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This paper discusses the existing literature on migration and innovation, with special emphasis on empirical studies based on patent and inventor data. Other sources of micro-data are examined, too, for comparative purposes. A pilot database, based on patent filings at the European Patent Office is presented. It contains information on individual inventors, including their country of residence and of origin. Preliminary evidence suggests that immigrant inventors contribute to innovation not only in the US, but also in selected European countries, where they often rank among the most productive individuals. Data on returnee inventors to selected countries of origin suggest the phenomenon to be of limited scale, and highly subject to errors of measurement.

In terms of the number of its patent applications, in 2012 China has emerged as the country with the largest IP office in the world. The performance of the Chinese IP system is thus increasingly in the spotlight. While significant economic studies have been devoted to the rise of domestic patenting in China, hardly any study has focused on Chinese patent filings in foreign countries. This paper analyzes Chinese patenting abroad by using WIPO’s foreign-oriented patent family dataset and a respective enterprise questionnaire. It finds that by the turn of the century China emerged as major actor in terms of international patenting. While this is changing rapidly, the share of Chinese patents which get filed abroad is still a fraction of total patents filed at home and most patents still also only target one foreign IP office. Chinese foreign-oriented patent families are concentrated in a few technology fields, notably those related to the ICT sector, “Digital communication”, followed by “Computer technology”, “Nanotechnology”, and similar fields. A few Chinese firms are responsible for a large share of total Chinese patents filed abroad. The paper however also highlights that some of these trends are changing rapidly towards more intensive and broad-based filing abroad. Initial results from a selective firm survey also show a shift from the desire to protect technologies abroad to more strategic motives: (i) the desire to build patent portfolios avoiding litigation, (ii) facilitating collaboration with other firms, but also to (iii) license and sell IP abroad, and to (iv) further the firm’s reputation as true innovator.

The goal of this paper is to assess the influence of spatial mobility of knowledge workers on the formation of ties of scientific and industrial collaboration across European regions. Co-location has been traditionally invoked to ease formal collaboration between individuals and firms, since tie formation costs increase with physical distance between partners. In some instances, highly-skilled actors might become mobile and bridge regional networks across separate locations. This paper estimates a fixed effects logit model to ascertain precisely whether there exists a ‘previous co-location premium’ in the formation of networks across European regions.

We use the prolonged Greek crisis as a case study to understand how a lasting economic shock affects the innovation strategies of firms in economies with moderate innovation activities. Adopting the 3-stage CDM model, we explore the link between R&D, innovation, and productivity for different size groups of Greek manufacturing firms during the prolonged crisis. At the first stage, we find that the continuation of the crisis is harmful for the R&D engagement of smaller firms while it increased the willingness for R&D activities among the larger ones. At the second stage, among smaller firms the knowledge production remains unaffected by R&D investments, while among larger firms the R&D decision is positively correlated with the probability of producing innovation, albeit the relationship is weakened as the crisis continues. At the third stage, innovation output benefits only larger firms in terms of labor productivity, while the innovation-productivity nexus is insignificant for smaller firms during the lasting crisis.

What are the prospects for long-run economic growth? One prominent line of economic thinking is the trend toward stagnation. Stagnationism has a long history in economics, beginning prominently with Malthus and occasionally surfacing in different guises. Prominent themes here are the following: Will economic growth slow and perhaps even reverse under the weight of resource depletion? Will overpopulation and diminishing returns lower living standards? Will unchecked CO2 emissions lead to catastrophic changes in climate and human systems? Have we depleted the store of potential great inventions? Will the aging society lead to diminished innovativeness? (JEL D83, E25, O31, O32, O41, O47)

Renewables require support policies to deliver the European 20% target. We discuss the requirements for least-cost development and efficient operation and quantify how different schemes (i) allow for the development of a renewable energy technology portfolio; (ii) reduce rent transfers to infra-marginal technologies or better than marginal resource bases and (iii) minimise regulatory risk and thus capital costs for new projects. Long-term take-or-pay contracts minimise regulatory uncertainty, create appropriate incentives for location and operation, allow for efficient system operation and seem compatible with European state aid. We discuss how property rights legislation protects existing renewables investors, and thus can ensure ongoing investment during a transition towards the new scheme.

The aim of this paper is to investigate the role interlocking directorships play in the patenting activities of UK companies and provide further insights into the channels through which this relationship emerges. Our empirical analysis produces three main results: first, interlocking leads to a higher number of successful patent applications; second, interlocked firms are more likely to cite each other's patents, especially around the moment of interlocking; and, third, interlocked companies tend to increase the technological similarity of their patent portfolio in the immediate period following their first interlock. To rationalise these results, we develop a theoretical model that identifies interlocking directorships as a practice that prevents property right conflicts that often arise between firms that are technologically close to each other.

Innovative Software kann die Position eines Unternehmens im Wettbewerb sichern. Die Einführung innovativer Software ist aber alles andere als einfach. Denn obgleich die technischen Aspekte offensichtlicher sind, dominieren organisationale Aspekte. Zu viele Softwareprojekte schlagen fehl, da die Einführung nicht gelingt, trotz Erfüllung technischer Anforderungen. Vor diesem Hintergrund ist das Forschungsziel der Masterarbeit, Risiken und Erfolgsfaktoren für die Einführung innovativer Software in Unternehmen zu finden, eine Strategie zu formulieren und dabei die Bedeutung von Schlüsselpersonen zu bestimmen., Innovative software can secure the position of a company among the competition. The implementation of innovative software is, however, anything but simple. Although the technical aspects are more obvious, this is because organizational aspects are predominant. Too many software projects fail because the implementation does not succeed, despite meeting technical requirements. In this light, the research objective of the master's thesis is to find risks and success factors for the implementation of innovative software in companies, to formulate a strategy and in this process to determine the importance of key persons.

