nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2014‒07‒28
four papers chosen by
Fulvio Castellacci
Norsk Utenrikspolitisk Institutt

  1. The impact of R&D subsidies on R&D employment composition By Sergio Afcha; Jose García-Quevedo
  2. Knowledge Base, Exporting Activities, Innovation Openness and Innovation Performance: A SEM Approach Towards a Unifying Framework By Spyros Arvanitis; Areti Gkypali; Kostas Tsekouras
  3. Innovation, work Organisation and Systems of Social Protection By Edward Lorenz
  4. Small Business, Innovation, and Tax Policy: A Review By Gale, William; Brown, Samuel

  1. By: Sergio Afcha (Pontificia Universidad Católica del Perú); Jose García-Quevedo (University of Barcelona & IEB)
    Abstract: In this paper we examine the impact of subsidies granted at national and regional levels on a set of R&D employment variables and, specifically, we seek to identify the existence of the behavioural additionality effects of these public subsidies on firms’ R&D human resources. We begin by assessing the effects of public funds on R&D private expenditures and on the number of R&D employees, and then focus on their impact on the composition of human resources engaged in R&D as classified by occupation and level of education. The data used correspond to the Spanish Technological Innovation Panel for the period 2006-2011. To control for selection bias and endogeneity, a combination of non-parametric matching techniques are implemented. After ruling out the existence of crowding out effects, our results show that R&D subsidies increase the number of R&D employees. However, no increase is found in the average level of qualification of R&D staff members in subsidized firms. All in all, the effects of public support are heterogeneous being dependent on the source of the subsidy and the firms’ characteristics.
    Keywords: R&D subsidies, R&D employment, matching estimators, technology policy
    JEL: O38 J24 H25 C14
    Date: 2014
  2. By: Spyros Arvanitis (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Areti Gkypali (University of Patras, Patras, Greece); Kostas Tsekouras (University of Patras, Patras, Greece)
    Abstract: In this paper we demonstrate the complexity that regulates the innovation-exports nexus. In particular we argue that innovation and exports should be treated as latent variables in order to account for as many facets possible thus, accounting for multifaceted heterogeneity. In this context, the role of innovation openness ought to be highlighted within a unified framework, as it is considered an additional activity of firms’ knowledge creation strategy. In this line, innovation and exporting orientation are ruled by the firms' strategic mix comprised of internal knowledge creation processes and the diversity of innovation openness. Theoretical and empirical links between these major components are identified and measured employing a Structural Equation Modelling (SEM) approach on a sample of Greek R&D-active manufacturing firms. Empirical findings corroborate the complexity of relationships and indicate that the firms’ knowledge base and open innovation strategy regulate via complementary and substitution relationships firms’ innovation and export performance.
    Keywords: SEM, endogeneity, open innovation strategy, knowledge base, innovation performance, export performance
    JEL: O31
    Date: 2014–07
  3. By: Edward Lorenz (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - Université Nice Sophia Antipolis (UNS) - CNRS : UMR6227)
    Abstract: Much of the core research on the determinants of innovation traditionally has focused on the role of formal processes of R&D and on the importance of the skills and expertise of scientists and engineers with third-level education. In research on national innovation systems there has been a parallel tendency to focus on the institutions and organisations responsible for the production and diffusion of formal scientific and technical knowledge. At the level of measurement these emphases are reflected in the classic definition of innovation developed in the Oslo Manual as technical product and process innovation (TPP), and at the level of innovation policies they can be seen in the continuing importance attached to increasing national R&D intensity. More recently there have been notable efforts to widen the scope of innovation research so as to more fully take into account the role of work processes, systems of labour market protection and more generally the impact of welfare state institutions. This chapter focuses on these changes in scope and seeks to identify key challenges for researchers in innovation studies. The chapter begins by examining how work organisation has been analysed in the developing field of innovation studies including the factors that account for the growing interest in the 2000s in measuring and analysing processes of organisational innovation. It is argued that a key challenge still facing researchers in innovation studies is developing an adequate understanding of the interdependencies between work organisation and processes of technical change and innovation. The chapter then turns to the analysis of national systems, arguing that there is a need for developing more robust typologies of innovation systems that integrate the role of labour market and welfare state institutions. A related challenge is developing multi-level governance frameworks that serve to clarify the interconnections between these social institutions at the levels of nations and regions. The chapter concludes by discussing the obstacles to putting work organisation and organisational innovation more firmly on the EU policy agenda.
    Keywords: Innovation studies, Work Organisation, Social Protection
    Date: 2013–12–31
  4. By: Gale, William; Brown, Samuel
    Abstract: Small businesses occupy an iconic place in American public policy debates. This paper discusses interactions between the federal tax code, small business, and the economy. We summarize the characteristics of small businesses, identify the tax provisions that most affect small businesses, and review evidence on the impact of tax and other policies on entrepreneurial activity. We also examine evidence suggesting that it is young firms, not small ones, where job growth and innovation tend to occur. Policies that aim to stimulate young and innovative firms are likely to prove different than policies that subsidize small businesses.
    Keywords: entrepreneurship, tax policy, innovation, small business
    JEL: H2
    Date: 2013–04–08

This nep-tid issue is ©2014 by Fulvio Castellacci. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.