nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2013‒06‒30
four papers chosen by
Rui Baptista
Technical University of Lisbon

  1. The Struggle to Survive in the R&D Sector: Implications for Innovation and Growth By Furukawa, Yuichi
  2. Reverse causality in the R&D – patents relationship: an interpretation of the innovation persistence By Baraldi, Anna Laura; Cantabene, Claudia; Perani, Giulio
  3. Imitation versus Innovation Costs: Patent policies under common patent length By ICHIDA Toshihiro
  4. Product market regulation and innovation efficiency By Chiara Franco; Fabio Pieri; Francesco Venturini

  1. By: Furukawa, Yuichi
    Abstract: By allowing for investment activities by research and development (R&D) firms to prevent product obsolescence, we show that if legal patent protection is too strong, a higher R&D subsidy rate delivers insufficient investments for survival in the R&D sector, depressing innovation and growth in the long run.
    Keywords: Firm survival, R&D subsidy, patent breadth, endogenous growth
    JEL: O31 O34 O41
    Date: 2013–05
  2. By: Baraldi, Anna Laura; Cantabene, Claudia; Perani, Giulio
    Abstract: Starting from the failure of the R&D-patents traditional relationship, when time-series and/or within industry dimensions are included in the empirical analysis, the present work tries to contribute to the empirical literature in two directions. Firstly, it perform a Granger causality test on the theoretical presumption of a reverse patents→R&D link as an explanation of the failure of the traditional relationship. Second, assuming the reverse patents-R&D causality, we test and interpret the lag structure of such a relationship as showing the effective patent life which firms expect in the two Schumpeterian patterns of innovations they belong to. To the light of the effective patent life, we offer a further explanation of innovation persistence which overturns the findings of the existing literature on persistence.
    Keywords: R&D, patents, innovation persistence, Granger causality
    JEL: C2 O3 O30
    Date: 2013–05–01
  3. By: ICHIDA Toshihiro
    Abstract: This paper investigates the interaction between innovation and imitation costs for heterogeneous ideas (industries). It analyzes the effect of various patent-related policies under the common patent length across different industries. It also looks at a policy that will strengthen trade secrets such as the Soleau envelope policy. Under the common term of patent with moderate assumption about the joint distribution of costs, the model predicts the existence of imitating products which are successfully invented around the original patent.
    Date: 2013–06
  4. By: Chiara Franco (Department of International Economics, Institutions and Development, Catholic University of the Sacred Heart of Milan); Fabio Pieri (Departamento de Estructura Economica (Economia Aplicada II), Universitat de Valencia); Francesco Venturini (Department of Economics, Finance and Statistics, University of Perugia)
    Abstract: We study the role of upstream product market regulation (PMR) on innovation efficiency. By estimating a knowledge production function for a large sample of OECD industries through a stochastic frontier analysis, we find that service regulation remarkably reduces R&D efficiency in the manufacturing sector. These results are robust to controlling for the institutional setting of the technology, the labour and the financial market, as well as to various forms of heterogeneity such as, for instance, non-linearities in the effect of PMR. The marginal impact of upstream regulation is higher in less regulated economies indicating that large improvements in R&D efficiency cannot be achieved at the earlier stages of deregulation. We quantify total gains in R&D efficiency and patenting that could be obtained by late reforming countries by liberalizing the product market.
    Keywords: R&D, knowledge production, eciency, product market regulation
    JEL: L5 L6 O3 O5
    Date: 2013–05

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