directed matching and monetary exchange we develop a model of monetary exchange where as in the random matching literature agents trade bilaterally and not through centralized markets rather than assuming they match exogenously and at random however we determine who meets whom as part of the equilibrium we show how to formalize this process of directed matching in dynamic models with double coincidence problems and present several examples and applications that illustrate how the approach can be used in monetary theory some of our results are similar to those in the random matching literature others differ significantly

the paradox of openness revisited collaborative innovation and patenting by uk innovators we revisit the paradox of openness in the literature which consists of two conflicting views on the link between patenting and open innovation the spillover prevention and the organizational openness views we use the data from the survey of innovation and patent use and the community innovation survey cis6 in the uk to assess the empirical support for the distinct predictions of these theories we argue that both patenting and external sourcing openness are jointly determined decisions made by firms their relationship is contingent upon whether the firms are technically superior to their rivals and lead in the market or not leading firms are more vulnerable to unintended knowledge spillovers during collaboration as compared to followers and consequently the increase in patenting due to openness is higher for leaders than for followers we develop a simple framework that allows us to formally derive the empirical implications of this hypothesis and test it by estimating whether the reduced form relationship between patenting and collaboration is stronger for leaders than for followers

combining valuable inventions exploring the impact of prior invention value on the performance of subsequent inventions innovation research widely acknowledges that most inventions are recombinations of existing ideas and technologies following this stream of research this study analyses how the values of prior inventions used to develop a subsequent invention influence the value of the new invention building on evolutionary theory and research on technological search and technological paradigms this article proposes a positive relationship between prior inventions value and subsequent invention value the analysis of a large scale patent data set of pharmaceutical and semiconductor firms largely confirms this notion however it also shows that the effect weakens when prior inventions are of higher value valuable prior inventions are also positively related to the likelihood that subsequent inventions are breakthroughs however while this effect also decreases when prior inventions hold higher values the decreasing effect occurs only at particularly high levels of prior invention value in contrast combining valuable inventions limits the likelihood of generating poor invention outcomes value in summary while the results lend support to theories of evolutionary and cumulative technological progress they also show that despite the recombination potential of technical knowledge there are practical limits to the benefits of valuable inputs

specialized supply firms property rights and firm boundaries the proper specification of intellectual property rights iprs is a delicate and controversial matter in this paper we consider one specialized context in which iprs can add to efficiency we build on contributions of both firm capabilities scholars e g teece pisano et al and property rights economists e g hart to show that iprs can affect efficiency by influencing the location of technological innovation using a simple set up where the key choice is whether a technology intensive input will be supplied by an independent firm or produced in house we analyze how the choice is affected by the strength of iprs and by the existence and nature of information spillovers specifically we show that when the supply relationship is likely to produce new information of value to the supplier stronger property rights favor independent suppliers over vertical integration an important implication of our model backed by empirical case studies is that strong iprs therefore encourage investments in specialized firms with strong firm capabilities in the area of innovative input supply iprs therefore may play a role along with multiple other factors in the location of firm boundaries in some cases this contribution to the viability of small specialized firms with their superior ability to innovate in some cases must be taken into account in evaluating recent criticisms of over fragmented ipr ownership i e the anticommons problem it also contributes to an understanding of iprs in the post chandlerian economy where smaller specialized firms play a prominent role copyright 2004 oxford university press

navigating the paradox of openness in energy and transport innovation insights from eight corporate clean technology research and development case studies using an inductive case study approach drawn from original interview data this article investigates the innovation approaches among a sample of international energy companies or corporate firms it first presents a conceptual framework synthesized from the business studies entrepreneurship evolutionary economics innovation studies management science organization studies political science and sociology literature this framework suggests that corporate approaches to clean technology innovation will cut across the four dimensions of organizational multiplicity and stakeholder involvement information sharing coordination and control and market orientation it then explores how eight firms the algal carbon conversion flagship and aurora algae biofuel dong and statoil carbon capture and storage tesla and volkswagen electric vehicles and siemens and vestas offshore wind turbines approach clean technology development with open innovation attributes mixed with closed attributes although the study finds striking similarities among the particular approaches embraced by each corporate actor it also notes that approaches are technology and firm specific and the potential for different permutations leads to an almost endless number of possible stylistic combinations the innovation profiles depicted also reveal conflict and competition among various stakeholders the implication being that corporate innovation in the energy sector remains a conflicted disjointed and messy process

