nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒02‒22
twenty-six papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The role of universities in the location of innovative start-upsa By Giorgio Calacagnini; Ilario Favaretto; Germana Giombini; Francesco Perugini; Rosalba Rombaldoni
  2. Knowledge base combinations and innovation performance in Swedish regions By Grillitsch, Markus; Martin, Roman; Srholec, Martin
  3. Imitate, or innovate and collaborate? On innovation strategy choices in the urban economy By Herstad, Sverre J.
  4. Competitiveness and Clusters: Implications for a New European Growth Strategy By Christian Ketels
  5. The dark side of R&D collaborations By Enrico Guzzini; Donato Iacobucci
  6. Layers of co-existing innovation systems By Johannes Meuer; Christian Rupietta; Uschi Backes-Gellner
  7. Proximity, knowledge base and the innovation process The case of Unilever’s Becel diet margarine By Davids, Mila; Frenken, Koen
  8. On the Failure of R&D Projects By Link, Albert; Wright, Mike
  9. Economic Growth, Patent Race, and the Distribution of R&D Firms By Tetsugen Haruyama
  10. Networks and Manufacturing Fims in Africa: Results from a Randomized Field Experiment By Marcel Fafchamps; Simon Quinn
  11. The Global Effects of R&D Tax Incentives: Evidence from Micro-Data By Knoll, Bodo; Baumann, Martina; Riedel, Nadine
  12. Governance, Firm Size and Innovative Capacity: Regional Empirical Evidence for Germany By Jahn, Vera; Berlemann, Michael
  13. The Online Supplement to “International R&D Spillovers and other Unobserved Common Spillovers and Shocks” By Ruge-Leiva, Diego-Ivan
  14. How much does ICT contribute to innovation output? An analysis of the ICT component in the innovation output indicator By Annarosa Pesole
  15. Outside directors on the board, competition and innovation By Buchwald, Achim; Thorwarth, Susanne
  16. Innovative Strategies in Higher Education for Accelerated Human Resource Development in South Asia By Asian Development Bank (ADB); ; ;
  17. Entrepreneurial Saving Practices and Reinvestment: Theory and Evidence from Tanzanian MSEs By Thorsten Beck; Haki Pamuk; Burak R Uras
  18. Human capital, basic research, and applied research: three dimensions of human knowledge and their differential growth effects By Werner, Katharina; Prettner, Klaus
  19. Subsidized Start-Ups out of Unemployment: A Comparison to Regular Business Start-Ups By Caliendo, Marco; Hogenacker, Jens; Künn, Steffen; Wießner, Frank
  20. Research-driven clusters & green mobility: A cross-regional comparison By David, Alexandra; Terstriep, Judith; Welschhoff, Jessica
  21. The impact of market innovations on the evolution of norms: the sustainability case By Müller, Stephan; von Wangenheim, Georg
  22. What is an emerging technology? By Daniele Rotolo; Diana Hicks; Ben Martin
  23. The Impact of the Oil Boom on Canada's Labour Productivity Performance By Andrew Sharpe; Bert Waslander
  24. Measuring the determinants of backward linkages from FDI in developing economies : is it a matter of size ? By Sanchez-Martin, Miguel Eduardo; de Pinies, Jaime; Antoine, Kassia
  25. Skills, Tasks and Talent Shortages in a Global Economy By Koch, Michael
  26. Agricultural Technology and Structural Change By Markus Eberhardt; Dietrich Vollrath

  1. By: Giorgio Calacagnini (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Ilario Favaretto (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Germana Giombini (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Francesco Perugini (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Rosalba Rombaldoni (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: Start-ups increasingly find the prospect of university-industry collaborations to be a powerful driver of innovation and entrepreneurship activity. Moreover, at the geographical level, they are attracted by teaching and research institutions, either public or private. This paper focuses on the role played by universities. Our hypothesis is that geographical proximity favors the transfer of knowledge and technology from universities to industries and, consequently, represents a positive factor for regional economic development. Results show that university spillovers are positively correlated with the creation of innovative start-ups. Furthermore, the presence of human capital (graduates) exerts a significant influence on the location decisions of start-ups, being a source for competitiveness for firms close to universities. Research quality, especially in the social sciences area, attracts innovative start-ups, while third-mission activities have a weak impact on locational choice.
