Intellectual Property Rights Policy, Competition and Innovation
Daron Acemoglu, Ufuk Akcigit
Journal of the European Economic Association,
Nr. 1,
2012
Abstract
To what extent and in what form should the intellectual property rights (IPR) of innovators be protected? Should a company with a large technology lead over its rivals receive the same IPR protection as a company with a more limited advantage? In this paper, we develop a dynamic framework for the study of the interactions between IPR and competition, in particular to understand the impact of such policies on future incentives. The economy consists of many industries and firms engaged in cumulative (step-by-step) innovation. IPR policy regulates whether followers in an industry can copy the technology of the leader. We prove the existence of a steady-state equilibrium and characterize some of its properties. We then quantitatively investigate the implications of different types of IPR policy on the equilibrium growth rate and welfare. The most important result from this exercise is that full patent protection is not optimal; instead, optimal policy involves state-dependent IPR protection, providing greater protection to technology leaders that are further ahead than those that are close to their followers. This is because of a trickle-down effect: providing greater protection to firms that are further ahead of their followers than a certain threshold increases the R&D incentives also for all technology leaders that are less advanced than this threshold.
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Internationalisation Theory and Technological Accumulation - An Investigation of Multinational Affiliates in East Germany
Björn Jindra
Studies in Economic Transition, London,
2012
Abstract
The integration of post-communist countries into the European and global economy after 1990 has led to a renewed interest in the role of multinational enterprises (MNEs) in economic restructuring and technological development. This book explains the expansion of MNEs into a transition economy from the technology accumulation perspective. Key assumptions of the technological accumulation approach towards firms' internationalisation are tested, using the examples of foreign and West German MNEs in East Germany. The effects of technological externalities on MNE location choice are analysed, in addition to an exploration of the factors driving the location of foreign affiliates' research and development (R&D) and innovation activities. The book provides a novel and comprehensive empirical approach to assess the developmental role of MNEs, deriving significant economic policy implications for transition and emerging economies.
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A Systemic View on Knowledge-based Development Metrics
Mirko Titze, Michael Schwartz, Matthias Brachert
International Journal of Knowledge-Based Development,
Nr. 1,
2012
Abstract
Drawing on the systems perspective of innovation processes, this article proposes a conceptual approach for a comprehensive analysis of regional knowledge generation and transfer. Instead of focusing on one single indicator, the approach emphasizes the importance to take multiple channels of knowledge transfer into account. This provides valuable insights into the spatial structure of innovation processes on different levels. We disentangle the innovation process and consider four different layers: i.) publications in peer-reviewed journals, ii.) patent applications, iii.) formal R&D collaboration projects, the iv.) localized input-output relations. Further, we demonstrate the relevance of the „multi-layer approach‟ by applying it empirically to a specific regional innovation system: The Free State of Saxony – a federal state in Germany. We argue that the approach could be a valuable tool to inform policy-makers about knowledge-based regional development strategies.
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The Impact of Government Procurement Composition on Private R&D Activities
Viktor Slavtchev, Simon Wiederhold
Abstract
This paper addresses the question of whether government procurement can work as a de facto innovation policy tool. We develop an endogenous growth model with quality-improving in-novation that incorporates industries with heterogeneous innovation sizes. Government demand in high-tech industries increases the market size in these industries and, with it, the incentives for private firms to invest in R&D. At the economy-wide level, the additional R&D induced in high-tech industries outweighs the R&D foregone in all remaining industries. The implications of the model are empirically tested using a unique data set that includes federal procurement in U.S. states. We find evidence that a shift in the composition of government purchases toward high-tech industries indeed stimulates privately funded company R&D.
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Kooperationsintensität und Kooperationsförderung in der deutschen Laserindustrie
Muhamed Kudic, Katja Guhr, I. Bullmer, Jutta Günther
Wirtschaft im Wandel,
Nr. 3,
2011
Abstract
Die Hightech-Strategie der Bundesregierung definiert acht Schlüsseltechnologien, zu denen unter anderem die optischen Technologien und somit die Laserstrahlquellenhersteller zählen. Der Beitrag stützt sich auf aktuelle empirische Auswertungen und gibt einen ersten deskriptiven Überblick über den wissensintensiven Industriezweig der Laserstrahlquellenhersteller in Deutschland zwischen 1990 und 2010. Es zeigt sich, dass die Industrieentwicklung im Betrachtungszeitraum Schwankungen unterlag, in der Summe jedoch durch Expansion gekennzeichnet war. Zudem lässt sich eine hohe Präsenz vor allem von Großunternehmen der Laserstrahlquellenindustrie in Bayern, Baden-Württemberg und Thüringen feststellen. Diese regionalen Verteilungsmuster lassen sich im Hinblick auf die Partizipation an öffentlich geförderten Kooperationsprojekten wiederfinden, allerdings nur bei Betrachtung der absoluten Zahl von Verbundprojekten je Bundesland. In Relation zur Anzahl der Firmen im jeweiligen Bundesland wird die öffentliche Kooperationsförderung insbesondere in Thüringen, Rheinland-Pfalz und Hamburg stark nachgefragt. Somit ergibt sich für die räumliche Verteilung der Kooperationsintensität und Kooperationsförderung pro Firma ein differenziertes Muster.