This paper-based dissertation aims to contribute to the open innovation (OI) and technology management (TM) research fields by investigating their mechanisms, and potentials at the operational level. The dissertation connects the well-known concept of technology management with OI formats and applies these on specific manufacturing technologies within a clearly defined setting. Technological breakthroughs force firms to continuously adapt and reinvent themselves. The pace of technological innovation and their impact on firms is constantly increasing due to more connected infrastructure and accessible resources (i.e. data, knowledge). Especially in the manufacturing sector it is one key element to leverage new technologies to stay competitive. These technological shifts call for new management practices. TM supports firms with various tools to manage these shifts at different levels in the firm. It is a multifunctional and multidisciplinary field as it deals with all aspects of integrating technological issues into business decision-making and is directly relevant to a number of core business processes. Thus, it makes sense to utilize this theory and their practices as a foundation of this dissertation. However, considering the increasing complexity and number of technologies it is not sufficient anymore for firms to only rely on previous internal R&D and managerial practices. OI can expanse these practices by involving distributed innovation processes and accessing further external knowledge sources. This expansion can lead to an increasing innovation performance and thereby accelerate the time-to-market of technologies. Research in this dissertation was based on the expectations that OI formats will support the R&D activities of manufacturing technologies on the operational level by providing access to resources, knowledge, and leading-edge technology. The dissertation represents uniqueness regarding the rich practical data sets (observations, internal documents, project reviews) drawn from a very large German high-tech firm. The researcher was embedded in an R&D unit within the operational TM department for manufacturing technologies. The analyses include 1.) an exploratory in-depth analysis of a crowdsourcing initiative to elaborate the impact on specific manufacturing technologies, 2.) a deductive approach for developing a technology evaluation score model to create a common understanding of the value of selected manufacturing technologies at the operational level, and 3.) an abductive reasoning approach in form of a longitudinal case study to derive important indicator for the in-process activities of science-based partnership university-industry collaboration format. Thereby, the dissertation contributed to research and practice 1.) linkages of TM and OI practices to assimilate technologies at the operational level, 2.) insights about the impact of CS on manufacturing technologies and a related guideline to execute CS initiatives in this specific environment 3.) introduction of manufacturing readiness levels and further criteria into the TM and OI research field to support decision-makers in the firm in gaining a common understanding of the maturity of manufacturing technologies and, 4.) context-specific important indicators for science based university-industry collaboration projects and a holistic framework to connect TM with the university-industry collaboration approach The findings of this dissertation illustrate that OI formats can support the acceleration of time-to-market of manufacturing technologies and further improve the technical requirements of the product by leveraging external capabilities. The conclusions and implications made are intended to foster further research and improve managerial practices to evolve TM into an open collaborative context with interconnectivities between all internal and external involved technologies, individuals and organizational levels. Das Ziel dieser Dissertation ist es zu dem Forschungsfeld einen Beitrag zu den Forschungsfeldern Open Innovation (OI) und Technologiemanagement (TM) zu leisten, indem ihre Mechanismen und Potenziale auf der operativen Ebene untersucht werden. Die Dissertation verbindet das bekannte Konzept des Technologiemanagements mit OI-Formaten und wendet diese in einem klar definierten Rahmen auf spezifische Fertigungstechnologien an. Technologische Durchbrüche zwingen Unternehmen dazu, sich ständig anzupassen und neu zu erfinden. Das Tempo der technologischen Innovation und ihre Auswirkungen auf Unternehmen nehmen aufgrund einer stärker vernetzten Infrastruktur und zugänglicher Ressourcen (d. h. Daten, Wissen) ständig zu. Gerade in der verarbeitenden Industrie ist es ein Schlüsselelement, neue Technologien zu nutzen, um wettbewerbsfähig zu bleiben. Diese technologischen Veränderungen erfordern neue Managementpraktiken. TM unterstützt Unternehmen mit verschiedenen Tools, um diese Verschiebungen auf verschiedenen Ebenen im Unternehmen zu bewältigen. Es ist ein multifunktionales und multidisziplinäres Feld, da es sich mit allen Aspekten der Integration technologischer Fragen in die Geschäftsentscheidungen befasst und direkt für eine Reihe von Kerngeschäftsprozessen relevant ist. Daher ist es sinnvoll, diese Theorie und ihre Praktiken als Grundlage dieser Dissertation zu verwenden. Angesichts der zunehmenden Komplexität und Anzahl von Technologien reicht es jedoch nicht mehr aus, dass sich Unternehmen nur auf frühere interne F&E- und Managementpraktiken verlassen. OI kann diese Praktiken erweitern, indem verteilte Innovationsprozesse einbezogen werden und auf weitere externe Wissensquellen zugegriffen wird. Dieser Ausbau kann zu einer steigenden Innovationsleistung führen und damit die Time-to-Market von Technologien beschleunigen. Die Forschung in dieser Dissertation basierte auf der Erwartung, dass OI-Formate die F&E-Aktivitäten von Fertigungstechnologien auf operativer Ebene unterstützen, indem sie Zugang zu Ressourcen, Wissen und Spitzentechnologie bieten. Die Dissertation stellt eine Einzigartigkeit in Bezug auf die reichhaltigen Praxisdatensätze (Beobachtungen, interne Dokumente, Projektbewertungen) aus einem sehr großen deutschen High-Tech-Unternehmen dar. Der Forscher war in eine F&E-Einheit innerhalb der operativen TM-Abteilung für Fertigungstechnologien eingebettet. Die Analysen umfassen 1.) eine explorative eingehende Analyse einer Crowdsourcing(CS)-Initiative, um die Auswirkungen auf bestimmte Fertigungstechnologien zu elaborieren, 2.) einen deduktiven Ansatz zur Entwicklung eines Technologiebewertungs-Score-Modells, um ein gemeinsames Verständnis des Wertes ausgewählter Fertigungstechnologien auf operativer Ebene zu schaffen und 3.) ein abduktiver Argumentationsansatz in Form einer Langzeit-Fallstudie, um wichtige Indikatoren für die prozessinternen Aktivitäten innerhalb wissenschaftsbasierten universitären-industriellen Kollaborationsformaten abzuleiten. Dadurch leistete die Dissertation einen Beitrag zu Forschung und Praxis durch 1.) Verknüpfungen von TM- und OI-Praktiken, um Technologien auf operativer Ebene zu assimilieren, 2.) Einblicke in die Auswirkungen von CS auf Fertigungstechnologien und eine entsprechende Richtlinie zur Durchführung von CS-Initiativen in diesem spezifischen Umfeld, 3.) die Einführung von Fertigungsreifegraden und weiteren Kriterien in das TM- und OI-Forschungsfeld, um Entscheidungsträger im Unternehmen zu einem gemeinsamen Verständnis über den Reifegrad von Fertigungstechnologien zu unterstützen und 4.) kontextspezifisch wichtige Indikatoren für wissenschaftsbasierte universitäre-industrielle Kollaborationsprojekte und ein ganzheitlichen Rahmen zur Verknüpfung von TM mit dem Ansatz der universitären-industriellen Kollaborationen. Die Ergebnisse dieser Dissertation veranschaulichen, dass OI-Formate durch die Nutzung externer Fähigkeiten die Beschleunigung der Markteinführungszeit von Fertigungstechnologien unterstützen und die technischen Funktionen des Produkts verbessern können. Die Schlussfolgerungen und Implikationen sollen weitere Forschungen anregen und Managementpraktiken verbessern, um TM zu einem offenen kollaborativen Ansatz zu entwickeln, der alle internen und externen beteiligten Technologien, Einzelpersonen und Organisationsebenen vernetzt.

