|
on Innovation |
| By: | Cristelli, Gabriele; Lissoni, Francesco |
| Abstract: | We study the innovation effects of the Agreement on the Free Movement of Persons (AFMP), signed by Switzerland and the EU in 1999. Using geocoded patent data, complemented by matched inventor-immigrant-census records, we identify a large number of cross-border inventors (CBIs), commuters from neighbouring countries working in Swiss R&D labs. We show that, during the AFMP implementation phase, the influx of CBIs increased differentially across regions at different driving distances from the border, causing a 24% increase in patents, mostly due to large and medium patent holders (as opposed to very large ones) and to inventor teams mixing CBIs and natives. We do not detect any adverse effect on native inventors and show that Swiss incumbent inventors collaborating with CBIs increased their productivity. Our evidence suggests complementarity between CBIs’ and Swiss incumbents’ knowledge assets. |
| Keywords: | Immigration, Innovation, Patents, Inventors, Free Movement of Persons |
| JEL: | F22 J61 O31 O33 |
| Date: | 2020–11 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:107433&r= |
| By: | Pilar Beneito (University of Valencia and ERI-CES); María E. Rochina Barrachina (University of Valencia and ERI-CES); Amparo Sanchis (University of Valencia and ERI-CES) |
| Abstract: | Innovative firms use patents to signal the quality of their R&D teams in evaluation processes affected by asymmetric information. Examples of these processes occur when applying for finance from external sources or when searching for collaboration partners for innovation projects. In this paper we provide evidence that, in these cases, firms' external agents undervalue patents of female R&D teams as compared to patents of male R&D teams. We investigate this issue using data of Spanish innovating firms from PITEC, spanning 2005-2014, a panel database that follows the structure of the European Community Innovation Surveys (CIS). We interpret our results as consistent with an evaluation bias against female researchers, making them to be subject to a greater scrutiny as compared to their male counterparts, and thereby suggesting the existence of gender discrimination in R&D. |
| Keywords: | female R&D teams, patents, asymmetric information, quality signals |
| JEL: | O30 O34 C20 J16 |
| Date: | 2021–09 |
| URL: | https://d.repec.org/n?u=RePEc:eec:wpaper:2110&r= |
| By: | Prado, Tiago S. |
| Abstract: | This paper investigates short-term effects of big tech start-up acquisitions on innovation empirically. Innovation research has found a strong positive, causal relationship between VC investment and innovation. Using this insight, we can explore the repercussions of big tech start-up acquisitions on innovation by examining their effects on venture capital (VC) activity. We analyze a very large set of observations of more than 32,000 venture capital deals in more than 170 different segments of the tech industry and almost 400 tech start-up acquisitions made worldwide between 2010 and 2020 by Google, Facebook, Amazon, Apple, and Microsoft. Our results suggest a positive, causal impact of big tech start-up acquisitions on venture capital activity, challenging claims about the creation of "kill zones" for start-ups after acquisitions are made by the big techs. For example, after controlling for other factors that may impact VC activity, like initial public offerings (IPOs) and other mergers and acquisitions (M&As), we found an average increase of 30.7% in the total amount of VC funding towards U.S. based start-ups of the same industry segment in the four quarters following a big tech start-up acquisition. For deals targeting European start-ups, we found an increase of 32.1% in the VC funding in in the first quarter after a big tech start-up acquisition. Finally, our findings show that such positive effects, when existent, persist for a few months only, and so do not seem to have lasting impacts on the innovation incentives in the the start-up ecossystem. Our empirical findings should inform current competition policy discussions on imposing restrictions to acquistions of start-ups by the big techs. |
| Keywords: | kill zone,platform,big tech,venture capital,innovation |
| JEL: | G11 G24 G32 G34 L41 L44 |
| Date: | 2021 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb21:238049&r= |
| By: | Rodríguez-Pose, Andrés; Lee, Neil |
| Abstract: | Innovation in cities is increasingly regarded as an outcome of two potential inputs: scientific activity and creativity. Recent firm level research has suggested that what really matters for innovation is the combination of these two inputs, rather than the mere presence of workers representing each group. Yet there is little evidence on whether this relationship holds at the city level. This paper investigates this gap in our knowledge by examining how the simultaneous presence of STEM (geeks) and creative workers (hipsters) in 290 US Metropolitan Statistical Areas during the period between 2005 and 2015 has contributed to determine city level innovation. The results indicate that, although at first sight the presence of STEM workers is a more important driver of innovation than that of creative ones, it is the combination of both factors that maximizes innovation in US cities. The most innovative cities are precisely those that are more successful at combining the two. Hence, current policies which tend to focus mainly on either STEM or creativity may be better targeted at ensuring both are present. |
| Keywords: | cities; creative class; creativity; innovation; STEM; United States; AH/S001298/1 |
| JEL: | R14 J01 |
| Date: | 2020–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:103974&r= |
| By: | Ernest Miguelez; Andrea Morrison; |
| Abstract: | How do regions enter new and distant technological fields? Who is triggering this process? This work addresses these compelling research questions by investigating the role of migrant inventors in the process of technological diversification. Immigrant inventors can indeed act as carriers of knowledge across borders and influence the direction of technological change. We test these latter propositions by using an original dataset of immigrant inventors in the context of European regions during the period 2003-2011. Our findings show that: immigrant inventors generate positive local knowledge spillovers; they help their host regions to develop new technological specialisations; they trigger a process of unrelated diversification. Their contribution comes via two main mechanisms: immigrant inventors use their own personal knowledge (knowledge creation); they import knowledge from their home country to the host region (knowledge transfer). Their impact is maximised when their knowledge is not recombined with the local one (in mixed teams of inventors), but it is reused (in teams made by only migrant inventors). Our work contributes to the existing literature of regional diversification by providing fresh evidence of unrelated diversification for European regions and by identifying important agents of structural change. It also contributes to the literature of migration and innovation by adding fresh evidence on European regions and by unveiling some of the mechanisms of immigrants’ knowledge transmission. |
