nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2015‒08‒25
four papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Firm persistence in technological innovation: the relevance of organizational innovation By Naciba Haned; Caroline Mothe; Nguyen-Thi Thuc Uyen
  2. How Labour Market Policies Affect Innovation and Trade Competitiveness By Siwage Dharma Negara
  3. Spillovers, product substitution and R&D investment : theory and evidence By Thomas Grebel; Lionel Nesta
  4. Global engagement in R&D: a portrait of biopharmaceutical patenting firms By Laura Abramovsky

  1. By: Naciba Haned (ESDES - École de management de Lyon - Université Catholique de Lyon); Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Nguyen-Thi Thuc Uyen (CEPS/INSTEAD - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development)
    Abstract: Organizational innovation favors technological innovation, but does it also influence persistence in technological innovation? This article empirically investigates the pattern of technological innovation persistence and tests the potential impact of organizational innovation using firm-level data from three waves of French Community Innovation Surveys. The evidence indicates a positive effect of organizational innovation on persistence in technological innovation, according to various measures of organizational innovation. Moreover, this impact is more significant for complex innovators, i.e. those who innovate in both products and processes. The results highlight the complexity of managing organizational practices with regard to the technological innovation of firms. They also add to understanding of the drivers of innovation persistence through the focus on an often-forgotten dimension of innovation in a broader sense.
    Date: 2014
  2. By: Siwage Dharma Negara (The Indonesian Institute of Sciences (LIPI), The Institute of Southeast Asian Studies (ISEAS))
    Abstract: Endogenous growth theory postulates that innovation is one of the key drivers of technological progress and productivity growth of a country. Technological improvements stemming from firms’ innovative activities can contribute to a country’s overall productivity and export competitiveness. For innovation to flourish, it necessitates an environment that is conducive to firms conducting risky innovative activities. Studies show that public policies, including labour market policies, can influence the operating conditions and institutional structures of firms to foster innovation that leads to productivity gains. However, the literature indicates that there is mixed empirical evidence on the impact of labour market policies on firms’ incentives to innovate. This paper argues that more flexible labour market policies that do not constrain workers’ adjustments and mobility will have positive associations with a country’s technological innovation competitiveness. In addition, innovation competitiveness affects a country’s productivity and trade competitiveness. Using a balanced panel of OECD and non-OECD countries, this study offers simple empirical models to measure the relationship between labour market policies and innovation capacity; and between innovation capacity and trade competitiveness. The main findings show that countries with more flexible labour market policies have higher levels of innovation competitiveness. In addition, the paper finds evidence of a positive correlation between innovation competitiveness and trade competitiveness.
    Keywords: Labour market policies, innovation, trade, competitiveness, labour market flexibility
    JEL: F16 J08 J38 J63 O31 O38
    Date: 2015–07
  3. By: Thomas Grebel (Economics department - Massachussetts Institute of Technology); Lionel Nesta (OFCE - OFCE - Sciences Po)
    Abstract: We investigate the conditions under which R&D investment by rival firms may be negatively or positively correlated. Using a two-stage game the influence of spillovers and product substitution is investigated. It is shown that under Cournot competition, the sign of the R&D reaction function depends on four types of environments in terms of the level of product substitution and of spillovers. We then test the prediction of the model on the world's largest manufacturing corporations. We assume that firms make oblivious R&D investments based on the R&D decision of the average rival company. We then develop a dynamic panel data model that accounts for the endogeneity of the decision of the mean rival firms. Results corroborate the validity of the theoretical model.
    Date: 2013–10
  4. By: Laura Abramovsky (Institute for Fiscal Studies and Institute for Fiscal Studies)
    Abstract: This paper provides a novel portrait of firms engaging in the international use of inventors. I focus on drug discovery activity of pharmaceutical and biotechnological firms head-quartered in Europe, over the period 1996-2005. An important part of the most high-valued added R&D activities are conducted by inventors, who are engaged in the creation of new technologies. I use a novel and particularly rich dataset that provides a comparable picture across host locations and over time of research activity of EU firms. The main results are that firm-level heterogeneity is a key feature in the internationalisation of inventors and this is similar to patterns from data analysing good and service traders and MNEs. Furthermore, host country distance characteristics are associated with the number of inventors in a similar fashion to patterns found in gravity models explaining good and service trade.
    Keywords: International trade; multinational firms; inventors; R&D
    JEL: F14 F19 F23 O31
    Date: 2015–07

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