    Keywords: CKnowledge transfer, Innovative start-up, University spillovers
    JEL: M13 L20 R30
    Date: 2014
  2. By: Grillitsch, Markus (CIRCLE, Lund University); Martin, Roman (CIRCLE, Lund University); Srholec, Martin (CIRCLE, Lund University & CERGE-EI, Charles University and Economics Institute of the Academy of Sciences of the Czech Republic)
    Abstract: The literature on geography of innovation suggests that innovation outcomes depend on the type of knowledge base employed by firms. While knowledge bases are distinct categories with regards to the nature and the rational of knowledge creation, existing studies also stress that innovation usually involves more than one knowledge base. In fact, new ideas often occur when analytical, synthetic and symbolic knowledge intertwines. It remains unclear, though, which combinations of knowledge bases are most conducive to innovation at the level of the firm, and how this is influenced by the knowledge bases available in the regional milieu. Therefore the contribution of this paper is threefold: i) to measure knowledge bases of firms and their regional heterogeneity in a more comprehensive way than the existing empirical literature has been able to do so far, ii) to quantitatively assess the impact of combinations of knowledge bases on innovation output, iii) to analyze the interplay between firm- and region-level knowledge bases (and combinations thereof) in generating innovations. Empirically, the paper applies econometric analysis on firm- and region-level data from Sweden. The knowledge base of firms is captured using detailed occupational data derived from linked employer-employee datasets that is merged at the firm-level with information from Community Innovation Surveys. The empirical analysis reveals in a quantitative way the extent to which the knowledge base combinations affect innovativeness of firms.
    Keywords: Knowledge bases; knowledge combination; regions; innovation performance; microdata; cross-level interaction; Sweden
    JEL: O30 O31 R10
    Date: 2015–02–08
  3. By: Herstad, Sverre J. (NIFU Nordic Institute for Studies in Innovation, Research and Education)
    Abstract: This paper explores how the innovation strategies of firms reflect the density, diversity and connectivity of their urban locations. Firms located outside the four large-city regions of Norway are generally more committed to development work than are their urban counterparts. Still, once engaged, firms in certain large-city locations exhibit unique preferences towards geographically dispersed collaboration that are most pronounced within the Western business district of the Capital. This shows that firm-level decisions along interconnected activity dimensions must be considered in order for different strategy choices, and the interdependencies between them that are an essential feature of urban economies, are to be revealed. The study provides new insights into the large-city region knowledge dynamics that are increasingly important to human capital formation, employment and growth.