| Keywords: | patents, migration, technological diversification, relatedness, Europe |
| JEL: | O30 F20 F60 |
| Date: | 2021–08 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2125&r= |
| By: | OECD |
| Abstract: | Social innovations have proven to be valuable in identifying, designing and implementing new solutions to social and environmental problems. The recent COVID-19 outbreak has put a spotlight on the potential of social innovation as a resilience mechanism, including for local development. This paper presents a preliminary framework for analysing social innovation ecosystems at the local level. It can help policy makers to better understand the different concepts around social innovation, and to develop policies to support social innovation and its implementation. The first section considers the features of social innovation and the benefits it can bring. The second section provides an analytical framework for social innovation at the local level. The final section sets a number of guidelines that support the implementation of social innovation ecosystems at local level, including examples of specific policy instruments. |
| Keywords: | local ecosystem, measurement of social innovation, social economy, social entrepreneurship, social innovation |
| JEL: | O35 L30 L31 D04 I3 |
| Date: | 2021–09–10 |
| URL: | https://d.repec.org/n?u=RePEc:oec:cfeaaa:2021/06-en&r= |
| By: | Goel, Rajeev K.; Nelson, Michael A. |
| Abstract: | This paper studies the impact of research and development (R&D) and innovation on employment growth, focusing on small and medium-sized firms. Employment effects of R&D and innovation are unclear a priori as process innovation may be labor-saving or labor might have complementarities with other inputs. Employing firm-level data from 125 nations, results show that both R&D and innovation increased employment growth, suggesting that innovation was either capital-saving or labor had strong complementarities with other inputs. Upon splitting the sample into growing and contracting firms showed that contracting firms benefit from innovation but not from R&D. In other findings, sole proprietorships, larger firms, firms with relatively more experienced managers, firms with females as top managers, and firms facing the threat of informal competition had lower employment growth, while foreign-owned and government-owned enterprises have positive influences on employment growth. Finally, employment growth in shrinking firms was boosted in nations with greater economic freedom, but this growth is undermined by informal sector competition. |
| Keywords: | R&D,innovation,employment growth,managerial experience,foreign ownership,government ownership,economic freedom,emerging markets |
| JEL: | L2 O3 O5 |
| Date: | 2021 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkwp:2196&r= |
| By: | Faria, João Ricardo; Goel, Rajeev K.; Göktepe-Hultén, Devrim |
| Abstract: | Considering the sequential nature of nascent entrepreneurship and business ownership, this paper examines the propensities of academic entrepreneurs to be business owners. A theoretical model sets up the empirical analysis based on survey data from a large German public research institute. Traditionally, scientists and entrepreneurs have been seen to occupy opposite ends of a spectrum in terms of their role in innovation. In academic entrepreneurship the two combine on a number of activities. In order to understand the ways in which academic inventors move from pure patenting to nascent entrepreneurship to business ownership and connect seemingly divergent activities. We model their behavior by looking at various factors among German scientists. Academic inventors present a critical case since science and entrepreneurship are often seen as radically different, not the least in terms of knowledge production. By bringing the analysis from the level of social behavior and roles to the level of knowledge production, we can better address questions such as: How is knowledge in the interfaces of epistemic communities produced? How can such knowledge be organized and sustained? and How can relations between individuals on 'opposing sides' be constructively managed? The empirical results show that scientists' positive attitudes towards commercialization of results consistently contribute to tendencies towards academic entrepreneurship; however, the academic discipline and risk aversion did not have a statistically significant impact. Having a doctoral degree lowered the propensities toward nascent entrepreneurship, but had the opposite effect on business ownership. Finally, age and experience made business ownership more likely. The results of this study would contribute to a more general theory of how scientists can combine their commercial and scientific activities in spite of an alleged divergence. |
| Keywords: | academic entrepreneurship,invention,spinoffs,business entrepreneurs,nascent entrepreneurs,commercialization costs,Germany |
| JEL: | O33 O52 L26 |
| Date: | 2021 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkwp:2197&r= |
| By: | Pierre Azoulay (MIT Sloan School of Management, and NBER); Benjamin Jones (Northwestern University, and NBER); J. Daniel Kim (University of Pennsylvania); Javier Miranda (Friedrich-Schiller University Jena and Halle Institute for Economic Research (IWH)) |
| Abstract: | Immigrants can expand labor supply and compete for jobs with native-born workers. But immigrants may also start new firms, expanding labor demand. This paper uses U.S. administrative data and other data sources to study the role of immigrants in entrepreneurship. We ask how often immigrants start companies, how many jobs these firms create, and how firms founded by native-born individuals compare. A simple model provides a measurement framework for addressing the dual roles of immigrants as founders and workers. The findings suggest that immigrants act more as "job creators" than "job takers" and play outsized roles in U.S. high-growth entrepreneurship. |
| Keywords: | Entrepreneurship, immigration, innovation, administrative data, Survey of Business Owners, Fortune 500, job creation, earnings, growth |
| JEL: | J15 L26 M13 O3 |
| Date: | 2021–09–06 |
| URL: | https://d.repec.org/n?u=RePEc:jrp:jrpwrp:2021-014&r= |