nep-ino New Economics Papers
on Innovation
Issue of 2015‒07‒04
forty-five papers chosen by
Uwe Cantner
University of Jena

  1. The impact of R&D subsidy on innovation: a study of New Zealand firms By Adam Jaffe; Trinh Le
  2. Patent Boxes Design, Patents Location and Local R&D By Alstadsaeter, Annette; Barrios, Salvador; Nicodème, Gaëtan; Skonieczna, Agnieszka Maria; Vezzani, Antonio
  3. Unraveling the R&D-Innovation-Productivity relationship - a study of an academic endavour By Broström , Anders; Karlsson, Staffan
  4. Measuring environmental innovation using patent data By Ivan Haščič; Mauro Migotto
  5. Work Force Composition and Innovation: How Diversity in Employees’ Ethnical and Disciplinary Backgrounds Facilitates Knowledge Re-combination By Mohammadi, Ali; Broström, Anders; Franzoni, Chiara
  6. The capability of the EU R&D Scoreboard companies to develop Advanced Manufacturing Technologies. An assessment based on patent analysis By Petros Gkotsis
  7. Local innovation and global value chains in developing countries By De Marchi V.; Giuliani E.; Rabellotti R.
  8. User-technology interactions in the construction of user-driven configurations – lessons from Dutch civic energy communities By Wouter Boon; Gerben de Vries; Alexander Peine
  9. Working Paper 05-15 - Evaluation of federal tax incentives for private R&D in Belgium: An update By Michel Dumont
  10. Social Rate of Return to R&D on Various Energy Technologies: Where Should We Invest More? A Study of G7 Countries. By Roula Inglesi-Lotz
  11. The State of science and innovation in Russia in 2014 By Irina Dezhina
  12. Best Practices as to How to Support Investment in Intangible Assets By Alexander Ebner; Fabian Bocek
  13. The Role of Investments in Export Growth: Evidence of a Middle-Income Country. By Adriana Peluffo
  14. Discovering Innovation Labs in the Public Sector By Piret Tõnurist; Rainer Kattel; Veiko Lember
  15. Long-run effects of temporary incentives on medical care productivity By Celhay,Pablo A.; Gertler,Paul J.; Giovagnoli,Paula; Vermeersch,Christel M. J.
  16. Determinants of Industrial Coagglomeration and Establishment-level Productivity By FUJII Daisuke; NAKAJIMA Kentaro; SAITO Yukiko
  17. Do poor countries really need more IT ? the role of relative prices and industrial composition By Eden,Maya; Gaggl,Paul
  18. The Impact of Software Piracy on Inclusive Human Development: Evidence from Africa By Asongu, Simplice; Andrés, Antonio R.
  19. Detection and Measurement of Sales Cannibalization in Information Technology Markets By Novelli, Francesco
  20. Offshoring, Total Factor Productivity and Skill-Biased Technological Change By Akhmetova, Zhanar; Ferguson, Shon
  21. Entrepreneurial Regions: Do Macro-psychological Cultural Characteristics of Regions help solve the “Knowledge Paradox” of Economics? By Obschonka, Martin; Stuetzer, Michael; Gosling, Samuel D.; Rentfrow, Peter J.; Lamb, Michael E.; Potter, Jeff; Audretsch, David B.