    Keywords: urbanization; innovation; collaboration; knowledge dynamics; Norway
    JEL: O31 O33 R11
    Date: 2015–02–15
  4. By: Christian Ketels
    Abstract: This paper develops policy recommendations on the use of cluster-based economic policies and the adoption of a new concept of competitiveness in the context of the new growth path that WWWforEurope aims to outline. A first section discusses summarizes key findings from the previous research papers on the role of clusters in the New Growth Path (MS47) and on a new concept of competitiveness that embeds beyond-GDP objectives (MS46). It then extends this work by deriving an initial set of policy implications from this research. For clusters, these implications address both general practices of cluster-based economic development and specific issues related to the use of cluster-based concepts in a transition to a New Growth path. For competitiveness, it specifically discusses the new concept of competitiveness proposed in MS46 and the notion of trade-offs among different dimensions of performance in this new concept. The second section of the paper explores the ways in which beyond-GDP objectives have been integrated into the current practice of cluster-based economic development efforts across Europe. It is based on interviews with policy makers and cluster initiatives as well as the review of relevant policy documents. For cluster programmes, i.e. the policy actions implemented by government, the paper organizes the existing efforts into three categories, differentiated by the extent to which beyond-GDP categories drive the activities supported. For cluster initiatives, i.e. the collaborative efforts by private-public groups focused on enhancing the competitiveness of a specific regional cluster, the existence of a market and the need for systemic changes are identified as key factors that drive the adoptation of beyond-GDP objectives. There is also a discussion of the relevant scope of the activities in beyond-GDP related efforts relative to existing cluster categories. The third section analysis the Europe 2020 Strategy, including its objectives, quantiative performance indicators, and the European Semester as a policy review process, from the perspective of the new definition of competitiveness proposed in MS46. After exploring whether the objectives of the strategy and the new definition of competitiveness are compatible it looks at their ability to drive an effective and transparent policy process towards policies consistend with a New Growth Path. The final section then develops five policy conclusions from the prior analysis. Three are focused on the use of cluster-based economic development tools as instruments to achieve beyond-GDP objectives. The recommendations deal both with the way cluster-based tools can be used and with how they should be structured. Two of the conclusions are focused on the Europe 2020 strategy process. They deal with the need for a shared, explicit definition of competitiveness, proposing the definition developed in MS46 as a candidate. And they deal with creating a more transparent policy process that more clearly separates political decisions from analytical evaluations.
    Keywords: Beyond GDP, Clusters, Competitiveness, Ecological innovation, Economic strategy, European economic policy, European governance, Industrial policy, Innovation policy
    JEL: D04 I31 O25 O44 O52 Q58
    Date: 2015–02
  5. By: Enrico Guzzini (Università degli Studi eCampus); Donato Iacobucci (Università Politecnica delle Marche)
    Abstract: Collaboration with firms and public research institutions (PRI) is expected to raise the innovative performance of firms. Collaboration is also likely to increase the cost of innovation because of leakages of strategic information, appropriability and coordination problems. When collaborating with PRI the latter problem is expected to be stronger thus raising the probability of project failure. The aim of this paper is to investigate if and to what extent collaboration in R&D projects raises the probability of failure: i.e. abandoning or delaying innovative projects. It also aims at verifying if and to what extent the collaboration with PRI increases the likelihood of failure. We use data from the fourth Italian Community Innovation Survey (CIS 4) which collected data for the three-year period 2002-2004. The empirical results support the hypothesis that collaboration significantly impacts the probability of abandoning or delaying innovative projects, thus raising the cost of innovation. Collaboration with PRI does not raise the likelihood of failure more than what observed for the collaboration with other partners. Moreover, delaying is influenced by cost factors (such as the lack of financial resources) and knowledge factors (such as the lack of qualified personnel); abandonment is significantly associated with market factors (such as uncertain demand).
    Keywords: R&D collaboration; project failure; public research institutions
    JEL: O32 L14
    Date: 2014–12
  6. By: Johannes Meuer (Department of Business Administration, University of Zurich); Christian Rupietta (Department of Business Administration, University of Zurich); Uschi Backes-Gellner (Department of Business Administration, University of Zurich)
    Abstract: The innovation systems approach, which has taken a prominent position in the academic literature, has also influenced policy-makers around the globe. Most research analyses innovation systems taking a national, regional or sectoral perspective, following a 'technological imperative'. Yet changes in institutional conditions and the importance of non-technological innovation question the accuracy and the relevance of the existing boundaries of innovation systems. These developments ask for a better understanding of how innovation systems integrate within and across different levels. Drawing on a novel combination of configurational and econometric analysis, we analyse 384 Swiss firms and identify five co-existing innovation systems: two generic innovation systems, the autarkic and the knowledge-internalisation; one regional innovation system, the protected hierarchy; and two sectoral innovation systems, the public sciences and the organised learning. The generic innovation systems entail the 'Science, Technology and Innovation' (STI) and the 'Doing, Interacting and Using' (DUI) learning modes. These systems are structurally distinct and do not integrate. In contrast, all regional and sectoral innovation systems integrate the learning modes of the generic innovation systems and complement them with idiosyncratic elements. The perspective on co-existing innovation systems that we develop here indicates the existence of two layers of innovation systems: a 'central' layer that hosts generic innovation systems and that constitutes the foundation for a second 'surface' layer that hosts regional and sectoral innovation systems. We discuss the implications of layers of co-existing innovation systems for policy-makers and future research.
