Novelty-seeking traits and applied research activities

ABSTRACT

We examine the country-level relationship between novelty-seeking traits and applied research activities. Using DRD4 exon III allele frequencies (DRD4) to proxy for the former and per capita patent applications and grants to proxy for the latter, we find a negative relationship between the two. Our results complement the findings of recent studies about the relationship between novelty-seeking traits, innovation and comparative economic development.

KEYWORDS:

• Novelty-seeking traits
• DRD4
• innovation
• applied research
• patent applications

JEL CLASSIFICATION:

• O40
• Z10

Acknowledgements

This study is conducted as part of a research project, Evidence-based Policy Study on the Law and Economics of Market Quality, undertaken by the Research Institute of Economy, Trade and Industry (RIETI). An earlier version of this paper was part of RIETI Discussion Paper Series 18-E-073. The authors would like to thank Erkan Gören for kindly sharing his data in Gören (2017). They are also grateful to Taro Akiyama, Tomohiro Ara, Martine Carré-Tallon, Nicola Coniglio, Mario Curucini, Erkan Gören, Gene Grossman, Makoto Hanazono, Tomoya Hanibuchi, Keisaku Higashida, Takeo Hori, Mitsuhide Hoshino, Kenta Ikeuchi, Jun-ichi Itaya, Arata Ito, Takashi Kamihigashi, Yoshimasa Komoriya, Keisuke Kondo, Sung-Ho Lee, Ryo Makioka, Junya Masuda, Kiyoshi Matsubara, Koyo Miyoshi, Akira Momota, Masayuki Morikawa, Hiroshi Mukunoki, Takumi Naito, Kenta Nakamura, Masao Oda, Ryoji Ohdoi, Yuka Ohno, Masayuki Okawa, Rui Ota, Pascalis Raimondos, Yoko Sakamoto, Yoichi Sugita, Takaji Suzuki, Yasuhiro Takarada, Yasuo Takatsuki, Yoshihiro Tomaru, Yoshiaki Usui, Annalisa Vinella, Akihiko Yanase, Makoto Yano and the conference/seminar/meeting participants at Economic Theory and Policy Workshop, Fukushima Economics Workshop 2018, Chonnam National University, Copenhagen Business School, Dosisha University (Goshokita Seminar), 2015/2017 IEFS Japan Annual Meeting, IÉSEG School of Management, Japan Patent Office, Paris-Dauphine University, RIETI (Discussion Paper Seminar), Sophia University, University of Bari, University of Porto and Yokohama National University for their helpful comments and support. Yuichi Furukawa acknowledges the partial financial support from a Research Grant Program ofthe Toyota Foundation, JSPS Grant-in-Aids for Scientific Research (C) #18K01522 and for Scientific Research (B) #16H03612, and RIETI. Kenji Sato acknowledges the partial financial support of a Grant-in-Aid for JSPS Research Fellow and a JSPS Grant-in-Aid for Scientific Research (C) \#16K03552.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ Note that WIPO provides breakdowns by (1) residents of the country, (2) non-residents of the country and (3) applicants’ origins. We use the third one to construct our measures.

² Our main results are similar when we use different ‘time lags’ between $AppliedResearc{h}_c$ and $X_c$.

³ For the detailed definitions of these variables, see Bénabou, Ticchi, and Vindigni (2016) and Gören (2017, 2018).

⁴ See Gören (2017, 2018) for further discussions about the motivations of using these variables and fixed-effects.

⁵ In unreported analyses, we also use the other biogeographic variables used by Gören (2017) as additional instruments. While the coefficient estimates are similar, the $F$-statistics for weak identifications for these regressions are all below 10 so that weak identification could be an issue. Therefore, these results are not reported.

⁶ See also Furukawa, Lai, and Sato (2018, 2019), who offer a new theory that explains the ambiguous role of what they call ‘love of novelty’ in innovation and innovation-based growth.

Additional information

Funding

This work was supported by the Japan Society for the Promotion of Science [Grant-in-Aids for Scientific Research (C) 16K03552; #18K0152, Grant-in-Aidsfor Scientific Research (B) #16H03612]; RIETI; Toyota Foundation [Research Grant Program D17-R-0088].