Complementarities in Innovation Policy
AbstractThis 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 the evidence regarding the existence of complementarity in innovation policies depends on the phase of innovation that is targeted (getting firms innovative or increasing their innovation intensity) as well as on the particular pair of policies that is being considered. The two phases of the innovation process, i.e. the probability of becoming an innovator and the intensity of innovation, are subject to different constraints. Interestingly, there seems to be a need to adopt a package of policies to make firms innovate, while a more targeted choice among policies is necessary to make them more innovative.
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Bibliographic InfoPaper provided by Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology in its series Research Memoranda with number 025.
Date of creation: 2003
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industrial organization ;
Other versions of this item:
- Pierre Mohnen & Lars-Hendrick Röller, 2003. "Complementarities in Innovation Policy," CIRANO Working Papers 2003s-60, CIRANO.
- Mohnen, Pierre & Röller, Lars-Hendrik, 2001. "Complementarities in Innovation Policy," CEPR Discussion Papers 2712, C.E.P.R. Discussion Papers.
- Pierre Mohnen & Lars-Hendrik Röller, 2000. "Complementarities in Innovation Policy," CIG Working Papers FS IV 00-18, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Pierre Mohnen & Lars-Hendrick Röller, 2001. "Complementarities in Innovation Policy," CIRANO Working Papers 2001s-28, CIRANO.
- L5 - Industrial Organization - - Regulation and Industrial Policy
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-12-14 (All new papers)
- NEP-ENT-2003-12-14 (Entrepreneurship)
- NEP-INO-2003-12-14 (Innovation)
- NEP-TID-2003-12-14 (Technology & Industrial Dynamics)
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