September 2013
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501 Reads
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422 Citations
Competition Policy International
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September 2013
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501 Reads
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422 Citations
Competition Policy International
February 1995
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177 Reads
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1,555 Citations
Research Policy
The set of technological opportunities in a given industry is one of the fundamental determinants of technical advance in that line of business. We examine the concept of technological opportunity and discuss three categories of sources of those opportunities: advances in scientific understanding and technique, technological advances originating in other industries and in other private and governmental institutions, and feedbacks from an industry's own technological advances. Data from the Yale Survey on Industrial Research and Development are used to measure the strength of various sources of technological opportunity and to discern interindustry differences in the importance of these sources. We find that interindustry differences in the strength and sources of technological opportunities contribute importantly to explanations of cross-industry variation in R&D intensity and technological advance.
December 1989
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120 Reads
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630 Citations
Handbook of Industrial Organization
This chapter discusses the perceptible movement of empirical scholars from a narrow concern with the role of firm size and market concentration toward a broader consideration of the fundamental determinants of technical change in industry. Although tastes, technological opportunity, and appropriability conditions themselves are subject to change over time, particularly in response to radical innovations that alter the technological regime, these conditions are reasonably assumed to determine inter-industry differences in innovative activity over relatively long periods. Although a substantial body of descriptive evidence has begun to accumulate on the way the nature and effects of demand, opportunity, and appropriability differ across industries, the absence of suitable data constrains progress in many areas. It has been observed that much of the empirical understanding of innovation derives not from the estimation of econometric models but from the use of other empirical methods. Many of the most credible empirical regularities have been established not by estimating and testing elaborate optimization models with published data but by the painstaking collection of original data, usually in the form of responses to relatively simple questions.
March 1988
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102 Reads
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371 Citations
Brookings Papers on Economic Activity
In this paper, we describe the results of an inquiry into the nature of appropriability conditions in over one hundred manufacturing industries, and we discuss how this information has been and might be used to cast light on important issues in the economics of innovation and public policy. Our data, derived from a survey of high-level R&D executives, are informed opinions about the nature of an industry's technological and economic environment rather than quantitative measures of inputs and outputs.
February 1988
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50 Reads
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389 Citations
The RAND Journal of Economics
This article analyzes R&D policies when the returns to cost-reducing and demand-creating R&D are imperfectly appropriable and market structure is endogenous. We generalize previous characterizations of appropriability to permit the possibility that own and rival R&D are imperfect substitutes. We also describe how equilibrium expenditures on process and product R&D, as well as equilibrium market structure, depend on technological opportunities and spillovers. In contrast to previous work, diminished appropriability does not necessarily reduce R&D expenditures. For example, under some conditions, an increase in the extent of process (product) spillovers will lead to an increase in product (process) R&D. We estimate several variants of the model by using manufacturing line-of-business data and data from a survey of R&D executives.
February 1987
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2,110 Reads
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2,518 Citations
Brookings Papers on Economic Activity
February 1987
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111 Reads
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556 Citations
Journal of Industrial Economics
Using data from the Federal Trade Commission 's Line of Business Program and survey measures of technological opportunity and appropriability conditions, this paper finds that overall firm size has a very small, statistically-insignificant effect on business unit R&D intensity when either fixed industry effects or measured industry characteristics are taken into account. Business unit size has no effect on the R&D intensity of business units that perform R&D, but it affects the probability of conducting R&D. Business unit and firm size jointly explain less than 1 percent of the variance in R&D intensity; industry effects explain nearly half the variance. Copyright 1987 by Blackwell Publishing Ltd.
January 1987
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56 Reads
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1,731 Citations
Brookings Papers on Economic Activity
January 1987
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12 Reads
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63 Citations
Brookings Papers on Economic Activity
January 1987
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24 Reads
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226 Citations
Competition Policy International
To have the incentive to undertake research and development, a firm must be able to appropriate returns sufficient to make the investment worthwhile. The benefits consumers derive from an innovation, however, are increased if competitors can imitate and improve on the innovation to ensure its availability on favorable terms. Patent law seeks to resolve this tension between incentives for innovation and widespread diffusion of benefits. A patent confers, in theory, perfect appropriability (monopoly of the invention) for a limited time in return for a public disclosure that ensures, again in theory, widespread diffusion of benefits when the patent expires.
