nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2007‒01‒14
five papers chosen by

  1. Jostling for Advantage: Licensing and Entry into Patent Portfolio Races By Ralph Siebert; Georg von Graevenitz
  2. The Industry R&D Survey: Patent Database Link Project By William Kerr; Shihe Fu
  3. Taking the First Hurdle. The Effects of Industry Specific Skills and Support on Survival During the Founding Process By Sierdjan Koster
  4. The Role of New Firms for the Development of Clusters By Anne Otto
  5. Technology, Innovation and Latecomer Strategies: Evidence from the Mobile Handset Manufacturing Sector in China By Kingsley E. Haynes; Lei Ding

  1. By: Ralph Siebert (Department of Economics, Krannert School of Management, Purdue University, 403 West State Street, West Lafayette, IN 47907-2056, USA.; Georg von Graevenitz (INNO-tec, Munich School of Management, University of Munich, Kaulbachstraße 45, 80539 Munich, Germany.,)
    Abstract: Licensing in a patent thicket allows firms to either avoid or resolve hold-up. Firms’ R&D incentives depend on whether they license ex ante or ex post. We develop a model of a patent portfolio race, which allows for endogenous R&D efforts, to study firms’ choice between ex ante and ex post licensing. The model shows that firms’ relationships in product markets and technology space jointly determine the type of licensing contract chosen. In particular, product market competitors are more likely to avoid patent portfolio races, since the threat of hold-up increases. On the other hand, more valuable technologies are more likely to give rise to patent portfolio races. We also discuss the welfare implications of these results.
    Keywords: hold-up problem, licensing, innovation, patent race, patent thicket, research joint ventures
    JEL: L13 L49 L63
    Date: 2006–09
  2. By: William Kerr; Shihe Fu
    Abstract: This paper details the construction of a firm-year panel dataset combining the NBER Patent Dataset with the Industry R&D Survey conducted by the Census Bureau and National Science Foundation. The developed platform offers an unprecedented view of the R&D-to-patenting innovation process and a close analysis of the strengths and limitations of the Industry R&D Survey. The files are linked through a name-matching algorithm customized for uniting the firm names to which patents are assigned with the firm names in Census Bureau’s SSEL business registry. Through the Census Bureau’s file structure, this R&D platform can be linked to the operating performances of each firm’s establishments, further facilitating innovation-to-productivity studies.
    Keywords: innovation, research and development, patents, scientists, technology
    JEL: C81 O30 O31
    Date: 2006–11
  3. By: Sierdjan Koster
    Abstract: Spin-offs are considered successful founding efforts. The combination of relevant industry specific knowledge and direct support from a parent company make these firms stand out from the rest. Spin-offs are usually defined on the basis of the previous employment positions of the entrepreneurs. This method disregards the process of resource transfer that theoretically explains the differences in performance with other foundings. This paper offers an empirical analysis based on the actual resource transfer from parent firm to founding. Using the ERC dataset, entrepreneurial skills are used to explain the successful conclusion of the founding process. Having skills related to production seems to be beneficial, especially when the founding effort also receives support from the parent company. Receiving support as such does not render any positive results. Next to the effect of production skills, industry experience adds to the explanation of successful founding. It is probable that skills related to market knowledge, being part of a network, and reputation enhance chances of pre-entry survival as well.
    Date: 2006–08
  4. By: Anne Otto
    Abstract: New firms play an important role for the emergence and development of clusters. In recent years only a few studies have analyzed the (inter)relationship between entrepreneurship and clusters, but most of them have not taken into account the different development-stages of clusters. In accordance with the concept of industry life cycles the evolution of clusters can be seen as a series of several phases. In the first phase new firms build the critical mass for the emergence of a cluster. A growing cluster is characterized by an increase in employment due to the growth of existing firms and a rising number of new firms. In a self-sustaining cluster the number of start-ups corresponds with the number of closures. In contrast, clusters while declining experience a decrease in the number of new firms. The objective of this paper is to analyze the direct effects of new firms on the evolution of clusters. In the first part of my paper I will give an insight into different theoretical frameworks which discuss the role of entrepreneurship for the evolution of clusters. The second part of the paper shows the results of an empirical analysis about the relevance of newly founded firms for the economic development of clusters considering their different development stages. The ‘Establishment File’ of the German Social Insurance Statistics is used as data source for the number of firm foundings and closures and for the survival rates of young firms in Germany. This data source provides longitudinal data about the number of employees in firms. Thus, it is possible to study the employment growth of new firms. This paper compares entrepreneurial activity of industry clusters over the period 1983/84 to 2001/02. Firstly, intra-industry comparisons are performed for several regional clusters of the media, machinery, automotive and textile industry in West Germany as examples of different stages. In a second step, I contrast the aggregate results for the different industries. Finally I analyze the employment effects of start-up cohorts on the evolution of regional clusters in Germany.
    Date: 2006–08
  5. By: Kingsley E. Haynes; Lei Ding
    Abstract: Since the entry of Chinese domestic mobile handset manufacturers in 1998, Chinese domestic suppliers have successfully surpassed the market share of joint ventures (JVs) while direct imports have been largely phased out. By examining China’s mobile handset manufacturing sector as a whole and through case studies, we found several factors that contributed to the success of China’s domestic handset manufacturers which can be classified into three categories: market conditions, competition, and government’s support.
    Date: 2006–08

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