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Complementarities in innovation policy

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  • Mohnen, Pierre
  • Roller, Lars-Hendrik

Abstract

This paper develops a framework for testing discrete complementarities in innovation policy using European data on obstacles to innovation. We propose a discrete test of supermodularity in innovation policy leading to a number of inequality constraints. We apply our test to two types of innovation decisions: to innovate or not, and if so, by how much. We find that industries display a considerable amount of complementarity, with some industries being complementary across all obstacles. We also find that the lack of internal human capital (skilled personnel) is complementary to all the other obstacles in almost all industries. In this sense, our results suggest that internal human capital is key for any innovation policy, insofar that it is complementary to all the other factors that might hamper innovation activities. Nous développons dans cet article un cadre qui permette de tester des complémentarités dans les politiques d'innovation à partir de données européennes sur les obstacles à l'innovation. Nous proposons un test discret de supermodularité en matière de politique à l'innovation qui repose sur un certain nombre de contraintes d'inégalité. Ce test s'appliquera à deux types de décision en innovation: innover ou non, et si oui, de combien? Nous constatons beaucoup de complémentarités au niveau des industries. Dans certaines industries la complémentarité touche l'ensemble des aspects pouvant donner lieu à des obstacles. Nous trouvons aussi que le manque de travailleurs spécialisés est complémentaire à tous les autres obstacles dans presque toutes les industries. Dans ce sens, nous résultats suggèrent que la détention de capital humain au niveau des entreprises est un élément essentiel dans une politique de l'innovation.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 49 (2005)
Issue (Month): 6 (August)
Pages: 1431-1450

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Handle: RePEc:eee:eecrev:v:49:y:2005:i:6:p:1431-1450

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  1. Milgrom, Paul & Shannon, Chris, 1994. "Monotone Comparative Statics," Econometrica, Econometric Society, vol. 62(1), pages 157-80, January.
  2. Cassiman, Bruno & Veugelers, Reinhilde, 2002. "Complementarity in the Innovation Strategy: Internal R&D, External Technology Acquisition and Cooperation," CEPR Discussion Papers 3284, C.E.P.R. Discussion Papers.
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  14. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-79, June.
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  17. Milgrom, Paul & Roberts, John, 1994. "Complementarities and systems: Understanding japanese economic organization," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 9(1), pages 3-42.
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