D. Czarnitzki, Hanna Hottenrott, Susanne Thorwarth
{"title":"Industrial Research Versus Development Investment: The Implications of Financial Constraints","authors":"D. Czarnitzki, Hanna Hottenrott, Susanne Thorwarth","doi":"10.2139/ssrn.1494312","DOIUrl":"https://doi.org/10.2139/ssrn.1494312","url":null,"abstract":"Previous literature provided evidence on financing constraints for investment in research and development (R&D) activities due to capital market imperfections and special features of R&D investments. Moreover, it has been shown that a shift in capital structure towards more debt results in a reduction of R&D investments. This article complements this literature by compartmentalising R&D activities into its components, 'R' and 'D'. In particular, we distinguish research from development as these activities not only differ in their nature but also, to a large extent, take place sequentially. Our results show that 'R' investment is more sensitive to a firms' operating liquidity than 'D' indicating that firms have to rely even more on internal funds for financing their research compared with development activities. Moreover, we find that (basic) research subsidy recipients' investment is less sensitive to internal liquidity. Copyright The Author 2010. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.","PeriodicalId":421837,"journal":{"name":"Diffusion of Innovation eJournal","volume":"13 6","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114104226","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Human Capital and Technological Progress as the Determinants of Economic Growth","authors":"K. Cichy","doi":"10.2139/SSRN.1752094","DOIUrl":"https://doi.org/10.2139/SSRN.1752094","url":null,"abstract":"The problem of economic growth is one of the fundamental fields of research in the theory of economics. Its essence is searching for answers to multiple questions about the causes and mechanisms of economic processes which lead to large cross-country differences in wealth between different countries and regions.The classical convention in this type of research is to identify the determinants of growth and their impact on economic growth. This book concentrates on two basic factors of growth – human capital and technological progress, which supplement physical capital and labour. This choice is purposeful – human capital and technological progress are considered to be increasingly important from the point of view of economic growth and development. Focusing on these two factors of growth, with particular interest in technology diffusion, does not mean that one can not take into account such factors as: social, intellectual or cultural capital, institutions etc. On the contrary, it opens up new possibilities for research on economic growth and development.This book is an interdisciplinary thesis on mathematical theory of economic growth and it is well-founded in the contemporary international economic literature. Its distinctive features are: innovativeness, originality, complexity and diversity of research tools, good choice of sources and statistical data and the use of original algorithms and software for empirical research and analysis of the considered models.The Author has a profound knowledge on the contemporary economic growth theory and the rare abilities to creatively extend and apply the models and research methods originating from physics to economic phenomena. He formulates interesting and deep conclusions, but at the same time shows rational criticism towards his results.The book should find due place in the world economic literature as a source of inspiration and an important contribution to the discussion on the choice of models, methods and techniques of interdisciplinary research on economic growth and development.","PeriodicalId":421837,"journal":{"name":"Diffusion of Innovation eJournal","volume":"213 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114314136","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Recent and Proposed Patent System Reforms: Implications for Technology Commercialization","authors":"Lisa A. Dolak","doi":"10.2139/SSRN.1365439","DOIUrl":"https://doi.org/10.2139/SSRN.1365439","url":null,"abstract":"Recent patent-related judicial developments and legislative proposals have implications for the business of technology commercialization. This paper summarizes the most significant of these developments and proposals, and highlights their potential implications for technology commercialization enterprises.","PeriodicalId":421837,"journal":{"name":"Diffusion of Innovation eJournal","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-03-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115479445","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
J. Goossenaerts, Michiel Dreverman, J. Smits, Paul W.H.M. van Exel
