wind power in the danish liberalised power market policy measures price impact and investor incentives wind power has a strong position at the danish electricity market mainly caused by high feed in tariffs in the 1990s investments in new wind power installations on land however have declined dramatically after the danish electricity market was liberalised in 1999 first the paper describes how policy measures directed towards wind power have been redesigned to match the liberalised market then we estimate the impact of the redesigned tariffs on the electricity prices finally we assess whether the new tariffs make an incentive to invest in wind power the paper concludes that the new tariffs not by itself make evidence for the actual danish recession in new wind power installations after the electricity reform the main causes could include a combination of problems in spatial planning high risk aversion of new wind turbine investors and perhaps more favourable support schemes in other countries

coordination problems in local level resource management starting from the observation of important returns to scale effects in conservation of common property resources we identify some of the factors that impinge upon the chances of success of a decentralized group based management of local natural resources particular attention is paid to the influence of asset inequality among resource users in particular it is shown that by redistributing incentives among landowners land reform has an ambiguous impact on the latter s willingness to undertake conservation investments

complementarities of innovation activities an empirical analysis of the german manufacturing sector abstract innovation strategies in manufacturing often involve internal rd it is based on data from the german part of the community innovation survey cis 3 the results provide evidence for significant complementarities between internal r d and r d cooperation but cast doubt on the complementarity of internal and contracted r d since a productivity effect on firms patenting probability or sales with new products cannot be found

competitive advantage and collusive optima cost differences may often be important in real oligopolies if side payments are impossible the standard cartel objective total industry profits lacks plausibility when costs differ this essay considers plausible alternatives four different technologies for effecting collusion which are essentially identical when costs are equal define sets of possible profits axiomatic bargaining models are used to select unconstrained optima from among these possibilities simple functional forms are employed low cost firms with large shares in cournot equilibrium may have little to gain from collusion if collusion is effective low cost firms will have relatively low estimated conjectural variations

technology imports and r d efforts of korean manufacturing firms abstract this paper analyzes the relationship between technology imports and r d efforts of korean manufacturing firms by a two stage method in the first stage using a sample representing the whole population of firms the paper shows that firms importing technology tend to commit themselves to r d efforts through having formal r d institutes in the second stage it shows that among firms with formal r d institutes technology imports have non complementary relationship with r d efforts moreover when technology imports are considered interactively with international inventive activity they turn out to have rather a substitutive relationship with r d efforts

integrated evaluation of embodied energy greenhouse gas emission and economic performance of a typical wind farm in china an integrated evaluation of embodied energy greenhouse gas ghg emission and economic performance of a wind power generation system in china was conducted using a range of indicators energy and ghg emission costs per unit profit are proposed as goal functions for potential low carbon high efficiency optimization of the wind power generation system results show that the energy efficiency and ghg emission per energy output of the system are 0 034 mj mj and 0 002 kgco2 eq mj respectively compared with other power generation systems wind power is more competitive in terms of both energy savings and ghg emission reduction if wind turbine recycling in the dismantling phase is taken into consideration 46 7 of energy will be saved with a material recycling rate of 0 467 scenario analyses are done to investigate economic feasibility from the perspective of investors and government finally suggestions are provided to shed light on wind industry development in china

is there complementarity or substitutability between internal and external r d strategies abstract the various strands of extant empirical research are inconclusive about the complementarity or substitutability between different innovation mechanisms such as internal and external r d using a panel sample of 83 incumbent pharmaceutical firms covering the period 1986 2000 our empirical analysis suggests that instead of a clear cut answer to the question of whether internal and external r d are complementary or substitutive innovation activities there appears to be a contingent relationship between internal and external r d strategies in shaping a firm s innovative output the results from our study indicate that the level of in house r d investments which is characterized by decreasing marginal returns is a contingency variable that critically influences the association between internal and external r d strategies in particular internal r d and external r d through either r d alliances or r d acquisitions are complementary innovation activities at higher levels of in house r d investments whereas at lower levels of in house r d efforts internal and external r d turn out to be substitutive strategic options

measuring innovative performance is there an advantage in using multiple indicators abstract the innovative performance of companies has been studied quite extensively and for a long period of time however the results of many studies have not yet led to a generally accepted indicator of innovative performance or a common set of indicators so far the variety in terms of constructs measurements samples industries and countries has been substantial this paper studies the innovative performance of a large international sample of nearly 1200 companies in four high tech industries using a variety of indicators these indicators range from r d inputs patent counts and patent citations to new product announcements the study establishes that a composite construct based on these four indicators clearly catches a latent variable innovative performance however our findings also suggest that the statistical overlap between these indicators is that strong that future research might also consider using any of these indicators to measure the innovative performance of companies in high tech industries