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Analyzing Innovation Drivers in the German Laser Industry: the Role of Positioning in the Social and Geographical Space
Muhamed Kudic, Peter Bönisch, Iciar Dominguez Lacasa
Abstract
Empirical and theoretical contributions provide strong evidence that firm-level performance outcomes in terms of innovativeness can either be determined by the firm’s position in the social space (network effects) or by the firm’s position in the geographical space (co-location effects). Even though we can observe quite recently first attempts in bringing together these traditionally distinct research streams (Whittington et al. 2009), research on interdependent network and geographical co-location effects is still rare. Consequently, we seek to answer the following research question: considering that the effects of social and geographic proximity on firm’s innovativeness can be interdependent, what are the distinct and combined effects of firm’s network and geographic position on firm-level innovation output? We analyze the innovative performance of German laser source manufacturers between 1995 and 2007. We use an official database on publicly funded R&D collaboration projects in order to construct yearly networks and analyze firm’s network positions. Based on information on population entries and exits we calculate various types of geographical proximity measures between private sector and public research organizations (PRO). We use patent grants as dependent variable in order to measure firm-level innovation output. Empirical results provide evidence for distinct effect of network degree centrality. Distinct effect of firm’s geographical co-location to laser-related public research organization promotes patenting activity. Results on combined network and co-location effects confirms partially the existence of in-terdependent proximity effects, even though a closer look at these effects reveals some ambiguous but quite interesting findings.
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Preventing Innovative Cooperations: The Legal Exemptions Unintended Side Effect
Christian Growitsch, Nicole Nulsch, Margarethe Rammerstorfer
European Journal of Law and Economics,
Nr. 1,
2012
Abstract
In 2004, European competition law had been considerable changed by the introduction of the new Council Regulation No. 1/2003. One of the major renewals was the replacement of the centralized notification system for inter-company cooperations in favor of a so-called legal exemption system. We analyze the implications of this reform and its arising uncertainty on the agreements firms implement, especially on innovative agreements like vertical R&D agreements. By means of a decision theoretic approach, we show that the law’s intention to reduce the incentive to establish illegal cartels will be reached but innovating cooperations might be prevented. To avoid this unintended side effect, fines but not the monitoring activities should be increased.
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How Does Industry Specialization Affect the Efficiency of Regional Innovation Systems?
Michael Fritsch, Viktor Slavtchev
Annals of Regional Science,
Nr. 1,
2010
Abstract
This study analyzes the relationship between the specialization of a region in certain industries and the efficiency of the region in generating new knowledge. The efficiency measure is constructed by relating regional R&D input and output. An inversely u-shaped relationship is found between regional specialization and R&D efficiency, indicating the presence of externalities of both Marshall and Jacobs’ type. Further factors influencing efficiency are externalities resulting from high R&D intensity of the local private sector as well as knowledge from local public research institutions. The impact of both the specialization and the additional factors is, however, different for regions at different efficiency levels.
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Challenges for Future Regional Policy in East Germany. Does East Germany really show Characteristics of Mezzogiorno?
Mirko Titze
A. Kuklinski; E. Malak-Petlicka; P. Zuber (eds), Souther Italy – Eastern Germany – Eastern Poland. The Triple Mezzogiorno? Ministry of Regional Development,
2010
Abstract
Despite extensive government support the gap between East and West Germany has still not been successfully closed nearly 20 years post German unification. Hence, some economists tend to compare East Germany with Mezzogiorno – underdeveloped Southern Italy. East Germany is still subject to sever structural problems in comparison to West Germany: lower per capita income, lower productivity, higher unemployment rates, fewer firm headquarters and fewer innovation activities. There are East German regions with less than desirable rates of development. Nevertheless, the new federal states have shown some evidence of a convergence process. Some regions have developed very positively – they have improved their competitiveness and employment levels. As such, the comparison of East Germany with Mezzogiorno does not seem applicable today.
According to Neoclassical Growth Theory, regional policy is targeted enhancing investment (hereafter the notion ‘investment policy’ is used). has been the most important instrument in forcing the ‘reconstruction of the East’. Overall, the investment policy is seen as having been successful. It is not, however, the only factor influencing regional development – political policy makers noted in the mid 1990s that research and development (R&D) activities and regional concentrated production networks, amongst other factors, may also play a part. The investment policy instrument has therefore been adjusted. Nevertheless, it cannot be excluded that investment policy may fail in particular cases because it contains potentially conflicting targets. A ‘better road’ for future regional policy may lie in the support of regional production and innovation networks – the so-called industrial clusters. These clusters would need to be exactingly identified however to ensure effective and efficient cluster policies.
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