nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2017‒10‒29
four papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Welfare effects of R&D support policies By Takalo, Tuomas; Tanayama, Tanja
  2. ICT Use, Connectivity, and Innovation Capability in Japanese SMEs By Shigeno, Hidenori; Tsuji, Masatsugu; Matsuzaki, Taisuke; Shinohara, Sobee
  3. Innovation, Skills and Investment: A Digital Industrial Policy for Europe By Gruber, Harald
  4. Improving your digital intelligence By Jacques Bughin; Tanguy Catlin; Bryce Hall; Nicolas van Zeebroeck

  1. By: Takalo, Tuomas; Tanayama, Tanja
    Abstract: We conduct a welfare analysis of R&D subsidies and tax credits using a model of innovation policy in corporating externalities, limited R&D participation and finanial market imperfetions. We estimate the model using R&D projet level data from Finland. The optimal R&D tax credit rate (0.24) is lower than the average R&D subsidy rate (0.36). The intensive, not the extensive margin of R&D is important for poliy. Tax credits and subsidies inrease R&D investments and spillovers compared to laissez-faire but to levels below the first best. R&D support policies don't improve welfare.
    JEL: O38 O31 L53 C31
    Date: 2017–10–16
  2. By: Shigeno, Hidenori; Tsuji, Masatsugu; Matsuzaki, Taisuke; Shinohara, Sobee
    Abstract: This paper seeks to construct a new theory on SME innovation by reviewing and comprehending findings and knowledge obtained to date from a unified perspective. Conventional research on innovation in general has focused thematically on individual factors such as absorptive capability, R&D, and open innovation. While this approach has its advantages, it is critical to research innovation as a single process from a broad perspective and framework. This analyzes how SMEs acquire new information and ideas that are the source of innovation, organize and conduct R&D to integrate these ideas with management resources within the frim, and finally, how they produce the concrete output of these steps that lead to the development of new products. Our research especially seeks to answer what elements are needed in this process, and how they should be combined. In addition, this paper focuses on internal innovation capability which includes factors such as technologies that the company own, human resources (human factor), managerial organizational form (organization), leadership, and so on. These factors also consist of detailed sub-factors. The examples of the third layer contain as the following factors, for example. The technological factor includes the following factors: (a) ratio of R&D expenditure to sales; (b) the number of intellectual property right owned; and (c) technical and management systems such as R&D. (ii) Managerial organization indicates whether the managerial organization is designed and functioning to encourage exchange and share information among employees or communications inside the firm for innovation. This consists of the following sub-factors: (d) practicing QC circle; (e) cross-functional team; (f) information sharing system using ICT; and (g) the traditional background to stimulate discussions and communications among sections of the firms. Finally, the human resources is an important factor for engaging in innovation activities as well as for design and managing R&D, which consist of the following sub-factors: (h) ability of top management such as degrees or experiences; (i) leadership of top management; (j) degrees and experiences of employees; and (k) the Human Resource Development scheme (HRD) such as OJT (On-the-job training) or OFFJT (Off-the-job training). This paper particularly focuses on factors such as technology, R&D, and ICT use.
    Keywords: External linkages,SEM,causality,open innovation
    Date: 2017
  3. By: Gruber, Harald
    Abstract: This paper identifies the main factors for Europe’s delays in embracing the well proven growth enhancing effects of digital technologies. It argues that market failures, including externalities from knowledge spillovers, cybersecurity and first mover advantages justify public support. The whole value added chain of digital production is entailed, starting with infrastructure investment and R&D relevant for digital sectors, along with qualified skills of researchers and of workers, coming to skill sets provided by the education sector. Emphasis is put on the efficient leverage effects that can be achieved by combining public and private sector funds through financial instruments.
    Keywords: Industrial policy,ICT,R&D,Innovation,Investment,Education
    JEL: L52 O16 O38
    Date: 2017
  4. By: Jacques Bughin; Tanguy Catlin; Bryce Hall; Nicolas van Zeebroeck
    Date: 2017–10–20

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