This paper investigates the relationship between the cooperative behavior of manufacturing establishments in a region and the efficiency of their R&D activities using data for eleven European regions. Some significant differences in the attitude towards R&D cooperation, as well as with regard to the efficiency of R&D activities between the regions can be found. However, these two issues appear ...

This study examines how industry-specific managerial experience affects firms’ innovation performance in the context of different institutional environments. Based on firm-level data from 27 Central and Eastern European countries we identify a robust positive relationship between industry-specific experience of the top-manager and the decision to innovate as well as the share of new product-rel...

Literature suggests that location should matter for R&D activities. However, attempts to empirically detect differences in innovation activity between regions have so far been rather unsuccessful. Using a unique data set which contains comparable information about manufacturing enterprises in eleven European regions, a number of significant regional differences in the efficiency of innovation a...

In standard endogenous growth models, the higher the research e¤ort the higher is the innovation rate of the economy. Innovating, however, is a complex process that requires an entrepreneur to implement a valuable invention. Hence when research and entrepreneurial skills compete in the allocation of aggregate resources, the relation between growth and R&D is hump-shaped. This paper proposes a m...

This paper considers irreversible investment in competing research projects with uncertain returns under a winner-takes-all patent system. Uncertainty takes two distinct forms: the technological success of the project is probabilistic, while the economic value of the patent to be won evolves stochastically over time. According to the theory of real options uncertainty generates an option value ...

The impact of size and competition on firm-level innovative activities has obtained considerable attention in developed countries, but the focus is still lacking in developing world. This paper is an attempt to contribute in this direction by including 14 Latin American countries, and by using Enterprise Survey data of the World Bank. We consider both input and output innovation to observe the ...

Focusing on the electronics industry, this paper verifies and compares how bipolar R&D policy contributed to growth in productivity in Korea and Taiwan. Two implications are derived from the empirical results. First, in Korea, government’s business group-centered R&D policy encouraged private R&D expenditure rather than public R&D infrastructure. Second, and in contrast, publicly funded R&D inf...

The labour productivity impact of innovation of manufacturing firms in Bangladesh and Pakistan, a highly neglected region for such studies compared with the developed world, is studied in this paper by using World Bank Enterprise Survey data conducted in 2006. To achieve this end, we apply the Cobb-Douglas production function, augmented with innovation-related (and other expected sources of pro...

We introduce stochastic R&D in the Hotelling model and show that if the technical risk is sufficiently high, all firms focus on the most valuable market segment. We then endogenize technical risk by allowing firms to choose between a safe and a risky R&D technology. In equilibrium, firms either both target the most attractive market with at least one firm using the risky technology or they choo...

We introduce stochastic R&D in the Hotelling model and show that if the technical risk is sufficiently high, all firms focus on the most valuable market segment. We then endogenize technical risk by allowing firms to choose between a safe and a risky R&D technology. In equilibrium, firms either both target the most attractive market with at least one firm using the risky technology or they choo...