  22. Competition, Selectivity and Innovation in the Higher Educational Market By Lynne Pepall; Dan Richards
  23. The Persistence of Regional Entrepreneurship - Are all types of Self-Employment Equally Important? By Michael Fritsch; Michael Wyrwich
  24. Internationalization Of Regional Clusters: Theoretical And Empirical Issues By Ekaterina Islankina
  25. Engineering consultant-client relationship: Transactional versus collaborative approach By Contreras, David Osuna
  26. Trust, Well-Being and Growth: New Evidence and Policy Implications By Yann Algan; Pierre Cahuc
  27. The role of strategic alliances in creating technology legitimacy: a study on the emerging field of bio-plastics By Maikel Kishna; Eva Niesten; Simona Negro; Marko Hekkert
  29. The Determinants of Quality Specialization By Jonathan I. Dingel
  30. Report on case studies of the technology-based services for independent living for older people By Stephanie Carretero; Csaba Kucsera
  31. Civil society actors as drivers of socio-ecological transition? - Green spaces in European cities as laboratories of social innovation By Judith Schicklinski
  32. Irrigation Technology Adoption, Water Effectiveness and Productivity Measurement By Konstantinos Chatzimichael; Dimitris Christopoulos; Spyro Stefanou; Vangelis Tzouvelekas
  33. Institutional entrepreneurship in the emerging renewable energy field; incumbents versus new entrants By Smink; Joost Koch; Eva Niesten; Simona Negro; Marko Hekkert
  35. Technology-enabled services for older people living at home independently: lessons for public long-term care authorities in the EU Member States By Stephanie Carretero
  36. Technological Change, Occupational Tasks and Declining Immigrant Outcomes: Implications for Earnings and Income Inequality in Canada By Casey Warman; Christopher Worswick
  37. Dynamics of Growth, Poverty and Human Capital: Evidence from Indonesian Sub-National Data. By de Silva, Indunil; Sumarto, Sudarno
  38. The economics of policy instruments to stimulate wind power in Brazil By Landis,Florian; Timilsina,Govinda R.
  39. Human Capital Quality and Aggregate Income Differences: Development Accounting for U.S. States By Hanushek, Eric A.; Ruhose, Jens; Woessmann, Ludger
  40. Verheißung oder Bedrohung? : die Arbeitsmarktwirkungen einer vierten industriellen Revolution By Möller, Joachim
  41. Technological Progress with Segmented Factor Markets and Welfare Implications for the Urban Poor By Pedro M. G. Martins
  42. The Role of Intangible Investment on Economic Growth in Japan (Japanese) By MIYAGAWA Tsutomu; EDAMURA Kazuma; OZAKI Masahiko; KIM YoungGak; TAKIZAWA Miho; TONOGI Konomi; HARADA Nobuyuki
  44. Ontario's Productivity Performance, 2000-2012: A Detailed Analysis By Andrew Sharpe
  45. Competitiveness of the European Economy By Michael Landesmann; Sandra M. Leitner; Robert Stehrer

  1. By: Adam Jaffe (Motu Economic and Public Policy Research); Trinh Le (Motu Economic and Public Policy Research)
    Abstract: This paper examines the impact of government assistance through R&D grants on innovation output for firms in New Zealand. Using a large database that links administrative and tax data with survey data, we are able to control for large number of firm characteristics and thus minimise selection bias. We find that receipt of an R&D grant significantly increases the probability that a firm in the manufacturing and service sectors applies for a patent during 2005–2009, but no positive impact is found on the probability of applying for a trademark. Using only firms that participated in the Business Operation Survey, we find that receiving a grant almost doubles the probability that a firm introduces new goods and services to the world while its effects on process innovation and any product innovation are relatively much weaker. Moreover, there is little evidence that grant receipt has differential effects between small to medium (<50 employees) and larger firms. These findings are broadly in line with recent international evidence from Japan, Canada and Italy which found positive impacts of public R&D subsidy on patenting activity and the introduction of new products.
    Keywords: Industrial policy, innovation, R&D
    JEL: O31 O34 O38
    Date: 2015–05
  2. By: Alstadsaeter, Annette; Barrios, Salvador; Nicodème, Gaëtan; Skonieczna, Agnieszka Maria; Vezzani, Antonio
    Abstract: Patent boxes have been heavily debated for their role in corporate tax competition. This paper uses firm-level data for the period 2000-2011 for the top 2,000 corporate research and development (R&D) investors worldwide to consider the determinants of patent registration across a large sample of countries. Importantly, we disentangle the effects of corporate income taxation from the tax advantage of patent boxes. We also exploit a new and original dataset on patent box features such as the conditionality on performing research in the country, and their scope. We find that patent boxes have a considerable effect on attracting patents, mostly because of their favourable tax treatment, especially for high-quality patents. Patent boxes with a large scope in terms of tax base definition also have stronger effects on the location of patents. The size of the tax advantage offered through patent box regimes is found to deter local innovative activities, whereas R&D development conditions tend to attenuate this adverse effect. Our simulations show that, on average, countries imposing such development conditions tend to grant a tax advantage that is slightly greater than optimal from a local R&D impact perspective.