... Por ej., Englash et al. (2004) distinguen tres formas de apropiación: reinterpretación, adaptación y reinvención. Esta idea de apropiación puede estar limitada a las actividades de las firmas, o incluir otras actividades sociales (culturales, educativas, etc.), enfocarse en algún tipo específico de tecnologías (por caso, las digitales) o no, etc. En cambio, desde la economía de la innovación, con el significante "apropiación" se alude a un conjunto de mecanismos y habilidades que operan a nivel microeconómico para transformar el conocimiento en cuasi rentas (Arundel, 2001;Cohen, Nelson y Walsh, 2000;González y Nieto, 2007;Levin et al., 1987). Esta última acepción incluye a la titularidad, pero como una posibilidad puntual dentro de las formas de apropiación, y no como su acepción general. ...
January 1987
Brookings Papers on Economic Activity
... On the other hand, public disclosure does not always ensure ultimate diffusion of an invention on competitive terms" (LEVIN et al., 1987, p. 783-784). Levin et al. (1987) describe the outcomes of an inquiry into appropriability conditions in more than one hundred manufacturing industries, by emphasizing differences between process and product innovations. Similarly to others contributions by NW, the focus was on the asymmetries. ...
January 1987
Brookings Papers on Economic Activity
... Second, patent protection plays an outsized, almost unique role in the pharmaceutical industry. A dated but in ‡uential survey by Levin et al. (1987) of 650 corporate R&D managers found that patents were perceived to be a highly e¤ective 9 Modeling patent protection as a binary decision variable is without loss of generality. The key insights yielded by our analysis carry over when patent protection is continuous, e.g. when countries can choose the degree of imitation ( i ) facing …rms. ...
September 2013
Competition Policy International
... Following Levin et al. (1984Levin et al. ( , 1987, appropriability (Appro) is defined as the extent to which the innovative outcomes can be appropriated by the innovators themselves, while technological opportunity denotes the availability of useful information for innovation. The variable for appropriability is calculated based on the survey's scores regarding the effectiveness of nine methods of appropriation (e.g., patents to prevent duplication or to secure royalties, secrecy, lead time). ...
January 1984
... The DOIL survey employs a representative sample of the population of firms in the U.S. manufacturing sector, with 5175 respondents at the business unit level. Unlike several other innovation surveys (e.g., Cohen et al., 2000;Levin et al., 1987), the DOIL survey is not restricted to R&D performers. It includes innovators, imitators, and firms that do not innovate by asking whether the firms had introduced a new product that is new to the market or new to the firm and requests further information about their key innovations (Arora et al., 2016b). ...
January 1987
Competition Policy International
... Creative destruction is the notion that older, well-established firms become entrenched in routine technological systems (deepening) and face the risk of being supplanted by smaller, more adaptable firms that can better respond to external changes [29,31]. There is a trade-off between reactivity to the outside knowledge and 'organizational memory' embedded in how firms can make their operations run smoothly [32]. That said, this analogy is imperfect as we do not have heterogeneity of firm size in our model. ...
December 1989
Handbook of Industrial Organization
... Finally, we included an exogenous variable: the sector's technology intensity. Technological advancement varies across manufacturing sectors, affecting the adoption of new scientific and technological knowledge (Klevorick et al., 1995;Martínez-Senra et al., 2013). Notes: a On a 4-point Likert scale (0: no use; 1: low potential use; 2: medium potential use; 3: high potential use) Source: Authors' own work IJLSS Firms in highly dynamic technological sectors are better positioned to improve environmental management (Moyano-Fuentes et al., 2018). ...
February 1995
Research Policy
... Protection of intellectual property rights (Mansfield et al., 1981), tacitness of knowledge (Kogut and Zander, 1992), strategic complexity (Rivkin, 2000), and interdependency between the technology and the organization (Ethiraj and Levinthal, 2004) increases appropriability. High appropriability may increase the possibility for incumbents to monopolize their outcomes, while lowering the possibility of other firms' benefitting from these outcomes (Levin and Reiss, 1988). Under low appropriability, incumbents' outcomes can enhance utility for other firms, increasing network externality and the possibility of imitation (Levin et al., 1985). ...
February 1988
The RAND Journal of Economics
... From (8), we know that the problem (4) is a 'bang-bang' control problem (see [19]). Thus, we need to discuss the solutions of the system of equations (6) in the following three different cases at first. Then, we establish the solution with some smooth pasting conditions to satisfy the conditions in Theorem 3.3. ...
February 1987
Journal of Industrial Economics
... Universities are considered as "creators, interpreters of ideas and innovation, source of human capital, and key components of social infrastructure and social capital " [47] . Universities also play critical role in creating and transforming industries through industry transplantation, diversification of old industry into related new, and upgrading of mature industries [48] . Universities in the modern world are actively changing their policy towards commercialization of their research outputs in the form of licensing, patents, and spinoffs. ...
March 1988
Brookings Papers on Economic Activity