This thesis investigates the impact of finance on technological innovation. In the first essay we study the causal relation between informativeness of stock prices and innovative efficiency. Using mutual fund flow-driven price pressure as an exogenous shock, we show that impairment of stock price efficiency diminishes innovative efficiency. In the year following the price-pressure shock, patents per R&D dollar drop by 4.7%, while citations are 26.2% lower. Consistent with market feedback, stock mispricing has a greater effect on innovative efficiency when there is less information available from other sources, such as insider information or peers' stock prices. We do not find evidence supporting alternative explanations such as the endogeneity of mutual fund trading, financing effect, managerial incentive, or shareholder short-termism. Overall, our findings show that stock markets improve real efficiency by providing useful market feedback. The second essay examines the implication of intellectual property protection (IP) to equity financing. Firms can protect IP by either keeping their inventions secret or seeking patent protection and disclosing the inventions. We expect the relative protection conferred by the methods to affect the choice between secrecy and patenting. Further, we expect the manner of IP protection to affect the information released by firms and, hence, their stock liquidity and cost of equity capital. For our empirical analysis, we rely on the exogenous passage of state-level statutes that strengthened trade secret protection. We show that stronger trade-secret protection increased opaqueness and reduced stock liquidity. Firms that raised equity capital after the enactment of trade secret statutes experienced more negative stock market reactions. By contrast, the implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), that strengthened patent protection, improved the transparency and stock liquidity of patenting firms. After TRIPS the stock market reaction to equity offering by these firms was also less negative. Our findings suggest that stronger patent protection encourages more information disclosure and reduces financing frictions, while stronger secrecy protection induces opaqueness and makes equity financing more difficult. In the third essay, we show that corporate investment in R&D declines sharply following a financial-covenant violation, wherein creditors can use the threat of accelerating the loan to press for changes in firm policies. The reduction in R&D is more severe in firms with low R&D efficiency i.e., when firm R&D is less productive in terms of ROA and delivers fewer patents and citations. It is striking that, despite decrease in R&D, covenant-violating firms do not suffer a drop in innovative output (patents and citations-to-patents). These results highlight that lenders are judicious in exercising their control rights after covenant violations and suggest that bank financing can be a viable source of financing for innovative firms.

The first essay titled “Fundamental Sources of Long-run Labour Productivity Improvements in Canada” examines the importance of Research and Development activities, as well as the stock of public infrastructure, and economic openness as sources of growth in labour productivity in the Canadian economy within the last four decades. The second paper titled “R&D Spillovers, Innovation, and Entry” extends a theoretical framework to analyze the impact of R&D spillovers on entry and the resulting equilibrium market structure. It is shown that the degree of spillovers plays a fundamental role on the number of firms entering the market, their R&D activities, and social welfare. The third paper titled “The Search for New Drugs: A Theory of R&D in the Pharmaceutical Industry” uses a dynamic model of optimal patent design and in the presence of information externalities studies the evolution of technological progress in the context of a pharmaceutical industry.

Diss. (sammanfattning) Örebro : Örebro universitet, 2005. / Härtill 4 uppsatser.

Thesis (M.S. in Operations Research)--Naval Postgraduate School, September 1987. / Thesis Advisor(s): Boger, Dan C. Second Reader: Andrus, Alvin F. "September 1987." Description based on title screen as viewed on April 23, 2010. DTIC Descriptor(s): Army Budgets, Decision Making, Goal Programming, Antimissile Defense Systems, Army Operations, Coefficients, Computer Programs, Hierarchies, Linearity, Management, Military Strategy, Mathematical Models, Operations Research, Personnel, Sensitivity, Theses, Army Research. DTIC Identifier(s): Army strategic defense command, Analytic hierarchy process. Author(s) subject terms: Goal Programming " Analytic Hierarchy Process, R&D Project Funding Models. Includes bibliographical references (p. 165-167). Also available in print.

This dissertation investigates the role of public support for R&D in product innovation. In particular, I consider the role of matching grant programs and develop a theoretical model to analyze optimal private and public choices in a game-theoretic framework. This research develops-theoretical models to examine welfare implications of various policies that promote R&D. The first chapter of my dissertation develops a theoretical model of product innovation where R&D effort is endogenous and its outcome uncertain. The government attempts to aid such efforts with a matching grant. I consider different scenarios depending on whether two parties act simultaneously, act sequentially, or take part in a dynamic cooperative game with a trigger strategy. I also consider the case when the products are exported and when they are not. I analyze situations when government intervention increases the chances of product innovation and when it does not. The second chapter introduces foreign competition in a goods market, and analyzes the effects of foreign competition on domestic private and public incentives to product innovate. Government uses matching grant programs to aid private attempts to develop new goods. The government also tries to protect the domestic firm by imposing import tariff. Two policies are then considered simultaneously to investigate the effect of trade liberalization on product innovation. The third chapter considers technological partnerships between private and public sectors as R&D promoting policy. I assume increasing returns in R&D, and study whether government should support product innovation by helping with fixed costs or variable costs associated with product R&D.