The aging of the scientific workforce and graying of grant recipients are central policy concerns in biomedicine. These trends are potentially important because older scientists are often seen as less open to new ideas than younger scientists. In this paper, we put this hypothesis to an empirical test. Using a measure of new ideas derived from the text of nearly all biomedical scientific articles published since 1946, we compare the tendency of younger and older researchers to try out new ideas in their work. We find that papers published in biomedicine by younger researchers are more likely to build on new ideas. Collaboration with an experienced researcher matters as well. Papers with a young first author and a more experienced last author are more likely to try out newer ideas than papers published by other team configurations. Given the crucial role that the trying out of new ideas plays in the advancement of science, our results buttress the case for funding scientific work by young researchers but also provide a caution against unconditional idolatry of youth over experience.

This paper analyzes the long-run effects of monetary policy on innovation and imitation in a North–South product-cycle model with foreign direct investment (FDI) and separate cash-in-advance (CIA) constraints on innovative R&D, adaptive R&D, and imitative R&D. We find that if the CIA constraint is applied to innovative R&D, then a decrease in the Northern nominal interest rate will reduce the rate of Northern innovation and the extent of FDI while raising the rate of Southern imitation and the North–South wage gap. Regarding the effects of the Southern monetary policy, the object that is liquidity-constrained plays a significant role. If adaptive (imitative) R&D is subject to the CIA constraint, then a decrease in the Southern nominal interest rate will reduce (raise) the rate of Northern innovation and the extent of FDI while raising (reducing) the rate of Southern imitation. The stability of the long-run equilibrium is examined. We also analyze the responses of social welfare for Northern and Southern consumers to monetary policy.

We study the impact of alternative innovation policies on the short- and long-run performance of the economy, as well as on public finances, extending the Schumpeter meeting Keynes agent-based model (Dosi et al., 2010). In particular, we consider market-based innovation policies such as R&D subsidies to firms, tax discount on investment, and direct policies akin to the “Entrepreneurial State” (Mazzucato, 2013), involving the creation of public research oriented firms diffusing technologies along specific trajectories, and funding a Public Research Lab conducting basic research to achieve radical innovations that enlarge the technological opportunities of the economy. Simu- lation results show that all policies improve productivity and GDP growth, but the best outcomes are achieved by active discretionary State policies, which are also able to crowd-in private investment and have positive hysteresis effects on growth dynamics. For the same size of public resources allocated to market-based interventions, “Mission” innovation policies deliver significantly better aggregate performance if the government is patient enough and willing to bear the intrinsic risks related to innovative activities.

We analyze the effect of the Öresund Bridge, a combined railway and motorway bridge between Swedish Malmö and the Danish capital Copenhagen, on inventive activity in the region of Malmö. Applying difference-in-difference estimation on individual-level data, our findings suggest that the Öresund Bridge led to a significant increase in the number of patents per individual in the Malmö region as compared to the two other major regions in Sweden, Gothenburg and Stockholm. We show that a key mechanism is the attraction of highly qualified workers to the Malmö region following the construction of the bridge.

We analyze the impact of decreases in available lending resources on quantitative and qualita- tive dimensions of firms’ patenting activities. We thereby make use of the European Banking Authority?s capital exercise to carve out the causal effect of bank lending on firm innovation. In order to do so we combine various datasets to derive information on firms’ financials, their patenting behaviors, as well as their relationships with their lenders. Building on this self- generated dataset, we provide support for the “less finance, less innovation” view. At the same time, we show that lower available financial resources for firms lead to improvement in the qualitative dimensions of their patents. Hence, we carve out a “less finance, less but better innovation” pattern.

We identify strong cross-border institutions as a driver for the globalization of in-novation. Using 67 million patents from over 100 patent offices, we introduce novel measures of innovation diffusion and collaboration. Exploiting staggered bilateral in-vestment treaties as shocks to cross-border property rights and contract enforcement, we show that signatory countries increase technology adoption and sourcing from each other. They also increase R&D collaborations. These interactions result in techno-logical convergence. The effects are particularly strong for process innovation, and for countries that are technological laggards or have weak domestic institutions. Increased inter-firm rather than intra-firm foreign investment is the key channel.

