I provide initial evidence that international taxation impacts the magnitude of R&D investments in the UK. Relying on a simple theoretical model, I show that the observed response is consistent with the mispricing of intra-group transactions. My structural estimates suggest that transfer prices for internally provided innovation increase by around three percent in response to a one percentage point increase in foreign taxation. This response is more pronounced than previous estimates of aggregate profit shifting indicate, supporting concerns on the susceptibility of intangible assets to facilitate profit relocation. (author's abstract) / Series: WU International Taxation Research Paper Series

The open innovation approach has been one of the most discussed topics in innovation management literature in the 2000's. Existing literature on open innovation shows an evolving diffusion of open innovation in certain industries and contexts. Various case studies and theoretical work suggest that the open innovation adoption decision within a company could be triggered by internal and external factors. The goal of this dissertation is to provide comprehensive empirical evidence for the adoption of inbound and outbound open innovation activities in Europe. Furthermore, the thesis will provide empirical evidence for a set of open innovation drivers using primary data from European firms to link the adoption of open innovation with organizational capabilities, characteristics of the market environment, and human resource capabilities. The results will show the current level of open innovation adoption in Europe and its drivers. This could have managerial implications by showing influencing of organizational and human variable on the adoption of open innovation strategies.

Ever since Henry Chesbrough coined the term in 2003, the number of studies exploring the new paradigm of open innovation (OI) has grown exponentially, with researchers investigating and exploring the application of open principles in an array of industrial and geographical contexts. Despite this growing interest from the scientific community as well as practitioners, our understanding of the implementation of open principles from an SME perspective remains, to a large extent, underdeveloped. In particular, uncovering how the SME can best exploit and manage their external network to facilitate both exploration and exploitation activities has, thus far, been largely neglected. Therefore, an exploration of the implementation and successful management of OI projects in smaller firms from a network perspective, through a systematic review and assimilation of the current body of extant studies seems a timely and necessary step, in order to form a roadmap for a future research agenda. Consequently, the aim of this paper is to shed light on the antecedents and outcomes of successful OI network management in small firms. Systematic analysis of 51 extant studies reveals that many barriers associated with implementing OI in SMEs often referred to as liability of smallness, can be overcome by the effective network management, coupled with the implementation of an open culture. Openness can also be seen to be positively related to business model flexibility and adaptability. Results though, remain unclear on the exact role of the intermediary and whether entrepreneurial capacity, trust, increased social interaction and goal alignment among the SME and their network partners, as well as network unity and conflict mitigation/resolution can be described as a driver for, or an outcome of successful open projects. Therefore, these potential relationships between openness and managerial capacity are proposed for further empirical testing and analysis. The paper concludes by presenting a map for future research, incorporating a series of propositions suggested during the analysis and consolidating these issues into a framework of suggestions for future research. / Series: Working Papers / Institut für KMU-Management

The knowledge base concept in the past has often been applied in its "pure" form, i.e. it was assumed that there are dominant knowledge bases in particular sectors and firms, that shape the knowledge- and innovation process and related networks. For example, it has been argued that in the case of "analytical sectors" such as biotech codified knowledge generated by universities and R&D organisations are key for radical innovation, and that such knowledge is often transmitted by formal R&D cooperations and university-firm links. "Synthetic sectors" such as machinery on the other hand were assumed to innovate more incrementally by recombining existing knowledge that was often drawn from suppliers or service firms. Empirical literature partly has confirmed these basic patters, but also has demonstrated that more complex knowledge processes are underlying these overly schematic expectations. In addition, there have been arguments by Asheim, Boschma and Strambach, among others, more recently that combinations of different but related knowledge bases and -assets might be of high relevance for understanding innovation processes of firms in particular sectors and regions. This implies that innovation of firms e.g. in "analytical sectors" might benefit not just from new and basic knowledge generated by research, but also from recombining existing and applied knowledge or by drawing on symbolic knowledge assets. The same argument for the relevance of combinatorial knowledge bases applies for "synthetic" and "symbolic sectors", but in different forms. The paper investigages if the reliance on combinatorial knowledge bases leads to a better innovation performance and more radical forms of innovation than the use of more narrow knowledge assets. The paper investigates the relevance of combinatorial knowledge bases for innovation at first conceptually and based on respective literature. In the second part we analyse this question empirically by drawing on findings for the ICT sector in three regions of Austria (Vienna, Upper Austria, and Salzburg). (authors' abstract) / Series: SRE - Discussion Papers

