Do high technology acquirers become more innovative?

Drawing on organizational, managerial and financial theories, we explore whether acquirers become more innovative and the factors that can enhance their absorptive and financial capacity to benefit from acquisition. Over a 3-year post-acquisition window, our sample of 2624 high technology US acquisitions records early reverses followed by positive R&D-intensity changes and insignificant R&D productivity changes. Controlling for acquisition endogeneity and deal-specific effects, significant acquirer characteristic effects emerge. In related acquisitions, a large knowledge base tends to increase R&D productivity, consistent with an enhanced capacity to select and absorb targets. In unrelated acquisitions, however, this relationship becomes increasingly negative as knowledge base concentration increases, consistent with arguments for an impaired peripheral vision and core rigidities. High leverage levels raise R&D productivity gains, consistent with enhanced monitoring induced efficiency. However, high leverage growth reduces R&D-intensity, consistent with increased financial constraints and short-termism.     

RoboWarfare: can robots be more ethical than humans on the battlefield?

Telerobotically operated and semiautonomous machines have become a major component in the arsenals of industrial nations around the world. By the year 2015 the United States military plans to have one-third of their combat aircraft and ground vehicles robotically controlled. Although there are many reasons for the use of robots on the battlefield, perhaps one of the most interesting assertions are that these machines, if properly designed and used, will result in a more just and ethical implementation of warfare. This paper will focus on these claims by looking at what has been discovered about the capability of humans to behave ethically on the battlefield, and then comparing those findings with the claims made by robotics researchers that their machines are able to behave more ethically on the battlefield than human soldiers. Throughout the paper we will explore the philosophical critique of this claim and also look at how the robots of today are impacting our ability to fight wars in a just manner.     

Has the Internet accelerated the diffusion of new products?

In this paper we measure the effect of Internet adoption on consumers’ propensity to adopt a wide range of diffusing products. To do this, we utilize a rich panel of household surveys on purchases of relatively new technology products. Our results indicate that the Internet accelerates product diffusion, but with varying magnitude. In an attempt to determine the mechanisms underlying this effect, we find direct evidence that the Internet does not increase product awareness. However, we find suggestive evidence that the Internet increases adoption rates both through access to increased information about new products (via online research) and through online shopping. We also find that the magnitude of the Internet's effect is strongly tied to diffusion rates, and especially familiarity rates. This finding is consistent with Internet access having the greatest impact on the adoption of products with more developed marketing strategies (i.e., more developed information sources and online markets). Our findings indicate that the Internet helps bolster demand for products early in their diffusion process, and they suggest that improved access to information and the convenience of online shopping are likely the primary drivers of this effect. Consequently, to the extent that accelerated diffusion of new products is (on net) desirable, our findings may provide a further argument toward social promotion of Internet adoption.     

Has the Bayh-Dole act compromised basic research?

We examine three hypotheses regarding the effects of the Bayh-Dole Act on research effort of faculty. The first hypothesis we call the status quo hypothesis and it asserts that there has been no effect on research profiles. The second hypothesis, which we call the negative hypothesis, asserts that faculty have been diverted from their traditional role in basic research toward research with more commercial potential. Our final hypothesis is derived from prior theoretical work that suggests that both basic and applied research is greater when faculty can benefit from commercialization of their research effort; we refer to this as the positive hypothesis. The data we examine are the research and invention disclosure of faculty at 8 US universities over the period 1983–1999. Using a citation based measure of basic research publications we relate basic research effort to invention disclosures. Our findings are clear in that they do not show any support for the negative hypothesis and they show substantially greater support for the positive hypothesis than for the status quo hypothesis.     

Has Ali dissolved the gamer’s dilemma?

In this paper I will evaluate Ali’s dissolution of the gamer’s dilemma. To this end the dilemma will be summarized and Ali’s dissolution formulated. I conclude that Ali has not dissolved the dilemma (at least not fully).     

Has Bartel resolved the gamer’s dilemma?

In this paper we consider whether Christopher Bartel has resolved the gamer’s dilemma. The gamer’s dilemma highlights a discrepancy in our moral judgements about the permissibility of performing certain actions in computer games. Many gamers have the intuition that virtual murder is permissible in computer games, whereas virtual paedophilia is not. Yet finding a relevant moral distinction to ground such intuitions can be difficult. Bartel suggests a relevant moral distinction may turn on the notion that virtual paedophilia harms women in a way that virtual murder does not. We argue that this distinction is only in a position to provide a partial solution to the dilemma.     

Do subsidiaries of foreign MNEs invest more in R&D than domestic firms?

