Efficient Industrial Policy For Innovation: Standing On The Shoulders Of Hidden Giants?

Dennis Verhoeven; Ralf Martin; Catherine Thomas; Pierre Mohnen; Charlotte Guillard

doi:10.5465/AMBPP.2022.257

Efficient Industrial Policy For Innovation: Standing On The Shoulders Of Hidden Giants?

Dennis Verhoeven, Ralf Martin, Catherine Thomas, Pierre Mohnen, Charlotte Guillard

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceeding › Academic › peer-review

Abstract

Knowledge spillovers drive a wedge between private and social returns to R&D. Efficient innovation policy assigns subsidies to fields where spillovers are relatively important. We develop new measures for the private and spillover value of patented innovations and embed these in a structural microeconomic model to estimate field-specific marginal returns to R&D support. We find that expected returns to subsidy vary strongly by field and country, suggesting that targeted innovation policy has large potential to increase welfare. Because spillovers cross country borders, we find that supranational coordination of innovation policy offers large potential efficiency gains, especially for smaller countries.

Original language	English
Title of host publication	82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022
Publisher	Academy of Management
DOIs	https://doi.org/10.5465/AMBPP.2022.257
Publication status	Published - 1 Jan 2022
Event	82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022 - Seattle, United States Duration: 5 Aug 2022 → 9 Aug 2022 https://aom.org/events/event-detail/2022/08/05/higher-logic-calendar/the-82nd-annual-meeting-of-the-academy-of-management

Publication series

Series	Academy of Management Proceedings
Number	1
Volume	2022
ISSN	2151-6561

Conference

Conference	82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022
Abbreviated title	AOM 2022
Country/Territory	United States
City	Seattle
Period	5/08/22 → 9/08/22
Internet address	https://aom.org/events/event-detail/2022/08/05/higher-logic-calendar/the-82nd-annual-meeting-of-the-academy-of-management

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10.5465/AMBPP.2022.257

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title = "Efficient Industrial Policy For Innovation: Standing On The Shoulders Of Hidden Giants?",

abstract = "Knowledge spillovers drive a wedge between private and social returns to R&D. Efficient innovation policy assigns subsidies to fields where spillovers are relatively important. We develop new measures for the private and spillover value of patented innovations and embed these in a structural microeconomic model to estimate field-specific marginal returns to R&D support. We find that expected returns to subsidy vary strongly by field and country, suggesting that targeted innovation policy has large potential to increase welfare. Because spillovers cross country borders, we find that supranational coordination of innovation policy offers large potential efficiency gains, especially for smaller countries.",

author = "Dennis Verhoeven and Ralf Martin and Catherine Thomas and Pierre Mohnen and Charlotte Guillard",

note = "Publisher Copyright: {\textcopyright} 2022 82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022.All rights reserved.; 82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022, AOM 2022 ; Conference date: 05-08-2022 Through 09-08-2022",

year = "2022",

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doi = "10.5465/AMBPP.2022.257",

language = "English",

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publisher = "Academy of Management",

number = "1",

booktitle = "82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022",

address = "United States",

url = "https://aom.org/events/event-detail/2022/08/05/higher-logic-calendar/the-82nd-annual-meeting-of-the-academy-of-management",

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Verhoeven, D, Martin, R, Thomas, C, Mohnen, P & Guillard, C 2022, Efficient Industrial Policy For Innovation: Standing On The Shoulders Of Hidden Giants? in 82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022. Academy of Management, Academy of Management Proceedings, no. 1, vol. 2022, 82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022, Seattle, Washington, United States, 5/08/22. https://doi.org/10.5465/AMBPP.2022.257

Efficient Industrial Policy For Innovation: Standing On The Shoulders Of Hidden Giants? / Verhoeven, Dennis; Martin, Ralf; Thomas, Catherine et al.
82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022. Academy of Management, 2022. (Academy of Management Proceedings; No. 1, Vol. 2022).

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceeding › Academic › peer-review

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T1 - Efficient Industrial Policy For Innovation

T2 - 82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022

AU - Verhoeven, Dennis

AU - Martin, Ralf

AU - Thomas, Catherine

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AU - Guillard, Charlotte

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Y1 - 2022/1/1

N2 - Knowledge spillovers drive a wedge between private and social returns to R&D. Efficient innovation policy assigns subsidies to fields where spillovers are relatively important. We develop new measures for the private and spillover value of patented innovations and embed these in a structural microeconomic model to estimate field-specific marginal returns to R&D support. We find that expected returns to subsidy vary strongly by field and country, suggesting that targeted innovation policy has large potential to increase welfare. Because spillovers cross country borders, we find that supranational coordination of innovation policy offers large potential efficiency gains, especially for smaller countries.

AB - Knowledge spillovers drive a wedge between private and social returns to R&D. Efficient innovation policy assigns subsidies to fields where spillovers are relatively important. We develop new measures for the private and spillover value of patented innovations and embed these in a structural microeconomic model to estimate field-specific marginal returns to R&D support. We find that expected returns to subsidy vary strongly by field and country, suggesting that targeted innovation policy has large potential to increase welfare. Because spillovers cross country borders, we find that supranational coordination of innovation policy offers large potential efficiency gains, especially for smaller countries.

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DO - 10.5465/AMBPP.2022.257

M3 - Conference article in proceeding

T3 - Academy of Management Proceedings

BT - 82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022

PB - Academy of Management

Y2 - 5 August 2022 through 9 August 2022

ER -

Efficient Industrial Policy For Innovation: Standing On The Shoulders Of Hidden Giants?

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