It is commonly accepted nowadays that innovations are brought forward in an interactive process of knowledge generation and application. The business sector, the science sector, and policy actors are involved in this process as has been stressed in concepts such as innovation systems and the network approach. It is still unclear, however, as to what extent different kinds of innovation rely on specific knowledge sources and links. More advanced innovations on the one hand might draw more on scientific knowledge, generated in universities and research organizations. Such knowledge is often exchanged in personal interactions at a local or regional level. Incremental innovations and the adoption of new technologies, on the other hand, seem to occur often in interaction with partners from the business sector also at higher spatial levels. In this paper we analyze such patterns of knowledge links. After dealing with knowledge interactions from a conceptual view and reviewing the relevant literature, we present an empirical analysis for Austria. The findings show that firms introducing more advanced innovations are relying to a higher extent on R&D and patents, and that they are cooperating more often with universities and research organizations. Firms having introduced less advanced innovations rely more on knowledge links with business services. Furthermore, the employment of researchers was identified as a key factor enhancing knowledge interactions of firms with universities. (authors' abstract) / Series: SRE - Discussion Papers

In today's knowledge-based society academic spin-offs are considered as one important form of technology transfer. However, most related entrepreneurial efforts fail. When looking at determining factors, researchers have to be regarded as members of a complex social network consisting not only of academic peers but also of participants from industry, policy, and supporting institutions, and friends and family members. This network is the academic entrepreneur's general framework of operation characterized by resource and communication flows of differing nature. The thesis tries to answer the question under what conditions technological spin-offs emerge from the academic community with special emphasis on the entrepreneurs' social capital expressed in terms of their social networks. Thus, a detailed analysis of the characteristics of the social network academic entrepreneurs operate in at the different stages of the spin-off process is effected. By means of social network analysis effected by a survey among Austrian academic entrepreneurs, it is examined which network structures favor the recognition of entrepreneurial opportunities and their realization in the form of a spin-off company. Thus generated insights are intended to contribute to nascent academic entrepreneurs' awareness how to optimally use their social contacts and networks in setting up their new ventures. Moreover, the work intends to provide valuable insights for political decision-makers as to the provision of necessary framework conditions supporting respective social dynamics required for the creation of innovative knowledge- und technology-intensive companies in Austria. (author's abstract)

Die Dissertation beschäftigt sich mit User Innovation Toolkits für situationsbezogene Dienste. Während User Innovation Toolkits Endnutzern erlauben, mobile Dienste selbst zu gestalten, haben situationsbezogene Dienste die Fähigkeit, sich an die Bedürfnisse des Nutzers und die Nutzungssituation anzupassen. Aufbauend auf einer empirischen Studie konnten drei wesentliche Herausforderungen der mobilen Telekommunikationsbranche identifiziert werden: Erstens, sind die Bedürfnisse von Nutzern mobiler Dienste hochgradig heterogen und ändern sich laufend. Zweitens, mangelt es an Geschäftsmodellen, um von dem wachsenden Markt zu profitieren. Schließlich sind technologische Probleme hinsichtlich adaptierbarer und lernfähiger Informationssysteme zu lösen. Die Untersuchung der theoretischen Grundlagen fokussierte vor allem auf den Transfer von Kundenwissen, der Wissensemergenz und der Situationstheorie und ihrer Anwendungen. Im Rahmen der Aktionsforschung konnte gemeinsam mit Fachexperten ein Ökonomisch sinnvolles generisches Geschäftsmodell für User Innovation Toolkits konzipiert und evaluiert, ein neues Vorgehensmodell zur Anforderungsanalyse generiert und die Informationsarchitektur zur Realisierung situationsbezogener Dienste modelliert werden. Die Synthese stellt den Prototyp eines User Innovation Toolkits für situationsbezogene Dienste dar. (Autorenref.)