Despite the growing involvement of multinational enterprises (MNEs) in foreign-based research and development (R&D), there has been little research comparing R&D investments of subsidiaries of foreign MNEs to domestic firms. Subsidiaries of foreign MNEs enjoy advantages that help them compete against domestic firms. However, when deciding on R&D investments, these advantages exert competing influences on their R&D investment decision. On the one hand, better access to and transfer of knowledge and technologies from the MNE and other subsidiaries and centers of excellence may encourage the subsidiary of a foreign MNE to invest less in R&D relative to a domestic firm. On the other hand, better access to sources of capital through the MNE and other subsidiaries may induce the subsidiary to invest more in R&D in comparison to domestic firms. We find that subsidiaries of foreign MNEs invest less in total R&D than domestic firms. The reason is that they invest less in external R&D than domestic firms; however, they have similar internal R&D investments compared to domestic firms. These findings support the notion that the transfer of technology and knowledge from other parts of the MNE acts as a substitute for the purchase of external R&D while internal R&D acts as a complement to the technology and knowledge transferred from other parts of the MNE.     

Style and substance in psychology: are influential articles more readable than less influential ones?

The results from four studies are reported separately to test the idea that influential articles in psychology will be more readable than less influential ones. This idea is upheld when the papers involved are ones that have been highly rated by fellow colleagues (Studies 1 and 2) but it is not supported when the papers involved are highly-cited journal articles (Studies 3 and 4).     

Towards privatized social and employment protections in the platform economy? Evidence from the UK courier sector

Platform capitalism has facilitated the widespread replacement of employment contracts with contracts for services. These offer significantly fewer social and employment protections for the independent contractors engaged. What does this mean for the future of national social and employment protection (SEPs) systems? We show how the question of platform workers’ employment status – and therefore access to SEPs – remain unresolved under UK law. Drawing on socio-legal theory, we demonstrate why digital labor platforms represent a challenge to existing modes of employment law and labor market regulation. In the absence of immediate legal ‘fixes’, some unions and firms are innovating new ‘privatized social protection systems’. A ‘Self-Employed Plus’ (SE+) agreement in the UK parcel courier sector developed between Hermes, a UK-based courier service, and the GMB union represents an important example of such attempts being made to bridge the current regulatory void. We critically analyze the agreement and draw lessons for platform governance theory. We demonstrate that privatized SE+ provisions potentially offer significant benefits for platforms by reducing regulatory oversight, boosting productivity, and enhancing managerial control over platform complementors. At the same time, while they risk undermining national SEP systems and degrading worker protections, they also offer a window of opportunity for trade unions to gain a foothold in the platform economy.     

The rich or the poor? Personal resources,do-it-yourself,and innovation in the household sector

Household sector innovation is significant in scale and scope. Thus far, it has been studied in isolation and with mixed evidence regarding the role of personal resources (consumers' income and discretionary time). We recognize that household sector innovation is embedded in the broader phenomenon of do-it-yourself (DIY) by consumers, as the literature reveals conceptual similarities, parallel motivations, and antecedents. The main distinction is that, whereas DIY goods may replicate existing products, household sector innovation is restricted to goods embodying a novel function. We explore if studying household sector innovation and DIY in an integrated framework helps to resolve previous inconsistent evidence on the role of personal resources. Based on a neoclassical model in which agents optimize their time allocation, we hypothesize that income and discretionary time positively relate to their DIY output, but—given that agents develop DIY goods—we hypothesize that income negatively relates to innovation. For discretionary time, we formulate a research question regarding its effect on innovation which we answer empirically. Our findings suggest that consumers with more personal resources derive more process benefits from DIY but that these benefits crowd out individuals' focus on the function of their objects, hence, the likelihood of developing innovations. Survey data from the United Arab Emirates (n = 2728) confirm our suppositions, showing that the relationship between personal resources and household sector innovation is more refined than suggested by previous studies.     

Varieties of innovation and business survival: Does pursuit of incremental or far-ranging innovation make manufacturing establishments more resilient?

The transition from an industrial economy to an innovation economy poses two critical questions for the manufacturing sector in advanced countries. First, given the diffusion of modern manufacturing practices around the world, what level of innovation (incremental, more far-ranging, or radical) is most likely to support a resilient domestic manufacturing sector? Second, are assumed differences in the innovative capacity across space likely to hasten the decline of rural manufacturing? To answer these questions this research combines comprehensive measures of self-reported innovation able to reliably differentiate incremental and more far-ranging innovation with establishment-level data able to examine the geographical distribution of these different innovation strategies. The data used for the analysis includes a two-period panel of manufacturing establishments surveyed in 1996 and 2013 with annual employment data indicating survival in the intervening years. Our findings suggest that long-surviving manufacturing plants overwhelmingly gravitate away from non-innovation strategies toward incremental or more far-ranging innovation orientations. A survival advantage of far-ranging innovation over incremental innovation is observed for standalone firms. We do not identify a difference in the innovation orientations of rural and urban manufacturing establishments.     

