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on Innovation |
| By: | Perez-Alaniz, Mauricio; Lenihan, Helena; Doran, Justin; Rammer, Christian |
| Abstract: | Public financial support for firm-level Research and Innovation (R&I) can generate important socio-economic returns. This is especially true if firms use this support to develop radical innovation, defined as new-to-market goods and services. However, radical innovation is risky, and prone to failure. Therefore, subsidising radical innovation can also generate sub-optimal socio-economic returns (i.e. policy failure). Understanding how public funding for R&I can be allocated in a way that encourages radical innovation, while avoiding policy failure, is crucial. Our paper investigates, for thefirst time, whether public fundingfor R&I generates more radical innovation in firms seeking to innovate by engaging in knowledge areas that are new to them, versus firms seeking to exploit their existing knowledge base. We make this distinction by using a novel approach, based on the knowledge challenges that firms face when innovating. By merging firm-level survey data with administrative data on public funding for R&I in Ireland, we find that subsidising firms seeking to engage in new knowledge areas, can result in more radical innovation and turnover from radical innovation, compared to firms seeking to exploit their existing knowledge base. These are critical insights from theoretical and policymaking perspectives, regarding the allocation of public funding for R&I. |
| Keywords: | radical innovation, public financial support, knowledge base, policy failure, additionality |
| JEL: | D83 O31 O32 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:283615&r=ino |
| By: | Alexander Cuntz; Carsten Fink; Hansueli Stamm |
| Abstract: | The emergence of Artificial Intelligence (AI) has profound implications for intellectual property (IP) frameworks. While much of the discussion so far has focused on the legal implications, we focus on the economic dimension. We dissect AI's role as both a facilitator and disruptor of innovation and creativity. Recalling economic principles and reviewing relevant literature, we explore the evolving landscape of AI innovation incentives and the challenges it poses to existing IP frameworks. From patentability dilemmas to copyright conundrums, we find that there is a delicate balance between fostering innovation and safeguarding societal interests amidst rapid technological progress. We also point to areas where future economic research could offer valuable insights to policymakers. |
| Keywords: | Artificial Intelligence, Intellectual Property, Patents, Copyright |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:wip:wpaper:77&r=ino |
| By: | Philipp Boeing; Loren Brandt; Ruochen Dai; Kevin Lim; Bettina Peters |
| Abstract: | We study the evolution of patenting in China from 1985-2019. We use a Large Language Model to measure patent importance based on patent abstracts and classify patent ownership using a comprehensive business registry. We highlight four insights. First, average patent importance declined from 2000-2010 but has increased more recently. Second, private Chinese firms account for most of patenting growth whereas overseas patentees have played a diminishing role. Third, patentees have greatly reduced their dependence on foreign knowledge. Finally, Chinese and foreign patenting have become more similar in technological composition, but differences persist within technology classes as revealed by abstract similarities. |
| Keywords: | Innovation Patents Technology China |
| JEL: | O3 |
| Date: | 2024–03–08 |
| URL: | https://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-770&r=ino |
| By: | Peiffer-Smadja, Océane; Mitra, Alessio; Ravet, Julien; Di Girolamo, Valentina |
| Abstract: | This paper uses multiple linear and fractional probit regressions to assess the importance of regional research capacities and assets, as well as intrinsic characteristics of the regions in defining success in the European R&I Framework Programme. We find that quality of research outputs matters more than quantity, particularly in projects targeting societal challenges, while quality of patenting activity matters more than quantity, particularly in projects targeting industrial objectives. Less-developed regions benefit from improved institutions, while advanced regions gain from increased R&D and human resources investments. We provide recommendations on how regions can improve their capacity to participate in the EU FP for R&I. |
| Keywords: | European R&I Framework Programme, Regional innovation |
| JEL: | O38 R58 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:283908&r=ino |
| By: | Miguel Antón; Florian Ederer; Mireia Giné; Martin C. Schmalz |
| Abstract: | Firms have inefficiently low incentives to innovate when other firms benefit from their inventions and the innovating firm therefore does not capture the full surplus of its innovations. We show that common ownership of firms mitigates this impediment to corporate innovation. By contrast, without technological spillovers, innovation has the effect of stealing market share from rivals; in that case, more common ownership reduces innovation. Empirically, the association between common ownership and innovation inputs and outputs decreases with product market proximity and increases with technology proximity. The sign and magnitude of the overall relationship between common ownership and corporate innovation thus varies considerably across the universe of firms depending on their relative proximity in technology and product market space. These results persist if we use only variation from BlackRock's acquisition of BGI. Our results inform the debate about the welfare effects of increasing common ownership among U.S. corporations. |