For those organizations that experience disruption, they usually understand the situation when it is already too late. The real challenge to any theory, especially if it is of high relevance for managers, is how it performs predictively. Can the theory of disruptive technologies be used not only to analyze cases ex post but to predict the potential disruptive technologies ex ante? Established companies are skeptical of the idea of disruptiveness, because of the difficulty of making predictions given the ex post nature of the theory. In this regard the goal of this report is to provide a general measure of disruptiveness and develop a framework that can assess technologies whether they have the potential to be proven disruptive. The developed assessment framework captures the essential characteristic and holistic success factors for disruptive technologies based on the theory of Christensen and a number of clarifications as seen in the literature. The framework is applied and validated by assessing the disruptive potential of five renewable energy technologies (wind energy, solar energy, biomass, hydro power, geothermal) in the power generation, heating and transportation sectors of four European countries (Austria, Bulgaria, Germany and Romania). The results show the applicability of the framework and give insights into technology and country specific determinants of energy market sector disruptions. (authors' abstract) / Series: Working Papers / Institute for Strategic Management / Energy & Strategy Think Tank

Innovation ist von zentraler Bedeutung für Entwicklung und Wirtschaftswachstum. Innovation findet in einem institutionellen Rahmen statt. Auktionen und auktionsähnliche Mechanismen sind Institutionen. Sie organisieren Transaktionen zwischen ökonomischen Agenten. Auktionen enthüllen private Information indem sie Wettbewerb zwischen Agenten erzeugen. Wenn sie günstig gestaltet werden, dann nutzen sie die enthüllte private Information zur Erfüllung bestimmter Ziele, wie z.B. Gewinnmaximierung oder Effizienz. In drei Aufsätzen untersucht diese Dissertation die Verwendung von Auktionen im Kontext von Innovation. Kapitel 1 betrachtet die übliche Praxis der öffentlichen Subventionsvergabe an private Unternehmen. Wir weisen auf Nachteile dieser Praxis hin und machen Verbesserungsvorschläge, die man einzeln oder in Kombination anwenden kann. Unsere Vorschläge wurden mit Hilfe von Laborexperimenten und Simulation getestet. Die Ergebnisse lassen vermuten, dass unsere Vorschläge eine erhebliche Verbesserung der Subventionsvergabe ermöglichen. Kapitel 2 betrachtet den Verkauf, bzw. die Versteigerung, von Lizenzen zur Nutzung einer patentierten Innovation an Unternehmen in einem oligopolistischen Markt. Das Kapitel analysiert eine modifizierte Lizenzauktion, die profitabler ist als die in der Literatur untersuchten Mechanismen. Bei dieser Auktion wird eine begrenzte Anzahl Royalty-Verträge (Royalty = mengenabhängige Lizenzgebühren) versteigert und die Verlierer der Auktion erhalten ebenfalls die Option auf Royalty-Verträge. Kapitel 3 untersucht Innovations-Turniere. Zwei bekannte Institutionen, Festpreis-Turnier und Scoring-Auktion, werden mit einer Auktion kombiniert, in der um die Teilnahme am Turnier geboten wird (entry auction). Diese Variante wurde in der Literatur vorgeschlagen. Wir charakterisieren Bayesianische Nash-Gleichgewichte bei denen die beiden Mechanismen zu gleichartigen Ergebnissen führen. / Innovation is central to development and economic growth. Innovation happens within some institutional framework. Auctions and auction-like mechanisms are institutions that organize transactions between economic agents. In the face of private information, they provide a means of revealing part of that information by inducing competition between agents. If well designed, they make use of the revealed information in order to achieve a certain objective, e.g., to maximize profit or to allocate efficiently. In three essays, this dissertation studies the use of auctions in the context of innovation. Chapter 1 looks at the widely used practice of allocating government R&D subsidies to private companies. We point out flaws of that practice and propose improvements that can be adopted separately or in combination. Our proposals are tested in controlled lab experiments and by simulation. The results suggest that adopting the proposals might substantially improve the allocation of subsidies. Chapter 2 revisits the literature on the sale, and, in particular, auctioning, of patent licenses by an innovator to a downstream oligopoly. It analyzes a modified auction that turns out to be more profitable than many other mechanisms that have been analyzed in the literature. There, a restricted number of royalty contracts is auctioned while all losers of the auction are granted the right to sign a royalty contract. Chapter 3 looks at R&D tournaments. It starts from two well-known auction institutions, the fixed-prize tournament and the scoring auction. It combines both with an entry auction, a feature that has been proposed in the literature. We characterize Bayesian Nash equilibria such that both mechanisms are equivalent in a number of ways.