    Keywords: Innovation systems, technological and organisational innovation, firms' learning behaviour, institutional frameworks, fsQCA, SUR model
    Date: 2015–01
  7. By: Davids, Mila (School of Innovation Sciences, Eindhoven University of Technology); Frenken, Koen (Innovation Studies, Copernicus Institute of Sustainable Development, Utrecht University & CIRCLE, Lund University)
    Abstract: The proximity concept refers to types of inter-organizational relationships that are expected to facilitate interactive learning and collaborative innovation. Different forms of proximity include geographical, cognitive, social, institutional and organizational proximity. Following an extensive case study of a new diet margarine developed by Unilever, we extent the proximity framework by theorizing how the relative importance of each proximity dimension depends on the type of knowledge being produced, where we distinguish between analytical, synthetic and symbolic knowledge. We argue that our theoretical framework in principle applies to product innovations in all science-based industries.
    Keywords: innovation; proximity; knowledge; science-based industries; multinational enterprise; management
    JEL: F23 L66 N30 O31 O32
    Date: 2015–02–15
  8. By: Link, Albert (University of North Carolina at Greensboro, Department of Economics); Wright, Mike (Imperial College and University of Ghent)
    Abstract: There is an extensive literature on the success/failure of firm-funded R&D projects but growing policy interest focuses on publicly-funded R&D projects. Using data from 1,878 Phase II R&D projects funded through the U.S. Small Business Innovation Research (SBIR) program, of which 624 had been discontinued prior to technical completion, we provide for the first time findings on the success/failure of publicly-funded firm-performed R&D projects. We find that prior R&D experience with the technology being funded by SBIR projects, the amount of the SBIR award, and having a female PI, other factors held constant, is negatively related to the probability of project failure. In contrast, firm size is positively associated with project failure. We discuss the implications of these findings for practice, policy, and further research.
    Keywords: R&D; project failure; innovation; SBIR; public sector
    JEL: L26 O31 O32 O33
    Date: 2015–02–16
  9. By: Tetsugen Haruyama (Graduate School of Economics, Kobe University)
    Abstract: The paper constructs a general equilibrium model model where the rate of technical progress and the distribution of R&D expenditure by heterogeneous research firms are simultaneously determined. Using the model, we explore the effects of the following policy measures on those two endogenous variables: (i) subsidies to flow variable R&D costs, (ii) subsidies to flow fixed R&D costs, (iii) an increase in entrant firms into a series of patent races, and (iv) an increase in the supply of human capital as inputs to R&D. Contrasting results are demonstrated. For example, subsidies to flow variable R&D costs promote technical progress and induce the exit of R&D firms with low R&D productivity. That is, the policy accelerates technological progress through R&D by "elite" firms. On the other hand, the opposite result holds if subsidies are applied to flow fixed R&D costs.
    Keywords: R&D, Patent race, technical progress, heterogeneous firms, firm distribution
    Date: 2015–01
  10. By: Marcel Fafchamps; Simon Quinn
    Abstract: We run a novel field experiment to link managers of African manufacturing firms.  The experiment features exogenous link formation, exogenous seeding of information and exogenous assignment to treatment and placebo.  We study the impact of the experiment on firm business practices outside of the lab.  We find that the experiment successfully created new variation in social networks.  We find some limited evidence of diffusion of management practices, particularly in terms of firm formalisation and innovation.  Such diffusion appears to be a combination of diffusion of innovation and simple imitation.
