Social and Behavioral Sciences Commons^™

Competitive Experimentation With Private Information, Giuseppe Moscarini, Francesco Squintani

Cowles Foundation Discussion Papers

We study a winner-take-all R&D race where firms are privately informed about the uncertain arrival rate of the invention. Due to the interdependent-value nature of the problem, the equilibrium displays a strong herding effect that distinguishes our framework from war-of-attrition models. Nonetheless, equilibrium expenditure in R&D is sub-optimal when the planner is sufficiently impatient. Pessimistic firms prematurely exit the race, so that the expected discounted amount of R&D activity is inefficiently low. This result stands in contrast to the overinvestment in research that is typical of winner-take-all R&D races without private information. We conclude that secrecy in R&D inefficiently slows …

The Making Of An Innovator, Hian Teck Hoon

Research Collection School Of Economics

Innovators experiment with things to come up with new ideas to improve the quality of existing products, develop differentiated or new products and re-organise business processes to lower costs. In a big corporation, there might be a whole R&D department where innovators are employed to design new blueprints so the company can constantly make new offerings. But innovators can also be found in small enterprises tinkering with recipes, for example, to win new customers. Innovators no doubt derive pleasure from their creative work. Yet, in modern economies, they must be employed in a firm that successfully translates their innovative activity …

Wine Clusters Equal Export Success, D. K. Aylward

Faculty of Commerce - Papers (Archive)

The export success of the Australian wine industry continues to gain momentum. As this phenomenon becomes increasingly apparent, more and more studies are focusing on the association between levels of export intensity among firms within a wine cluster as opposed to those in non-cluster environments. The general claim is that clusters provide highly productive environments that encourage greater export awareness among firms, create conditions more conducive to international marketing, provide greater brand awareness and thereby facilitate increased levels of export activity. The author has recently completed a number of studies that, at least in the Australian context, substantiate these claims. …

Slides: Pinedale Anticline Project Area: The Adaptive Management Process, Prill Mecham

Best Management Practices and Adaptive Management in Oil and Gas Development (May 12-13)

Presenter: Prill Mecham, Pinedale BLM Field Manager

35 slides

From Efficiency-Driven To Innovation-Driven Economic Growth: Perspectives From Singapore, Kim Song Tan, Sock-Yong Phang

Research Collection School Of Economics

The Singapore economy is going through a period of major restructuring. Economic stagnation since the 1997 Asia financial crisis (except for a brief recovery in 1999) has called into question the continued relevance of many fundamental policies that had worked well in the past. In 2002, a high-level Economic Review Committee (ERC) was convened by the government to chart new directions for the economy. A common thread that ran through the committee’s various reports was a call to enhance the economy’s innovative capacity, with the aim of making Singapore an innovation hub in the region. The call reflects an increased …

Organizational Structure And The Creative Process, Edward C. Bowen Edd

Dissertations

A creative edge can be a powerful source of competitive advantage in business, in war, in the arts, in science, and in life. In fact, creativity, innovation and the ability to adapt and change organizational structures in response to an increasingly fast-paced and competitive business environment are increasingly seen as essential for the success of many organizations. A current trend in organizational theory associates increases in formalization and both horizontal and vertical integration with decreases in an organization's ability to innovate and adapt. Consequently, organizational change efforts often involve moving from traditional, hierarchical structures toward flatter, more flexible types of …

Schumpeterian Profits In The American Economy: Theory And Measurement, William D. Nordhaus

Cowles Foundation Discussion Papers

The present study examines the importance of Schumpeterian profits in the United States economy. Schumpeterian profits are defined as those profits that arise when firms are able to appropriate the returns from innovative activity. We first show the underlying equations for Schumpeterian profits. We then estimate the value of these profits for the non-farm business economy. We conclude that only a miniscule fraction of the social returns from technological advances over the 1948-2001 period was captured by producers, indicating that most of the benefits of technological change are passed on to consumers rather than captured by producers.

Kalamazoo County: Looking To Our Past For The Future, George A. Erickcek

Reports

No abstract provided.

Social Insurance And The Design Of Innovation Incentives, Darius Noshir Lakdawalla, Neeraj Sood

Darius N. Lakdawalla

We consider the insurance aspects of research policy. Patents or rewards have an advantage over research subsidies when a new invention replaces an existing good at lower cost. Research subsidies have an advantage when inventions spawn an entirely new product.

Food Safety Innovation In The United States Evidence From The Meat Industry, Elise Golan, Tanya Roberts, Elisabete Salay, Julie Caswell, Michael Ollinger, Danna Moore

Julie Caswell

Recent industry innovations improving the safety of the Nation’s meat supply range from new pathogen tests, high-tech equipment, and supply chain management systems, to new surveillance networks. Despite these and other improvements, the market incentives that motivate private firms to invest in innovation seem to be fairly weak. Results from an ERS survey of U.S. meat and poultry slaughter and processing plants and two case studies of innovation in the U.S. beef industry reveal that the industry has developed a number of mechanisms to overcome that weakness and to stimulate investment in food safety innovation. Industry experience suggests that government …

Of Patents And Path Dependency: A Comment On Burk And Lemley, R. Polk Wagner

All Faculty Scholarship

This Article delves into issues surrounding the relationship between technology and the patent law. Responding to Dan Burk and Mark Lemley's earlier article, Is Patent Law Technology-Specific?, the piece notes that the basic question posed by Burk and Lemley's article is a relatively easy question given the several doctrines that explicitly link the subject matter context of an invention to the validity and scope of related patents. This sort of technological exceptionalism (which this Article refers to as micro-exceptionalism) is both observable and easily justifiable for a legal regime directed to technology policy. In contrast, Burk and Lemley's identification of, …

Innovation Heterogeneity And Schumpeterian Growth Models, Eduardo Pol, P. Carroll

Faculty of Commerce - Papers (Archive)

Innovation heterogeneity refers to two empirical facts: economic sectors vary according to sources and rates of innovation, and innovations vary in terms of the magnitude of their economic impact. The central focus of this paper is the problem of scale effects in the Schumpeterian growth models. Although these models make endogenous the production of innovations, they assume not only an oversimplified pattern of sectoral innovation but also that major innovations are virtually indistinguishable from minor innovations. The main claim of the a er is that without a theoretical framework revolving around both the existence of realistic sectoral patterns of innovation …