Made available in DSpace on 2016-06-02T19:50:28Z (GMT). No. of bitstreams: 1 TeseLCS.pdf: 2067913 bytes, checksum: fe03f2f8092b1ff62a76fa171f4216c2 (MD5) Previous issue date: 2005-08-11 / Studies comparing two technological institutes in Mercosul -The Industrial Technologic Institute, in Argentina, and the Technological Research Institute, in Brazil - focus on management projects in research and Development, in institutional level. Through the literature, it is identify, areas and subjects that allow the analyses of institutional management R&D projects (IMRDP). The history of the two institutes was study to identify the similarity and the differences of them. The field research is composed by an interview which was framed through literature subjects and documents in the following topics: general vision and IMRDP operations in the institutes; institutional management; process effectives results; people´s communication involved with projects and the institution; experiences acquired in the institutions. Of all interviews, one quarter was directed to high management, one quarter to functional gerency and two quarter to project managers. The discussion results, thanks to the methodology and schedule, determined that institutions did not have IMRDP, although both institutions considered the importance of its implementation. It was clear that the IMRDP structure, in any institution, have to consider the institutional culture, history, staff, structure and market, even though there are similar subjects and areas between the two institutions. / Estudo de casos comparativo de dois institutos tecnológicos em países do Mercosul o Instituto de Tecnologia Industrial (INTI), na Argentina e o Instituto de Pesquisa Tecnológica (IPT), no Brasil com foco na gestão de projetos de Pesquisa e Desenvolvimento (P&D), no nível institucional. Identifica na literatura áreas e temas pelos quais é possível analisar a Gestão Institucional de Projetos de P&D (GIPPD), para então voltar-se ao estudo da história das duas instituições, contextualizando-as e identificando pontos de identidade e diferenciação. Elabora uma pesquisa de campo utilizando-se de entrevista estruturada, a partir do mapeamento que resultou na solução gráfica representativa dos temas identificados no estudo da literatura e dos documentos: visão geral da GIPPD e seu funcionamento em cada instituição; estrutura organizacional; projetos de P&D e o planejamento institucional; Gestão Institucional; resultados efetivos dos processos; comunicação entre os atores dos projetos e a instituição e experiências adquiridas na instituição. As entrevistas foram dirigidas numa proporção de um quarto à Alta Direção (AD), um quarto aos Gerentes Funcionais (GF) e dois quartos aos Gerentes de Projeto (GP). A discussão dos resultados, facilitada pela metodologia e a tabela dinâmica empregadas, permitiu que se concluísse pela nãoexistência de uma GIPPD estruturada nas instituições estudadas, embora os entrevistados considerem válida a sua implantação nas suas organizações. Observa-se que a estruturação de GIPPD em qualquer instituição deverá levar em conta sua cultura institucional, sua história, seu quadro funcional, sua estrutura e seu mercado, no sentido amplo, embora elas venham a ter sempre um conjunto básico de áreas e temas comuns.

This study analyzes the impact of transfer pricing on multinational enterprises' R&D investment decisions. Specifically, I examine the effects of two commonly used contract designs to exchange and develop intangible assets across group affiliates: licensing and cost sharing agreements. Whilst serving as a tool to allocate taxable income between group affiliates, the economic implications of licensing and cost sharing agreements differ. Whereas licensing agreements provide for a sharing rule on the intangible's profits, cost sharing agreements on the other hand provide a sharing rule on R&D development costs. This difference matters when firms simultaneously use internal transfer prices to allocate taxable income and provide local management with sufficient investment incentives. Using a multiple-agent, moral hazard investment framework I model a multinational firm with comparable group affiliates in two countries that delegates the R&D investment decision to a local risk and effort averse affiliate manager. The results suggest that the optimal contract not only depends on available tax benefits, but also on R&D investment and manager specific characteristics. A licensing agreement provides management with larger incentives to invest in R&D mitigating agency concerns associated with R&D. On the other hand, using a cost sharing agreement the firm can cater different risk preferences among managers potentially increasing investment. The arm's length principle however may distort an efficient allocation of R&D costs when using a cost sharing agreement. / Series: WU International Taxation Research Paper Series

