Found 401 article(s) for author 'Innovation'

Public Information is an Incentive for Politicians: Experimental Evidence from Delhi Elections

Public Information is an Incentive for Politicians: Experimental Evidence from Delhi Elections. Rohini Pande, Michael Walton, November 11, 2019, Paper, “In 2010, two years prior to Delhi’s municipal elections, we informed a random set of municipal councilors that a newspaper would report on their performance just before the next election. To evaluate this intervention we collected data on the infrastructure spending preferences of slum dwellers and created an index of pro-poor spending for each councilor. In wards dense with slums, the anticipation of future disclosures caused councilors to increase their pro-poor spending by 0.6 standard deviations over the next two years. A cross-cutting intervention that privately provided councilors with information about the state of infrastructure in the slums had no effect, suggesting that only public disclosures incentivize councilors. Party and voter responses support this interpretation: treated councilors were 12 percentage points more likely to receive a party ticket for re-election. The effect was concentrated among councilors who undertook more pro-poor spending in high-slum wards, and translates into a substantially higher vote share.Link

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State Capabilities for Problem-Oriented Governance

State Capabilities for Problem-Oriented Governance. Quinton Mayne, Jorrit de Jong, 2019, Paper, “Governments around the world are increasingly recognizing the power of problem-oriented governance as a way to address complex public problems. As an approach to policy design and implementation, problem-oriented governance radically emphasizes the need for organizations to continuously learn and adapt. Scholars of public management, public administration, policy studies, international development, and political science have made important contributions to this problem-orientation turn; however, little systematic attention has been paid to the question of the state capabilities that underpin problem-oriented governance. In this article, we address this gap in the literature. We argue that three core capabilities are structurally conducive to problemoriented governance: a reflective-improvement capability, a collaborative capability, and a dataanalytic capability. The article presents a conceptual framework for understanding each of these capabilities, including their chief constituent elements. It ends with a discussion of how the framework can advance empirical research as well as public-sector reform.Link

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The Heterogeneous Impact of Market Size on Innovation: Evidence from French Firm-Level Exports

The Heterogeneous Impact of Market Size on Innovation: Evidence from French Firm-Level Exports. Philippe Aghion, Marc Melitz, October 2019, Paper, “We analyze how demand conditions faced by a firm impacts its innovation decisions. To disentangle the direction of causality between innovation and demand conditions, we construct a firm-level export demand shock which responds to aggregate conditions in a firm’s export destinations but is exogenous to firm-level decisions. Using exhaustive data covering the French manufacturing sector, we show that French firms respond to exogenous growth shocks in their export destinations by patenting more; and that this response is entirely driven by the subset of initially more productive firms. The patent response arises 3 to 5 years after a demand shock, highlighting the time required to innovate. In contrast, the demand shock raises contemporaneous sales and employment for all firms, without any notable differences between high and low productivity firms. We show that this finding of a skewed innovation response to common demand shocks arises naturally from a model of endogenous innovation and competition with firm heterogeneity. The market size increase drives all firms to innovate more by increasing the innovation rents; yet by inducing more entry and thus more competition, it also discourages innovation by low productivity firms.Link

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Shareholder Activism and Firms’ Voluntary Disclosure of Climate Change Risk

Shareholder Activism and Firms’ Voluntary Disclosure of Climate Change Risk. Michael Toffel, October 2019, Paper, “This paper examines whether—in the absence of mandated disclosure requirements—shareholder activism can elicit greater disclosure of firms’ exposure to climate change risks. We find that environmental shareholder activism increases the voluntary disclosure of climate change risks, especially if initiated by investors who are more powerful (institutional investors) or whose request has more legitimacy (long-term institutional investors). We also find that companies that voluntarily disclose climate change risks following environmental shareholder activism achieve a higher valuation, suggesting that investors value transparency with respect to climate change risks.Link

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Slowing Tech Represents A ‘Real Reckoning’

Slowing Tech Represents A ‘Real Reckoning. Nancy Koehn, October 10, 2019, Audio, “Nancy Koehn, historian at the Harvard Business School, stopped by Boston Public Radio on Thursday to discuss the slowing growth of Silicon Valley tech companies, and the shifting interests toward profit and away from big spending.“This represents a real reckoning,” Koehn said of the dwindling growth for companies like Uber and Lyft. “The 32 tech companies that went public this year thus far … have only appreciated … on average, about 5%.”Link

