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Using Linked Patent and R&D Data to Measure Interindustry Technology Flows

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... Esse problema de mensuração da inovação de processo sobre a produtividade já havia sido percebido por Scherer (1984) em um contexto de fluxo de tecnologia intersetorial. O autor chamava a atenção que a maior parte dos esforços inovativos de uma empresa são orientados para a criação e melhorias de novos produtos a serem vendido para outras empresas, o que distingue dos esforços de melhorias de processo de produção usados internamente. ...
... O autor chamava a atenção que a maior parte dos esforços inovativos de uma empresa são orientados para a criação e melhorias de novos produtos a serem vendido para outras empresas, o que distingue dos esforços de melhorias de processo de produção usados internamente. Os estudos empíricos entre inovação e produtividade focavam e continuam em sua maioria se especializando no impacto da introdução de uma inovação por uma empresa i sobre a produtividade desta mesma empresa i, enquanto o importante a ser testado é o impacto da inovação desta firma i para o desempenho da produtividade de uma firma j (SCHERER, 1984). ...
... Paralelamente ao trabalho de Scherer (1982), Momigliano e Siniscalco (1982, 1984 sugeriram um processo mais sofisticado e rigoroso na construção da matriz de fluxos tecnológicos. Os autores se basearam no conceito de setores verticalmente integrado de Pasinetti (1973). ...
... Bu bağlamda, bilginin korunmasına ilişkin mekanizmalardaki aksaklıkların söz konusu taşmalara zemin hazırladığı söylenebilir (Kaiser, 2002a: 126). Bilgi taşmalarına ilişkin literatürdeki ilk çalışmalar (Griliches, 1979(Griliches, , 1991Scherer, 1984) belirli bir ülke sınırı içindeki firmalar veya endüstriler arası bilgi ya da başka bir deyişle AR-GE taşmaları ekseninde ortaya çıkmıştır. Bununla birlikte, küreselleşmenin beraberinde getirdiği artan uluslararası ekonomik bağımlılıklar bilgi taşmalarının etkilerini ulusal sınırların ötesine taşımıştır. ...
... Buradan hareketle farklı çalışmalar, bilgi taşmalarıyla etkileşimde bulunan genel dengeye bağlı etkilerin, yeni ve bazen mevcut olanlardan radikal bir biçimde ayrılan politikaları ortaya çıkardığını göstermektedir (Aghion ve Jaravel, 2015: 536-538). Diğer yandan, bilgi düzeyinin, AR-GE'ye yönelik yatırımlardan elde edilen getirileri de kritik bir seviyede etkilediği (Cozzi, 1999) ve uluslararası ortaklıklar yoluyla gerçekleşen öğrenme faaliyetlerini önemli ölçüde artırdığı da (Lane vd., 2001) (Griliches, 1979(Griliches, , 1991Scherer, 1984;Griliches ve Lichtenberg, 1984), ulusal düzeyde ortaya çıktığı ve ölçüm çerçevesi olarak AR-GE ve patent verilerinden yararlandığı görülmektedir. Bu kapsamda Griliches (1979), bir üretim faktörü olarak ele aldığı "bilgi sermayesinin" ölçülmesi zor ve çok geniş bir kavram olduğunu belirtmekte ve bu sermayeyi "AR-GE sermayesi" ile ilişkilendirmektedir. Griliches (Griliches, 1979: 100-102). ...
... Dolayısıyla bilgi taşmalarını doğrudan ölçümleyebilmek için ya belirli bir endüstride veya bir ürün grubu üzerine odaklanmalı, ya da mevcut verilerden ilgili taşma kanallarını tanımlamanın başka yolları aranmalıdır (Griliches, 1991: 3). Buna karşılık Scherer (1984), endüstri içi ve endüstriler arası bilgi akışlarını gözlemleyebilmek amacıyla kapsamlı bir patent sınıflamasına gitmektedir. Scherer (1984) elde ettiği bu patent istatistiklerini, endüstri içi ve endüstri dışı (ithal) olarak ayırdığı AR-GE verilerini ağırlıklandırmada kullanmıştır. ...