the distribution of money and prices in search equilibrium this article considers a search theoretic model of monetary exchange agents bargain over both the amount of money and the quantity of goods to be exchanged in bilateral meetings determining endogenously the distributions of money and of prices i show that money is neutral if changes in the money supply are accomplished via proportional transfers however within the class of lump sum transfers an increase of the rate of monetary expansion tends to decrease the dispersion of wealth and prices and to improve welfare when inflation is low but when inflation is high enough the opposite effects occur

general technological capabilities product market fragmentation and markets for technology abstract the combination of a firm capability i e ability to generate general purpose technologies and a market structure condition i e fragmentation of downstream submarkets may encourage licensing in an industry that is the probability of licensing should increase when product markets are fragmented and technologies support general purposes evidence consistent with these predictions emerges from a 1993 to 2001 panel of 87 firms that owned at least one u s software security patent between 1976 and 2001 the analysis uncovers some fundamental characteristics of how external knowledge exploitation functions in particular technology markets thrive when product markets are fragmented and firms have the capability to produce general technologies

optimal bank capital this article reports estimates of the long run costs and benefits of having banks fund more of their assets with loss absorbing capital or equity we model how shifts in funding affect required rates of return and how costs are influenced by the tax system we draw a clear distinction between costs to individual institutions private costs and overall economic or social costs we find that the amount of equity capital that is likely to be desirable for banks to use is very much larger than banks have used in recent years and also higher than targets agreed under the basel iii framework this article reports estimates of the long run costs and benefits of having banks fund more of their assets with loss absorbing capital by which we mean equity rather than debt the benefits come because a larger buffer of truly loss absorbing capital reduces the chance of banking crises which as both past history and recent events show generate substantial economic costs the offset to any such benefits comes in the form of potentially higher costs of intermediation of saving through the banking system the cost of funding bank lending might rise as equity replaces debt and such costs can be expected to be reflected in a higher interest rate charged to those who borrow from banks that in turn would tend to reduce the level of investment with potentially long lasting effects on the level of economic activity calibrating the size of these costs and benefits is important but far from

market share market value and innovation in a panel of british manufacturing firms this paper examines the empirical relationship between technological innovations market share and stock market value new developments in the estimation of dynamic count data models are used to control for unobserved firm specific heterogeneity we find a robust and positive effect of market share on observable headcounts of innovations and patents although increased product market competition in the industry tends to stimulate innovative activity furthermore the impact of innovation on market value is larger for firms with higher market shares we argue that our results are consistent with models where high market share firms have incentives to pre emptively innovate

beyond search fiat money in organized exchange am odel offiat money is constructed in which spatial separation and the logistics of communication are made explicit as in search theory but in which exchange is organized by profit seeking business enterprises as in all market economies firms mitigate search costs by opening shops that are easily located the model endogenizes the number of shops and which objects are traded in each shop it permits the double coincidence of wants and deals easily with divisible commodities equilibria may exist in which fiat money is used as a universal medium of exchange when such an equilibrium exists fiat money is essential in the sense that it is the universal medium of exchange in any efficient network of shops the model provides a foundation to cash in advance theory without specifying in advance that one object will be used as the universal medium of exchange

private versus public money i show that the nature of agents production determines whether they should issue money i use a matching model with no commitment and no enforcement some agents can produce goods whereas others are unproductive all agents can produce at a cost a distinguishable intrinsically useless but durable good notes productive agents produce red notes whereas unproductive agents produce green notes i find that green notes are the most efficient means of exchange as they implement more allocations than red notes and at a lower cost therefore unproductive agents should issue money i associate unproductive agents to agents producing public goods