{"title":"Plant Lifecycle Data Standards in the Process Industry: Diagnosis and Resolution of Collective Action Failure","authors":"J. Goossenaerts, Michiel Dreverman, J. Smits, Paul W.H.M. van Exel","doi":"10.2139/ssrn.1365187","DOIUrl":"https://doi.org/10.2139/ssrn.1365187","url":null,"abstract":"Rationale, aims and objectives: Several stakeholders had observed the slow adoption of product model data standards in the Process Industry. The collective action failure contradicts the expectations from public good games with increasing returns to scale. No earlier research had investigated the strength of this observation, nor the possible causes for the apparently irrational slow adoption. The purpose of this study was to determine the reality of the adoption failure and to propose diagnostic leads regarding the failure's cause-effect mechanisms. Methods: Stakeholder interviews were used to analyze the industry's in-need state regarding plant life cycle data standards. Factor categories and kinds of adoption-hurdles were summarized following a literature review on technology diffusion under network effects. Actor network theory was used to map the data standards adoption incentives and barriers in the process industry and to contrast standards adoption with the automotive industry. Meta-analysis techniques were used to interpret our findings and identify cause-effect mechanisms across the factors (diagnostic realm), and to articulate intervention-focused recommendations on them (therapeutic realm). Results: Using the lens of Actor Network Theory and the Multi-Level Perspective, standards adoption performance in two industries is compared. A problem mess description helped the stakeholders to better understand each others interests and limitations in developing or adopting product model standards. This descriptive result was utilized to formulate tactics recommendations for private and public sector actors. Conclusions: That product model standards adoption in the process industry is slower than in the automotive industry could be attributed to a range of factors and their impacts upon actor tactics. Our descriptive results and their interpretation w.r.t. the findings of other studies offer step-stones, both for practitioners and researchers in the interoperability standards arena.","PeriodicalId":421837,"journal":{"name":"Diffusion of Innovation eJournal","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-03-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114702909","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effects of Pharmaceutical Marketing and Promotion on Adverse Drug Events and Regulation","authors":"G. David, S. Markowitz, Seth Richards-Shubik","doi":"10.1257/POL.2.4.1","DOIUrl":"https://doi.org/10.1257/POL.2.4.1","url":null,"abstract":"This paper analyzes the relationship between postmarketing promotional activity and reporting of adverse drug events by modeling the interaction between a welfare maximizing regulator (the FDA) and a profit maximizing firm. In our analysis demand is sensitive to both promotion and regulatory interventions. Promotion-driven market expansions enhance profitability yet may involve the risk that the drug would be prescribed inappropriately, leading to adverse regulatory actions against the firm. The model exposes the effects of the current regulatory system on consumer and producer welfare. Particularly, the emphasis on safety over benefits distorts the market allocation of drugs away from some of the most appropriate users. We then empirically test the relationship between drug promotion and reporting of adverse reactions using an innovative combination of commercial data on pharmaceutical promotion and FDA data on regulatory interventions and adverse drug reactions. We provide some evidence that increased levels of promotion and advertising lead to increased reporting of adverse medical events for certain conditions.","PeriodicalId":421837,"journal":{"name":"Diffusion of Innovation eJournal","volume":"90 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127892578","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Cross-Country Income Differences and Technology Diffusion in a Competitive World","authors":"Andreas Irmen","doi":"10.2139/ssrn.1317723","DOIUrl":"https://doi.org/10.2139/ssrn.1317723","url":null,"abstract":"This paper develops a new open-economy endogenous growth model where technology diffusion allows for a stable and non-degenerate world income distribution. In accordance with the empirical literature, I find that country characteristics such as the social infrastructure, the degree of openness, the investment rate, population growth, the level of human capital, or growth policies such as subsidies to innovation investments explain a country’s position in the eventual world income distribution. Club convergence in growth rates can be traced back to a country’s openness and to a minimum required level of human capital.","PeriodicalId":421837,"journal":{"name":"Diffusion of Innovation eJournal","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121533554","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"New Product Preannouncement as a Signaling Strategy: An Audience-Specific Review and Analysis","authors":"V. Rao, Meng Su","doi":"10.2139/ssrn.1121902","DOIUrl":"https://doi.org/10.2139/ssrn.1121902","url":null,"abstract":"Firms in various industries with highly competitive environments use new product preannouncement (NPP) as one of the most effective and popular signaling tools. Preannouncements can bring both benefits and costs to firms. Extant research has studied NPP from different perspectives and tackled the questions, \"Should a new product be preannounced and when?\" and \"What information should be preannounced and why?