Dans un contexte de mise en place des pôles de compétitivité et des dernières lois sur la décentralisation (2004 et 2013), les Régions ont vu leurs compétences renforcées en matière de développement économique et d’innovation, et se sont impliquées plus massivement dans la conduite de politiques scientifiques et technologiques (S&T). Ainsi, ce travail a pour but d’interroger l’efficacité des politiques S&T régionales. En effet, la légitimé de l’échelon régional dans la politique de S&T peut être remise en question dès lors que la production et l’exploitation de la technologie tendent à être de plus en plus globalisées. Cette légitimité régionale peut être abordée sous l’angle des Systèmes Régionaux d’Innovation (SRI). En considérant l’échelon régional comme prégnant, notamment au niveau des politiques économiques et technologiques, les SRI permettent d’analyser les liens entre science, industrie et gouvernance au niveau local. Face à ces enjeux, la Région Aquitaine, qui a augmenté son budget consacré à sa politique de S&T de manière considérable depuis ces dix dernières années, se pose des questions. Elle est aujourd’hui la Région française dont le budget S&T par habitant est le plus élevé. C’est pourquoi celle-ci veut savoir si sa politique de S&T est efficace. Cet effort conséquent en termes de S&T, est-il nécessaire/justifié ? Quelle est la cohérence de la politique régionale au cours du temps ? Ces questions sont appréhendées en utilisant les outils de l’évaluation. Un travail de formalisation des objectifs poursuivis et des moyens mis en oeuvre par la Région est mené, tout en développant une approche comparative par rapport à d’autres expériences régionales en France. / In the context of setting up clusters and the latest laws on decentralization (2004 and 2013), the regions saw their skills for economic development and innovation increased. That’s why they are more involved in the conduct of science and technology policies. Thus, this study aims to examine the effectiveness of science and technology policies (S&T) at the regional level. Indeed, the legitimacy of this level in the S&T policy could be challenged since the production of technology tend to be more and more globalized. Moreover, this regional legitimacy can be approached from the perspective of regional innovation systems (RIS), which constitute a theoretical framework suitable for the treatment of this issue. Considering the importance of regional level, especially in economic and technological policies, SRI is a framework which aims to analyze the links between science, industry and local governance. Faced to these challenges, the Aquitaine Region asks itself questions. Indeed, it has increased its S&T budget since the last ten years and today is the French region with the highest S&T budget per capita. Now the Aquitaine Region wants to know how effective its S&T policy is. Is this effort in terms of S&T necessary or justified? What is the consistency of regional policy over time? What is the result of such a policy a socio-economic point of view? These issues will be studied using of evaluation’s tools. Furthermore, we offer to synthetize the objectives of S&T and the means used by the Region and we develop a comparative approach to other regional experiences on differents dimensions of innovation.

This thesis describes how Innovation Management Consultants (IMCs) can promote changes in R&D/marketing relationships. The research was motivated by the scarce number of studies about the impact of IMCs on organisational relationships in general, and particularly on R&D and marketing relationships. This thesis contributes to knowledge in four strands of literature: technology management, organisational change, management consulting and conflict studies. Firstly, its main contribution is to technology management literature. Empirical evidence indicates that IMCs can modify the relationship between R&D and marketing functions, even though they are not hired explicitly for that purpose. Nonetheless, the main impact on the relationship is perceived at the personal level and it is dependent on the format of the intervention process. Additionally, the changes in the R&D/marketing relationship and its continuity seem to be conditional upon contextual factors such as specific company and consultant characteristics, as well as the nature of the consultant-client relationship. Secondly, this study has added to scholarly knowledge in organisational change by providing empirical evidence that IMCs advocate for the same dynamics used by Organisational Development (OD) consultants. The results highlight the importance of a facilitative-participative approach and organisational learning to generate change. The results suggest that certain OD theories such as sociotechnical systems theories and Lewin’s model can be used to explain the effect of IMCs on intra-organisational relationships. Thirdly, this research also augments knowledge about IMCs in management consulting literature because it provides evidence about the activities conducted by IMCs and their unexpected effects within client organisations. This addresses a gap identified in the literature, since the contributions of this type of Management Consultant (MC) have not been significantly investigated and the focus of previous studies has been on expected results. Finally, this research contributes to the area of conflict studies, particularly to the intersection between R&D/marketing integration and conflict, since it provides certain evidence about some IMCs’ mediation techniques that can be used to diminish conflict between different areas within an organisation. The research followed an inductive approach to understanding the changes that IMCs can promote in R&D/marketing relationships in large firms. The research is based on empirical evidence gathered through twelve case studies, feedback interviews and a small-scale survey. A framework describing the possible changes that IMCs can promote in the R&D/Marketing relationship was then built from grounded, within-case, and cross-case analysis. Lastly, in order to verify the observations obtained during the case studies, as well as the pertinence of the proposed framework, a set of eight feedback interviews with company participants and IMCs were carried out, as well as a small-scale survey. The results of these verification activities indicate that the proposed framework is reasonably complete and its elements are coherent.

The first essay titled “Fundamental Sources of Long-run Labour Productivity Improvements in Canada” examines the importance of Research and Development activities, as well as the stock of public infrastructure, and economic openness as sources of growth in labour productivity in the Canadian economy within the last four decades. The second paper titled “R&D Spillovers, Innovation, and Entry” extends a theoretical framework to analyze the impact of R&D spillovers on entry and the resulting equilibrium market structure. It is shown that the degree of spillovers plays a fundamental role on the number of firms entering the market, their R&D activities, and social welfare. The third paper titled “The Search for New Drugs: A Theory of R&D in the Pharmaceutical Industry” uses a dynamic model of optimal patent design and in the presence of information externalities studies the evolution of technological progress in the context of a pharmaceutical industry.