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on Technology and Industrial Dynamics |
| By: | Jože P. Damijan; Crt Kostevc; Matija Rojec |
| Abstract: | Using firm-level innovation data for a large sample of Slovenian firms in the period 1996-2002, the paper finds surprising results that innovation is not benefitting all firms. We find that only manufacturing firms with below average productivity growth (the lowest four deciles) are likely to experience significant benefits from successful innovation, while faster growing firms do not extract any additional benefits from innovation. This evidence demonstrates how innovation can affect the observed convergence of firms in terms of productivity in the manufacturing sector. |
| Keywords: | research and development, innovation, knowledge spillovers, productivity growth |
| JEL: | D24 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:lic:licosd:23009&r=tid |
| By: | Philipp Weinschenk (Max Planck Institute for Research on Collective Goods) |
| Abstract: | We examine the persistence of monopolies in markets with innovations when the outcome of research is uncertain. We show that for low success probabilities of research, the incumbent can seldom preempt the potential entrant. Then the efficiency effect outweighs the replacement effect. It is vice versa for high probabilities. Moreover, the incumbent specializes in “safe” research and the potential entrant in “risky” research. We also show that the probability of entry has an inverted U-shape in the success probability. Since even at the peak entry is rather unlikely, the persistence of the monopoly is high. |
| Keywords: | Persistence of Monopoly, Efficiency Effect, Replacement Effect, Stochastic Innovations |
| JEL: | L12 O31 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2009_11&r=tid |
| By: | Rieko Aoki; Aaron Schiff |
| Abstract: | We examine third-party collective rights organisations (CROs) such as clearinghouses that license innovations on behalf of inventors when downstream uses require licenses to multiple complementary innovations. We consider two simple royalty redistribution schemes, two different innovation environments and two different antitrust rules. We show that in most cases CROs increase incentives to invest in R&D as they increase profits from licensing. However, incentives to invest of inventors who have the unique ability to develop a crucial component may be weakened. We also show that CROs may increase or decrease expected welfare, and are more likely to be beneficial when R&D costs are relatively high, and/or the probability of success for inventors is relatively low. |
| Keywords: | Intellectual property, licensing, collective rights organizations, anticommons |
| JEL: | L24 O31 O34 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd08-045&r=tid |
| By: | Uwe Cantner (Friedrich-Schiller-University Jena, Department of Economics, Chair of Economics/Microeconomics); Sarah Kösters (Friedrich-Schiller-University Jena, Department of Economics, DFG RTG 1411 "The Economics of Innovative Change") |
| Abstract: | The present paper investigates the effectiveness of R&D subsidies given to start-ups. Taking an aggregate view rather than evaluating a single program, we estimate the impact of R&D subsidies on start-ups' employment growth and their patent output. A unique data set on start-ups in the East German county of Thuringia allows us to focus on those start-ups that conduct R&D within the first three business years. We conduct propensity score matching to address the selection bias between subsidized and non-subsidized start-ups. We find that R&D subsidies lead to an increase in employment growth of about 66%. Furthermore, subsidized start-ups show a 2.8 times higher patent output. These estimates provide evidence for the additionality of R&D subsidies within the first three business years. Moreover, our analysis points to the special group of academic spin-offs which excels in the novelty of business ideas and patent activity. For some of these high-tech start-ups, no non-subsidized counterparts can be found. This might be attributed to the policy focus on academic spin-offs, which has led to a successful targeting of R&D support schemes. |
| Keywords: | R&D subsidies, start-ups, policy evaluation |
| JEL: | O38 L26 H50 C14 |
| Date: | 2009–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-027&r=tid |