    JEL: D22 L26 O33
    Date: 2014–06–19
  11. By: Knoll, Bodo; Baumann, Martina; Riedel, Nadine
    Abstract: Recent years have seen an unprecedented increase in the provision of R&D tax incentives. A growing empirical literature suggests that R&D tax incentives are instrumental in raising domestic R&D activity. In policy debates this fi nding is often interpreted to lend support to the notion that R&D tax incentives increase national welfare by internalizing knowledge spillovers to other agents in the economy and raising ineffi ciently low R&D levels. Our paper stresses that much of the observed increase in R&D activities in response to R&D tax incentives is in fact related to R&D activities that are attracted from abroad. Using unique panel data on R&D activities of European multinational fi rms, we test for a potential impact of both, R&D tax incentives in the affi liate's host country and R&D tax incentives at other locations of the multinational group. In line with theoretical predictions, we fi nd a positive impact of domestic R&D subsidies and a negative one for foreign subsidies provided at other group locations. Quantitatively, the fi ndings suggest that around 80% of the observed increase in R&D activities is related to relocations of R&D across country borders.
    JEL: H25 H71 D62
    Date: 2014
  12. By: Jahn, Vera; Berlemann, Michael
    Abstract: Successful innovation is a precondition for economic prosperity. While various potential determinants of innovative activity have been considered, little empirical evidence is yet available for the influence of firm governance issues. This paper aims at filling this gap in the literature by studying whether the relative importance of owner-managed small and medium sized enterprises has an effect on regional innovative capacity. We therefore combine patent data with data from the firm database of Creditreform, containing information on the governance structure of regional operating enterprises. Using a cross section of German NUTS-3-regions, we identify a significantly positive relation between the relative importance of owner-managed SMEs and innovative capacity. This finding is highly robust when controlling for various sorts of spatial correlation.
    JEL: O31 C21 D23
    Date: 2014
  13. By: Ruge-Leiva, Diego-Ivan
    Abstract: This document provides a review of the literature on International R&D Spillovers and includes unit root test results, the additional results of static and dynamic models, plots of all series, Stata routines, and tables of the data collection on Gross Expenditure on R&D (GERD) as a percentage of GDP, as found in the study by Ruge-Leiva (2015) "International R&D Spillovers and other Unobserved Common Spillovers and Shocks.”
    Keywords: Productivity, Cross-Section Dependence, Unobserved Common Spillovers and Shocks.
    JEL: C23 C4 O11 O30
    Date: 2015–01–20
  14. By: Annarosa Pesole (European Commission – JRC - IPTS)
    Abstract: During the past years, the role of ICT as key driver and enabler of innovation has been widely recognized. The advent and development of ICT transformed the economy and the society in an evident way. However, what and how ICT contributes to this value creation process and its full potential remains hard to detect. There is a need for continuous monitoring of ICT impacts in order to provide policy makers with appropriate tools to define the right policies to seize ICT benefits. In light of this, a final aim for policy makers is to develop methodologies and tools to measure the performance of ICT innovation in Europe. This report analyses the ICT component within the newly released Innovation output indicator and provide additional informative background on the role and relation between ICT and innovation output.
    Keywords: ICT, innovation, Innovation Output Indicator, composite indicator
    Date: 2015–01
  15. By: Buchwald, Achim; Thorwarth, Susanne
    Abstract: We investigate the influence of non-executive outside directors on firms' innovative performance for a sample of 1,393 listed firms in the EU - 15 member states plus Norway and Switzerland in the period 2005 to 2010. Our results show that the fraction of non-executive outside directors on the board is associated with a significant decrease in the number of patent applications if competition in the market is low. This may indicate that restrictive monitoring and lower advising competences of outside directors mitigate executives' incentives to innovate. In industries with effective competition, the negative influence of outsiders is offset by the pressure to focus on innovation strategies.