a literature based innovation output indicator abstract this paper presents an application of a recently developed method for measuring innovative activity in a national economy based on new product announcements in trade and technical journals the literature based innovation output indicator is not meant to capture all aspects of innovation or to substitute for other indicators but is seen as a useful addition to the range of indicators available the method is described in detail and then applied to the uk a sample of 941 innovations is constructed and then subjected to analysis the results suggest that the method is a useful and relatively reliable way of measuring the degree of radicalness of innovations being generated and of surveying their distribution across sectors across firm size and across firms which are uk owned or foreign owned the method captures product innovations well but captures process innovations less well the results for the uk suggest that the more radical innovations come disproportionate from companies based outside the uk innovations originating inside the uk are skewed towards product differentiation there is also some evidence that smaller companies produce a slightly higher than average share of the more radical innovations the paper suggests that this small scale testing of this indicator has produced promising results and that there would be benefits to the policy community from establishing it on a permanent basis

why firm size matters investigating the drivers of innovation and economic performance in new zealand using the business operations survey abstractthe performance of the new zealand nz economy is something of an enigma although ranked one of 144 countries for four important growth fundamentals nz is middle of the pack when it comes to economic growth productivity and process innovation using four iterations 2005 2007 2009 and 2011 of the business operations survey this research seeks to shed some new light on this conundrum by using a multivariate probit regression mvprobit approach applied to pooled samples in excess of 22 000 unit record observations of nz firms the results suggest that factors including firm size high perceived quality investment research and development rd while many external issues such as those related to geography market structure business environment have little influence at the firm level innovations in nz are highly dependent on the fi

the innovative performance of in house and contracted r d in terms of patents and utility models abstract the standard empirical framework for analysing the r d patents relationship is widened both by examining the different role of in house and contracted r d in the innovative performance of firms and by considering patents and utility models counts as measures of innovation output patents and utility models are considered to approximate for significant and incremental innovations respectively applying count data econometrics to a panel data set of spanish manufacturing firms surveyed in the period 1990 1996 a transcendental production function is estimated which allows for non constant elasticities of the r d inputs the results indicate that significant innovations are mainly gestated in house whereas contracted r d seems more orientated towards innovations of incremental nature

the propensity to patent abstract this paper analyzes the relationship between 1974 rd among the exceptions the tendency was toward diminishing returns variables measuring overseas sales federal r d support diversification scope of invention use and invention type had only modest explanatory power there was no significant evidence of disproportionate patent accumulation in the more highly concentrated industries

is renewable energy a cost effective mitigation resource an application to the spanish electricity market abstract this paper evaluates the net effect of renewable energy policy in spain from 2002 to 2017 and calculates its cost effectiveness in terms of co2 emission reductions in the production of electricity our conclusions indicate that although the phasing out of feed in tariffs reduced the regulatory costs it also limited renewable participation in the electricity market leading to an increased electricity price and higher emissions according to our results the joint effect of i the value of avoided emissions due to renewable energy participation and ii the merit order effect was able to compensate for the regulatory costs subsidies up until 2010 while the sign of the net effect was reversed from 2011 to 2017 finally we find that the economic implications of emission reductions are highly dependent on how the social cost of carbon is measured

danish energy reform policy implications for renewables abstract for decades renewables have been promoted in denmark by the feed in model fixed price scheme with favourable tariffs for green electricity this has resulted in successful penetration of wind power covering more than 13 of danish electricity consumption 2001 changing the promotional scheme to a quota based system with tradable green certificates has been on the political agenda since 1999 this article discusses danish energy policy with focus on the implications for the penetration and deployment of renewables it has turned out to be more complicated than anticipated to create an efficient operational system for trade in green certificates and the starting date for trading has been postponed several times the national green certificates market was to be fully operational by the beginning of 2003 however political negotiations in the fall of 2001 seem to postpone the initiation of the certificate market until 2005 transitional rules for green electricity during the period from 2003 to 2005 are under negotiation after a national election in november 2001 this situation has created widespread uncertainty among potential investors in green electricity the article evaluates a number of problems related to the shift in danish energy policy