innovation and communication signalling with partial disclosure this paper introduces a model of feedback effect equilibrium i e equilibria in which an asymmetrically informed agent is motivated to communicate its privately known attribute but can do so only through channels or signals which convey directly useful information to competing agents this revelation to the competition serves to reduce the value of the private information held by the first agent models of this kind are of obvious relevance to realistic theories of product or financial market disclosure policies of firms patenting and a host of related behavioural and regulatory issues this model is developed in the context of a set of firms engaged in research and development rivalry in which the value of privately held and disclosed information arises from its implications for the likelihood and timing of productive innovation

complements and substitutes in profiting from innovation a choice experimental approach the ability of firms to effectively use mechanisms that support them in profiting from technological innovation is key to outperforming competitors yet such mechanisms have for the most part been studied in isolation without accounting for interactions between them we address this gap by developing a conjoint based method to study such interactions and by applying it to analyze interactions between product related patents and three other appropriability mechanisms to this end we conduct and analyze a series of discrete choice experiments with 319 managers within a leading international communications equipment company as a result we find the number of product related patents to be complementary to the overall size of the patent portfolio and complementary with an interesting exception to contributions to open standards we also find indications of a substitutive interaction with lead time advantages hence the effectiveness of patents seems to be leveraged by controlled diffusion of the underlying technologies and by the size of the firm s patent portfolio a finding that may contribute to explaining the patent paradox theoretical and managerial implications are discussed

keeping organizational secrets protective institutional mechanisms and their costs the notion that firms generate rents from proprietary knowledge is widely accepted however the mechanisms that firms as institutions can differentially deploy to protect their knowledge form appropriation by rivals are not well understood this paper examines three broad classes of protective mechanisms that firms coon deploy to keep their knowledge secret rules compensation schemes and structural isolation the paper concludes that keeping organizational secrets through the deployment of protective mechanisms is both difficult and costly economizing considerations can therefore be expected to bear strongly on this aspect of firm organization copyright 1997 by oxford university press

knowledge management does capture impede creation economists and strategic management theorists interested in sustained competitive advantage often examine firms management of knowledge somewhat surprisingly the interaction between knowledge creation and knowledge capture practices has received little attention using survey data from nearly 900 australian firms we examine this issue paying particular attention to whether knowledge capture impedes knowledge creation we find that firms which favor closed learning practices tend to rely more upon patents and secrecy and eschew lead time and brands as ways to capture profits firms that favor open styles of learning operate in the opposite manner copyright 2009 the author 2009 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

a search theoretic approach to monetary economics the essential function of money is its role as a medium of exchange the authors formalize this idea using a search theoretic equilibrium model of the exchange process that captures the double coincidence of wants problem with pure barter one advantage of the framework described here is that it is very tractable the authors also show that the model can be used to addre ss some substantive issues in monetary economics including the potenti al welfare enhancing role of money the interaction between specializat ion and monetary exchange and the possibility of equilibria with multip le fiat currencies copyright 1993 by american economic association

inside and outside money as alternative media of exchange we study a random matching model of money in which a subset of people called bankers have known histories and the rest called nonbankers have unknown histories earlier we showed that if there are no outside assets then an optimal arrangement has bankers issuing objects banknotes that are used in trades involving nonbankers here the same model is used to compare such exclusive use of inside money to the exclusive use of outside money we show that the set of implementable outcomes using outside money is a strict subset of the set using inside money

search bargaining money and prices the goal of this paper is to extend existing search theoretic models of fiat money which until now have assumed that the price level is exogenous by explicitly incorporating bilateral bargaining this allows us to determine the price level endogenously and leads to additional insights concerning the role of money for example we find that monetary equilibria are generally inefficient in the sense that output and prices differ from the solution to a social planner s problem although the difference can become small as the discount rate or search friction vanishes we also find that there exist nonstationary inflationary equilibria

