A central part of the innovation process concerns the way firms go about organizing search for new ideas that have commercial potential. New models of innovation have suggested that many innovative firms have changed the way they search for new ideas, adopting open search strategies that involve the use of a wide range of external actors and sources to help them achieve and sustain innovation. Using a large-scale sample of industrial firms, this paper links search strategy to innovative performance, finding that searching widely and deeply is curvilinearly (taking an inverted U-shape) related to performance. Copyright © 2005 John Wiley & Sons, Ltd.

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Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms

1. Introduction and Overview. 2. Detecting Influential Observations and Outliers. 3. Detecting and Assessing Collinearity. 4. Applications and Remedies. 5. Research Issues and Directions for Extensions. Bibliography. Author Index. Subject Index.

Regression Diagnostics: Identifying Influential Data and Sources of Collinearity

Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.

Estimation and Inference in Econometrics

The paper is concerned with spatial clustering of economic activity and its relation to the spatiality of knowledge creation in interactive learning processes. It questions the view that tacit knowledge transfer is confined to local milieus whereas codified knowledge may roam the globe almost frictionlessly. The paper highlights the conditions under which both tacit and codified knowledge can be exchanged locally and globally. A distinction is made between, on the one hand, the learning processes taking place among actors embedded in a community by just being there dubbed buzz and, on the other, the knowledge attained by investing in building channels of communication called pipelines to selected providers located outside the local milieu. It is argued that the co-existence of high levels of buzz and many pipelines may provide firms located in outward-looking and lively clusters with a string of particular advantages not available to outsiders. Finally, some policy implications, stemming from this argumen...

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Clusters and knowledge: local buzz, global pipelines and the process of knowledge creation

The 2008 crash has left all the established economic doctrines - equilibrium models, real business cycles, disequilibria models - in disarray. Part of the problem is due to Smith’s "veil of ignorance": individuals unknowingly pursue society’s interest and, as a result, have no clue as to the macroeconomic effects of their actions: witness the Keynes and Leontief multipliers, the concept of value added, fiat money, Engel’s law and technical progress, to name but a few of the macrofoundations of microeconomics. A good viewpoint to take bearings anew lies in comparing the post-Great Depression institutions with those emerging from Thatcher and Reagan’s economic policies: deregulation, exogenous vs. endoge- nous money, shadow banking vs. Volcker’s Rule. Very simply, the banks, whose lending determined deposits after Roosevelt, and were a public service became private enterprises whose deposits determine lending. These underlay the great moderation preceding 2006, and the subsequent crash.

The Economic Institutions of Capitalism

The Effect of High-skilled Migrant Hires and Integration Capacity on Firm-level Innovation Performance: Is There a Premium?

We combine theory and empirical research on the origins of innovation to investigate the determinants of complexity and degrees of novelty in the emergence new innovations. We link up two important dimensions of technological change in both looking at the degree of novelty of the innovation (incremental/radical) and the complexity of the innovation (simple/complex). Using a novel dataset of major Finnish innovations from 1985-1998, we examine the role of technological opportunities, customers, breadth of collaboration with different communities of practice, the breadth of the sources of inspiration for the innovation, and competitive pressures in shaping the emergence of innovations. We find that taking into account both dimensions is imperative to the understanding of the origins of innovations.

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The Origins of Innovation: An Analysis of the Finnish Innovation Database

Licensing is one of the most commonly observed inter-firm contractual agreements. Drawing on the resource-based view of the firm and contract economics, we argue that the inclusion of a grant-back clause in licensing agreements emerges as a consequence of the licensor and licensee firms‘ requirements to balance the need to protect their technological resources with the need to learn through internal and external processes. We argue that licensing agreements are increasingly likely to contain a grant-back clause (i) the closer the licensed technology is to the core of the licensor‘s patent portfolio, and (ii) the higher the uncertainty of the licensed technology. In contrast, we conjecture decreasing likelihood of a grant-back clause, the closer the licensed technology is to the core of the licensee‘s patent portfolio. Technological uncertainty is conjectured to positively moderate the results both when the licensed technology is part of the core technology of the licensee and the licensor. We test our hypotheses using a sample of 404 licensed technologies over the period 1984-2004. We employ a hierarchical nested decision model to account for the inclusion of a grant-back clause in a licensing contract nested in the decision about which technologies to license out. We find broad support for our theoretical arguments.

"Exploring the Boomerang Effect: The Role of Core Technologies and Uncertainty in Explaining the Use of the Grant-Back Clause in Technology"

We investigate the effect of research and development (R&D) offshoring from highincome regions to prominent emerging economies. Specifically, we examine whether there is a complementary relationship between a region’s home and foreign investments in R&D that affects home’s regional knowledge production. Using a theoretical framework based on economic geography and the literature on international knowledge sourcing, we conjecture that high-income regions would have a comparative advantage in high-tech R&D, while emerging economies would have an advantage in medium/low R&D. Complementarity should obtain when the comparative advantages of the geographical areas are utilized. We find overall empirical support for this prediction.

https://www.druid.dk/laursen/files/DAgostinoLaursenSantangelo_jeg.lbs012.full.pdf

Keld Laursen

Papers

The Effect of High-skilled Migrant Hires and Integration Capacity on Firm-level Innovation Performance: Is There a Premium?

The Origins of Innovation: An Analysis of the Finnish Innovation Database

"Exploring the Boomerang Effect: The Role of Core Technologies and Uncertainty in Explaining the Use of the Grant-Back Clause in Technology"

The impact of R&D offshoring on the home knowledge production of OECD investing regions

De samfundsøkonomiske effekter af offentlige investeringer i forskning og udvikling: Analyserapport