It is shown that spillovers can enhance private returns to innovation if they feed back into the dynamic research of the original inventor (Internalized spillovers), but will always reduce private returns, if the original inventor does not benefit from the advancements other inventors build into the 'spilled' knowledge (Externalized spillovers). I empirically identify unique patterns of knowledge flows (based on patent citations), which provide information about whether 'spilled' knowledge is reabsorbed by its inventor. A simple model of sequential innovation with dynamic spillovers is developed, which predicts that market value and R&D expenditures should rise with Internalized spillovers and fall with Externalized spillovers. These predications are confirmed using panel data on U.S. firms between 1981 and 2001. To the extent that firms internalize some of the spillovers they create, the classical underinvestment problem in R&D will be mitigated and the central role of spillovers in promoting economic growth will be enhanced.

This paper builds a dynamic stochastic general equilibrium (DSGE) model of endogenous growth that is capable of generating substantial degrees of endogenous persistence in productivity. When products go out of patent protection, the rush of entry into their production destroys incentives for process improvements. Consequently, old production processes are enshrined in industries producing non-protected products, resulting in aggregate productivity persistence. Our model also generates sizeable delayed movements in productivity in response to preference shocks, providing a form of endogenous news shock. Finally, if we calibrate our model to match a high aggregate mark-up then we can replicate the negative response of hours to a positive technology shock, even without the inclusion of any frictions.

The UK's business R&D (BERD) to GDP ratio is low compared to other leading economies, and the ratio has slowly declined over the 1990s. This paper uses data on large UK firms to analyse the link between R&D and productivity over the 1989-2000 period. Using a production function approach, and a sample of up to 719 firms, various different samples and estimators are used to assess the elasticity of, and rate of return to, R&D. The results indicate that UK returns to R&D are similar to returns in other leading economies. Furthermore, the returns to R&D have been relatively stable over the 1990s. There is no evidence to suggest that stock market listed firms, or firms with higher past profitability, have significantly different returns. Overall, the results suggest that the low BERD to GDP ratio in the UK is unlikely to be due to direct financial or human capital constraints (as these imply finding relatively high rates of return). Instead, the low BERD to GDP ratio appears to reflect low (perceived) opportunities by firms and the inability of firms to manage R&D to generate value. The paper provides some, tentative evidence, that high rates of competition in the science-based sector are associated with low returns to R&D.

The causes of the USA's exceptional economic performance are investigated by comparing American wages and prices with wages and prices in Great Britain, Egypt, and India. Habakkuk's views on the causes of American industrial pre-eminence are reassessed. While the USA had abundant natural resources, they did not promote manufacturing since international trade equalized prices in Britain and the USA or American tariffs made resources dearer in the USA. Wages were higher in the USA than in Britain since labor markets were tightly integrated and labor was drawn to the USA as the continent was settled. Capital services were also more expensive in USA. American industrialization required tariffs since virtually all input prices were higher than in Britain and industrial productivity was comparable. America's comparative advantage shifted from agriculture to manufacturing after 1895 was industrial productivity soured. This was due to a fall in energy prices in the USA, the American policy of mass schooling which increased the supply of skilled adults and induced firms to invent technology to raise their productivity since the supply of child labor was restricted in comparison to Britain, and the great growth of manufacturing investment induced by the tariff which provide a large market for inventions and generated technical knowledge through learning by doing. Egypt and India could not have industrialized by following American policies since their wages were so low and their energy costs so high that the modern technology that was cost effective in Britain and the USA would not have paid in their circumstances. The development of Egypt and India required more draconian state intervention than a protective tariff, mass education, and infrastructure investment - the American model.

One of the most controversial questions in current competition policy is when, if ever, should competition law require a firm with market power to share its property, notably intellectual property, with its rivals? And if supply is required, on what terms? These questions are discussed with reference to recent law cases including the EC Microsoft judgment of 2007 and the US linkLine case of 2009. The analysis focuses on whether competition law and regulation are complements or substitutes, and on incentives for investment and (sequential) innovation.

We exploit historically determined variation in local credit markets to identify the impact of bank lending on innovation across Russian firms. We find that deeper credit markets increase firms’ use of bank credit, their adoption of new products and technologies, and their productivity growth. This relationship is more pronounced in industries farther from the technological frontier, more exposed to import competition, and that export more. These impacts are also stronger for firms near historical R&D centers or railways and in regions with supportive institutions. Consistent with these results, credit markets contribute to economic growth in such regions.Authors have furnished a data set, which is available on the Oxford University Press Web site next to the link to the final published paper online.

In recent years, numerous renewable energy cities were established worldwide, piloting different pathways to transition to clean energy. With the ability to address local needs more precisely in their unique geographic, social and economic contexts, cities play a vital role in implementing overall climate mitigation goals on the local level. In China, many renewable energy cities have emerged as well. However, official documents suggest that Chinese government authorities establish such renewable energy cities strategically, which leads to the assumption that the impulse to become renewable is different from other countries, where bottom-up initiatives are more common. Hence, this thesis explores answer to the question why and how the Chinese government promotes the energy transition of Chinese cities and regions. To explore the dynamics of local energy transition projects, this thesis adopts two frameworks from the field of sustainability transitions, the multi-level perspective and strategic niche management, and applies them to seven European and two Chinese case studies. The European sample includes the cities Graz, Güssing, Freiburg, and Helsinki as well as the communities Feldheim, Jühnde and Murau. The Chinese sample consists of the bottom-up initiative Shaanxi Sunflower Project and the demonstration project Tongli New Energy Town. A comparative analysis evaluates in how far the cases correspond to the multi-level perspective or strategic niche management. The comparison of the case studies reveals that the development of renewable energy cities in China goes beyond a top-down vs. bottom-up logic. In the Chinese context, strategic niche management should be understood as experimentation under hierarchy, which serves at pretesting different approaches before rolling them out nationwide. In addition, the analysis shows that both the multi-level perspective and strategic niche management have their advantages and disadvantages for niche development. Niches following the logic of the multi-level perspective may result in higher stakeholder acceptance, whereas strategic niche management can in turn accelerate niche development. However, since natural niche development cannot be steered intentionally, decision-makers who intend to induce local renewable energy projects have no other option but to resort to strategic niche management. To increase stakeholder acceptance and thus to improve the project outcome, decision-makers are advised to accommodate sufficient room for stakeholder participation in the project design.