Thesis
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Today, along with remarkable advances in communication technologies and information networks across the world, the widespread effect of globalization has reached a tremendous stage. These advances not only move the localized knowledge beyond the national boundaries, but also bring about considerable differences in distribution of global knowledge. As part of explaining the differences in spatial distribution of knowledge, some channels play an important role through spillover effects. In the literature, there is much debate about implications of such channels on economic sphere. This study aims to investigate the effect of international knowledge spillovers on productivity and economic growth in a sample of 16 developing countries for the 1990-2014 period. The analysis takes into account the interdependencies that global knowledge reveals, as well as the country-specific effects of knowledge spillovers by applying second-generation tests and estimation methods. Firstly, results of the study demonstrate that high-tech imports are an important source of international knowledge spillovers and the effect of such spillovers make a significant contribution to both productivity and economic growth in developing countries. However, there is no clear evidence regarding to significantly positive effect of FDI spillovers in the findings. Therefore, it is necessary to re-examine FDI flows in a technology-intensive framework. Thirdly, it is concluded that knowledge spillovers occurring through R&D collaborations do not explain the increases in productivity and economic growth alone. In this respect, results also show that the knowledge absorption capacity at the national level may enable the beneficial use of foreign knowledge stock via collaborative R&D activities.
... A maioria das inovações produzidas e incorporadas em novos produtos por um setor são utilizadas como melhorias no processo produtivo de outros setores, que resultam em ganhos de produtividade (e.g. SCHMOOKLER, 1966;SCHERER, 1982;PAVITT;1984), bem como as relações de compra e venda entre setores produtores e usuários de inovação são determinantes para o próprio desenvolvimento da tecnologia (e.g. ROSENBERG, 2006;DAHMÉN, 1988;LUNDVAL, 1988, DOSI, 2006). ...
... O autor destacou a importância da análise de insumo-produto para o estudo da mudança tecnológica, pois a técnica permite verificar as mudanças nos requerimentos intermediários entre os setores produtivos. Em sua análise histórica, chamava atenção de Rosenberg (2006a) de como a redução de custo através de melhorias e inovações de alguns setores 3 As fontes da mudança tecnológica na visão de Schumpeter (1982;1984) é comumente associada pela literatura a dois marcos diferentes: no marco 1, de Teoria do desenvolvimento econômico, o foco sobre o surgimento de inovações recai na figura do empreendedor "visionário", enquanto que no marco 2, de Capitalismo, socialismo e democracia, o foco passa a ser a grande empresa e seus departamento de P&D. Uma revisão detalhada dos desenvolvimentos teóricos das fontes da mudança tecnológica fogem do escopo dessa tese. ...
... A hipótese de demand-pull frequentemente é atribuída a Schmookler (DOSI, 2006), que ressaltava não só a demanda final, como também, e principalmente, os setores usuários ou compradores de novos produtos. 5 Schmookler (1966) faleceu antes de executar de forma empírica a sua abordagem, que foi utilizada e citada posteriormente por Terleckyj (1980) e Scherer (1982) (SCHERER, 1984). ...
Thesis
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The aim of this thesis is to analyze the sectoral technological interdependence and the impact of intersectoral technological flows on productivity in Brazil during the period from 2000 to 2014. The analysis is done at the sectoral level and uses the methodological approach of input-output for the construction of technological flows matrices between the sectors of the economy. These matrices incorporate R&D and other innovative activities data as estimates of innovative efforts incorporated in the acquisition of intermediate consumer goods and capital goods from the economic sectors. Specifically, it aims to answer three research questions: i) What is the structure of sectoral technological interdependence of the Brazilian economy?; ii) What would be the key sectors from the point of view of technology for the Brazilian economy; and iii) What is the impact of the intersectoral flow of technology on productivity in Brazil? The main findings highlight that the sectoral technological interdependence structure of the Brazilian economy remained stable between 2000 and 2014. It has been found that the less technology-intensive sectors, especially the traditional industry and the agricultural commodity sectors, have absorbed more technology incorporated in the purchase of their intermediate and capital goods than the more technologyintensive sectors such as the innovative industry and knowledge-intensive services. More specifically, the chemical industry emerges as a key sector in terms of technological spillovers incorporated in intermediate consumer goods for user sectors, while the machinery and equipment industry emerges as a key sector in the technological spillovers incorporated in capital goods. Through econometric estimations, it has also been found that the innovative efforts incorporated in goods transacted by the economic sectors are more important to explain labor productivity growth than the innovative efforts of the sectors themselves. This shows that much of the productivity growth of some sectors in Brazil was due to innovations generated in other sectors. It is concluded that technological flows are an important mechanism of productivity growth in the context of low productivity growth in the Brazilian economy, mainly in the industrial sectors.
