to outline the trends of the Cohesion policy for the future by presenting a series of measures suggested by the European Commission through the Europe 2020 Strategy in order to develop intangible assets.
    Keywords: intangible assets; intellectual capital; Cohesion policy; development
    JEL: O43 O34 G32 D24
    Date: 2012
  11. By: Marion Frenz (Department of Management, Birkbeck College University of London); Ray Lambert (Department of Management, Birkbeck College University of London)
    Abstract: This paper develops a typology of mixed modes of innovation - bundles of activities done by firms jointly to bring about new developments – and examines the role of the innovation modes in performance through the empirical analysis of innovation survey data from 18 OECD countries.
    Date: 2011–09
  12. By: Ghafele , Roya; D. O’Brien, Robert
    Abstract: Despite its rising popularity, open innovation has received relatively limited attention in the discussion of how to implement ‘green’ innovation, a fact which is of particular relevance within the context of the Rio+20 summit 2012. The GreenXchange (GX), which was launched in 2010 by Nike along with nine other organizations, is an important exception to this trend. The GX is a web-based marketplace for intellectual property (IP), which appears not to have lived up entirely to the original expectations set out at its creation. Other than Nike, only one other company – Best Buy – has agreed to place its IP assets on the GX and the vast majority of the posted IP cannot be used in the creation of commercial products. This paper explores in what ways the GX exemplifies both the usefulness and limitations of open innovation for sustainability and discusses the lessons that can be drawn from the GX experience in terms of the broader thinking on innovation, intellectual property and sustainability. It concludes by proposing ways that can help such initiatives be made to function better.
    Keywords: open innovation; sustainability; platform technologies; intellectual property commercialization; climate change mitigation
    JEL: O34 O32
    Date: 2012–06
  13. By: Idota, Hiroki; Bunno, Teruyuki; Tsuji, Masatsugu
    Abstract: --
    Date: 2012
  14. By: MOTOHASHI Kazuyuki; UEDA Yoji; MINO Motoyasu
    Abstract: Japanese firms, having to face global innovation competition and business reorganization targeting emerging markets in the world, are actively engaged in open innovation. In this paper, an interview survey conducted on nine large Japanese manufacturers provides the new trends in open and global innovation. They include (1) establishment of a dedicated function of open innovation, (2) open approach for the whole process of new business development, (3) strategic alliance activities, (4) collaboration with players in different industries for social innovation and (5) globalization of research and development (R&D) in emerging economies. Some policy implications drawn from the survey are (1) strengthening of management of technology (MOT) education, (2) stronger intellectual property rights (IPR) system and activating of the technology market and (3) policy actions against international technology leakage.
    Date: 2012–08
  15. By: Daniele Archibugi (Department of Management, Birkbeck College University of London); Andrea Filippetti (Institute for the Study of Regionalism, Federalism and Self-Government); Marion Frenz (Department of Management, Birkbeck College University of London)
    Abstract: This paper, based on the latest three waves of the UK Community Innovation Survey, compares drivers of innovation investment before and during the crisis, and finds that the crisis led to a concentration of innovative activities among fast growing and already innovative firms.
    Date: 2012–04
  16. By: Ari KUNCORO (Ari KUNCORO University of Indonesia, Jakarta, Indonesia)
    Abstract: In this paper we examine the impact of globalization on innovation in the Indonesian manufacturing sector. The lack of innovation data in the manufacturing survey has necessitated the use of R&D expenditure as an input in the innovation production function. Globalization is represented by being exporters, FDI and effective rate of protection (EPR). The model is set up such as within the concept of R&D as conditional input demand function, allowing labor productivity to have impact on R&D. In this case we find that less productive firms are less likely to venture into R&D activities. In terms of globalization variables we find that being exporters is important determinant of R&D. Meanwhile the impact of FDI firms on domestic R&D is only on the incidence not on the intensity of R&D. It will require a critical mass of firms within a location or an agglomeration to have a meaningful impact. Also lower ERP would induce firms to spend more on R&D. So lowering protection or trade barriers will have positive impact on R&D.
    Date: 2012–06–01
  17. By: Andrea Filippetti (Department of Geography, London School of Economics); Frederick Guy (Department of Management, Birkbeck College University of London)
    Abstract: We find that firms in countries which have both high earnings replacement rates and high participation in vocational education and training were less likely to reduce investments in innovation following the onset of the financial crisis; countries with only one of these features were more likely to see reduced investment in innovation; job security appears to have no effect.