We explore optimal and politically feasible growth policies in the form of basic research investments and taxation. Basic research is a public good that benefits innovating entrepreneurs, but its provision and financing also affect the entire economy – in particular, occupational choices of potential entrepreneurs, wages, dividends, and aggregate output. We show that the impact of basic research on the general economy rationalizes a taxation pecking order to finance basic research. More specifically, in a society with desirably dense entrepreneurial activity, a large share of funds for basic research should be financed by labor taxation, while a minor share should be left to profit taxation. Such tax schemes will induce a significant proportion of agents to become entrepreneurs, thereby rationalizing substantial investments in basic research that fosters their innovation prospects. These entrepreneurial economies, however, may make a majority of workers worse off, giving rise to a conflict between efficiency and equality. We discuss ways of mitigating this conflict and thus strengthening the political support for growth policies., Economics Working Paper Series, 14/206

We elaborate a model of the incentives of scientists to perform activities of control and criticism when these activities, just like the production of novel findings, are costly, and we study the strategic interaction between these incentives. We then use the model to assess policies meant to enhance the reliability of scientific knowledge. We show that a certain fraction of low-quality science characterizes all the equilibria in the basic model. In fact, the absence of detected low-quality research can be interpreted as the lack of verification activities and thus as a potential limitation to the reliability of a field. Incentivizing incremental research and verification activities improves the expected quality of research; this effect, however, is contrasted by the incentives to free ride on performing verification if many scientists are involved, and may discourage scientists to undertake new research in the first place. Finally, softening incentives to publish does not enhance quality, although it increases the fraction of detected low-quality papers. We also advance empirical predictions and discuss the insights for firms and investors as they “scout” the scientific landscape.

Multidisciplinary innovation is the engine of growth of an increasing number of economies. Innovation output depends increasingly on information sharing and cooperation between creative agents. Sharing and cooperation requires the existence of generalised trust. Social capital consists of trust and trust-based networks. Our main goal is to illustrate theoretically the importance of social capital to the growth of an innovation economy., COMPETE, QREN, FEDER, Fundação para a Ciência e a Tecnologia (FCT)

In this paper, we present a standard quality ladders endogenous growth model with one significant new assumption, that it takes time for firms to learn how to export. We show that this model without Melitz-type assumptions can account for all the evidence that the Melitz (2003) model was designed to explain plus much evidence that the Melitz model can not account for. In particular, consistent with the empirical evidence, we find that trade liberalization leads to a higher exit rate of firms, that exporters charge higher prices for their products as well as higher markups, and that many large firms do not export. We also find that trade liberalization promotes economic growth and that it has the opposite effect of retarding economic growth in a closely comparable growth model with Melitz-type assumptions.

Do contractual frictions matter when firms are engaged in repeated interactions? This paper argues that long-term relationships, which allow firms to (partly) overcome the static costs associated with low contractibility, will under certain circumstances create dynamic inefficiencies. We consider the repeated interaction between final good producers and intermediate input suppliers, where the provision of the intermediate input is noncontractible. A producer/supplier pair can be a good match or a bad match, with bad matches featuring lower productivity. This allows us to build a cooperative equilibrium where producers can switch suppliers and start cooperation immediately with new suppliers. Every period, one supplier has the opportunity to innovate, and in the baseline model, innovations are imitated after one period. We show that (i) innovations need to be larger to break up existing relationships in the cooperative equilibrium than in either a set-up where the input is contractible or when we preclude cooperation in long-term relationships, (ii) the rate of innovation in the cooperative equilibrium is lower than in the contractible case, and may even be lower than in the non-cooperative equilibrium and (iii) cooperation may reduce welfare. Next, we assume that the frontier technology diffuses slowly to suppliers (instead of after one period). In that case, for sufficiently slow diffusion, the innovation rate in the cooperative equilibrium may be higher than even in the contractible case. Finally, we show that cooperation may also increase relationship specific innovations.

We study the effects of employment protection taking into account that firms can – as a second best response – invest in R&D or buy new technologies in order to restore their productivity. To do so we develop an equilibrium matching model with an imperfect labor and innovation market. If employment protection is introduced, firms’ willingness to pay for product or process innovations increases. This shifts economic activity towards firms specializing in process and product innovation and triggers entry of new start-ups. We calibrate our model to match aggregate US labor and product market statistics and show that our model generates the negative impact of wrongful dismissal laws in the US on productivity and the positive effect on the number of innovations and firms found by the literature.

The largest and most important flow of scientific talent in the world is the migration of international students to the doctoral programs offered by universities in industrialized countries. This paper uses the opening of China in 1978 to estimate the causal effect of this flow on the productivity of their professors in mathematics departments across the United States. Our identification strategy relies on both the suddenness of the opening of China and on a key feature of scientific production: intra-ethnic collaboration. The new Chinese students were more likely to be mentored by American professors with Chinese heritage. The increased access that the Chinese-American advisors had to a new pool of considerable talent led to a substantial increase in their productivity. Despite these sizable intra-ethnic knowledge spillovers, the relatively fixed size of doctoral mathematics programs (and the resulting crowdout of American students) implied that comparable non-Chinese advisors experienced a decline in the number of students they mentored and a concurrent decline in their research productivity. In fact, the productivity gains accruing to Chinese-American advisors were almost exactly offset by the losses suffered by the non-Chinese advisors. Finally, it is unlikely that the gains from the supply shock will be more evident in the next generation, as the Chinese students begin to contribute to mathematical knowledge. The rate of publication and the quality of the output of the Chinese students is comparable to that of the American students in their cohort.