... 4 We focus on the R&D content of trade, or the R&D stock embodied in intermediate and final goods used in production and consumption (Trefler and Zhu, 2010;Nishioka and Ripoll, 2012). 5 The use of input-output data to study inter-industry R&D spillovers in a single economy dates back to Schmookler Schmookler (1966), whose work is followed upon by Terleckyj Terleckyj (1980), Scherer Scherer (1982); Scherer (1984), Griliches and Lichtenberg Griliches and Lichtenberg (1984), and Griliches Griliches (1998a), among others. In recent years, Keller Keller (2002b), Nishioka andRipoll Nishioka andRipoll (2012), andFoster-McGregor et al. ...
... Much of this early work is concerned with understanding the direction of inter-industry R&D spillovers. Scherer's Scherer (1982); Scherer (1984) technology flow matrix, for instance, relies on the sorting of all available R&D data into industries' "own" R&D and "used" R&D sourced from other industries. To construct the latter component, other-industry R&D data is redistributed using the proportion of source industry's patents that are classified, ex ante, as being intended for use in recipient industries. ...
Article
The diffusion of knowledge is an important determinant of economic development. International trade has been established as a key mechanism in facilitating diffusion. The rise of global value chains (GVCs) has transformed trade in recent years. Yet the role of GVCs in giving rise to knowledge spillovers remains under-explored. In this paper, we study the elasticity of industry-level total factor productivity (TFP) to technology that is imported through intermediate trade in GVCs. To do so, we combine novel input–output decomposition methods with recent insights from the literature on the factor content of trade. We focus on a panel of 32 countries and 39 sectors over the 2000–2014 period using WIOD and OECD data. We find that domestic TFP is elastic to knowledge flows arising from GVCs and that the magnitude of this effect is larger relative to all other knowledge flows. We also find that GVC participation is particularly conducive to technology upgrading in countries that are far away from the technology frontier, and that GVC-related spillovers persist over large geographical distances.
... The literature on knowledge diffusion points to different channels of spillovers. In this sense, some part of the knowledge may be specific to a spatial unit (firm, industry, region, etc.) at a national level (Griliches, 1979(Griliches, , 1992Scherer, 1984), while the rest is transmitted by sources from abroad (Grossman & Helpman, 1990;Coe & Helpman, 1995). Based on the fact that economic agents cannot unconditionally succeed with internal sources, the level of domestic knowledge and technology also enables the efficient transmission of external knowledge as a form of absorptive capacity ( Jaffe, 1986;Cohen & Levinthal, 1989;Lane, Salk, & Lyles, 2001). ...
... Earlier research in the literature (Griliches, 1979;Scherer, 1984;Griliches & Lichtenberg, 1984) demonstrates the promising role of knowledge diffusion in firm/industry performance, from a productivity-oriented perspective at a national level. Griliches (1992) emphasizes that apart from technological progress driven by accurate investments and strategic decisions, economic growth is unlikely to be sustained in the absence of R&D externalities, knowledge spillovers, and other inputs necessary for welfare. ...
Article
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The diffusion of knowledge is an essential triggering factor in the phase of economic growth through externalities mostly based on R&D and innovations embodied in technological products or services. As a form of transmission, knowledge spillovers arising from an external source can emerge through various channels. This study investigates the effect of knowledge spillovers via high-tech imports and international R&D cooperation on longrun economic growth, in a panel of selected emerging and developing economies for the 1995-2019 period. Based on the results of second-generation econometric methods that take into account cross-section dependence and parameter heterogeneity, it is concluded that knowledge spillovers via high-tech imports are a prominent determinant of economic growth. The results also confirm the growth-enhancing effect of domestic knowledge stock as a measure of knowledge absorption capacity. However, it is deduced that knowledge spillovers via R&D cooperation have a weak and somewhat insignificant positive impact on economic growth, when ignoring the complementary relationship between incoming knowledge and the absorptive capacity of countries. Accordingly, the results indicate the essential role of increasing absorptive capacity in gains from R&D spillovers. Lastly, human capital seems to be decisive in the growth process.