    Keywords: Competition,Corporate Governance,Innovation,Patents,Board Composition,Outside Directors
    JEL: G34 L14 L25 M21 O31
    Date: 2015
  16. By: Asian Development Bank (ADB); (South Asia Department, ADB); ;
    Abstract: This publication highlights priorities and strategies in meeting current and emerging needs for skills development in South Asia. The report is in line with the Asian Development Bank’s effort to support its developing member countries’ priorities toward global competitiveness, increased productivity, and inclusive growth. It also identifies key issues, constraints and areas of improvement in making skills training more responsive to emerging labor market needs in South Asia as an important factor in sustaining high economic growth. The report was completed in 2012 under the Australian AID-supported Phase 1 of Subproject 11 (Innovative Strategies for Accelerated Human Resource Development) of RETA 6337 (Development Partnership Program for South Asia).
    Keywords: education, technical skills, vocational skills, labor market, gender inequality, human resources, human capital, innovation, knowledge, skills, human development index, secondary education, labor force, skilling, upskilling, TVET, skills development, training programs, higher education, youth, strategies and innovations, higher education
    Date: 2014–06
  17. By: Thorsten Beck; Haki Pamuk; Burak R Uras
    Abstract: What is the relationship between entrepreneurial saving practices and reinvestment?  We develop a model of entrepreneurial finance and show that entrepreneurial reinvestment decisions depend on the efficiency of saving practices.  Utilizing a novel micro & small enterprise survey from Tanzania we test the empirical implications of this theory.  We find (1) saving for business purposes and earnings reinvestment are positively related; (2) the practice of saving in a deposit account of a formal financial institution is more likely to facilitate a reinvestment compared to the practice of keeping savings within the household.  We also show that the negative impact of saving within-the-household on investment is more pronounced for family members with inherently low intra-household bargaining power - such as females and non-head household members.  Our work contributes to the recent debate on the implications of saving instruments in developing countries, and suggests informal saving practices as potential barriers to microenterprise performance.
    Keywords: Micro- and small enterprises, savings, reinvestment, Tanzania
    JEL: D14 G21 O12 O16
    Date: 2014–04–07
  18. By: Werner, Katharina; Prettner, Klaus
    Abstract: We analyze the di fferential growth e ffects of basic research, applied research, and embodied human capital accumulation in an R&D-based growth model with endogenous fertility and endogenous education. In line with the empirical evidence, our model allows for i) a negative association between long-run economic growth and population growth, ii) a positive association between long-run economic growth and education, and iii) a positive association between the level of per capita GDP and expenditures for basic research. Our results also indicate that raising public investments in basic research reduces the growth rate of GDP in the short run because resources have to be drawn away from other productive sectors of the economy. These short-run costs of basic research might be an explanation for the reluctance of governments to increase public R&D expenditures notwithstanding the long-run benefi ts of such a policy.
    JEL: O41 H41 J11
    Date: 2014
  19. By: Caliendo, Marco (University of Potsdam); Hogenacker, Jens (ConVista Consulting AG); Künn, Steffen (IZA); Wießner, Frank (Catholic University of Eichstätt)
    Abstract: Offering unemployed individuals a subsidy to become self-employed is a widespread active labor market policy strategy. Previous studies have illustrated its high effectiveness to help participants escaping unemployment and improving their labor market prospects compared to other unemployed individuals. However, the examination of start-up subsidies from a business perspective has only received little attention to date. Using a new dataset based on a survey allows us to compare subsidized start-ups out of unemployment with regular business founders, with respect to not only personal characteristics but also business outcomes. The results indicate that previously unemployed entrepreneurs face disadvantages in variables correlated with entrepreneurial ability and access to capital. 19 months after start-up, the subsidized businesses experience higher survival, but lag behind regular business founders in terms of income, business growth and innovation. Moreover, we show that expected deadweight losses related to start-up subsidies occur on a (much) lower scale than usually assumed.
