nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2009‒08‒30
three papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Innovation Governance for Value Capture -The Problem and a Proposed Simple Model-based Solution By Pitelis, Christos; Panagopoulosi, Andreas
  2. The geography of research and development activity in the U.S. By Kristy Buzard; Gerald Carlino
  3. Sequential Innovation and the Duration of Technology Licensing By Gordanier, John; Chun-Hui, Miao

  1. By: Pitelis, Christos; Panagopoulosi, Andreas
    Abstract: We aim to model the "optimal" choice on internal versus external innovation for value capture of different-sized firms, in the context of multi-level bargaining. We find that size differentials are a major determinant for the choice in hand. We derive implications for "closed" versus "open" innovation approaches, and we discuss managerial practice, limitations and possible extensions.
    Keywords: Innovation, Firm Size, Value Capture, Patent Portfolios
    Date: 2009
  2. By: Kristy Buzard; Gerald Carlino
    Abstract: This study details the location patterns of R&D labs in the U.S., but it differs from past studies in a number of ways. First, rather than looking at the geographic concentration of manufacturing firms (e.g., Ellison and Glaeser, 1997; Rosenthal and Strange, 2001; and Duranton and Overman, 2005), the authors consider the spatial concentration of private R&D activity. Second, rather than focusing on the concentration of employment in a given industry, the authors look at the clustering of individual R&D labs by industry. Third, following Duranton and Overman (2005), the authors look for geographic clusters of labs that represent statistically significant departures from spatial randomness using simulation techniques. The authors find that R&D activity for most industries tends to be concentrated in the Northeast corridor, around the Great Lakes, in California's Bay Area, and in southern California. They argue that the high spatial concentration of R&D activity facilitates the exchange of ideas among firms and aids in the creation of new goods and new ways of producing existing goods. They run a regression of an Ellison and Glaeser (1997) style index measuring the spatial concentration of R&D labs on geographic proxies for knowledge spillovers and other characteristics and find evidence that localized knowledge spillovers are important for innovative activity.
    Keywords: Research and development ; Geography
    Date: 2009
  3. By: Gordanier, John; Chun-Hui, Miao
    Abstract: We model an innovator's choice of payment scheme and duration as a joint decision in a multi-period licensing game with potential sequential innovations and some irreversibility of technology transfer. We find that it may be optimal to license the innovation for less than the full length of the patent and that royalty contracts can be used to overcome a time-consistency problem faced by the innovator. Our results suggest that licensing contracts based on royalty have a longer duration than fixed-fee licenses and are more likely to be used in industries where sequential innovations are frequent.
    Keywords: Innovation; Licensing; Patent; Royalty; Technology Leakage; Time Consistency.
    JEL: D86 L13 L24
    Date: 2009–07

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