\" However, the benefits and costs of preannouncements from an audience-specific perspective are less well understood. It is important to notice that benefits and costs of a preannouncement vary among different audiences and firms need to apply group-specific weights in assessing the overall benefits and costs prior to making new product preannouncements. The purpose of this article is to review the existing literature on new product preannouncements for commonly observed marketing problems and develop a general approach focusing on the target audiences and the incentives in sending signals to each audience, and the impacts of these signals. This article first reviews the literature on marketing-related NPP issues, as well as the determinants and effects of various factors on NPP decisions. Then, it discusses the phenomenon of new product preannouncements linked to other marketing and economics problems: (1) product development and positioning; (2) product diffusion and adoption; (3) firm value; (4) vaporware and antitrust litigations; and (5) consumer welfare. In addition, this article divides the target audience of the new product preannouncement into four groups: customers, competitors, investors, and distributors. Based on current signaling theory, it proposes an audience-specific framework to analyze the determinants, incentives, and impact of new product preannouncements. The proposed approach may provide more comprehensive insights on NPP strategies to managers and industrial decision-makers. Finally, the article suggests a number of future research directions from four different perspectives (customer, firm, government/industry, and methodology).","PeriodicalId":421837,"journal":{"name":"Diffusion of Innovation eJournal","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129794777","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Economics of Inefficient Technology Use","authors":"P. Beaudry, P. Francois","doi":"10.3386/W13500","DOIUrl":"https://doi.org/10.3386/W13500","url":null,"abstract":"The adoption and diffusion of technological knowledge is generally regarded as a key element in a country's economic success. However, as is the case with most types of information, the transfer of technological knowledge is likely to be subject to adverse selection problems. In this paper we examine whether asymmetric information regarding who knows how to run a new technology efficiently can explain a set of observations regarding within and cross-country patterns of technology diffusion. In particular, we show how the dynamics of adverse selection in the market for technological knowhow can explain (1) why inefficient technology use may take over a market even when better practice is available, (2) why widespread inefficient use may persist unless a critical mass of firms switch to best practice, (3) why efficient adoption of new technologies is more likely to occur where the existing technology is already productive, where wages are already relatively high, and where the new technology is not too great an advance over the old one, and (4) why the international mobility of knowledgeable individuals does not guarantee the diffusion of best practice technology across countries.","PeriodicalId":421837,"journal":{"name":"Diffusion of Innovation eJournal","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121792872","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Innovation Diffusion in Heterogeneous Populations","authors":"H. Young","doi":"10.2139/ssrn.1024811","DOIUrl":"https://doi.org/10.2139/ssrn.1024811","url":null,"abstract":"New products and practices take time to diffuse, a fact that is often attributed to some form of heterogeneity among potential adopters. People may realize different benefits and costs from the innovation, or have different beliefs about its benefits and costs, hear about it at different times, or delay in acting on their information. This paper analyzes the dynamics arising from different sources of heterogeneity in a completely general setting without placing parametric restrictions on the distribution of the relevant characteristics. The structure of the dynamics, especially the pattern of acceleration, depends importantly on which type of heterogeneity is driving the process. These differences are sufficiently marked that they provide a potential tool for discriminating empirically among diffusion mechanisms. The results have potential application to marketing, technological change, fads, and epidemics.","PeriodicalId":421837,"journal":{"name":"Diffusion of Innovation eJournal","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127737960","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Influence of University Research on Industrial Innovation","authors":"Jinyoun Kim, G. Marschke","doi":"10.3386/W11447","DOIUrl":"https://doi.org/10.3386/W11447","url":null,"abstract":"We use U.S. patent records to examine the role of research personnel as a pathway for the diffusion of ideas from university to industry. Appearing on a patent assigned to a university is evidence that an inventor has been exposed to university research, either directly as a university researcher or through some form of collaboration with university researchers. Having an advanced degree is another indicator of an inventor's exposure to university research. We find a steady increase in industry's use of inventors with university research experience over the period 1985-97, economy wide and in the pharmaceutical and semiconductor industries in particular. We interpret this as evidence of growth in the influence of university research on industrial innovation. Moreover, during this period we find that firms with large research operations in both industries, and young and highly capitalized firms in the pharmaceutical industry, are disproportionately active in the diffusion of ideas from the university sector. Finally, we find that the patents of firms that employ inventors with university research experience are more likely to cite university patents as prior art, suggesting that this experience better enables firms to tap academic research.","PeriodicalId":421837,"journal":{"name":"Diffusion of Innovation eJournal","volume":"534 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2005-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116235372","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}