In dieser Studie analysieren wir die Interaktionen zwischen Multiproduktwettbewerb und drei Aspekten von Innovation: Research Joint Ventures mit asymmetrischen Unternehmen, Neue Produkteinführung, und Innovation mit Multiproduktunternehmen. Wir untersuchen Mechanismen und Effekte, die einen Einfluß auf die Marktstruktur, das Marktverhalten und das Marktergebnis ausüben, indem wir theoretische Modelle analysieren und empirische strukturelle Modelle schätzen. Diese Arbeit gliedert sich wie folgt: Kapitel 2 verdeutlicht die Interaktion von Multiproduktwettbewerb und der Innovationstätigkeit von Unternehmen. Wir präsentieren die gegenwärtigen theoretischen and empirischen Arbeiten auf dem Gebiet der Innovationen. In Kapitel 3 analysieren wir die Effekte zwischen Multiproduktwettbewerb und Anreize von asymmetrischen Unternehmen, Innovationen zu betreiben und Research Joint Ventures zu gründen. In Kapitel 4 und 5 konzentrieren wir uns auf die Interaktion zwischen Multiproduktwettbewerb und neuer Produkteinführung. Wir präsentieren zwei theoretische Modelle über vertikale Produktdifferenzierung und untersuchen die Anreize für die etablierten Unternehmen neue Produkte mit unterschiedlicher Qualität in den Markt einzuführen. Unternehmen können hierbei entscheiden, ob sie die vorigen Produkte weiterhin im Markt anbieten oder aus dem Markt ziehen. In Kapitel 6 untersuchen wir den Zusammenhang zwischen Multiproduktwettbewerb und Innovation mit Multiproduktunternehmen. Das Verhalten von Multiproduktunternehmen unterscheidet sich von Einzelproduktunternehmen, da Output- und Produkteinführungsentscheidungen auf zentraler Ebene getroffen werden. Wir analysieren die ,Dynamic Random Access Memory' Industrie (DRAM chips sind Halbleiterchips) mit Berücksichtigung von Multiproduktunternehmen und untersuchen Spillovers, Skalenerträge und Lerneffekte, als auch das Verhalten der Unternehmen im Produktmarkt und die Dynamik über den Produktlebenszyklus. In Kapitel 7 fassen wir die Forschungsergebnisse zusammen und bewerten diese im Kontext der gegenwärtigen Forschung. Darüber hinaus schlagen wir weitere Aspekte für zukünftige Forschungsarbeiten auf diesem Gebiet vor. Schließlich beschreiben wir in Kapitel 8 die Datenbanken, die in unseren empirischen Analysen Anwendung finden. email: siebert@medea.wz-berlin.de / In this study we theoretically and empirically analyze the interactions between multiproduct competition and three aspects of innovation: Research Joint Ventures with asymmetric firms, new product introduction, and innovation with multiproduct firms. We investigate the main mechanisms and effects that impact on market structure, behavior and performance by analyzing theoretical and estimating structural models.The thesis is structured as follows: Chapter 2 provides insights into how multiproduct competition may interact with innovation. We survey current theoretical and empirical results on the literature of innovation. In Chapter 3, we analyze the effect of multiproduct competition on the incentives of asymmetric firms to innovate and to form a Research Joint Venture. In Chapters 4 and 5 we concentrate on the interrelation between multiproduct competition and new product introduction. We present two theoretical models of vertical product differentiation and investigate the incentives for incumbent firms to introduce new products in different quality areas. Firms are allowed to keep or withdraw their original products from the market. In Chapter 6 we will focus on the link between multiproduct competition and innovation with multiproduct firms. Multiproduct firms behave differently in the product market compared to single product firms. Decisions for product innovation or output are taken at a centralized level, so that a multiproduct firm takes the effects on other products into account. We analyze the Dynamic Random Access Memory industry (DRAM chips are semiconductor chips) with respect to multiproduct firms and investigate the Spillover, Economies of Scale, and Learning by Doing effects, as well as firms' behaviour in the product market, and the dynamics over the product life cycle. In Chapter 7 we summarize the results, assess the new research findings in the context of contributions to current research, and provide suggestions for future research. Finally, in Chapter 8 we provide a description of the databases we used in our empirical studies. email: siebert@medea.wz-berlin.de