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Complementarities in Innovation Policy

Author

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  • Pierre Mohnen
  • Lars-Hendrick Röller

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.

Suggested Citation

  • Pierre Mohnen & Lars-Hendrick Röller, 2001. "Complementarities in Innovation Policy," CIRANO Working Papers 2001s-28, CIRANO.
  • Handle: RePEc:cir:cirwor:2001s-28
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    More about this item

    Keywords

    Innovation; supermodularity; Innovation; supermodularité;
    All these keywords.

    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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