joint r d in low carbon technology development in china a case study of the wind turbine manufacturing industry abstract china faces the dual challenges of climate change and increased energy demand these challenges in turn increase the demand for wind energy development along with rapid growth in manufacturing capacity chinese companies have aspired to increase their innovation capacity in order to enhance their competitiveness in the market joint research and development r d is an attractive path for chinese companies striving to advance their r d capacity this paper examines joint r d between chinese wind turbine manufacturing companies and foreign design firms assessing the performance of joint r d activities in china using the structure conduct performance scp framework the study found that joint r d has improved chinese companies technical capacity human resources and financial growth however the effect on chinese companies innovation capacity is still limited because of unequal technical capacities of the two sides in collaboration as well as their preference for augmenting profits rather than technical capacity current joint r d mode is only the extension of licensing mode in wind turbine manufacturing industry

retrospective modeling of the merit order effect on wholesale electricity prices from distributed photovoltaic generation in the australian national electricity market in electricity markets that use a merit order dispatch system generation capacity is ranked by the price that it is bid into the market demand is then met by dispatching electricity according to this rank from the lowest to the highest bid the last capacity dispatched sets the price received by all generation ensuring the lowest cost provision of electricity a consequence of this system is that significant deployments of low marginal cost electricity generators including renewables can reduce the spot price of electricity in australia this prospect has been recognized in concern expressed by some coalfired generators that delivering too much renewable generation would reduce wholesale electricity prices in this analysis we calculate the likely reduction of wholesale prices through this merit order effect on the australian national electricity market we calculate that for 5 gw of capacity comparable to the present per capita installation of photovoltaics in germany the reduction in wholesale prices would have been worth in excess of a 1 8 billion over 2009 and 2010 all other factors being equal we explore the implications of our findings for feed in tariff policies and find that they could deliver savings to consumers contrary to prevailing criticisms that they are a regressive form of taxation

what percentage of innovations are patented empirical estimates for european firms abstract a 1993 survey on the innovative activities of europe s largest industrial firms obtained useable results on patenting activities for 604 respondents the data are used to calculate the sales weighted propensity rates for 19 industries the propensity rates equal the percentage of innovations for which a patent application is made the propensity rates for product innovations average 35 9 varying between 8 1 in textiles and 79 2 in pharmaceuticals the average for process innovations is 24 8 varying from 8 1 in textiles to 46 8 for precision instruments only four sectors have patent propensity rates for both product and process innovations combined that exceed 50 pharmaceuticals chemicals machinery and precision instruments regression results that control for the effect of industry sector show that patent propensity rates increase with firm size and are higher among firms that find patents to be an important method for preventing competitors from copying both product and process innovations the effect of secrecy is not so straightforward firms that find secrecy to be an important protection method for product innovations are less likely to patent as expected but secrecy has little effect on the propensity to patent process innovations the r d intensity of the firm has no effect on patent propensity rates for both product and process innovations the sector of activity has a strong influence on product patent propensities but very little effect on process patent propensities after controlling for the effect of other factors

research expenditures and the discovery of new drugs this paper examines technical change in the ethical pharmaceutical industry a poisson specification is used to estimate a productivity relationship between research expenditures and drug discoveries thus taking into account the integer nature of the data the result s of estimations using panel data indicate that there is a positive c orrelation between a firm s research and development intensity and it s probability of discovering a new drug firm size however does not significantly affect the marginal productivity of research expenditu res finally the estimates show that an increase in regulatory strin gency decreases the expected number of new drug discoveries copyright 1987 by blackwell publishing ltd

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

risky innovation the impact of internal and external r d strategies upon the distribution of returns a b s t r a c t external innovation increases the profits of the median firm but also increases dispersion and the kur tosis of the distribution of profits this means that external strategies are risky and may require a very large number of attempts before average returns are obtained this puts smaller firms into a position of disproportionately high risk despite the earlier evidence that the rewards from innovation are positively skewed we find no effect of innovation strategies upon the skewness of the distribution of firms profits

appropriate intellectual property protection and economic growth in countries at different levels of development this paper examines how the role of patents and utility models in innovation and economic growth varies by level of economic development using a panel dataset of over 70 countries we find that patent protection is an important determinant of innovation and that patentable innovations contribute to economic growth in developed countries but not in developing instead in developing economies a minor form of intellectual property rights iprs namely utility models is conducive to innovation and growth controlling for other factors using korean firm level data as a case study we find that utility model innovations contribute to firm performance when firms are technologically lagging and that those minor innovations can be a learning device and thus a stepping stone for developing more patentable inventions later on upon reaching higher levels of technological capabilities firms become more reliant upon patents and less on utility models thus the lesson here is that patent protection enhances innovation and economic growth in countries where the capacity to conduct innovative research exists where this capacity is weaker a system that provides incentives to conduct minor incremental inventions is more conducive to growth the significance of this paper is to emphasize the importance not just of the strength of iprs but of the appropriate type of iprs for economic development