sectoral patterns of technical change towards a taxonomy and a theory abstract the purpose of the paper is to describe and explain sectoral patterns of technical change as revealed by data on about 2000 significant innovations in britain since 1945 most technological knowledge turns out not to be information that is generally applicable and easily reproducible but specific to firms and applications cumulative in development and varied amongst sectors in source and direction innovating firms principally in electronics and chemicals are relatively big and they develop innovations over a wide range of specific product groups within their principal sector but relatively few outside firms principally in mechanical and instrument engineering are relatively small and specialised and they exist in symbiosis with large firms in scale intensive sectors like metal manufacture and vehicles who make a significant contribution to their own process technology in textile firms on the other hand most process innovations come from suppliers these characteristics and variations can be classified in a three part taxonomy based on firms 1 supplier dominated 2 production intensive 3 science based they can be explained by sources of technology requirements of users and possibilities for appropriation this explanation has implications for our understanding of the sources and directions of technical change firms diversification behaviour the dynamic relationship between technology and industrial structure and the formation of technological skills and advantages at the level of the firm the region and the country

keep searching and you ll find what do we know about variety creation through firms search activities for innovation this article critically reviews and synthesizes the contributions found in theoretical and empirical studies of firm level innovation search processes it explores the advantages and disadvantages of local and non local search discusses organizational responses and identifies potential exogenous triggers for different kinds of search it argues that the initial focus on local search was a consequence in part of the attention in evolutionary economics to path dependent behavior but that as localized behavior was increasingly accepted as the standard mode studies began to question whether local search was the best solution in all cases more recently the literature has focused on the trade offs being created by firms having to balance local and non local search we account also for the apparent variety paradox in the stylized fact that organizations within the same industry tend to follow different search strategies but end up with very similar technological profiles in fast growing technologies the article concludes by highlighting what we have learnt from the literature and suggesting some new avenues for research

matching and money in corbae temzelides and wright 2001 hereafter ctw we proposed a new version of the framework that uses bilateral matching to model the exchange process and in particular to model the use of money as a medium of exchange our version does not have agents meeting exogenously and at random but rather has agents meeting endogenously that is agents are matched at each date subject to a stability condition that requires roughly that no agents prefer to be paired with each other or to be unmatched rather than to be paired with the partners they get along the equilibrium path while similar in spirit to the cooperative matching concept introduced by david gale and lloyd shapley 1962 we had to generalize their framework to dynamic models because we are interested in monetary economics here we present a version of the solution concept in ctw specialized in some ways but also generalized to include extrinsic uncertainty sunspots we then discuss some applications of endogenous matching models to issues that have previously been addressed using random matching including the existence of sunspot equilibria and the efficiency of inside versus outside money one of our main goals is to show how endogenous matching is a useful alternative to random matching this may be interesting to those who think that bilateral trade is a reasonable friction upon which to build a theoretical foundation for monetary economics but perhaps think that random matching is an extreme and unrealistic simplification another goal is to provide examples where it makes a difference for substantive results how we model the matching process and also examples where it does not i endogenous matching

ideas for rent an overview of markets for technology this article surveys some of the recent literature on technology markets and summarizes its main issues and insights we structure our analysis in three parts the supply and demand of technology the factors that condition the formation and growth of technology markets industry structure and dynamic issues in addition we summarize some of the studies that have tried to document the size and growth of these markets we find that the literature has focused mainly on the supply of technology but several other aspects of these markets remain under studied including the demand for external technology the role of uncertainty in technology markets and the dynamic interaction between industry structure and the market for technology understanding these will illuminate whether markets for technology will continue to grow or remained confined to pockets of the economy copyright 2010 the author 2010 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