    Keywords: corporate taxation; location; nexus approach; patent boxes; patents; R&D
    JEL: F21 F23 H25 H73 O31 O34
    Date: 2015–06
  3. By: Broström , Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Karlsson, Staffan (Swedish Research Council & Royal Institute of Technology (KTH))
    Abstract: This paper accounts for the development of the academic endavour to determine the firm-level relationship between investments in R&D and productivity. The impact of 28 highly cited publications within this line of study is investigated using a combination of bibliometric techniques and citation function analysis. We show how the attention paid to this line of research broadens and deepens in parallel to the diffusion of innovation as a research theme during 2000s. Our findings also suggest that the attraction of scholarly attention is driven by combination of broadening interest in the central research question under study and boundary-pushing methodological contributions made in the key contributions.
    Keywords: innovation; productivity; R&D; citation analysis; bibliometric analysis
    JEL: B21 B23 B41 C38 D24
    Date: 2015–06–29
  4. By: Ivan Haščič; Mauro Migotto
    Abstract: This paper refines indicators to measure innovation in environment-related technologies, drawing on recent methodological advances that allow a more accurate assessment of environment-related innovation in a broader range of countries and covering a greater variety of the relevant technologies. Three indicators are discussed in the paper: an indicator of technology development (a measure of inventive activity) in over 80 specific environmental technologies; an indicator of international collaboration in technology development (a measure of co-invention); and an indicator of technology diffusion (a measure of market protection). These indicators provide a range of tools for assessing innovative performance in country and policy studies. The indicators are based on patent data because they have a number of attractive properties compared to other alternatives: they are widely available, quantitative, commensurable, output-oriented and capable of being disaggregated – an important advantage when analysing environmental technologies. At the same time, not all innovations or inventions are patented, and measuring the number of patents by itself does not provide an indication of their relative importance and impact. Techniques have been developed to overcome these limitations, yet it is important to carefully interpret patent-based indicators.
    Keywords: innovation, indicators, environmental technologies
    JEL: O3 O31 O34 O38 Q2 Q4 Q5
    Date: 2015–06–26
  5. By: Mohammadi, Ali (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Franzoni, Chiara (Politecnico di Milano)
    Abstract: In this paper, we study how workforce composition is related to firm’s radical innovation. Previous studies have argued that teams composed by individuals with diverse background are able to perform more information processing and make a deeper use of the information, which is important to accomplish complex tasks. We suggest that this argument can be extended to the level of the aggregate workforce of high technology firms. Our theoretical interest is focused on the extent to which insights from the literatures on science and invention can be applied to firms’ abilities to achieve radical innovation. In particular, we argue that having a set of employees with greater ethnical and higher education diversity is associated with superior radical innovation performance. Using a sample of 3,888 Swedish firms, we find that greater workforce ethnic diversity is positively correlated to the share of a firm’s turnover generated by radical innovation, while it is neutral to incremental innovation. Greater diversity in terms of higher educational disciplinary background of the workforce is positively correlated to the share of turnover generated by both radical and incremental innovation. Contrary to our hypothesis, we also find that having more external collaborations reduces the importance of a workforce with a diverse disciplinary background, while the importance of ethnic diversity is hold unchanged. Our findings hold after using alternatives measures of dependent and independent variables, alternative sample sizes, and alternative estimation techniques including panel data, and structural equation modeling for simultaneous estimation of diversity, R&D intensity and external search.