... Notes: Both knowledge spillovers and R&D are in logarithms and measured in dollars. Knowledge spillovers from one county to another includes the information from the technology-flow matrix constructed by Scherer (2007). The detailed procedure for constructing the measure can be found in the technical notes in Appendix B. The regressions are weighted by the total geographic areas of paired counties. ...
... To compute α k←l , or R&D across industries, we follow Scherer(2007) and construct an R&D matrix. This matrix indicates how R&D in industry l flows to (is used in) other industry k. ...
Article
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This paper examines the impact of culture on industrial similarity during the trade liberalization process between 1998 and 2007. The identification strategy relies on the regional variation in exposure to trade and compares the industrial structures of pairs of adjacent counties that do or do not share the same dialect. The results show that trade accelerates industrial similarity for all neighboring counties. However, the development of similarity is asymmetrical across regions and over time. In particular, industries in neighboring counties belonging to different dialect regions become more similar and connected than those within the same dialect region. The rise in industrial similarity is being fueled by the emergence of high-skill-intensive businesses as a result of trade-related technology spillovers. Adjacent counties of different dialects have greater skill endowments, which facilitate information transfer.
... The financing of innovation has also been considered under incomplete financial markets. First, the influences of financing constraints for innovative firms have been examined in quite a few papers, such as Benabou (1996), Scherer (1984), Rajan and Zingales (1996), Beck (2008), and so on. These studies claim that credit constraints impede this process, and are thus detrimental to growth. ...
... This paper is related to two strands of studies. The first is about the role of financing innovation in affecting economic growth, such as Aghion et al. (2005), Benabou (1996), Scherer (1984), Rajan and Zingales (1996), and Beck (2008). Our contribution is to introduce the asymmetric information between banks and innovative firms. ...
... As a matter of fact, theoretical and a fortiori empirical studies almost always rely on some sort of grouping -or aim at defining one. Historically, the interest in technology classifications has been mostly driven by the need to match technological and industrial activities (Schmookler 1966, Scherer 1984, Verspagen 1997. Since patented technologies are classified according to their function, not their industry of use or origin, this problem is particularly difficult. ...
Preprint
Almost by definition, radical innovations create a need to revise existing classification systems. In this paper, we argue that classification system changes and patent reclassification are common and reveal interesting information about technological evolution. To support our argument, we present three sets of findings regarding classification volatility in the U.S. patent classification system. First, we study the evolution of the number of distinct classes. Reconstructed time series based on the current classification scheme are very different from historical data. This suggests that using the current classification to analyze the past produces a distorted view of the evolution of the system. Second, we study the relative sizes of classes. The size distribution is exponential so classes are of quite different sizes, but the largest classes are not necessarily the oldest. To explain this pattern with a simple stochastic growth model, we introduce the assumption that classes have a regular chance to be split. Third, we study reclassification. The share of patents that are in a different class now than they were at birth can be quite high. Reclassification mostly occurs across classes belonging to the same 1-digit NBER category, but not always. We also document that reclassified patents tend to be more cited than non-reclassified ones, even after controlling for grant year and class of origin.
... e quantitative input-output analysis (QIOA) was developed to capture linkages related to flow of goods and services, departing from the study of Input-Output matrices (Oosterhaven et al., 2001;Titze et al., 2011). Similarly, the cross-industry patent citations measures and technology-flow matrices were developed to identify agglomeration patterns for knowledge linkages among industries (Ellison et al., 2010;Scherer, 1984). ese tools are commonly limited for the availability of the data and the disaggregation level of it. ...