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Regulation and innovation: Examining outcomes in Chinese pollution control policy areas

Regulation and innovation: Examining outcomes in Chinese pollution control policy areas. Richard Freeman, October 3, 2019, Paper, “In this paper, we examine how two regionally implemented environmental initiatives in China have impacted the innovation ability of Chinese-listed firms. The regional implementation of these policies, with non-policy regions serving as controls, offers researchers the perfect conditions for a natural experiment. Using research and development (R&D) expenditures and patents as a proxy for innovativeness, we compare the record of innovation of firms inside the policy zones with firms outside the policy zones. We use a Difference-In-Difference-In-Differences (DIDID) method to eliminate endogeneity and take the quality of the patents into account by incorporating sub-items. Results show only one of the regulations had a positive effect and that low quality patents account for most of the innovation. We conclude that reasonably designed environmental regulations, when implemented regionally in competitive industries, do improve Chinese firms’ innovation ability in line with the Porter Hypothesis. The results help us derive some useful policy implications regarding innovation.Link

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Organizing Knowledge Production Teams within Firms for Innovation

Organizing Knowledge Production Teams within Firms for Innovation. Andy Wu, 2019, Paper, “How should firms organize their pool of inventive human capital for firm-level innovation? While access to diverse knowledge may aid knowledge recombination, which can facilitate innovation, prior literature has focused primarily on one way of achieving that: diversity of inventor-held knowledge within a given knowledge production team (“within-team knowledge diversity”). We introduce the concept of “across-team knowledge diversity,” which captures the distribution of inventor knowledge diversity across production teams, an overlooked dimension of a firm’s internal organization design. We study two contrasting forms of organizing the firm-level knowledge diversity environment in which a firm’s inventors are situated: “diffuse” (high within-team diversity and low across-team diversity) versus “concentrated” (low within-team diversity and high across-team diversity). Using panel data on new biotechnology ventures founded over a 21-year period and followed annually from inception, we find that concentrated structures are associated with higher firm-level innovation quality, and with more equal contributions from their teams (and the opposite for diffuse structures). Our empirical tests of the operative mechanisms point to the importance of within-team coordination costs in diffuse structures and across-team knowledge flows in concentrated knowledge structures. We end with a discussion of implications for future research on organizing for innovation.Link

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Should We All Be Living in Cities?

Should We All Be Living in Cities? Edward Glaeser, September 30, 2019, Audio, “Cities are an integral part of Earth’s future: by 2050, 68 percent of the world’s population will be living in an urban area. Solutions to social problems, from climate change to poverty, will therefore be tied to the fates of cities. In this episode, Glimp professor of economics Edward Glaeser explains why he is overwhelmingly optimistic about urban growth. Cities, he says, are engines of innovation and economic activity that create opportunity. “Humans,” he explains, “are a social species that gets smart by being around other smart people.” When they do, their impact on the planet’s climate is lessened in surprising ways—and in surprising places across the United States.Link

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Cities and Big Data

Cities and Big Data. Edward Glaeser, September 2019, Paper, “Historically, there has been a divide between urban economics and the physical aspects of the city itself. Social scientific research has been detached from subjects such as architecture and streetscapes. This lack of connection has been driven in part by a lack of data on the physical attributes of urban spaces. The “big data” revolution will change this. Big data turns a cross section of space into living data, offering a broader and finer picture of urban life than has ever been available before. Moreover, in combination with predictive algorithms, big data may allow us to extrapolate outcome variables such as house prices or income to previously unmeasured parts of a population. This policy brief showcases some examples of how big data can be used to develop cities.Link

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At Booking.com, Innovation Means Constant Failure

At Booking.com, Innovation Means Constant Failure. Stefan Thomke, September 3, 2019, Audio, “Harvard Business School professor Stefan Thomke discusses how past experience and intuition can be misleading when attempting to launch an innovative new product, service, business model, or process in his case “Booking.com” (co-author: Daniela Beyersdorfer) and his new book, “Experimentation Works.” Instead, Booking.com and other innovative firms embrace a culture where testing, experimentation, and even failure are at the heart of what they do.Link

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