developing countries imports of technology in house technological capabilities and efforts an analysis of the indian experience abstract this paper examines whether enterprises decisions to import technology are influenced by their in house technological capabilities and whether the imports subsequently lead to an increase in the r d intensities it is argued that in a competitive market situation these decisions could be linked in a sequential relationship but protectionist regulatory policies may make such a relationship quite unlikely empirical tests with data of indian enterprises in the electrical and electronic industries circa 1990 found results consistent with the predictions for the protected regulatory situation

choosing among alternative technological strategies an empirical analysis of formal sources of innovation abstract this work aims to offer a detailed conceptual and empirical analysis of the inter firm differences in deciding the composition of their technological efforts using data for spanish firms in the period 1990 1996 the study begins with the standard analysis of the determinants of innovative investment then moves on to the less analysed question of the determinants of the generate versus import alternative and ends with a novel analysis of the characteristics which lead firms to organise research internally as compared to the possibility of contracting r d services externally in contrast to standard practice the econometric approach takes into account the existence of non linearities in the used data the results obtained support the conceptual ideas on which they are based

texas s operating reserve demand curve s generation investment incentive abstract faced with reserve margin projections well below the adopted target of 13 75 of the system peak forecast the public utility commission of texas on 01 17 2019 ordered the state s grid operator the electric reliability council of texas to right shift the operating reserve demand curve ordc to increase generators revenue from energy sales in ercot s real time market rtm using a large sample of 15 min data for the backcast period of 01 01 2015 through 12 31 2018 we calculate the ordc shift s impact on rtm prices and investment incentives for natural gas fired generation ngfg had the ordc shift been in effect in the backcast period the resulting rtm price increases in 2018 could suffice to justify ngfg investment though not in the prior years of 2015 2016 and 2017 while the actual ordc shift occurred on 03 01 2019 had a large impact on rtm prices in the ensuing six month period of march august 2019 texas s planned renewable generation is expected to erode ngfg s operating profit thus diminishing the ordc s investment incentive over time hence texas s energy only market design will likely need further refinements to solve the missing money problem of inadequate ngfg investment incentive

internal r d expenditures and external technology sourcing abstract the paper examines the two way relationship between external r d activities and internal r d expenditures on a cross section of flemish r d active companies the analysis extends the classical explanatory variables like size diversification ownership structure and technological opportunities to include the impact of various external sourcing strategies r d cooperation and to a lesser extent r d contracted out are found to have a significant positive effect on internal r d but only if the companies have absorptive capacity in the form of a full time staffed r d department at the same time firms are found to be more frequently engaged in r d cooperation the more they spend on internal r d

examining the financial performance of micro generation wind projects and the subsidy effect of feed in tariffs for urban locations in the united kingdom abstract this paper seeks to evaluate the effect of the upcoming 2010 uk feed in tariff uk fit on decentralised small wind energy installations at the household and building level in urban locations it is projected that the uk fit will stimulate an unprecedented surge in building mounted turbine installation the tariff amount must stimulate incentive but mitigate the likelihood of distortions in the competitive electricity market to analyse these issues measured energy output from sites in the warwick wind trials project wwtp is converted into revenue in a net present value npv framework for assessing commercial purchases of small wind systems variances in project variables are examined through npv simulations using monte carlo analysis to capture permutations of small wind project performance in the uk with and without the uk fit our research concludes that the proposed tariff amount of 30 5 p kwh will not significantly boost the economic attractiveness of mildly selective wwtp based sites in the uk furthermore the fixed tariff rate kwh generated could cause inefficiencies applied across uneven wind resource distribution the results of this study suggest further examination of policy related to micro generation in particular decentralised small wind projects

analyzing literature based innovation output indicators the italian experience abstract this paper presents the results of a study on the product innovations introduced in the italian market in 1989 and reported in a selected number of trade journals the analysis of data collected by means of this literature based counting procedure confirms that r d oriented industries and large firms do not in italy have a marked competitive advantage in innovation the country appears to be instead characterized by a significant presence of consumer goods industries and small firms in innovation our data indicate a statistically significant association between trade competitiveness and strength in product innovation and show the comparatively higher capacity for product innovation of some of the industries in which italy achieves a positive performance in international trade moreover the presence of spillovers at the regional level from both private and public r d expenditures proves to be positively correlated with the development of product innovations finally small firms with fewer than 50 employees appear to be more innovative than is usually believed to be the case