Article
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This paper presents a quantitative cluster mapping methodology for traded industries, adapted for the Spanish case; also explores the correlation between the existence of clusters and regional performance. The study is made at NUTS-2 level, and a total of forty-seven out of eighty-eight 2-digits codes for CNAE-2009 are analyzed; ICT Index and Industry 4.0 Index are also designed and computed. A six-step methodology is applied departing from cross-industry linkages and implementing clustering algorithms; one set of clusters is elected and mapped over territory. The correlation analysis shows that a high number of clusters based on absolute employment data is positively correlated with variables associated with competitiveness, education, ICT adoption, and Industry 4.0, while no significant correlation is found for GDP per capita nor earning per worker. ----- Esta investigación presenta una metodología cuantitativa para el mapeo de clústers en España; también explora la correlación entre la existencia de dichos clústers y el desempeño regional. El estudio se realiza a nivel NUTS-2, y se analizan un total de cuarenta y siete códigos CNAE-2009; asimismo se diseñan y calculan el índice TIC y el índice Industria 4.0. Se aplica una metodología de seis pasos basada en vínculos interindustriales y en un análisis clúster; se selecciona un grupo de clústers y se mapea sobre el territorio. El análisis de correlación muestra que un alto número de clústers basado en datos absolutos de empleo está positivamente relacionado con variables asociadas a la competitividad, educación, adopción de las TIC e Industria 4.0, mientras que no se encuentra correlación significativa con el PIB per cápita ni con las ganancias por trabajador.
... Most of the studies related to innovation and firm performance were carried out in the USA, France, Spain, and other European countries. A number of studies have also explored strategies linked with increased or decreased business R&D expenditure, owing to the fact that investments in new goods, processes, or technologies frequently lead to competitive advantages and greater productivity (Ettlie, 1998;Scherer, 1984). But the nexus between outside Directors and innovation, which is a critical determinant of long-run performance, remains largely unexplored so far (Balsmeier et al., 2014). ...
Article
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This article presents the System Generalized Method of Moments (SGMM) results on the empirical association between innovation and corporate governance for a panel data set of 88 manufacturing companies in India listed on the NSE 200 Index from 2014 to 2020. GMM approach controls the potential sources of endogeneity inherent in the innovation—corporate governance relationship which mainly arises due to unobserved heterogeneity and simultaneity bias. We empirically analyze corporate governance and innovation to understand the market value of research and development practices of manufacturing companies in India. Our results indicate that Board size, Board meetings, and CEO duality support the “value creation” hypothesis of corporate governance of manufacturing companies in India. However, ownership concentration and Board meeting contradict “value creation hypotheses.” Therefore, this study identifies various factors of corporate governance that can help manufacturing companies in India in innovation and growth options. Further, this study recommends that ownership concentration and Board meetings should be properly assessed, as the concentrated owners should not merely act as expropriates, but rather should enable the long-term sustainability of the firm by taking the initiative, which enhances growth.
... The mining industry is often considered a slow innovator (Scherer 1984). Nevertheless, Bartos (2007) shows that its rate of innovation is comparable with general manufacturing, even if it is still lower than so-called high-tech manufacturing (Dunbara et al. 2016). ...
Article
Full-text available
This paper analyses the evolution of innovation in the mining sector and how this innovation responds to the economic environment, in particular to changes in commodity prices. For this purpose, we combine commodity price data with innovation data as proxied by patent filings extracted from a novel unit record database containing comprehensive patent and firm-level data for the mining sector from 1970 to 2015. We include patents registered both by mining companies and mining equipment, technology, and service (METS) firms. With a multi-country panel analysis, we find that innovation in the mining sector is cyclical. Innovation increases in periods of high commodity prices while decreasing during commodity price recessions. Our results suggest that innovation increases mostly with long price cycle variations, while mostly unaffected by medium and short cycles. METS-related innovation seem the driving force of this mechanism. In contrast, countries specializing in mining industries are found to be slower in reacting to price changes.
... 48 For the latter, the authors use the estimation of spillover effects proposed by Scherer (1984), which captures the R&D effort made in one industry that is then used as an input in another. ...
Preprint
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After a large devaluation in January of 2002, Argentina experienced six years of a stable and undervalued exchange rate (2003-2008), where the relative prices between tradable and non-tradable goods markedly changed. This six-year period shows the highest number of sectors with export surges from 1980 to 2015. What do we learn about RER undervaluation and export performance from this event? What are the main characteristics of the sectors that took advantage of the exchange rate stimulus? This paper proposes a series of hypotheses to answer these questions and test them empirically by analyzing sectoral export surges in Argentina. The main hypothesis is that labor-intensive sectors are more responsive to exchange rate movements because non-tradable costs prevail in their production function. We test this hypothesis by running a series of linear probability econometric models using the 4-digit disaggregation classification of the Standard International Trade Classification (SITC), revision 2. Our results are summarized as follows. First, we find that the probability of export surge episodes increased 2.5% by each standard deviation of higher labor intensity index during 2003-2008. Second, we show that export surges are more likely to occur in sectors related to already competitive sectors. Third, when assessing the cross-industry kinds of linkages, we find evidence that the probability of an export surge episode is higher in the upstream sector of those already competitive. Finally, the new export volumes in sectors with export surge episodes show persistent dynamics after the end of the undervalued period, being a signal of hysteresis in trade. JEL Classification: F43, F14, O11.