This paper investigates the relevance of different forms of knowledge for the firm’s propensity to pursue eco-innovation (EI) strategies. The incidence of different types of internal and external knowledge is disentangled in search of specific EI-modes. We employ panel data on around 4,700 manufacturing firms from the Spanish PITEC dataset. Results show that a Science, Technology, EI-mode (STEI) prevails, though generally in an attenuated way, in the use of internal knowledge, with R&D knowledge more pivotal than some (embodied vs. disembodied) non-R&D one. On the other hand, a synthetic kind of external knowledge, typically drawn from business actors, is more important than the analytical one mainly coming from the “world of science”, suggesting a Doing, Using, Interacting EI-mode (DUIEI) in external terms. Overall, a hybrid EI-mode emerges across the internal and external realm of the firm, with interesting qualifications when specific EI strategies (e.g. cleaner production technologies vs. product eco-innovations) are considered.

This paper assesses whether European firms’ innovative performance is impacted by investments in training directly aimed at developing and/or introducing innovation, in addition to the scale of a firm's investments in innovation proxied by the number of R&D personnels. In particular, it explores the complementarity between these two factors (in the presence of a well-trained workforce, the knowledge created by a firm’s R&D personnel can be better exploited), and their dependence on a firm's knowledge intensity (high versus low % of tertiary-educated workforce) and size (SMEs versus large firms). Using European CIS non-anonymised data for the period 1998-2000, this paper estimates a system of simultaneous equations in which investments in training and stock of R&D personnel are treated as endogenous in relation to the innovative sales on which they are presumed to have an effect. The choice to use this time period rather than more recent ones – to which I had access at the Eurostat Safe Centre – is data-driven. It has better information on training expenditures and it is the last period to provide firm-level information on the number of employees with tertiary education. Unlike the majority of CIS-based studies, the main variables of interest are continuous ones, while dummy variables are used as controls only. Empirical evidence confirms most previous results – investment in training and stock of R&D personnel positively affects firms' innovativeness – but also provides some important additional insights. Ceteris paribus, returns to training and R&D personnel are not affected by the knowledge intensity of the firm, while are always statistically significantly higher in large than in small and medium sized firms. However, while in the case of training the differences in returns between SME and large firms are small, in the case of R&D personnel are quite pronounced.

We study a stochastic dynamic game of process innovation in which firms can initiate and terminate R&D efforts and production at different times. We discern the impact of knowledge spillovers on the investments in existing markets, as well as on the likely structure of newly forming markets, for all possible asymmetries in production costs between firms. While an increase in spillovers may improve the likelihood of a competitive market, it may at the same time reduce the level to which a technology is developed. We show that the effects of spillovers on investments and surpluses crucially depend on the stage of technology development considered. In particular, we show that high spillovers are not necessarily pro-competitive as they can make it harder for the laggard to catch up with the technology leader.

This paper studies the incentives that developing countries have to protect intellectual properties rights (IPR). On the one hand, free-riding on rich countries technology reduces their investment cost in R&D. On the other hand, firm that violates IPR cannot legally export in a country that enforces them. Moreover free-riders cannot prevent others to copy their own innovation. The analysis predicts that the willingness to enforce IPR is U-shaped in a country GDP: small/poor countries are willing to respect IPR to access advanced economies markets, while large emerging countries are more reluctant to do so because technological transfers from the West boost their production capacity and their domestic markets. Universal enforcement of IPR yields a higher level of innovation and global welfare only if the developing country does not innovate. A partial enforcement of IPR, strict in the north and lax in the south, is socially better if the developing country invests enough in R&D and if its interior market is large. The theoretical predictions of the model are tested with the help of panel data. The empirical analysis supports the theoretical results.

The incentives to conduct basic or applied research play a central role for economic growth. How does increasing early innovation appropriability affect basic research, applied research, education, and wage inequality? This paper analyzes the macroeconomic effects of patent protection by incorporating a two-stage cumulative innovation structure into a quality-ladder growth model with skill acquisition. We focus on two issues (a) the over-protection vs. the under-protection of intellectual property rights in basic research; (b) the evolution of jurisprudence shaping the bargaining power of the upstream innovators. We show that the dynamic general equilibrium interations may seriously mislead the empirical assessment of the growth effects of IPR policy: stronger protection of upstream innovation always looks bad in the short- and possibly medium-run. We argue that in a common law system an explictly dynamic macroeconomic analysis is appropriate. We also provide a simple "rule of thumb" indicator of the basic researcher bargaining power.

A rich literature links knowledge inputs with innovative outputs. However, most of what is known is restricted to manufacturing. This paper analyzes whether the three aspects involving innovative activity - R&D; innovative output; and productivity - hold for knowledge intensive services. Combining the models of Crepon et al. (1998) and of Ackerberg et al. (2015), allows for causal interpretation of the relationship between innovation output and labor productivity. We find that knowledge intensive services benefit from innovation activities in the sense that these activities causally increase their labor productivity. Moreover, the firm size advantage found for manufacturing in previous studies nearly disappears for knowledge intensive services., CEPA Discussion Papers, 4

An informer sequentially collects and disseminates information through costly research to persuade an evaluator to approve an activity. Payoffs and control rights are split between informer and evaluator depending on the organizational rules governing the approval process. The welfare benchmark corresponds to Wald’s classic solution for a statistician with payoff equal to the sum of informer and evaluator. Organizations with different commitment power of informer and evaluator are compared from a positive and normative perspective. Granting authority to the informer is socially optimal when information acquisition is sufficiently costly. The analysis is applied to the regulatory process for drug approval. (JEL D82, D83, I18, L51, L65, O31)

