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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 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. ZUSAMMENFASSUNG - (Innovationspolitik als komplementäres System) In diesem Beitrag wird die Innovationsfähigkeit von Unternehmen in Abhängigkeit von Standortfaktoren - wie etwa die Bereitstellung von Risikokapital, staatliche Regulierungen, und qualifizierte Mitarbeiter - als komplementäres System modelliert. Es wird aufgezeigt, wie die neue Komplementaritätstheorie in der empirischen Innovationsforschung angewandt werden kann, indem die Innovationsfunktion von Unternehmen auf die Eigenschaft der Supermodularität hin überprüft wird. Unter Berücksichtigung dieses Ansatzes wird, anhand von Innovationsdaten aus der CIS Datenbank, die Komplementaritätshypothese für eine Reihe von Industrien und Länder untersucht. Die Ergebnisse zeigen auf, daß viele Branchen von einem beträchtlichen Maße an Komplementarität gekennzeichnet sind. Damit bestätigen die Befunde, daß Innovationen, in bestimmten Branchen, ein koordiniertes Handeln der unter­schiedlichen Standortfaktoren voraussetzt. Als höchst komplementär zu allen anderen Stand­ortfaktoren in fast allen Industriezweigen erweist sich der Mangel an qualifiziertem Human­kapital. In diesem Sinne bekräftigen unsere Erge
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  • Mohnen, Pierre & Roller, Lars-Hendrik, 2005. "Complementarities in innovation policy," European Economic Review, Elsevier, vol. 49(6), pages 1431-1450, August.
    • Handle: RePEc:eee:eecrev:v:49:y:2005:i:6:p:1431-1450
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    More about this item

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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