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on Technology and Industrial Dynamics |
| By: | Bronwyn Hall |
| Abstract: | Information about the success of a new technology is usually held asymmetrically between the research and development (R&D)-performing firm and potential lenders and investors. This raises the cost of capital for financing R&D externally, resulting in financing constraints on R&D especially for firms with limited internal resources. Previous literature provided evidence for start-up firms on the role of patents as signals to investors, in particular to Venture Capitalists. This study adds to previous insights by studying the effects of firms’ patenting activity on the degree of financing constraints on R&D for a panel of established firms. The results show that patents do indeed attenuate financing constraints for small firms where information asymmetries may be particularly high and collateral value is low. Larger firms are not only less subject to financing constraints, but also do not seem to benefit from a patent quality signal. |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:niesrd:430&r=all |
| By: | Aldieri, Luigi; Garofalo, Antonio; Vinci, Concetto Paolo |
| Abstract: | In this paper we analyze the relationship between R&D activity, spillovers and employment at the firm level. A reduced form labour demand equation is estimated. R&D expenditures can account for both product and process innovation. The analysis is based upon a new dataset composed of 879 worldwide R&D-intensive manufacturing firms whose information has been collected for the period 2002-2010. We use data from all EU R&D investment scoreboards editions issued every year until 2011 by the JRC-IPTS (scoreboards). The main contribution to the existing literature is to investigate also the impact of outside R&D activity on own employment level. In particular, the paper investigates the role of R&D spillovers within the pillars of the Triad: United States, Japan and European economic area, but it goes beyond the previous studies by considering more opportune spillover components. Indeed, the potential stock of spillovers is dissociated into four components: the national stock, the international stock, the intra-industry stock and finally the inter-industry one. In this way, we will be able to appreciate to what extent geographical and cultural contiguity matters, by using an updated sample relative to large worldwide firms. The empirical results suggest a significant impact of R&D spillover effects on firms’ employment but the results are quite differentiated according to the spillover stock type and this may represent a relevant source of policy implications. |
| Keywords: | Panel Data Models, R&D Spillovers, Employment |
| JEL: | J20 O33 |
| Date: | 2015–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67269&r=all |
| By: | Fassio, Claudio (Lund University); Kalantaryan, Sona (Migration Policy Centre); Venturini, Alessandra (University of Turin) |
| Abstract: | The objective of this paper is to analyse the role of migrants in innovation in Europe. We use Total Factor Productivity as a measure of innovation and focus on the three largest European countries – France, Germany and the United Kingdom – in the years 1994-2007. Unlike previous research, which mainly employs a regional approach, we analyse the link between migration and innovation at the sectoral level. This allows us to measure the direct contribution of migrants in the sector in which they are actually employed. Moreover, it allows a distinction between the real contribution of migrants to innovation from possible inter-sectoral complementarities, which might as well foster innovation. We control for the different components of human-capital, such as age, education and diversity of origin. To address the possible endogeneity of migration we draw on an instrumental variable strategy originally devised by Card (2001) and adapt it at the sector level. The results show that overall migrants are relevant in all sectors, but some important differences emerge across sectors: highly-educated migrants show a larger positive effect in the high-tech sectors, while middle- and low-educated ones are more relevant in manufacturing. The diversity of countries of origin contributes to innovation only in the services sectors, confirming that in empirical analyses at the regional or national level the diversity measure might capture the complementarity between sectors rather than the contribution of different national skills. |
| Keywords: | migration, innovation, highly skilled migrants, low skilled migrants |
| JEL: | F22 O31 O32 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9422&r=all |
| By: | D'Artis Kancs (European Commission – JRC - IPTS); Boriss Siliverstovs (KOF Swiss Economic Institute – ETH Zurich) |
| Abstract: | The present paper estimates and decomposes the employment effect of innovation by R&D intensity levels. Our microeconometric analysis is based on a large international panel data set from the EU Industrial R&D Investment Scoreboard. Employing flexible semi-parametric methods - the generalised propensity score - allows us to recover the full functional relationship between R&D investment and firm employment, and to address important econometric issues, which is not possible in the standard estimation approach used in the previous literature. Our results suggest that modest innovators do not create and may even destruct jobs by raising their R&D expenditures. Most of the jobs in the economy are created by innovation followers: increasing innovation by 1% may increase employment up to 0.7%. The job creation effect of innovation reaches its peak when R&D intensity is around 100% of the total capital expenditure, after which the positive employment effect declines and becomes statistically insignificant. Innovation leaders do not create jobs by further increasing their R&D expenditures, which are already very high. |
| Keywords: | Innovation, R&D investment, causal inference, semi-parametric, employment, job creation, GPS |
| JEL: | C14 C21 F23 J20 J23 O30 O32 O33 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201507&r=all |
| By: | Nan Li (International Monetary Fund); Jie Cai (University of New South Wales) |
| Abstract: | Technologies differ in their scopes of applications. The types of knowledge a country possesses have important implications on its growth. This paper develop a multi-sector model of innovation, trade and growth, in which knowledge in one sector is applicable to innovation in another sector in various degrees and a country's composition of knowledge is endogenously determined. We find that lower trade costs and better institutions (that increase production productivity) improve aggregate innovation efficiency through the within-country allocation of R&D towards sectors with higher knowledge applicability. We construct measures quantifying the sectoral knowledge applicability using cross-sector patent citations. Based on this index, we present cross-country evidence that broadly supports the model's implications. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed015:1100&r=all |
| By: | OKAMURO, Hiroyuki; NISHIMURA, Junichi |
| Abstract: | R&D consortia have been regarded as an effective means of promoting innovation, and several R&D consortia obtain public financial support, which may affect its governance structure and performance. This study investigates the governance mechanisms of publicly funded R&D consortia and their effects on innovation. Regarding R&D consortia, few studies have empirically addressed the effect of project monitoring by the government. Moreover, the role of project leadership in R&D consortia remains poorly explored. Focusing on a major support program for R&D consortia in Japan and using a sample of 315 firms that participated in publicly funded R&D consortia from 2004 to 2009, we empirically confirm that project leadership by a private firm, especially its coordination capability, significantly increases the probability of project success (early commercialization of innovation outcomes). We also find that project performance is positively affected by the strictness of project monitoring and evaluation by the government. Finally, we find no complementarity between project leadership and government monitoring with regard to the effects on project performance. |
| Keywords: | R&D consortia, public subsidy, leadership, monitoring, commercialization |
| JEL: | O31 O32 O38 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:hit:ccesdp:60&r=all |