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Begin New Search Topic Research and Development Political Geography Global Focus

1. Knowledge spillovers and geopolitical challenges in global supply chains

Author:
Niclas Poitiers and Kamil Sekut
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
This paper explores the role of knowledge spillovers through global supply chains against the backdrop of increasing geopolitical tensions and protectionist policies. The research, part of the ReThinkGSC project, underscores the importance of the international research and development ecosystem in fostering innovation. This ecosystem provides benefits to all countries involved and is essential for tackling global challenges. However, we highlight the growing threats to knowledge dissemination posed by policies aimed at preserving national security and leading technological positions. These measures, intended to safeguard strategic interests, risk fragmenting supply chains and stifling global innovation if they are applied on a broad basis. We recommend that restrictions on knowledge flows be limited to narrowly defined strategic areas and that countries adopt strategies to enhance internal knowledge dissemination, diversify supply chains and foster international economic ties. We emphasise the need for careful policy design, avoiding broad protectionist measures, and suggests bolstering R&D through public grants and tax incentives, and by promoting private-public partnerships.
Topic:
Geopolitics, Supply Chains, Research and Development, and Knowledge Transfer
Political Geography:
Global Focus

2. It’s not a Sprint, it’s a Marathon: Reviewing Governmental R&D Support for Environmental Innovation

Author:
Leonie Meißner, Sonja Peterson, and Finn Ole Semrau
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In a race against excessive global warming, the world must accelerate the development and adoption of environmental innovations (EIs). EIs are crucial in decarbonizing the economy and meeting the net-zero targets. In this literature review, we delve into the role of governments in promoting EIs across stages of maturity and the likeliness of such support to reduce emissions and mitigation costs. Various theoretical justifications, such as knowledge externalities, dynamic increasing returns, path dependency and incomplete information, highlight the necessity to promote EI through governmental Research and Development (R&D) support. While emission pricing remains the most cost-efficient climate policy, it fails as a stand-alone instrument to sufficiently encourage EI. Accordingly, the optimal approach is a policy mix complementing emission pricing with governmental R&D support. The theoretical finding is backed by empirical studies on the development and deployment of renewable energies, which also show that investment in R&D can effectively reduce emissions and mitigation costs. By combining theoretical and empirical research, the review concludes by examining two pivotal policy actions aimed at accelerating the take-off of EIs: The US Inflation Reduction Act and the European Green New Deal Industrial Plan. We evaluate their specific aspects and limitations to effectively and efficiently contribute to decarbonization.
Topic:
Climate Change, Environment, Innovation, and Research and Development
Political Geography:
Global Focus

3. The portfolio of economic policies needed to fight climate change

Author:
Olivier Blanchard, Christian Gollier, and Jean Tirole
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Climate change poses an existential threat. The authors argue that carbon pricing and green research and development (R&D) support are good economics, but their implementation can be improved. Even if carbon prices are generalized and given more substance, green R&D is still likely to be smaller than needed. Much more money must be spent on it than is now the case, and this money must be properly allocated in order to have an impact. Moreover, done well, other policies, such as standards, bans, and targeted subsidies, can be good economics. But they have often been incoherent and their implementation is delicate. The authors also argue that domestic and international compensation is key to the acceptability of efficient policies. Finally, although a country’s emissions will not materially alter the course of climate change, individual countries can still show the way ahead: They can develop technologies that can be used by other, poorer, countries. They can provide leadership/momentum on global agreements and on the need to fund climate change policies in developing economies.
Topic:
Climate Change, Economy, Green Technology, Carbon Emissions, and Research and Development
Political Geography:
Global Focus

4. Do various innovation linkages enhance innovation? International evidence

Author:
Rajeev K. Goel
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Whereas various drivers of the international innovative activity have been studied in the literature, our understanding of the contributions of different innovation linkages to innovation deserves more attention. Are the different innovation linkages equally complementary to research inputs in fostering innovation? This paper addresses the contributions of different innovation linkages to innovation, across two different measures of innovation. We find that a broader index of innovation linkages shows positive and significant spillovers on innovation, while joint ventures and university-industry collaborations fail to exert a significant influence. These spillovers are reinforced by the positive and expected impacts of R&D spending. In other results, greater venture capital investments boost innovation in most cases, while more FDI boosts one type of innovation output. These findings are uniquely shown to be sensitive across least- and most innovative nations when a quantile regression is employed. Implications for technology policy are discussed.
Topic:
Development, Science and Technology, Innovation, and Research and Development
Political Geography:
Global Focus