    Keywords: Ethnic diversity; Education diversity; External search; Radical innovation
    JEL: J15 J24 J61 O32
    Date: 2015–06–29
  6. By: Petros Gkotsis (European Commission – JRC - IPTS)
    Abstract: In this report the main results of the study performed in the context of the Advanced Manufacturing for Competitiveness Project are presented. This project aims at developing and testing a methodology based on patent analysis to assess the capacity of the EU R&D Scoreboard companies to develop advanced manufacturing and key enabling technologies which are expected to have a major impact on the productivity, the efficiency, the profitability and the employment in major industrial sectors. The companies listed in the R&D Scoreboard hold a dominant position in KETs and AMT filings with about 61% of total KETs filings and 57% of total AMT filings in 2011. European companies hold almost 50% of the AMT related patent filings and about 50% of these are from Germany headquartered companies. Japanese based companies are responsible for 27% of the AMT filings worldwide and the US for about 24% of all transnational AMT patents. In KETs Japanese companies are dominating the scene, followed by Europe and the USA. Developing and patenting AMT and KETs related technologies seems to become more expensive over the time period under study as the decrease in the average patent intensity since 2004 shows. Larger firms have lower patent intensities than smaller ones and the patent intensity is higher in industry than in the service sector. European firms have the highest patent intensities followed by North American, Asian and companies from the rest of the world. R&D expenditures and patent filings are significantly positively correlated to the number of employees. This correlation is also observed in the case of firms who file AMT patents, larger firms are thus filing more AMT related patents compared to smaller ones. With regard to employment growth, however, we find no significant effect of KETs or AMT filings. The largest shares of KETs related filings are found in the Electronic & Electrical Equipment and Chemicals sectors. Firms in the Electronic & Electrical Equipment sector are also responsible for the largest shares of filings in AMT. Large shares, however, can also be found in the Industrial Engineering sector followed by the Automobiles & Parts and General Industrials sectors.
    Keywords: manufacturing, patent
    Date: 2015–05
  7. By: De Marchi V.; Giuliani E.; Rabellotti R. (UNU-MERIT)
    Abstract: The GVC approach has stressed that inter-firm linkages within GVCs can play a crucial role in transferring technological knowledge and promoting innovation. However, the exact nature of these GVC inter-firms relationships, and their impact on the learning and innovative processes of firms involved in such GVCs in developing countries is still controversial and rather understudied. In this paper we argue that to investigate whether and how firms involved in GVCs as well as industrial clusters, regions and countries innovate, scholars should not focus entirely on GVC characteristics and the role of lead firms, but they also should take into account domestic technological capabilities at the firm, industrial cluster/regional and local innovation system-levels. In this study we undertake a systematic review of the literature on GVCs in developing countries to investigate if and how innovation has been undertaken at the local level. With cluster analysis, we have identified three types of GVCs, defined as a GVC-led Innovators, consisting of innovative local firms, which intensively use knowledge sources from within the GVC; b Independent Innovators also consisting of innovative firms, but whose learning sources mainly come from outside the GVC; c Weak Innovators, including a large group of scarcely innovative firms, drawing selectively on some of the knowledge sources available within the GVC but poorly using other forms of learning.
    Keywords: Industrialization; Manufacturing and Service Industries; Choice of Technology; International Linkages to Development; Role of International Organizations; Technological Change: Choices and Consequences; Diffusion Processes; Technological Change: Government Policy;
    JEL: O14 O19 O33 O38
    Date: 2015
  8. By: Wouter Boon; Gerben de Vries; Alexander Peine
    Abstract: In this research, we explore user innovations in five Dutch civic energy communities. We show how these user innovations where embedded in a wider community process around realizing desired socio-technical change, and how the rationale, conditions and competences needed to identify and implement user innovations are shaped by this wider process. This interplay of collective learning and implementing user innovations requires a variety of preparatory efforts by community members, that may be of a seminal importance to the eventual nature and success of new socio-technical arrangements. Moreover, it is suggested that the dynamics found here result from a specific user logic that may be characteristic more generally for user communities innovating in configurational settings, i.e. combining and tinkering with innovative as well as mundane technological devices into a local and tailored configurations.
