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on Technology and Industrial Dynamics |
| By: | Zoltan J. Acs; Mark Sanders |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:0823&r=tid |
| By: | Andrew Sharpe; Ian Currie |
| Abstract: | The objective of the report is to survey and assess the existing economic theoretical literature and empirical evidence on the linkages between open and competitive markets (competitive intensity) and innovation and productivity growth. The report is divided into three main parts. The first part examines the state of economic theory on the relationship between competitive intensity, innovation and productivity. The second section examines relevant empirical work that has been done on the role of firm dynamics in sustaining a competitive environment. The third section surveys evidence of linkages provided by the international case studies of the effects of open and competitive markets on innovation and productivity. The report concludes that the weight of the evidence indicates that competitive intensity has a strong positive effect on innovation and productivity. Accordingly, Canada should pay closer attention to the competitive implications of public policy than has been the case in the past. The international experience provides strong support for this conclusion. While there can be negative implications for certain groups from such policy changes, the evidence shows that they are often smaller than anticipated. Restrictions on competition should only be allowed when it can be demonstrated that they are needed to achieve overriding societal interests. |
| Keywords: | Competition, Competition policy, competitive intensity, innovation, productivity, firm dynamics, empirical work, case studies |
| JEL: | O20 O33 O38 O47 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:sls:resrep:0803&r=tid |
| By: | Federico Biagi; Maria Laura Parisi; Lucia Vergano |
| Abstract: | We study determinants of the probability of introducing an organizational innovation using three large cross sections of Italian manufacturing firms in the period 1995-2003. We analyze the effect and complementarity of other types of investments, like ICT, R&D, human and physical capital and the adoption of product or process innovations. Furthermore, we estimate the effect of introducing organizational innovations and indirectly technical innovations on the growth rate of labor productivity for the unbalanced panel of firms. Disembodied technological change is well represented by OIs, while product innovations seem to heve an effect on the efficiency of capital inputs only (capital stock-embodied technical change). Process innovations do not have a statistical impact as an indirect input-efficiency driving force, in our data. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ubs:wpaper:0813&r=tid |