... The mining industry is often considered a slow innovator (Scherer 1984). Nevertheless, Bartos (2007) shows that its rate of innovation is comparable with general manufacturing, even if it is still lower than so-called high-tech manufacturing (Dunbara et al. 2016). ...
Chapter
People have been digging in the ground for useful minerals for thousands of years. Mineral materials are the foundation of modern industrial society. As the global population grows and standards of living in emerging and developing countries rises, the demand for mineral products is increasing. Mining ensures that we have an adequate supply of the raw materials to produce all the components of modern life, and at competitive prices. Innovation is central to meeting the diverse challenges faced by the mining industry. It is critical for developing techniques for finding new deposits of minerals, enabling us to recover increasing amounts of minerals from the ground in a cost-effective manner, and ensuring it this is done in a way that is as environmentally responsible. This book provides the first in-depth global analysis of the innovation ecosystem in the mining sector. This book is Open Access.
... As noted earlier, measuring innovation is challenging (see Griliches (1990), Scherer (1984), ...
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We investigate the relation between commercial real estate (CRE) returns and regional innovativeness and find that regions with more innovation exhibit higher total returns on commercial property. And, when we investigate the extent to which income return and capital return on commercial properties are related to local innovativeness, we report a positive relation between innovativeness and income return but little to no association between innovativeness and capital return. Our paper also provides some initial evidence, suggesting that local innovativeness is related to better future CRE performance. Overall, this paper suggests that innovativeness of a region is economically and statistically positively related to CRE returns, adding to a budding literature investigating CRE returns, as well as a large literature researching innovation. JEL Classification: R11, R33, O30
... Furthermore, measures related to technology such as R&D, patents, and (total factor) productivity are comparatively noisy, which makes econometric identification particularly hard. In the case of Coe and 5 The approach of applying weights to external R&D has a long tradition in research on identifying domestic knowledge spillovers, see Terleckyj (1974), Griliches (1979), and Scherer (1984). ...
... Review of Economics and Statistics Just Accepted MS. rest by the President and Fellows of Harvard College and the Massachusetts Institute of Technology to their industry of use (Schmookler, 1966;Scherer, 1984), but their approach is infeasible given our large sample size. Instead, we rely on a rare case where a patent office has provided information on the link of patents to industries. ...
Article
We provide a new measure of automation based on patents and study its employment effects. Classifying all U.S. patents granted between 1976 and 2014 as automation or nonautomation patents, we document a strong rise in the number and share of automation patents. We link patents to their industries of use and to commuting zones. To estimate the effect of automation, we use an instrumental variables strategy that relies on innovations developed independently from U.S. labor market trends. We find that automation technology has a positive effect on employment in local labor markets, driven by job growth in the service sector.
... For example, Nelson, Peck and Kalacek (1968) found that up to the 1000 employee level, there was a disproportionate increase in R&D spending with increases in firm size, but this advantage did not extend above the 1000 employee level. While Scherer (1983Scherer ( , 1984 showed that in most manufacturing industries, firm size and R&D are positively correlated, Acs and Audretsch (1988) showed that small firms tend to be more innovative. According to Hansen (1992), small firms usually have no formal R&D departments and their innovative activities often escape official R&D statistics even though they contribute disproportionally to industrial innovation. ...
Article
This paper explores the dynamic complementary interaction between investment in technological capability and investment in specific innovation projects based on a decision model of innovation, using Vietnamese MSME data. The empirical results show that firm size, technological capability and current specific R&D investment have a positive impact on innovation. Firm age was positive but not significant, implying that conscious technological effort may be more important for innovation than passive learning by doing. The combination of significant economies of scale and technological capability imply that government assistance for firms with low technological capability maybe important, but government assistance is shown to be either insufficient or ineffective. Results from this paper suggest that government policy aimed at facilitating increases in firm size and providing technical extension services would be more constructive than merely providing R&D subsidies to MSMEs.