the acquisition and commercialization of invention in american manufacturing incidence and impact abstract recent accounts suggest the development and commercialization of invention has become more open greater division of labor between inventors and innovators can enhance social welfare through gains from trade and economies of specialization moreover this extensive reliance upon outside sources for invention also suggests that understanding the factors that condition the extramural supply of inventions to innovators is crucial to understanding the determinants of the rate and direction of innovative activity this paper reports on a recent survey of over 5000 american manufacturing sector firms on the extent to which innovators rely upon external sources of invention our results indicate that between 2007 and 2009 16 of manufacturing firms had innovated meaning had introduced a product that was new to the industry of these 49 report that their most important new product had originated from an outside source notably customers suppliers and technology specialists i e universities independent inventors and r d contractors we also compare the contribution of each source to innovation in the us economy although customers are the most common outside source inventions acquired from technology specialists tend to be the more economically significant in term of their gross commercial value as a group external sources of invention make a significant contribution to the overall rate of innovation in the economy innovation policies both public and private should pay careful attention to the external supply of invention and the efficiency of the mechanisms affecting the relationships between inventors and innovators

cooperation between rivals informal know how trading it has long been recognized that it is difficult for an innovating firm to fully appropriate the benefits arising from its innovations and that desired research might therefore not be performed nelson 1959 pp 297 306 one sometimes possible solution to this dilemma is cooperative r d conducted by firms who share the costs and benefits of particular r d projects johnson 1973

the political economy of bitcoin i introduction on october 14 2013 baidu a web services company that runs the largest search engine in china began accepting bitcoin this single action opened the bitcoin network to roughly 570 million internet users in china and prompted other internet companies to consider the cryptocurrency more seriously the closing price of bitcoin which averaged just 124 over the 2 week period prior to the announcement increased to 170 over the 2 week period following the announcement 1 as the demand for bitcoin increased the authorities took notice the people s bank of china issued a statement on december 5 2013 prohibiting financial institutions and payment companies from buying selling quoting prices in or insuring products linked to bitcoin baidu stopped accepting bitcoin the very next day china is not the only user although the network of bitcoin users is relatively small at present and economists are for the most part skeptical that bitcoin will ever gain widespread acceptance the rapid growth of the bitcoin network has prompted some governments to ban or discourage the use of bitcoin 2 government officials seem to worry that bitcoin which offers a secure and quasi anonymous way to make digital payments will be used for illicit transactions and will impede the administration of monetary policy or raising revenues in some important respects the legal issues surrounding bitcoin echo older debates the idea that governments issue money and declare what qualifies as legal tender is an ancient notion middlebrook and hughes 2014 848 explain the history of regulating money and legal tender suggests that it is not likely that governments will surrender their privileges to regulate cryptocurrency issuers exchanges administrators or users can a government successfully prevent bitcoin transactions in what follows we consider whether government transactions policy would eliminate the use of bitcoin or simply relegate its use to areas effectively beyond the reach of government e g black markets small value exchange etc using a monetary model with endogenous search and random consumption preferences developed by hogan and luther 2014 we articulate the conditions under which a government issued currency and bitcoin might coexist as well as the conditions under which one or neither of the different forms of money circulate then we impose a government transactions policy whereby those agents controlled by the government refuse to accept bitcoin as payment and examine the effects of this policy on the circulation of bitcoin the model employed herein combines insights from kiyotaki and wright 1993 in which agents are matched randomly for trade and corbae et al 2003 in which agents deliberately choose with whom to trade agents in the model deliberately choose with whom to trade but are then subject to random consumption preferences one way to think of this assumption is that agents who wish to consume arrive at a place where they would like to make a purchase but might decide not to buy anything although the decision to buy is random the choice of where to shop is not 3 allowing agents to choose their trading partners means that some transactions might exist beyond the reach of government the use of a government transactions policy follows from aiyagari and wallace 1997 and li and wright 1998 others have used government transactions policies to consider the implications of competing money assets however our analysis differs from previous works in important ways for example lotz and rocheteau 2002 consider whether a government transactions policy can support the launch of a new currency they use a random matching model and only consider a transactions policy that compels agents to hold government issued money similarly waller and curtis 2003 consider the use of government transactions policy in the context of competing international currencies