5. Why U.S. Immigration Barriers Matter for the Global Advancement of Science

Author:
Ruchi Agarwal and Patrick Gaule
Publication Date:
10-2021
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
While talent can be born anywhere, few places specialize in nurturing it. Accordingly, talented individuals have pursued opportunities abroad for centuries. For instance, Aristotle moved from Northern Greece to Athens to attend Plato’s Academy and then to Macedonia to tutor a young Alexander the Great. More recently, the United States has emerged as a hub for foreign talent, playing an outsized role in the global knowledge network of scientific activity in recent decades. However, the recent introduction of restrictive immigration policies in the United States may adversely impact scientific activity. While studies have examined the potential negative impact of restrictive U.S. immigration policies on U.S. competitiveness in science and innovation, there has been less focus on understanding how U.S. immigration barriers may in turn impact scientific activity globally. In this context, our work studies the impact of U.S. immigration barriers on global knowledge production and examines which policy actions are more likely to help advance the global knowledge frontier.
Topic:
Science and Technology, Immigration, Border Control, and Research and Development
Political Geography:
Global Focus and United States of America

6. The Quantum Revolution: Opportunities and Challenges for Canada

Author:
Eric Miller
Publication Date:
10-2021
Content Type:
Policy Brief
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
he world is on the cusp of a revolution in quantum technologies. Countries and private investors around the world are deploying hundreds of millions of dollars to advance research and develop quantum technologies for defence and commercial applications. This interest is driven by what quantum technologies can do relative to their “classical” counterparts. Quantum technologies function by harnessing the key characteristics of the theory of quantum mechanics, including superposition, entanglement and uncertainty. The resulting technologies are expected to be diverse and far reaching. For example, quantum computers are expected to overcome most “public key encryption” systems, presaging a radical change in cybersecurity. Given its aptitude for navigating complexity, quantum tools are expected to shave years off the time to market for medicines. Secure, efficient communications among drones and other autonomous vehicles will underpin safety and operational effectiveness in the crowded skies of the future. Of course, these nearer terms examples will be joined by applications barely yet imagined as the technology matures.
Topic:
Defense Policy, Science and Technology, Quantum Computers, and Research and Development
Political Geography:
Canada and Global Focus

7. Employment effects of R&D and innovation: Evidence from small and medium-sized firms in emerging markets

Author:
Rajeev K. Goel and Michael Nelson
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper studies the impact of research and development (R&D) and innovation on employment growth, focusing on small and medium-sized firms. Employment effects of R&D and innovation are unclear a priori as process innovation may be labor-saving or labor might have complementarities with other inputs. Employing firm-level data from 125 nations, results show that both R&D and innovation increased employment growth, suggesting that innovation was either capital-saving or labor had strong complementarities with other inputs. Upon splitting the sample into growing and contracting firms showed that contracting firms benefit from innovation but not from R&D. In other findings, sole proprietorships, larger firms, firms with relatively more experienced managers, firms with females as top managers, and firms facing the threat of informal competition had lower employment growth, while foreign-owned and government-owned enterprises have positive influences on employment growth. Finally, employment growth in shrinking firms was boosted in nations with greater economic freedom, but this growth is undermined by informal sector competition.
Topic:
Development, Emerging Markets, Research, Innovation, and Research and Development
Political Geography:
Global Focus

8. Chasing After the Frontier in Agricultural Productivity

Author:
Jules-Daniel Wurlod and Derek Eaton
Publication Date:
11-2015
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper explores international productivity patterns in agriculture. We test whether countries higher productivity growth has been experienced by countries that were initially further from the technological frontier. Based on a panel of 84 countries at various levels of development, we find support for convergence among OECD countries but divergence in our sample at large over the period 1960-2010. We then test whether technological catch-up is conditional on absorptive capacities and domestic investments in R&D. While agricultural research intensity has a significant effect on labor productivity growth, the size of this effect decreases the further the country is from the frontier. We calculate a threshold level for the effectiveness of research intensity: increased R&D contributes to catching up to the frontier for those countries with a distance to the frontier less than 22. We also test for additional factors affecting productivity growth, and find that secondary education plays a strong role in less developed countries, while trade openness appears to have had a positive effect on productivity in middle income countries. On the other hand, there is little evidence of much effect, either positive or negative from IPR protection. Of perhaps greater interest is the apparent impact of economic growth outside of agriculture in driving agricultural productivity improvements.
Topic:
Agriculture, Education, Productivity, Research and Development, and Convergence
Political Geography:
Global Focus

9. Multinational Firms and the Internationalization of Green R&D: A Review of the Evidence and Policy Implications

Author:
Joëlle Noailly and David Ryfisch
Publication Date:
12-2014
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper presents novel empirical evidence on the internationalization of green R&D by multinational firms (MNCs), as measured by patents data. Using data on inventors’ addresses for the set of 1,200 MNCs firms patenting in green technologies over the 2004-2009 period, we find that about 17% of green patents result from MNCs R&D investments conducted outside their home countries. MNCs tend to locate their foreign green R&D activities in other OECD markets and in China, in particular in lightings and solar technologies. The empirical analysis reveals that the probability of conducting green R&D abroad increases with the host country’s stringency of environmental regulation, market size and (green) R&D intensity. Also, relatively lower wages for scientists and engineers, and stronger protection for intellectual property rights in the host country increase the likelihood for MNCs to offshore green R&D. The paper concludes by discussing the policy implications of this changing global innovation landscape.
Topic:
Green Technology, Multinational Corporations, and Research and Development
Political Geography:
Global Focus