| JEL: | G30 L20 L40 O31 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32192&r=ino |
| By: | Di Girolamo, Valentina; Mitra, Alessio; Ravet, Julien; Peiffer-Smadja, Océane; Balland, Pierre-Alexandre |
| Abstract: | This paper studies the relationship between knowledge complexity and countries' technological dependency, with a focus on the EU's position vis-à-vis other major economies. Using patent data, we calculate the knowledge complexity index at technological level for a set of countries over the period 1990-2020 to assess the EU's technological capabilities. Our findings show that the EU's overall position has progressively worsened vis-à-vis the US, China, Japan, and South Korea over the last three decades, that the EU's technological base is more diversified than that of other major economies, but is disproportionally more specialised in less complex technologies than its counterparts. Finally, the EU is particularly dependent on just a few countries in most complex technologies. |
| Keywords: | Complex technologies, Technological dependencies, Strategic autonomy, Relatedness |
| JEL: | O11 O33 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:283907&r=ino |
| By: | Weber, Karl Matthias; Giesecke, Susanne; Havas, Attila; Schartinger, Doris; Albiez, Andreas; Horak, Sophia; Blind, Knut; Bodenheimer, Miriam; Daimer, Stephanie; Shi, Liu; Stadler, Maria; Schmitz, David |
| Abstract: | The importance of social innovation for overcoming societal challenges is now widely recognised. In addition to their contribution to the transformation of socio-technical systems, they are also assigned an important role in flanking disruptive technological developments and coping with crisis situations such as the COVID-19 pandemic. At the same time, the theoretical understanding of social innovations is very heterogeneous, which is detrimental to both the development of measurement concepts and indicators and the well-founded derivation of innovation policy measures. Building on recent research, a conceptual process model of social innovation is developed and subsequently used to analyse four case studies (energy communities, autonomous driving, corona warning app, social housing in Vienna). In addition, the report deals with rationales for justifying state interventions in social innovation, as well as with the use of new policy instruments to support social innovations in four pioneering countries. It also assesses the current state of research on the measurement and indicators of social innovation. It concludes with implications for the research and innovation policy debate in Germany. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:efisdi:284388&r=ino |
| By: | Ekaterina Prytkova; Fabien Petit; Deyu Li; Sugat Chaturvedi; Tommaso Ciarli |
| Abstract: | This paper measures the exposure of industries and occupations to 40 digital technologies that emerged over the past decade and estimates their impact on European employment. Using a novel approach that leverages sentence transformers, we calculate exposure scores based on the semantic similarity between patents and ISCO-08/NACE Rev.2 classifications to construct an open–access database, ‘TechXposure’. By combining our data with a shift–share approach, we instrument the regional exposure to emerging digital technologies to estimate their employment impact across European regions. We find an overall positive effect of emerging digital technologies on employment, with a one-standard-deviation increase in regional exposure leading to a 1.069 percentage point increase in the employment-to-population ratio. However, upon examining the individual effects of these technologies, we find that smart agriculture, the internet of things, industrial and mobile robots, digital advertising, mobile payment, electronic messaging, cloud storage, social network technologies, and machine learning negatively impact regional employment. |
| Keywords: | occupation exposure, industry exposure, text as data, natural language processing, sentence transformers, emerging digital technologies, automation, employment |
| JEL: | C81 O31 O33 O34 J24 O52 R23 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_10955&r=ino |
| By: | Füner, Lena; Berger, Marius; Bersch, Johannes; Hottenrott, Hanna |
| Abstract: | New business formation is a key driver of regional transformation and development. While we know that a region's attractiveness for new businesses depends on its resources, infrastructure, and human capital, we know little about the role of local business networks in promoting or impeding the birth of new firms. We construct local business networks connecting more than 350 million nodes consisting of managers, owners and firms using administrative data on all German businesses from 2002 to 2020. Differentiating between serial and de-novo entrepreneurs, we show a positive but decreasing relation between a region's connectedness and firm entry of serial entrepreneurs. Networks are, moreover, positively linked to firm survival. Relating our findings to a measure of ownership concentration, we show that networks provide additional explanations for regional variation in new business formations. These patterns are robust to synthetic instrumental variable estimations |
| Keywords: | New Firm Formation, Business Networks, Serial Entrepreneurship, RegionalDynamics, Ownership Concentration |
| JEL: | L14 L26 M13 O31 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:283589&r=ino |