    Keywords: user innovation, user-led technological change, user communities, civic energy communities, configurations
    Date: 2015–06
  9. By: Michel Dumont
    Abstract: This paper presents the results of a second evaluation of the tax incentives that were introduced – between 2005 and 2008 – by the Belgian federal government to support R&D activities of private companies. Compared with the first assessment, carried out in 2012, this evaluation extends the period considered by two years (2010 and 2011) and provides the results of a first assessment of the tax credit for investment in R&D and the tax deduction of 80% of qualifying gross patent income that were introduced in 2007. The second evaluation also elaborates on the difficulties of estimation procedures to establish the “causal” effect of public support and the importance to account for the strong persistence in firm-level R&D expenditures.
    Date: 2015–06–25
  10. By: Roula Inglesi-Lotz (Department of Economics, Democritus University of Thrace, Greece)
    Abstract: The severity of investment in Research and Development (R&D) in the energy sector is undisputable especially considering the benefits of new technologies to sustainability, security and environmental protection. However, the nature and potential of various energy technologies that are capable to improve the energy and environmental conditions globally is a challenging task for governments and policy makers that have to make decisions on the allocation of funds in R&D. To do so, the optimal resource allocation to R&D should be determined by estimating the social rate of return for R&D investments. This paper aims to estimate the social rate of return of R&D on various energy applications and technologies such as energy efficiency, fossil fuels, renewable energy sources, and nuclear for the G7 countries. The results show that primarily R&D investment on Energy Efficiency technologies and Nuclear are the ones that yield high social benefits for all G7 countries while exactly the opposite holds for Fossil fuels.
    Date: 2015–06
  11. By: Irina Dezhina (Gaidar Institute for Economic Policy)
    Abstract: In 2014, key events in the field of science were unfolding around the continuing reform of the Russian Academy of Sciences (RAS) and the associated assessment and restructuring of academic institutions, together with the first competitive tenders run by the Russian Science Foundation (RSF) and the creation of a new list of priorities for scientific and technological development in Russia. Thus, last year could be considered transitional, when the new departments responsible for science development were being structured and their activities were adapting to the new system of management. Innovation went into a decline, the rate of which had increased by the end of the year. No new instruments of innovation policy were introduced and the state of innovation was being significantly affected by the general conditions of economic activity, the business climate and some regulatory measures that were not even directly related to public support for innovation.
    Keywords: Science in Russia, innovation, academic institutions, mobility of scientific personnel, technology platforms
    JEL: O32 O38
    Date: 2015
  12. By: Alexander Ebner; Fabian Bocek
    Abstract: Intangible investment is an indispensable factor in the projected socio-ecological transition towards a new European path of economic growth. Its concern with knowledge-based intangible assets highlights the innovation-driven formation of a knowledge-based economy, which is at the heart of current EU strategies for the promotion of sustainable growth. The policy report will summarise best practices of supporting investments in intangible assets in the EU member states at the level of firms, industries and countries as a whole. In proceeding with this work, the policy report will draw on insights that were developed in preceding FP7 projects, in particular COINVEST. This allows for an understanding of intangible investment as investment in intangible assets that provide firm-specific flows of knowledge services. These involve both formal and tacit knowledge in diverse areas such as firm-funded investment in R&D, education and training, software and databases as well as design and branding, accompanied by mechanisms of inter-firm cooperation in the management of knowledge assets. The diverse strategies and policies in support of intangible investment across the EU are going to be assessed on the basis of available cases and data about best practices. The resulting policy report is set to sort out those strategies and policies that provide the most effective support of intangible investment in the formation of a socio-ecologically sustainble knowledge-based economy.
    Keywords: Economic growth path, High road strategy, Innovation, Intangible assets, Social capital as growth driver, Socio-ecological transition
    JEL: D22 D83 M19
    Date: 2015–06
  13. By: Adriana Peluffo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: In this work we follow the recent strand of work linking innovation, productivity and exports. We test the hypothesis that a rise in investment favors entrance in export markets and increases exports among previously exporting firms. We address causal links through impact evaluation techniques for observational data. We examine the binary case as well as continuous treatment analysis for investment as treatment. The analysis is conducted for a panel of Uruguayan manufacturing firms for the period 1997-2008. To the best of our knowledge, this is the first study of our approach for a Latin American economy, and the relatively long time span of our data makes it possible a better characterization of new entrants and firms with changing export behavior. Also, our data appears to be richer, including information to estimate total factor productivity, and R&D and training investments, which provide better controls for confounding factors. We find evidence that investments "cause" exports and export orientation, which provides a rationale for carefully designing investment promotion policies rather than focusing on other export support policies.