    Keywords: innovation, deadweight effects, entrepreneurship, start-up subsidies, evaluation
    JEL: C14 L26 J68
    Date: 2015–01
  20. By: David, Alexandra; Terstriep, Judith; Welschhoff, Jessica
    Abstract: The improvement and sustainability of urban transport systems is a necessity for quality of life, wellbeing and safety of citizens. Germany, France, Norway, the UK, the Netherlands and Sweden are anticipated to be the top six European countries for Battery Electric Vehicles (BEVs) on the road in 2020. In total 4 regional and 24 national electromobility-related RTDI policy measures have been identified for Austria, Czech Republic, France, Hungary, Germany and Switzerland, comprising top-down and bottom-up initiatives. Research-driven clusters (RDCs) entail a high potential to stimulate electromobility-related RTDI activities at the regional level and increase the competitiveness of regional economies. Electromobility is expected to become a central topic in several regions. Hence, it is even more important for regions engaging in this field to specialise. "Smart Specialisation Strategies" (S3) can be viewed as promising approach for "specialised diversification" that exploits the economies derived from related variety.
    Date: 2015
  21. By: Müller, Stephan; von Wangenheim, Georg
    Abstract: That institutions matter is widely accepted among economists and so are social norms as an important category of informal institutions. Social norms matter in many economic situations, but in particular for markets. The economic literature has studied the interrelation between markets and social norms in both directions how social norms affect markets and how markets affect social norms. Starting from these two perspectives, we add to the literature, by suggesting a new link between product markets and the evolution of social norms: we analyze how the evolution of a social norm may be affected by a product innovation which adds to the variation of products with respect to their level of norm compliance. We derive necessary and sufficient conditions for a) a positive impact of the innovation on the level of norm adoption and b) for multiplicity of norm equilibria. Finally we discuss policy implications.
    JEL: A13 D02 D11
    Date: 2014
  22. By: Daniele Rotolo (SPRU, University of Sussex, UK; School of Public Policy, Georgia Institute of Technology, Atlanta, United States); Diana Hicks (School of Public Policy, Georgia Institute of Technology, Atlanta, United States); Ben Martin (SPRU, University of Sussex, UK; Centre for Science and Policy (CSAP) and Centre for Business Research, Judge Business School, University of Cambridge, Cambridge, UK)
    Abstract: Despite the growing interest around the emergence of novel technologies, especially from the policy-making perspective, there is still no consensus on what classifies a technology as ’emergent’. The present paper aims to fill this gap by developing a definition of ’emerging technologies’ and a framework for their detection and analysis. The definition is developed by combining a basic understanding of the term and in particular the concept of ’emergence’ with a review of key innovation studies dealing with definitional issues of technological emergence. The resulting definition identifies five attributes that feature in the emergence of novel technologies. These are: (i) radical novelty, (ii) relatively fast growth, (iii) coherence, (iv) prominent impact, and (v) uncertainty and ambiguity. The conceptual effort is then used to develop a framework for the operationalisation of the proposed attributes. To do so, we identify and review major empirical approaches (mainly in, although not limited to, the scientometric domain) for the detection and study of emerging technologies (these include indicators and trend analysis, citation analysis, co-word analysis, overlay mapping, and combinations thereof) and elaborate on how these can be used to operationalise the different attributes of emergence.
    Keywords: emerging technologies; conceptualisation; definition; operationalisation; scientometrics; indicators
    Date: 2015–02
  23. By: Andrew Sharpe; Bert Waslander
    Abstract: The objective of this report is to evaluate the impact of the oil and gas industry on labour productivity growth in Canada since 2000 through an exploration of the various channels, both direct and indirect, by which the oil and gas sector affects aggregate productivity. The report sheds light on the paradoxical lack of a direct negative contribution of the oil and gas sector to aggregate labour productivity growth despite the very large fall in productivity experienced by the sector. It highlights the divergent productivity growth paths for the oil and gas sectors in Alberta and Newfoundland and Labrador, which drove the aggregate productivity performance of these two provinces. The report also discusses how developments in the oil and gas industry, notably the increase in the price and production of petroleum, have affected productivity growth in other parts of the economy. It finds that the oil boom has had a substantial negative effect on the cost competitiveness of manufacturing by putting upward pressure on the value of the Canadian dollar – the so-called Dutch Disease. Counteracting this are positive effects associated with demand and incomes generated by the oil boom, as well as increases in spending on R&D and education by the major oil-producing provinces.