on the sources and significance of interindustry differences in technological opportunities abstract the set of technological opportunities in a given industry is one of the fundamental determinants of technical advance in that line of business we examine the concept of technological opportunity and discuss three categories of sources of those opportunities advances in scientific understanding and technique technological advances originating in other industries and in other private and governmental institutions and feedbacks from an industry s own technological advances data from the yale survey on industrial research and development are used to measure the strength of various sources of technological opportunity and to discern interindustry differences in the importance of these sources we find that interindustry differences in the strength and sources of technological opportunities contribute importantly to explanations of cross industry variation in r d intensity and technological advance

on money as a medium of exchange we analyze economies in which individuals specialize in consumption and production and meet randomly over time in a way that implies that trade must be bilateral and quid pro quo nash equilibria in trading strategies are characterized certain goods emerge endogenously as media of exchange or commodity money depending both on their intrinsic properties and on extrinsic beliefs there are also equilibria with genuine fiat currency circulating as the general medium of exchange we find that equilibria are not generally pareto optimal and that introducing fiat currency into a commodity money economy may unambiguously improve welfare velocity acceptability and liquidity are discussed

co ownership of intellectual property exploring the value appropriation and value creation implications of co patenting with different partners combining both interview data and empirical analyses at the patent and firm levels we explore the value appropriation and value creation implications of r d collaboration resulting in the co ownership of intellectual property i e co patents we make an explicit distinction between three different types of co patenting partners intra industry partners inter industry partners and universities our findings indicate that the value appropriation challenges of ip sharing are clearly evident with intra industry co patenting where partners are more likely to encounter overlapping exploitation domains co patenting with universities is associated with higher market value since appropriation challenges are unlikely to play a role and collaboration may signal novel technological opportunities although we find some evidence that co patenting corresponds to higher patent value patents co owned with firms are significantly less likely to receive self citations indicating constraints on the future exploitation and development of co owned technologies

toward an aspiration level theory of open innovation although open innovation has become increasingly established in the management literature comprehensive theoretical explanations of what drives firms to be open are sparse taking the perspective of the behavioral theory of the firm we conceive of open innovation as a form of nonlocal search arguing that firms will turn to open innovation when substantially under or over performing relative to their aspirations we further enquire how this relationship is moderated by firm specific innovation related resources human capital research and development investment and patents employing a representative survey of uk firms we find some evidence of moderation allowing us to present explanations of search through open innovation and contribute to the behavioral theory of the firm itself

imitation costs and patents an empirical study it has long been recognised that the costs of imitating new products have an important effect on the incentives for innovation in a market economy as arrow i962 and others have pointed out if firms can imitate an innovation at a cost that is substantially below the cost to the innovator of developing the innovation there may be little or no incentive for the innovator to carry out the innovation in their discussions of the innovation process economists frequently have called attention to the major role played by the costs of imitation but there has been little or no attempt to measure these costs to test various hypotheses concerning the factors influencing them or to estimate their effects in this paper we report some findings of what seems to be the first study of this topic in addition we present data regarding the effects of patents on imitation costs and on the rate of innovation

in search of complementarity in innovation strategy internal r d and external knowledge acquisition empirical research on complementarity between organizational design decisions has traditionally focused on the question of existence of complementarity in this paper we take a broader approach to the issue combining a productivity and an adoption approach while including a search for contextual variables in the firms strategy that affects complementarity analysis of contextual variables is not only interesting per se but also improves the productivity test for the existence of complementarity we use our empirical methodology to analyze complementarity between innovation activities internal research and development r d and external knowledge acquisition our results suggest that internal r d and external knowledge acquisition are complementary innovation activities but that the degree of complementarity is sensitive to other elements of the firms strategic environment we identify reliance on basic r dthe importance of universities and research centers as an information source for the innovation processas an important contextual variable affecting complementarity between internal and external innovation activities