... While scholars in the energy field have recently started to move from the "how much" to the "how" (Acemoglu et al., 2016;Anadon et al., 2016a;Chan, 2015;Howell, 2017; National Academies of Science Engineering and Medicine, 2017), the role of external knowledge, i.e., spillovers, for technological innovation has typically been overlooked. This is surprising given the fact that spillovers can substantially advance technological innovation (Mowery and Rosenberg, 1998;Scherer, 1982aScherer, , 1982bScherer, , 1984Schmookler, 1966) has been shown empirically for innovations in the fields of clean energy (Huenteler et al., 2016a;Nemet, 2012), energy storage (Noailly and Shestalova, 2017), and (lithium-ion) ...
Article
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Innovation in clean-energy technologies is central towards a net-zero energy system. One key determinant of technological innovation is the integration of external knowledge, i.e., knowledge spillovers. However, extant work does not explain how individual spillovers come about: the mechanisms and enablers of these spillovers. We ask how knowledge from other technologies, sectors, or scientific disciplines is integrated into the innovation process in an important technology for a net-zero future: lithium-ion batteries (LIBs), based on a qualitative case study based on extant literature and an elite interview campaign with key inventors in the LIB field and R&D/industry experts. We identify the breakthrough innovations in LIBs, discuss the extent to which breakthrough innovations—plus a few others—have resulted from spillovers, and identify different mechanisms and enablers underlying these spillovers, which can be leveraged by policymakers and R&D managers who are interested in facilitating spillovers in LIBs and other clean-energy technologies.
... However, in the case of innovation such an assumption is likely violated. Managers and other employees with research responsibilities often have substantial information advantage when compared to corporate executives (Scherer, 1984), and these individuals and corporate executives only interact infrequently because they are only rarely involved in joint production. As such, non-executive employees involved in innovation could exploit their informational advantages to tilt resource allocation in their favor (Seru, 2014), Electronic copy available at: https://ssrn.com/abstract=3562030 ...
Article
We find that social capital in U.S. counties, as captured by strength of social norms and density of social networks, is positively associated with innovation of firms headquartered in the county, as captured by patents and citations. This relation is robust in fixed-effect regressions, instrumental variable regressions with a Bartik instrument, propensity score matching regressions, and a difference-in-differences design that isolates the effects of over time variations in social capital due to corporate headquarter relocations. Strength of social norms plays a more dominant role than density of social networks in producing these empirical regularities. Cross-sectional evidence indicates the prominence of the contracting channel through which social capital relates to innovation. Additionally, we find that social capital is also positively associated with trademarks and effectiveness of corporate R&D expenditures.
... Remote problem sources-such as national and supranational agencies-lie outside firms' direct geographic and institutional environments; in parallel, proximate problem sources-such as state and county agencies-lie within firms' direct range of geographic and institutional environments (Alcácer & Chung, 2014;Delmas & Toffel, 2008;Miller et al., 2007;Nachum et al., 2008;Sine et al., 2005). In turn, differences in the geographic and institutional closeness (i.e., remote vs. proximate) to the problem source influence two processes: first, how much knowledge focal firms possess about the problem and/or problem source (Alcácer & Zhao, 2016;Mahmood, Chung, & Mitchell, 2013;Ody-Brasier, 2018;Scherer, 1984;Zhao & Islam, 2017); and, second, how likely it is that firms expect to be able to influence the source after the problem emerges (Bonardi et al., 2006;Dorobantu et al., 2017). Together, these two processes relate to the breadth of knowledge search in response to proximate and remote problem sources. ...