    Keywords: Canada, Oil Boom, Oil, Natural Gas, Energy Sector, Labour Productivity, Dutch Disease, Alberta, Newfoundland, Labrador, Oil and Gas Industry, Productivity Growth, Productivity
    JEL: J24 O47 O51 N72
    Date: 2014–12
  24. By: Sanchez-Martin, Miguel Eduardo; de Pinies, Jaime; Antoine, Kassia
    Abstract: The main focus of the paper is the measurement of the potential for externalities related to foreign direct investment. A series of novel proxies are drawn from the Enterprise Survey database of the World Bank-IFC and tested against hypotheses considered in the foreign direct investment literature. Using these proxies, an econometric assessment of the determinants of backward linkages in developing economies is presented. The results show that export-oriented foreign direct investment, wholly owned subsidiaries (as opposed to joint ventures), and foreign owned firms relying on foreign technologies are less likely to develop links with domestic companies. In addition, the analysis finds that some sectors (food, wood, auto, and auto-parts) are more prone than others (textiles and electronics) in developing backward linkages. Apart from the type of foreign direct investment and sector-specific characteristics, the size of the host economy matters. Foreign owned subsidiaries in most service oriented Caribbean islands buy a low percentage of inputs from domestic firms. This may be because in small islands there are not enough local suppliers with sufficient quality and capacity to meet the demands of multinationals. However, the paper presents the case of the Dominican Republic, the largest economy in the Caribbean, which has struggled to develop backward linkages because of the relative isolation of special economic zones from the rest of the economy.
    Keywords: Foreign Direct Investment,Economic Theory&Research,Banks&Banking Reform,E-Business,Microfinance
    Date: 2015–01–01
  25. By: Koch, Michael
    Abstract: This paper sets up a heterogeneous firms model, where production consists of a continuum of tasks that differ in complexity. Firms hire low-skilled and high-skilled workers to perform these tasks. How firms assign workers to tasks depends on factor prices for the two skill types and the productivity advantage of high-skilled workers in the performance of complex tasks. I study the firms assignment problem under two labor market regimes, which capture the polar cases of fully flexible wages and a binding minimum wage for low-skilled workers. Since the minimum wage lowers the skill premium, it reduces the range of tasks performed by high-skilled workers, which increases firm-level productivity and reduces the mass of active firms. Whereas trade does not affect the firm-internal assignment of workers to tasks, it reduces the range of tasks produced by high-skilled workers within firms and thereby lowers firm-level productivity, if low-skilled wages are fixed by a minimum wage. In this case trade leads to higher per-capita income for both skill types and thus to higher welfare in the open than in the closed economy, whereas inequality between the two skill types decreases.
    JEL: F12 F16 F10
    Date: 2014
  26. By: Markus Eberhardt; Dietrich Vollrath
    Abstract: Using data for 128 countries we document low (high) elasticities of agricultural output with respect to labor in economies within temperate (tropical/highland) climate zones.  Adopting a standard model of structural change we show that this technology heterogeneity determines the speed of structural transformation following changes in agricultural productivity and population size.  Calibration exercises document shifts in sectoral labor allocation and living standards 2-3 times larger in temperate than in otherwise identical equatorial/highland regions for a given productivity shock.  Eliminating technology heterogeneity can account for up to one-fifth of the observed differences in aggregate income per capita across countries.
    Keywords: agricultural development, technology heterogeneity, agro-climatic environment, structural change
    JEL: O47 O11 C23
    Date: 2014–06–03

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