    Date: 2012–08
  18. By: Hottenrott, Hanna; Rexhäuser, Sascha; Veugelers, Reinhilde
    Abstract: The literature on within-firm organizational change and productivity suggests that firms can make more efficient use of certain technologies if complementary forms of organization are adopted. This issue may be of even greater importance for the case of greenhouse gas (GHG) abatement technologies imposed by public authority as to reduce social costs of climate change while they are not necessarily expected to increase private returns. Previous research, however, has largely neglected this aspect. Using German firm-level data, we find that organizational change increases the returns to he use of CO2 reducing technologies and that joint adoption leads to higher productivity. Without having introduced complementary organizational innovations, the adoption of CO2 reducing technologies is associated with lower productivity. --
    Keywords: firm behavior,technical change,innovation,environmental innovation,organizational change,productivity
    JEL: D23 O33 O32 Q55 L23 D24
    Date: 2012
  19. By: Ghafele, Roya; Gibert, Benjamin
    Abstract: As IP ownership grows, it is increasingly significant to identify the various mechanisms available to rights holders in developing countries to commercialize their intellectual property rights (IPRs). This study reviews several IP monetization strategies in order to emphasize the ways that IP can be used to generate domestic innovation and growth within developing nations. Essentially, we are asking: what methods enable developing country innovators to commercialize their technology within their own nation and abroad? In doing so, we outline the different commercial tools available to innovators in the developing world in order to monetize patents and foster the diffusion of technology, thus attracting opportunities for joint ventures and other forms of international technological collaboration. This method contrasts with more common approaches that investigate how developing countries can attract Foreign Direct Investment (FDI) from Multinational Corporations (MNCs) through the enforcement mechanisms of a strong IP regime.
    Keywords: Intellectual Property Commercialization Divide; Global Licensing Revenues; Patent Securitization;Patent Exchanges; Technology Transfer; Patent Commercialization Ecosystems; Patent Litigation Support
    JEL: O34 O32
    Date: 2012–07
  20. By: Daniele Archibugi (Department of Management, Birkbeck College University of London); Andrea Filippetti (Institute for the Study of Regionalism, Federalism and Self-Government); Marion Frenz (Department of Management, Birkbeck College University of London)
    Abstract: Building on the Schumpeterian hypotheses of creative destruction and technological accumulation, the paper compares drivers of innovation investment before, during and following on from the onset of the recent economic crisis through the analysis of a fresh survey of European firms.
    Date: 2012–04
  21. By: Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Ruhm, Christopher J. (University of Virginia); Siegel, Donald S. (University at Albany, SUNY)
    Abstract: There is great interest in evaluating the impact of private equity investments on innovation and economic growth. However, there is no direct empirical evidence on the effects of such transactions on the innovation strategies of entrepreneurial firms. We fill this gap by examining a rich project-level data set consisting of entrepreneurial firms receiving Small Business Innovation Research (SBIR) program research awards. We find that SBIR firms attracting private equity investments are significantly more likely to license and sell their technology rights and engage in collaborative research and development agreements. Our results suggest that private equity investments accelerate the development and commercialization of research-based technologies, thus contributing to economic growth. We conclude that both public investments and private investments are key to innovation performance.
    Keywords: Private equity; Innovation; Entrepreneurship; SBIR
    JEL: G24 G34 L26 O31 O33 O38
    Date: 2012–08–02
  22. By: Roberto Fontana,; Alessandro Nuvolari,; Hiroshi Shimitzu,; Andrea Vezzulli.
    Abstract: This paper examines the relationship between Schumpeterian patterns of innovation and the generation of breakthrough inventions. Our data source for breakthrough inventions is the “R&D 100 awards” competition organized each year by the magazine Research & Development. Since 1963, this magazine has been awarding this prize to 100 most technologically significant new products available for sale or licensing in the year preceding the judgment. We use instead USPTO patent data to measure the relevant dimensions of the technological regimes prevailing in each sector and, on this basis of this information, we provide a characterization of each sector in terms of the Schumpeter Mark I/Schumpeter Mark II archetypes. Our main finding is that breakthrough inventions are more likely to emerge in “turbulent” Schumpeter Mark I type of contexts.
    Date: 2012–07

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