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Research Summary We consider how different problem sources—proximate versus remote—relate to heterogeneity in search breadth. While studies of search have established the importance of search breadth, and argued that problems trigger search, they have focused on a single problem source instigating search. We extend prior research by considering how search breadth differs in the presence of proximate and remote problem sources. Because of differences in familiarity with each type of problem, and in expectations of their ability to influence the problem source, problems triggered by remote sources associate with greater breadth. Firms’ technological capabilities, meanwhile, temper these findings; capable firms exhibit broader search when facing problems raised by proximate sources. Using data describing the U.S. renewable electricity sector, we generate theoretical and empirical implications. Managerial Summary When facing new problems, firms tend to seek knowledge from various sources to better understand the problem and identify relevant solutions. The source of the problem may be an important trigger to the breadth of search activities, particularly whether the source is proximate or remote. To test this notion, we compare U.S. utility firms’ search breadth when facing regulations emphasizing increased renewable generation, from both the federal and the state government. We find that firms tend to search for knowledge about renewable technologies more broadly following federal regulatory actions. However, firms that have previously generated renewable electricity search more broadly following state regulatory actions. By exploring firms’ chioces in the U.S. renewable electricity sector, our research generates important managerial and public policy implications. This article is protected by copyright. All rights reserved.
... dalgo, 2011; Hidalgo et al., 2007;Boschma and Capone, 2015), a sub-national region (e.g., Ellison and Glaeser, 1997;Neffke et al., 2011;Delgado et al., 2016;Balland et al., 2018) or even a firm (e.g., Breschi et al., 2003;Fan and Lang, 2000). Papers also explore linkages based on traditional channels discussed by Marshall (1920): similarity in technologies (e.g., Scherer, 1984;Boschma and Capone, 2015;Breschi et al., 2003), similarity in workers and labor skills (e.g., Farjoun, 1994;Neffke and Henning, 2013;Neffke et al., 2017), or input-output relations (e.g., Fan and Lang, 2000). 4 While this literature explores various measures of relatedness across industries, its contributions tend to focus on studying one channel at the time. ...
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... This generates two distinct results. First, since efficiency is only one of several goals of regulation, the equilibrium allocation al. (1988), Griliches (1979Griliches ( ,1986, Grilliches and Lichtenberg (1984), Griliches and Mairesse (1990), Mansfield (1988), Mohnen (1990a,c), Mohnen, et al. (1986), Nadiri (1980), Nadiri andBitros (1980), Nadiri and Prucha (1990), Nadiri and Schankerman (1981), Patel and Soete (1988), Scherer (1984), Terleckyj (1974). ...
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Chapter
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Chapter
People have been digging in the ground for useful minerals for thousands of years. Mineral materials are the foundation of modern industrial society. As the global population grows and standards of living in emerging and developing countries rises, the demand for mineral products is increasing. Mining ensures that we have an adequate supply of the raw materials to produce all the components of modern life, and at competitive prices. Innovation is central to meeting the diverse challenges faced by the mining industry. It is critical for developing techniques for finding new deposits of minerals, enabling us to recover increasing amounts of minerals from the ground in a cost-effective manner, and ensuring it this is done in a way that is as environmentally responsible. This book provides the first in-depth global analysis of the innovation ecosystem in the mining sector. This book is Open Access.
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This paper builds a simple general equilibrium model that sheds new light on the mechanism of intersectoral flows of technology. It explicitly models the production of technology using diverse technology components as inputs. The model shows that demand shocks do not cause innovation while technology shocks as deviations from a balanced growth path induce asymmetric productivity changes across sectors. We also conduct a simple quantitative analysis using recent Japanese R&D data, which shows that most productivity effects remain within the bounds of the sector. We find some important exceptions to this rule, however, in particular for shocks occurring in information technology and precision instruments.
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Although economists and policy makers have devoted considerable attention to the transfer of technology by U. S.-based multinational firms to their overseas subsidiaries, very little is known about the nature of the technology that is being transferred overseas in this way, the extent to which it leaks out to non-U. S. competitors, the size of the benefits it confers on the host (and other non-U. S.) countries, and the sorts of non-U. S. firms that receive the largest benefits of this sort. This paper presents findings that shed new light on each of these topics.
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It has long been recognised that the costs of imitating new products have an important effect on the incentives for innovation in a market economy.' As Arrow (I962) and others have pointed out, if firms can imitate an innovation at a cost that is substantially below the cost to the innovator of developing the innovation, there may be little or no incentive for the innovator to carry out the innovation. In their discussions of the innovation process, economists frequently have called attention to the major role played by the costs of imitation, but there has been little or no attempt to measure these costs, to test various hypotheses concerning the factors influencing them, or to estimate their effects. In this paper, we report some findings of what seems to be the first study of this topic. In addition, we present data regarding the effects of patents on imitation costs and on the rate of innovation.
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