nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2018‒06‒11
four papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Patterns of Knowledge Outflow from Industrial Marketing Management to Major Marketing and Specialized Journals (1999-2013): A Citation Analysis By Anthony Di Benedetto; Shikhar Sarin; Mustapha Belkhouja; Christophe Haon
  2. Corporate returns to subsidized R&D projects: Direct grants vs tax credit financing By Møen, Jarle
  3. Do the financial sources of external funds affect research productivity? -A departmental level analysis of seven former imperial universities of Japan By Miki Miyaki; Yuko Okajima
  4. R&D financing and growth By Luca, Spinesi; Mario, Tirelli

  1. By: Anthony Di Benedetto (Fox School of Business); Shikhar Sarin (Boise State University - Boise State University); Mustapha Belkhouja (GEM - Grenoble Ecole de Management - Grenoble École de Management (GEM)); Christophe Haon (GEM - Grenoble Ecole de Management - Grenoble École de Management (GEM))
    Date: 2018
  2. By: Møen, Jarle (Dept. of Business and Management Science, Norwegian School of Economics)
    Abstract: According to theory, direct R&D grants should be used for projects with low private returns, high social returns and high risk. R&D tax credits, on the other hand, allow firms to choose projects freely according to their private returns. Building on the standard R&D capital model, I develop a framework for estimating private returns to R&D projects with different types of funding. I apply the framework to estimate the corporate returns to subsidized R&D projects in Norway. Consistent with theory and a high quality grant allocation process, I find that projects funded through direct grants have private returns that are not significantly different from zero and with high variance, while the return to R&D projects financed by tax credits is just slightly below the return to R&D projects financed by own funds. The latter two return estimates are 16 % and 19 % respectively. I find that SMEs and small R&D performers have somewhat higher returns to R&D than larger firms. The overall return estimate across all types of finance is 15 %. This is in line with recent meta-regression results in the international literature.
    Keywords: Returns to R&D; R&D capital model; Knowledge capital model; R&D subsidies; R&D grants; R&D tax credit; Innovation Policy; Technology policy; Norway
    JEL: H25 O32 O38
    Date: 2018–05–31
  3. By: Miki Miyaki (Rikkyo University, Collage of Business); Yuko Okajima (Osaka University, Office of Management and Planning)
    Abstract: This study examines research productivity of departments of seven former imperial universities of Japan. In this study, we categorize the departments into five academic fields: engineering, health science, economics, science, and agriculture. The study examines whether fundamental and external research funds positively affect the research productivity, which is measured by the number of papers accepted in international academic journals. Additionally, we investigate whether the financial sources of external research funds can affect productivity differently and if there is any variation among the five academic fields. The estimation results showed that, first, the increase of fundamental and external funds per faculty member is positively correlated with research productivity in the fields of engineering and health science. Second, considering the results of further investigation into the effects of external funding, research funding by the public sector can increase productivity in all the five academic fields. Third, the results pertaining to private research funds show that research funding provided by firms can increase productivity in engineering and health science. However, for economics, the increase in external funding from firms is negatively correlated with research productivity. This is possibly because the purpose of industry-university collaboration differs according to the academic field. Regarding economics, the output from the resulting collaboration might not result in the production of an academic paper from the department but rather lay the groundwork for effective policy making or consulting in favor of the firm on the basis of quantitative analysis. This study is the first attempt by Japanese universities to analyze research productivity at the plurality departmental level. The empirical results show that depending on the discipline, the same resources of research funding can have different impact on research productivity. Nowadays, the Japanese central government has been reforming the resource allocation systems of universities by evaluating their research performance, basing them more on the quantitative indicators such as KPI (Key Performance Indicators). However, a key result of this study implies that when the relative evaluation of universities is applied, each university fs situation must be more carefully considered, especially in terms of what kinds and shares of academic departments it has.
    Keywords: external funds, financial sources, research productivity, departmental analysis, five academic fields
    JEL: I22 I23 I28
    Date: 2018–06
  4. By: Luca, Spinesi; Mario, Tirelli
    Abstract: R&D investment are an important engine of growth and development. Yet economists have often claimed underinvestment, also due to the asymmetric information between inside investors and outside investors and financiers, and the consequent capital and financial market imperfections. Some recent empirical evidence robustly supports these claims. Motivated by this evidence, we study the effects of asymmetric information and financial frictions on R&D investment within a dynamic GE economy of Shumpeterian tradition. The model and equilibrium concept we propose is rich enough to represent investment and innovation decisions, financial decisions and decisions regarding technology adoption/diffusion through patent licensing. Qualitative predictions indicate that the financial policy of the firm matters in explaining both entrepreneurial production and innovation decisions. Young R&D-intensive firms might rely more heavily on internal sources and equity than on debt financing, relatively to what would otherwise be observed in absence of frictions. These findings contribute to explain the type of financial hierarchy recently highlighted in the empirical studies.
    Keywords: Innovation, R&D, Shumpeterian growth, firm financial structure, asymmetric information, financial markets, general equilibrium.
    JEL: D5 D53 D92 O31 O33 O34 O4
    Date: 2018–04–30

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