nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2012‒01‒03
three papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Effects of innovation on employment in Latin America By Crespi, Gustavo; Tacsir, Ezequiel
  2. Does Founders’ Human Capital Matter for Innovation? Evidence from Japanese Start-ups By Kato, Masatoshi; Okamuro, Hiroyuki; Honjo, Yuji
  3. The Impact of Stronger Property Rights in Pharmaceuticals on Innovation in Developed and Developing Countries By Ming Liu; Sumner LaCroix

  1. By: Crespi, Gustavo; Tacsir, Ezequiel
    Abstract: This study examines the impact of process and product innovation on employment growth across four Latin American countries (Argentina, Chile, Costa Rica, and Uruguay) using micro data from innovation surveys. Specifically, we relate employment growth to process innovations and to the growth of sales separately due to innovative and unchanged products. Results show that that compensation effects are prevalent, and the introduction of new products is associated with employment growth at the firm level. Specifically, we find that for the manufacturing firms as a whole, the introduction of process innovations only affects the employment growth in the countries case of Chile. At the same time, we observe no evidence of displacement effects due to the introduction of product innovations. In fact, the observed compensation effects resulting from the introduction of new products imply, in turn, employment growth even when the replacement of old products is taken into account.
    Keywords: Innovation; Employment; Developing countries; Latin America; Innovation surveys
    JEL: O31 J23
    Date: 2011–09–28
  2. By: Kato, Masatoshi; Okamuro, Hiroyuki; Honjo, Yuji
    Abstract: Using a sample from an original questionnaire survey in Japan, this paper explores whether and how founders’ human capital affects innovation outcomes by start-ups. The results provide evidence that founders with greater human capital are more likely to yield innovation outcome. However, because certain types of founders’ human capital may boost R&D investment, which possibly results in innovation outcomes, we estimate the determinants of innovation outcomes by an instrumental variable probit model taking into account the endogeneity of R&D investment. Our findings suggest that specific human capital for innovation, such as founders’ prior innovation experience, is directly associated with innovation outcomes after start-up, while generic human capital, such as founders’ educational background, indirectly affects innovation outcomes through R&D investment.
    Keywords: Start-up, Founder, Human capital, Innovations, R&D investment
    JEL: L24 M13 O31
    Date: 2011–12
  3. By: Ming Liu (Deptartment of Finance, Nankai University); Sumner LaCroix (Department of Economics, University of Hawaii)
    Abstract: An instrumental variable econometric model is specified to investigate how changes in a country’s patent protection for pharmaceutical innovations are related to patent awards from the U.S. Patent and Trademark Office to the country’s applicants. We use a new measure of patent protection for pharmaceutical innovations, the PIPP Index, to account for cross-country variation in pharmaceutical protection. Using GMM and other IV estimators, we find that stronger pharmaceutical patent protection in the applicant’s home country does not increase the number of U.S. pharmaceutical patents awarded to developed and developing country inventors.
    Keywords: Patent, pharmaceutical, GMM, instrument, innovation, TRIPS
    JEL: O1 O31 O34
    Date: 2011–11–23

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