International audience; In this paper we use cross-state panel data to show a positive and significant correlation between various measures of innovativeness and top income inequality in the United States over the past decades. Two distinct instrumentation strategies suggest that this correlation (partly) reflects a causality from innovativeness to top income inequality, and the effect is significant: for example, when measured by the number of patent per capita, innovativeness accounts on average across US states for around 17% of the total increase in the top 1% income share between 1975 and 2010. Yet, innovation does not appear to increase other measures of inequality which do not focus on top incomes. Next, we show that the positive effects of innovation on the top 1% income share are dampened in states with higher lobbying intensity. Finally, from cross-section regressions performed at the commuting zone (CZ) level, we find that: (i) innovativeness is positively correlated with upward social mobility; (ii) the positive correlation between innovativeness and social mobility, is driven mainly by entrant innovators and less so by incumbent innovators, and it is dampened in states with higher lobbying intensity. Overall, our findings vindicate the Schumpeterian view whereby the rise in top income shares is partly related to innovation-led growth, where innovation itself fosters social mobility at the top through creative destruction.

This paper investigates the role of external knowledge in the patenting activity of inventors that work inside firms, i.e. industrial inventors. It does so with the aim of showing that inventors who combine the use of different sources of knowledge, i.e. scientific and market sources, display a better performance than those who do not. The empirical analysis makes use of an original survey of industrial inventors carried out in three European regions in 2012, aimed at exploring the inventive process of inventors working inside firms, matched to patent data from the European Patent Office. The empirical analysis employs a so-called productivity approach in which the inventors' knowledge sourcing strategies are used as explanatory factors for the inventors' output. This approach has been widely used in the management literature to analyse the relevance of knowledge flows for firms and is, to the best of the author's knowledge, one of the first attempts to apply it at the inventor's level. The findings show that there is a significant and positive relation between both quantity and quality of inventors' patenting activity and the joint use of scientific and market knowledge, supporting the hypothesis that inventors merge the technological potential of scientific knowledge with the market potential of market knowledge to produce more and better inventions. These findings are stronger for inventors' productivity (quantity) than for their quality. In particular, the sole use of knowledge from market sources is significantly related to the quality of inventors in some of the estimations, showing that inventors' quality may benefit from inter-firms relations only. On the other hand, the separate use of scientific sources of knowledge does not seem to have any relation with inventor's performance. Furthermore, mobile inventors seem to benefit more than non-mobile ones from external knowledge, most likely because of their greater openness towards external-to-the-firm organisations. The robustness check further shows that, when accounting for the uneven distribution of forward citations across different patent technological classes and regions, the findings are consistent with the baseline estimations. The findings of this paper are interesting because tracing a positive link between the use of external knowledge and the inventive process at individual level is relevant for research as well as for policy - considering that knowledge exchange across a wide range of organisations is at the core of the innovation policy agendas in most countries.

Based on a spatial extension of an R&D investment model, this paper measures the macroeconomic impact of the French R&D policy mix on business R&D using regional data. Our measure takes into account not only the direct effect of policies but also indirect effects generated by the existence of spatial interaction between regions. Using a unique database containing information on the levels of various R&D policy instruments received by firms in French NUTS3 regions over the period 2001–2011, our estimates of a spatial Durbin model with structural breaks and fixed effects reveal the existence of a negative spatial dependence among R&D investments in regions. In this context, while a-spatial estimates would conclude that all instruments have a crowding-in effect, we show that national subsidies are the only instrument that is able to generate significant crowding-in effects. On the contrary, it seems that the design, size and spatial allocation of funds from the other instruments (tax credits, local subsidies, European subsidies) lead them to act (in the French context) as beggar-thy-neighbor policies. Fil: Montmartin, Benjamin. Université Côte d’Azur; Francia Fil: Herrera Gomez, Marcos Hernan. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Universidad Nacional de Salta. Facultad de Ciencias Económicas, Jurídicas y Sociales. Instituto de Estudios Laborales y del Desarrollo Económico; Argentina Fil: Massard, Nadine. Université Grenoble Alpes; Francia

This paper analyzes the patent propensity as an outcome of innovative activities of regional SMEs. To achieve the aims, we apply robust regression analysis to estimate the models to test 5 research hypotheses using 263 firm level data located at Gwangju region in Korea. Our empirical results show that a firm’s industry characteristics, such as machinery and automotive parts industry, is negatively related with propensity to patent innovation. Also, unlike expectations, the InnoBiz firms designated as innovative SMEs by the government are not performing differently than general firms. Only the CEO’s academic credentials are positively related with propensity to patent. From the findings, we can conclude that patenting propensity is not directly related with a firm’s characteristics but mainly to CEO’s managerial strategy. Also, we cannot find evidence for policy effectiveness from public support given to InnoBiz firms as part of the state policy to nurture photonic industry to boost regional economic development. Given the lack of strong policy effects, a new industry policy should be considered to actively promote SMEs innovativeness.

The prevailing geographic model for high-technology industrial organization has been the “nerdistan,” a sprawling, car-oriented suburb organized around office parks, of which Silicon Valley is the prototypical example. This seems to contradict a basic insight of urban theory, which associates dense urban centers with higher levels of innovation, entrepreneurship and creativity. Our research examines the geography of recent venture capital finance startups in the United States across metros and within a subset of them by neighborhood and finds compelling evidence that the model is changing. Venture capital investments are clustering in larger, denser urban centers with high levels of human capital, like San Francisco and Lower Manhattan, as well as in walkable suburbs. We suggest that the suburban model might have been an historical aberration, and that innovation, creativity, and entrepreneurship are realigning in the same urban centers that traditionally fostered them.