determinants of firms backward and forward looking r d search behavior this study develops and operationalizes a behavioral forward looking search model by incorporating prospect theory organizational risk literature and the logic of the behavioral theory of the firm with recognition of the bounded rationality of decision makers and the goal directed rule based nature of organizations this model suggests that a comparison between firms performance expectation and performance target translates the cognitive representation of the firms future into their subsequent actions by examining the research and development r d expenditures of u s manufacturing firms from 1980 to 2001 this study explores how performance aspirations expectations and slack affect decision making about firms r d search investments the findings show that both performance feedback and performance prospect are important determinants of firms search behavior after controlling for firm industry and time effects in addition backward and forward looking determinants have interactive effects on search behavior firms problem driven search activity further increases when firms feel unlikely to achieve the performance target for another year in contrast search intensity is reduced when firms expect to improve their performance from an underperforming situation to an outperforming situation the findings suggest that future research on performance feedback and experiential learning should also consider the effect of forward looking prospects on firm behavior

money and prices a model of search and bargaining abstract this paper makes commodities divisible and incorporates bargaining into the search theoretic model of money to determine the purchasing power of money or price it is shown that two monetary equilibria always coexist where fiat money is universally accepted the two equilibria differ in price output welfare and the velocity of money sunspot monetary equilibria exist in which money is universally accepted in all states of the economy multiplicity has novel implications on the effectiveness of currency substitution and exchange market intervention journal of economic literature classification numbers c78 e40

investigating a neglected part of schumpeter s creative army what drives new to the market innovation in micro enterprises schumpeterian arguments related to creative destruction place small entrepreneurial firms at the centre of the innovation process the exclusion of micro enterprises with less than 10 employees from most innovation surveys means however that we know relatively little about innovation among this group of firms here using new survey data on a thousand micro enterprises we explore the determinants of new to the market innovation the basis for the schumpeterian creative destruction cd process our results provide strong support for the interactive nature of micro enterprise innovation and suggest the potential value of a model of interactive creative destruction icd contrary to some other recent evidence market based and supplier based collaboration both prove important for new to the market innovation our results suggest the importance of micro enterprises as sources of new to the market innovation and the potential value of including such firms in future innovation studies

analysing distributed processes of provision and innovation the vast majority of products i e goods and services are provided to the consumer through several co ordinated and contributing agents acting together this paper is concerned with improving our understanding of processes of provision and innovation that involve several contributing and co ordinated agents firms or organizations the distributedness of provision and innovation varies in scale and takes a variety of dynamic forms or modes and their analysis brings to the fore the significance of dependency and asymmetric power relations between classes of economic agent the approach thereby opens up considerations on distributed innovation beyond those addressed by the systems of innovation perspectives

money random matching and endogenous growth a quantitative analysis in this study we develop a search and matching monetary growth model to analyze the effects of inflation on economic growth and social welfare by introducing endogenous economic growth via capital externality into a two sector search and matching model we find that the channel through which inflation affects economic growth in the search and matching model is different from the traditional cash in advance model to facilitate the calibration we obtain an empirical estimate of the effects of inflation on economic growth using panel regressions in the simulation analysis we quantitatively evaluate the welfare effect of inflation in the search and matching endogenous growth model and compare it to a search and matching exogenous growth model we find that the welfare effect of inflation is nonlinear in the endogenous growth model whereas it is linear in the exogenous growth model furthermore we find that the welfare cost of inflation under endogenous growth is up to four times as large as the welfare cost of inflation under exogenous growth

r d subsidies external collaborative breadth differential gains and the role of collaboration experience abstract external collaboration breadth is important for firms to acquire the knowledge needed to innovate in this paper we combine cross sectional and longitudinal data from the spanish panel of technological innovation survey pitec to examine the indirect impact of r d subsidies on firm external collaboration breadth we contribute to understanding of the indirect impacts of r d subsidies by first providing strong evidence of an economically significant average positive impact of r d subsidies on firm external collaboration breadth second our results advance understanding of the differential impacts of r d subsidies by revealing the vast heterogeneity of the impact at the firm level where approximately only half of treated firms experience a positive collaboration impact from r d subsidies while the remainder experience no impact or a negative effect finally we advance understanding of the characteristics explaining the differential impact of r d subsidies on external collaboration breadth by utilising the organisational learning literature to demonstrate the important role of firm collaboration experience