Are patents signals for the IPO market? An EU–US comparison for the software industry

This study investigates empirically whether patents can be signals to financial markets, thus reducing problems of asymmetric information. In particular we study how patenting behaviour impacts on the way investors perceive software firms’ growth potential through an increase in the amount invested at the initial public offering (IPO) of firms in the US and Europe. This study performs regressions on the relationship of patent applications before IPO and the amount of money collected at the IPO, while controlling other factors that may influence IPO performance. We also attempt to account for a potential source of endogeneity problems that can arise for self-selection bias and simultaneity between the number of patent applications prior to going public and the amount of money collected at IPO. We find significant and robust positive correlations between patent applications and IPO performance. The signalling power of patenting is significantly different for US and European companies, and is related to the difficulty in obtaining a signal and its scarcity. An additional patent application prior to IPO increases IPO proceeds by about 0.507% and 1.13% for US and European companies, respectively. Results suggest that a less ‘applicant friendly’ patenting system increases the credibility of patents as signals and their value for IPO investors.     

Batman forever? The role of trademarks for reuse in the US comics industry

We study how trademarks affect reuse of creative works in the comics industry. As a creative industry, the comics industry systematically relies on copyrights. But trademark protection can also be exploited to generate income from the reuse of comic characters or to strategically exclude others from reuse. Our unique data set combines US trademark records of comic characters with information on reuse in print media and franchise products from 1990 to 2017. We find that, on average, additional trademark protection is associated with a reduction in reuse in printed comic books of about 19%. We highlight three mechanisms: first, the negative relationship between trademarking and reuse has been especially pronounced since the early 2000s, when the arrival of digital technologies lowered the costs of entry, promotion, and distribution. Second, our results are driven by less reuse by third parties, not trademark holders. Third, reuse is higher when trademark owners license comic characters to third parties. The negative association between trademarking and reuse carries over to franchise products, but it is weaker and tied to the era of digitization, with a 2% decline in reuse in franchise movies and 9% lower reuse in video games.     

The anatomy of a troll? Patent licensing business models in the light of patent reassignment data

We examine patent licensing business models of non-practicing entities that generate revenue by selling, licensing, or litigating patents. They may also pursue R&D activities, invent new technologies, or provide services to inventors or product companies. We describe their business models and patent market behavior and then compare their litigation strategies against product companies using a matched sample of highly comparable patents. The main differences among patent licensing firms stem from their technological capabilities, patent portfolio sizes, and external relationships. We find that licensing firms with technological capabilities often pursue litigation until decision and engage in forum shopping. In contrast, litigation incidence, parties involved, and outcomes are primarily determined by patent characteristics, not entity types. Licensing business models drive the acquisition of certain types of patents that influence the outcomes of the patent system. We argue that patent policy should strengthen mechanisms to discover invention quality rather than focus on the amount of litigation or types of entities.     

Does the review deserve more helpfulness when its title resembles the content? Locating helpful reviews by text mining

Online review helpfulness has always sparked a heated discussion among academics and practitioners. Despite the fact that research has extensively examined the impacts of review title and content on perceptions of online review helpfulness, the underlying mechanism of how the similarities between a review' title and content may affect review helpfulness has been rarely explored. Based on mere exposure theory, a research model reflecting the influences of title-content similarity and sentiment consistency on review helpfulness was developed and empirically examined by using data collected from 127,547 product reviews on Amazon.com. The TF-IDF and the cosine of similarity were used for measuring the text similarity between review title and review content, and the Tobit model was used for regression analysis. The results showed that the title-content similarity positively affected review helpfulness. In addition, the positive effect of title-content similarity on review helpfulness is increased when the title-content sentiment consistency is high. The title sentiment also negatively moderates the impact of the title-content similarity on review helpfulness. The present research can help online retailers identify the most helpful reviews and, thus, reduce consumers' search costs as well as assist reviewers in contributing more valuable online reviews.     

Separating patent wheat from chaff: Would the US benefit from adopting patent post-grant review?

This article assesses the impact in the US of adopting a patent post-grant review (PGR) procedure similar to one provided in the America Invents Act (AIA) of 2011. We employ novel methods for matching US patents to their European counterparts to find that opposition rates are about three times higher among European Patent Office (EPO) equivalents of US litigated patents as against control-group (unlitigated) patents. Contingent on reaching a final judgment in EPO post-grant opposition, we find that about 70% of these equivalents have challenged claims that are either completely revoked or amended. Using our empirical findings to inform a series of welfare estimates, we calculate benefit-to-cost ratios that the US may expect from implementing PGR in the range of 4:1–10:1. We also discover that these large social benefits result primarily from eliminating unwarranted market power in the current stock of granted patents, and much less so from litigation cost savings per se. Our results provide evidence that the US may benefit substantially from adopting the AIA post-grant review, but only provided that costs are controlled and that administration and appeals are not allowed to become too costly.