This paper studies the effect of top tax rates on inventors' international mobility since 1977. We put special emphasis on “superstar” inventors, those with the most abundant and most valuable patents. We use panel data on inventors from the United States and European Patent Offices to track inventors' locations over time and combine it with international effective top tax rate data. We construct a detailed set of proxies for inventors' counterfactual incomes in each possible destination country including, among others, measures of patent quality and technological fit with each potential destination. Exploiting the differential impact of changes in the top tax rate on inventors of different qualities, we find that superstar top 1% inventors are significantly affected by top tax rates when deciding where to locate. The elasticity to the net-of-tax rate of the number of domestic superstar inventors is relatively small, around 0.03, while the elasticity of the number of foreign superstar inventors is around 1. Inventors who work in multinational companies are more likely to take advantage of tax differentials. On the other hand, if the company of an inventor has a higher share of its research activity in a given country, the inventor is less sensitive to the tax rate in that country.

This research advances the hypothesis that natural land productivity in the past, and its effect on the desirable level of cooperation in the agricultural sector, had a persistent effect on the evolution of social capital, the process of industrialization and comparative economic development across the globe. Exploiting exogenous sources of variations in land productivity across (a) countries; (b) individuals within a country, (c) migrants of different ancestry within a country, and (d) individuals residing in regions within a country, the research establishes that lower level of land productivity in the past is associated with more intense cooperation and higher levels of contemporary social capital and development.

In merger policy it is still an open question how the negative effects of mergers on innovation should be assessed. In this empirical study all mergers that were challenged by the U.S. antitrust agencies FTC and DOJ between 1995 and 2008 were analyzed in regard to the question to what extent and how the agencies assessed the innovation effects of mergers. The study also contributes to the discussion about differences and convergence in the merger assessments of the two agencies FTC and DOJ. Our results show (1) that in one third of all challenged mergers also innovation concerns have been raised (with no significant differences between the agencies). (2) Despite the wide-spread rejection of the “innovation market approach” in the antitrust debate the agencies used more often an innovation-specific assessment approach that includes also innovation in the market definition than the traditional product market concept. (3) Overall, we found both significant similarities and differences as well as some convergence over time in regard to the specifics of the assessment of innovation effects of mergers between both agencies.

We argue that evasive entrepreneurship is an important, although underrated, source of innovation, and provide the first systematic discussion of the con-cept. We define evasive entrepreneurship as profit-driven business activity in the market aimed at circumventing the existing institutional framework by using innovations to exploit contradictions in that framework. We formulate four propositions of evasive entrepreneurship and illustrate them with a number of real life examples, ranging from a secret agreement among Chinese farmers in the 1970s to activities of rides-for-hire startups in the modern sharing economy. We demonstrate that while evasive entrepreneurship can either be productive, unproductive or destructive, it may prevent economic development from being stifled by existing institutions during times of rapid economic change. Furthermore, it can spur institutional change with important welfare effects.

This paper exploits a particular facet of the US patent system, which thus far has been overlooked in the literature: the patent renewal fee scheme relating to switches from small to large entity status. Based on this observation, we are able to determine whether university patents are licensed over their enforceable lifecycle and at what point in time the licensing occurs. We find that while the funding source of patented inventions makes no difference to the propensity of an academic patent being licensed, federally sponsored patents are less likely to be licensed early compared to their non-federally funded counterparts.

In our model multiple innovators compete against each other by submitting investment proposals to an investor. The investor chooses the least expensive proposal and the timing of the investment. Innovators have to provide costly, but observable effort and they learn privately the cost of investing. The investor has to compensate the innovators for their effort costs, but competition helps to erode innovators' informational rents. Consequently, competition leads to faster innovation, because the investor has less need to delay expensive investments. With endogenous number of innovators investment timing becomes first-best. When we introduce private benefits for winning the competition, innovators have an incentive to understate the investment costs. When private benefits are large the investor may have to counter this by delaying the timing of inexpensive investments.

How does the rate at which firms adopt new technologies affect the level of education and training of a country's workforce? If technological change makes knowledge obsolete and tends to foster general rather than firm-specific skills, what would be the optimum level of education spending in front of a faster arrival of new technologies? This paper tries to answer these questions by developing an endogenous growth model with creative 'wear and tear' in which general education enhances innovation through R&D and lowers adjustment costs to new technologies, while on-the-job training is necessary for firms to realise their profit potentials by implementing the new technologies and reap all the related future quasi-rents. The paper reproduces some stylized facts on the technology-training relationship and shows how the optimum amount of time devoted to education and job training is affected by the rate of technical change itself. In particular, we find that a faster arrival of innovations shifts the private knowledge portfolio towards general human capital. We also find that households tend to under invest in education, thus leading to lower growth rates than technically feasible, and higher training costs than absolutely necessary. This suggests that there is room for education policy reducing private education fees.

This paper investigates the effect of domestic market size on innovation activities across different durable good industries in the Chinese manufacturing sector. We address the endogeneity of market size by an IV strategy, based on a measure of potential market size, which is driven only by changes in the Chinese income distribution. This measure is exogenous to changes in prices and qualities of durable goods and is a valid instrument for expected future market size. Our results indicate that an increase in market size by one percent leads to an increase in firm-specific total factor productivity by 0.46 percent and an increase in labor productivity by 0:50 percent. These findings are robust to controlling for export behavior of firms and supply side drivers of R&D.

Prior research investigates the role of start-up costs and taxes with regard to entrepreneurship. Yet, little distinction is made regarding the type of entrepreneurship, particularly innovative versus non-innovative entrepreneurship. We shall argue that start-up costs and taxes are associated in different ways with innovative versus non-innovative entrepreneurship. Taxes being recurring costs should mainly relate to innovative entrepreneurship, whereas start-up costs being one-off costs should mainly relate to non-innovative entrepreneurship. Analyzing a dataset of 632,116 individuals, including 43,223 entrepreneurs from 53 countries, we can partially confirm our predictions. Corporate taxes show a negative relationship with innovative entrepreneurship, whereas income taxes seem to have no relationship. High start-up costs have a positive relationship with innovative entrepreneurship, although this finding only holds true in cross-sectional investigations. Our paper contributes to the discussion on how governmental regulation and taxes relate to entrepreneurship.