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on Technology and Industrial Dynamics |
| By: | Foellmi, Reto ; Legge, Stefan ; Tiemann, Alexa |
| Abstract: | This paper examines how trade liberalization affects investments in R&D at the firm level. In a model where entrepreneurs are heterogeneous in their wealth endowment, they rely differently on external funds. In the presence of capital market imperfections, this implies heterogeneous access to external funds such that poor entrepreneurs run smaller firms, are less likely to invest in R&D, and more likely to exit the market. Decreasing trade costs resulting from tariff reductions exacerbate these characteristics. Using firm-level panel data on seven Latin American countries for 2006 and 2010, we find support for our theoretical predictions. While recent studies emphasize a positive impact of trade liberalization on firms' productivity-enhancing activities, we provide novel evidence showing that financial constraints can impair the effect on R&D efforts. To address potential endogeneity concerns, we verify our findings using external financial dependence based on U.S. firms. These results suggest that imperfect capital markets can prevent welfare gains from trade liberalization to materialize. |
| Keywords: | financial constraints; innovation; trade liberalization |
| JEL: | F14 O12 O16 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10391&r=tid |
| By: | Shimizu, Hiroshi ; Hoshino, Yusuke |
| Abstract: | The anecdotal evidence has indicated that inter-organizational collaboration increases R&D productivity by providing access to outside complimentary assets for firms. Focusing on the length of time from launching R&D project to realizing its R&D outcomes, we call it innovation speed, this paper examines a prize data-set on industrial technology, including 434 award-winning R&D projects, and empirically examines the relationship between inter-organizational collaboration and innovation speed and explores how the relationship varies across different types of collaborations. After controlling time periods, technological areas, prize categories, and collaboration types, the data reveal that inter-organizational collaboration among non-business group firms is associated with shorter innovation speed. The curtailed time periods vary from 19.9% to 32.2% according to the models. However, such accelerated time periods are not observed in other collaboration types such as inter-firm collaboration and firm-academic collaboration. |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:hit:iirwps:15-04&r=tid |
| By: | Belderbos R.A. ; Carree M.A. ; Lokshin B. ; Fernandez J. (GSBE ) |
| Abstract: | While prior studies have investigated the effect of collaborative RD with different partner types suppliers, customers, competitors and research institutions universities on firms innovative performance, the implications of dynamic patterns in these collaborations have not received attention. In a large panel of Spanish innovating firms operating in a broad range of industries during the period 2004-2011, we examine the differential effects of recently formed, persistent, and recently discontinued collaboration on innovative performance. Persistence is the most common pattern of collaboration, while discontinuities are most often observed for competitor collaboration. We find that it is persistent collaboration that has a systematically positive effect on performance. With the exception of recently formed collaboration with universities and research institutes, other temporal patterns of collaboration do not significantly improve performance. Implications of these findings are discussed. |
| Keywords: | Innovation and Invention: Processes and Incentives; Management of Technological Innovation and R&D; |
| JEL: | O31 O32 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2015004&r=tid |
| By: | Sandro Montresor (University Kore of Enna, Italy ); Antonio Vezzani (European Commission JRC-IPTS ) |
| Abstract: | This paper investigates the innovation impact of intangibles by considering the decision of firms to invest in a comprehensive set of them. By using a new survey on a large sample of firms in 28 EU (plus 8 non-EU) countries, we first identify the principal components of the resources firms invest in six kinds of intangibles. Their contribution to the firms’ propensity to introduce new products and/or processes is then estimated with a two-step model, which addresses the endogeneity of the focal regressors through theoretically consistent instruments. A firm’s innovativeness depends on its choice of using internal vs. external resources for its intangible investments more than on their actual amount, and on the kind of assets these investments are directed to. Intangibles need to be managed strategically in order to have an innovation impact and the policy support of this type of investment must take this strategic use into account. |
| Keywords: | Innovation; Intangibles; R&D |
| JEL: | O30 O33 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201403&r=tid |
| By: | Bettina Peters (Centre for European Economic Research (ZEW) ); Rebecca Riley (National Institute for Economic and Social Research of London ); Iulia Siedschlag (European Commission JRC-IPTS ); Priit Vahter (University of Tartu ); John McQuinn (Cambridge Econometrics ) |
| Abstract: | This paper examines the links between innovation and productivity in service enterprises. For this purpose, we use micro data from the Community Innovation Survey 2008 in Germany, Ireland and the United Kingdom, and estimate an augmented structural model. Our results indicate that innovation in service enterprises is linked to higher productivity. In all three countries analysed, among the innovation types that we consider, the strongest link between innovation and productivity was found for marketing innovations. Our empirical evidence highlights the importance of internationalisation in the context of innovation outputs in all three countries. The determinants of innovation in service enterprises appear remarkably similar to the determinants of innovation in manufacturing enterprises. |
| Keywords: | Internationalisation of services; innovation; productivity |
| JEL: | L25 O31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201404&r=tid |
| By: | Daiya Isogawa (Faculty of Economics, The University of Tokyo ); Kohei Nishikawa (Faculty of Economics, Setsunan University ); Hiroshi Ohashi (Faculty of Economics, The University of Tokyo ) |
| Abstract: | This study evaluates the economic impact of product innovation by using firm-level data obtained from the Community Innovation Survey conducted in Japan. It accounts for possible technological spillovers from innovation activities, and examines the extent to which new-to-market product innovation contributes to firm performance. Casual observations on the data reveal that new-to-market product innovation is likely to (1) contribute higher sales for the firm with less cannibalization with existing products; (2) generate higher degree of technological spillovers to other innovations; and (3) be brought by those firms that corroborate with universities and other academic institutions. An econometric analysis on simultaneous equations confirms these observations. Policy implications are also discussed. -- |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2015cf956&r=tid |
| By: | Giovanni Cerulli ; Roberto Gabriele ; Bianca Poti' |
| Abstract: | This paper investigates the impact of firm RD policies sustaining RD investment and collaboration on company innovation performance. Individual and cooperative RD investments are considered as intermediate outcomes (input and behavioral additionality, respectively) contributing to the final outcome (presence of product innovation). We use a treatment random coefficient model to estimate the policy additionality on a panel dataset merging the third and the fourth wave of the Italian Community Innovation Survey (CIS). Results show a significant and positive policy impact on company propensity to product innovation only for the input additionality and for the interaction between the input and the cooperative additionality. This occurs when company cooperation scores overcome a certain threshold, in accordance with the theory which states that cooperation outcomes tend to increase when higher spillovers are .pursued by the firms. |
| Keywords: | RD collaborations, RD policy, additionality; average treatment effect |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpem:2015/01&r=tid |
| By: | Sverre J. Herstad ; Tore Sandven |
| Abstract: | Building on recent evolutionary thinking, this paper links the present innovation performance of Norwegian firms to their past aggregate inflows of experienced employees through the labor market. In the upper part of OECDs technology intensity classification, firms strengthen their capacity to generate novelty sales by recruiting from within their own sector domains. By contrast, this form of recruitment is negatively associated with performance in low-tech industries. Aggregate inflows from related industries is generally supportive of performance, while inflows from prior employment in the research system is not. This underscores the dependence of industrial innovation on specialized competences and work practices that originate in the domain of industry itself; and, thus, the interdependencies between firms and larger industrial agglomerations. |
| Keywords: | Labor mobility, related variety, knowledge integration, innovation, Norway |
| JEL: | J24 O31 O34 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1505&r=tid |