comparing abnormal accruals models a non parametric approach the purpose of this study is to compare the distribution of discretionary accruals produced by the standard and modified jones models using a non parametric approach evidence is provided that discretionary accruals produced by the two models have an almost identical distribution moreover it is found that whether or not an intercept is included in the model produces more intra distribution mobility than the use of the standard or the modified version of the model

money is memory abstract this paper examines the sets of feasible allocations in a large class of economic environments in which commitment is impossible following myerson 8 the standard definition of feasibility is adapted to take account of the lack of commitment the environments feature either memory or money memory is defined as knowledge on the part of an agent of the full histories of all agents with whom he has had direct or indirect contact in the past money is defined as an object that does not enter utility or production functions and is available in fixed supply the main proposition is that any allocation that is feasible in an environment with money is also feasible in the same environment with memory depending on the environment the converse may or may not be true hence from a technological point of view money is equivalent to a primitive form of memory journal of economic literature classification numbers e40 c73 d82

can a firm find the balance between openness and secrecy towards a theory of an optimum level of disclosure the purpose of this article is not merely to counter assertions about technology leakage spillovers being innocuous or benevolent but to go further and illuminate an under researched question how can companies seek the optimum balance between conscious disclosure and secrecy the article works towards a theory of optimum disclosure by identifying possible benefits and costs of disclosure or openness in paradigm 1 most companies find the net benefits of disclosure openness to be negative in paradigm 2 applicable to a few highly networked or open source mnes there could be net benefits over a limited range and up to an optimum point

liquidity a new monetarist perspective this essay surveys the new monetarist approach to liquidity work in this literature strives for empirical and policy relevance plus rigorous foundations questions include what is liquidity is money essential in achieving desirable outcomes which objects can or should serve in this capacity when can asset prices differ from fundamentals what are the functions of commitment and collateral in credit markets how does money interact with credit and intermediation what can and should monetary policy do the research summarized emphasizes the micro structure of frictional transactions and studies how institutions like monetary exchange credit arrangements or intermediation facilitate the exchange process

the human side of open innovation the role of employee diversity in firm level openness abstract the use of external knowledge for innovation i e inbound or outside in open innovation has received substantial attention in the innovation literature however the human side of open innovation is still poorly understood we consider the role of employee characteristics with respect to predicting firm level openness drawing on the human capital learning and creativity literatures we theorize that knowledge diversity of the firm s employees is positively associated with employees ability to identify and absorb external knowledge which aggregates to increased firm level openness that is firms use of external knowledge in their pursuit of innovation based on a combination of three data sources namely two survey data sources and register data we find support for our hypothesis that employees educational diversity is positively associated with firm level openness however we find no direct association between employees work history diversity and firm level openness but rather as also hypothesized a conditional relationship based on educational background which implies that diverse work history only has a positive impact at higher levels of educational diversity to reduce endogeneity concerns we undertake a series of robustness checks

the paradox of openness appropriability external search and collaboration a b s t r a c t to innovate firms often need to draw from and collaborate with a large number of actors from outside their organization at the same time firms need also to be focused on capturing the returns from their innovative ideas this gives rise to a paradox of openness the creation of innovations often requires openness but the commercialization of innovations requires protection based on econometric analysis of data from a uk innovation survey we find a concave relationship between firms breadth of external search and formal collaboration for innovation and the strength of the firms appropriability strategies we show that this concave relationship is stronger for breadth of formal collaboration than for external search there is also partial evidence suggesting that the relationship is less pronounced for both external search and formal collaboration if firms do not draw ideas from or collaborate with competitors we explore the implications of these findings for the literature on open innovation and innovation strategy 2013 the authors published by elsevier b v all rights reserved

a note on sunspot equilibria in search models of fiat money abstract search models can generate an endogenous role for fiat money in the sense that there exist equilibria where intrisically useless unbacked paper currency is valued due to its function as a medium of exchange in this note i ask if there exist sunspot equilibria in these models where the value or acceptability of money fluctuates along with extrinsic random events even though the fundamentals of the economy are deterministic and time invariant the answer is yes journal of economic literature classification numbers c70 e40