nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2008‒09‒20
five papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Cluster Innovation Along the Industry Lifecycle By Andreas Eisingerich; Oliver Falck; Stephan Heblich; Tobias Kretschmer
  2. Concentration, entry and exit barriers : effects on the entrepreneurship in the Senegal industry By SENE, Serigne Moustapha
  3. Intellectual Property Rights and the Knowledge Spillover Theory of Entrepreneurship By Zoltan J. Acs; Mark Sanders
  4. Heterogeneous Firms, the Structure of Industry & Trade under Oligopoly By Eddy Bekkers; Joseph Francis Francois
  5. Technological and geographical proximity effects on knowledge spillovers:evidence from us patent citations By Luigi Aldieri

  1. By: Andreas Eisingerich (Tanaka Business School, Imperial College London); Oliver Falck (Ifo Institute for Economic Research and CESifo); Stephan Heblich (Max Planck Institute of Economics); Tobias Kretschmer (Institute for Communication Economics, LMU Munich)
    Abstract: Industrial clusters develop regionally along the industry's lifecycle and typically exist over many product generations. In order to maintain their innovativeness, they have to develop and adjust along the industry lifecycle. We conduct 142 depth face-to-face interviews in clusters across two continents to examine the drivers of a cluster's innovativeness along the industry lifecycle. The results from our interviews suggest that the impact of key drivers of cluster innovativeness change depending on the stage of a cluster's underlying industry lifecycle. Classifying clusters as either being adolescent (information technology, biotechnology) or mature (automotive, chemicals), our regression analyses show a changing influence of cluster patterns along the industry lifecycle on a firm's innovativeness. Specifically, we analyze the impact of interorganizational network strength, openness, university collaboration, and intrapreneurship on radical innovation across adolescent and mature clusters. Implications for research and policy makers are discussed.
    Keywords: Cluster, Industry Lifecycle, Innovation
    JEL: O18 R12 L6
    Date: 2008–09–11
  2. By: SENE, Serigne Moustapha
    Abstract: This paper deals with the explicative factors of entry rate for Senegalese industry branches. The entry rate is considered as a function of branches specificities and affaires environment features. One distinguishes the structural entry barriers, no linked to the strategic behaviors of firms already installed, of other explicative variables, namely concentration, profit rate and exit barriers. The estimation by the generalized least squares method shows that, a fall of 10% of structural barriers involves a growth of 1% of the entry rate. Also, the exit barriers and the development of the competition improve significantly the entry rate which is not meanwhile sensitive to the profit rate. Besides, a semi parametric model is estimated by taking into account the expectancy of the entry rate and the conditional competition at exit barriers. The results reveal that, if the firms already in activity maintain their strategic behaviors, with the same profit rate and if the economy structures are unchanged, then the number of industrial firms in activity may widely increase in relation to the number of the previous year.
    Keywords: Key words : entrepreneurship; market structure; panel data
    JEL: L11 C23 L26
    Date: 2008–09–08
  3. By: Zoltan J. Acs (George Mason University and Max Planck Institute of Economics); Mark Sanders (Utrecht School of Economics and Max Planck Institute of Economics)
    Abstract: We develop a model in which stronger protection of intellectual property rights has an inverted U-shaped effect on innovation. Intellectual property rights protection allows the incumbent firms to capture part of the rents of commercial exploration that would otherwise accrue to the entrepreneurs. Stronger patent protection will increase the incentive to do R+D and generate new knowledge. This has a positive impact on entrepreneurship and innovation. However, after some point, further strengthening patent protection will reduce the returns to entrepreneurship sufficiently to reduce overall economic growth.
    Keywords: Intellectual Property Rights, Endogenous Growth, Entrepreneurship, Incentives, Knowledge Spillovers, Rents
    JEL: J24 L26 M13 O3
    Date: 2008–09–11
  4. By: Eddy Bekkers (Department of Economics, Johannes Kepler University Linz, Austria); Joseph Francis Francois (Department of Economics, Johannes Kepler University Linz, Austria)
    Abstract: We develop a model with endogeneity in key features of industrial structure linked to heterogeneous cost structures under Cournot competition. We use the model to explore issues related to cross-country differences in industry structure and the impact of globalization on markups and pricing, concentration, and productivity. The model nests two workhorse trade models, the Brander & Krugman reciprocal dumping model and the Ricardian technology-based trade model, as special cases. We examine both free entry and limited entry (free exit) cases. The model generates clear testable predictions on the probability of zero trade flows and the pattern of export prices, and on cross-country and industry variations in industrial structure controlling for openness. Market prices decline as a result of trade liberalization, the least productive firms get squeezed out of the market, exporting firms gain market share, and more firms become trade oriented. In addition, depending on the strength of underlying cost heterogeneity, falling prices are consistent with both increasing and falling industry concentration following episodes of integration. Welfare rises with trade liberalization, unless trade costs decline from a prohibitive level in the short run free exit case. Variation across industries and markets in markups, concentration, and pricing structures is otherwise a function of market size and the variation in cost heterogeneity across industries.
    Keywords: Firm heterogeneity, Cournot competition, Composition effects of trade liberalization
    JEL: L11 L13 F12
    Date: 2008–09
  5. By: Luigi Aldieri (University of Naples Parthenope & Université Libre de Bruxelles, DULBEA-CERT)
    Abstract: The purpose of this paper is to investigate the pattern of knowledge flows as indicated by patent citations. In order to compute the technological proximity, we have followed the methodology developed by Jaffe (1986), where a technological vector is based on the distribution of patents of each firm across technology classes. As far as the geographic proximity is concerned, we have used the latitude and the longitude coordinates of the city in which each firm is located. The empirical results suggest that the effects of proximity variables on knowledge flows are rather differentiated.
    Keywords: Innovation, Knowledge Spillovers, Technology Transfer, Patent Citations.
    JEL: F1 F2 O3
    Date: 2008–09

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