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Policy Workshop Issues, questions

Policy Workshop Issues, questions. Dominique Foray , Marianna Marino, Claudia Pellegrin and Markus Simeth Project Synergia Morzine,17-18 January , 2014. Accelerating innovation in energy / environment – insights from other sectors ( R.Henderson ).

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Policy Workshop Issues, questions

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  1. Policy WorkshopIssues, questions Dominique Foray, Marianna Marino, Claudia Pellegrin and Markus Simeth Project Synergia Morzine,17-18 January, 2014

  2. Accelerating innovation in energy/environment – insights fromothersectors(R.Henderson) • Demand and induced innovation: creatingdemand for carbon-free energy and green innovation • «Carbon-emissions-pricing» policy • Private R&D subsidies • Public procurement and adoption policy • Public support for fundamentalresearch and R&D • Effective management of fundamentalresearch • Supporting the diffusion of research • Training the people whowillinnovate in the privatesector • Enablingcompetition • Antitrust, intellectualproperty, standards

  3. Romer conjecture: supply-demandproblem • R&D subsidies try to stimulate the demand for R&D human capital: scientists, engineers and so on in the privatesector (to develop green innovation) • But…if the supplycurve of R&D human capital isfixed (at least in the short run) then the increase in demandinduced by R&D subsidies will translate into a proportionalincrease in wages for R&D people and not in an increase in the supply of R&D people

  4. Dimensions • Supplyside (economics of science/human capital/institutions) • Demand (for private R&D) side • Industrialpolicy

  5. Supply side

  6. Knowledge base • Which skills and knowledge are relevant for green R&D? • Firm-levelworkforcecomposition-/diversity • Key scientificresearchdomains • Is research on green technologies better organized in a university or in a national lab setting? • Is the supplyofhuman capital increasingwith the provisionof public R&Dfunding? • Are researchers from traditional domains moving to green technologies? • Is new groundbreakingresearch stimulated or incrementalinnovationby public R&Dfunding?

  7. Institutions Solartechnology: research conducted in universities vs. nationallabs? Interpretation: in x % of all publications, the German (Swiss) authors are affiliated to the following institutions (perc. exceeds 100%)

  8. Scientificfields Scientific fields engaged in scientific publications related tosolartechnology

  9. Technologicalfields Fields engaged in patents related tosolartechnology

  10. International knowedgespillovers • Is the internationalmobilityoftertiarystudents a channelofknowledgespilloverfor green patents in countriesoforigin? Potentialmeasureofknowledgespillover (adaptedfrom T. Le, 2010): • Potential focus on the studentsflowsfrom a developingcountryto a developedcountry • DATA: • tertiary students: OECD Education and Training Database; • green patents: PATSTAT; • country R&D expenditures: OECD STAN Database.

  11. Demand side

  12. LiteraturereviewPublic policy for green innovation • Double market failure → necessity to combine: • carbontax: environmental externality, demand pull, • green subsidies: technological externality, supply push Jaffe, Newell, Stavins (2006) Arrow, Cohen, David, Hahn, Kolstad, Lane, Montgomery, Nelson, Noll, Smith (2009); Acemoglu, Aghion, Bursztyn, Hemous (2009); Aghion, Hemous, Veugelers, (2009); Aghion, Veugelers, Serre (2009) Carbontax + environmentalsubsidies constitute the optimal environmental policy package

  13. Literature reviewPorter Hypothesis • Weak version ENVIRONMENTAL REGULATION→ INNOVATION Eco-innovation as dependent variable • Strong version ENVIRONMENTAL REGULATION→ INNOVATION → COMPETITIVENESS (generally measured as productivity) Eco-innovation also as explanatory variable Porter and Van der Linde (1995) Porter (1990)

  14. LiteraturereviewEmpirical green innovationstudies • ECO-INNOVATION AS DEPENDENT VARIABLE Weak version of Porter Hypothesis Determinants of eco-innovation

  15. Literature reviewEmpirical green innovation studies-focus on policy and knowledge capital

  16. Literature reviewEmpirical green innovation studies-focus on policy and knowledge capital General consensus on the positive effect of policy and knowledge capital on eco-innovation

  17. Literature reviewEmpirical green innovation studies • ECO-INNOVATION AS EXPLANATORY VARIABLE • Firmproductivity - Strong versionof Porter Hypothesis Controversialfindings: presenceoffirm/industry/institutional-specificcharacteristics • Employment rate Effectdepends on the typologyofeco-innovation

  18. General idea Literature until now Novelty In this way itispossibleto look at the influenceof policy on knowledge capital.

  19. Policy instruments design • Designing flexible, competitive-friendly, non-neutral instruments • Preventing capture • R&D subsidies design • all the subsidies at once vs stagedapproach; • funding a large variety of projects vs focusing on one largerproject/over time; • interimevaluation; • administrative costs; • which green technologies have to besupported more.

  20. Policy instruments design • Carbontax design • emission/energycomsumptiontax rate components; • Double Dividend: recyclingof revenues for R&D subsidies? • Proportion carbontax/R&D subsidies • Public procurement for green innovation • Protection formemissionsleakage • border taxadjustments.

  21. Workshop structure • General : Henderson, Newell • Supplyside : CEMI • Demandside: CEMI, Veugelers, Simcoe (public procurement)

  22. Thankyou!

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