    Keywords: international trade, investments, export behavior
    JEL: F14 O33 D22
    Date: 2015–07
  14. By: Piret Tõnurist; Rainer Kattel; Veiko Lember
    Abstract: While innovation labs (i-labs) are increasingly popular in the public sector, there is almost no systematic academic overview of these organizations. This article is a first comprehensive attempt to map and analyze such labs globally. We have identified 35 such organizations all over the world. The research is based on a two-step approach: first, a comprehensive survey was carried out followed by an extensive in-depth interview with the managing figures of i-labs; 11 i-labs responded. The survey is based on longterm and large-scale research into public sector organizations in Europe (COBRA project); we have significantly updated it to fit our purposes. In this article we report our first findings. I-labs are rather unique organizations and diverse in their mission, expected to act as change agents within public sector and enjoy large autonomy in setting their targets and working methods. I-labs are typically structurally separated from the rest of the public sector and expected to be able to attract external funding as well as ‘sell’ their ideas and solutions within the public sector. I-labs tend be small structures, specializing on quick experimentations and usually lack the capabilities and authority to significantly influence up-scaling of the new solutions or processes. The main capabilities of i-labs are their ability to jump-start or show case user-driven service re-design projects. Interestingly, IT capabilities seem to be not that prominently present in the studied i-labs. In sum: i-labs, although prominent in many modern public management strategies, are yet far from becoming organic parts of public sector, which is paradoxically both their weakness and strength.
    Date: 2015–06
  15. By: Celhay,Pablo A.; Gertler,Paul J.; Giovagnoli,Paula; Vermeersch,Christel M. J.
    Abstract: The adoption of new clinical practice patterns by medical care providers is often challenging, even when the patterns are believed to be efficacious and profitable. This paper uses a randomized field experiment to examine the effects of temporary financial incentives paid to medical care clinics for the initiation of prenatal care in the first trimester of pregnancy. The rate of early initiation of prenatal care was 34 percent higher in the treatment group than in the control group while the incentives were being paid, and this effect persisted at least 15 months and likely 24 months or more after the incentives ended. These results are consistent with a model where the incentives enable providers to address the fixed costs of overcoming organizational inertia in innovation, and suggest that temporary incentives may be effective at motivating improvements in long-run provider performance at a substantially lower cost than permanent incentives.
    Keywords: Disease Control&Prevention,Health Systems Development&Reform,Health Monitoring&Evaluation,Population Policies,Labor Policies
    Date: 2015–06–30
  16. By: FUJII Daisuke; NAKAJIMA Kentaro; SAITO Yukiko
    Abstract: This paper investigates the relationships between the determinants of industrial coagglomeration and establishment-level productivity. For each pair of industries, we first construct the degree of coagglomeration and indices for three factors of coagglomeration: inter-firm transactions, knowledge spillover, and labor market pooling. We then examine the correlation between these three factors and the degree of coagglomeration. Overall, inter-firm transactions and labor market pooling are positively correlated with the degree of coagglomeration whereas knowledge spillover has no significant relationship with it. We also find that the determinants of coagglomeration are quite different across industries. Further, we examine the relationships between these factors and establishment-level productivity. We find that the determinants of coagglomeration are not necessarily positively associated with the productivity of establishments.
    Date: 2015–06
  17. By: Eden,Maya; Gaggl,Paul
    Abstract: Conventional wisdom suggests too little information and communication technologies (ICT) in poor countries. Indeed, within 70 countries at various levels of development, there is a positive relationship between income per capita and the capital share of ICT. While this regularity is consistent with explanations based on technology adoption lags and ICT-labor substitutability, there is little empirical support for these hypotheses. Instead, the paper establishes that this regularity can be fully accounted for by (a) relatively higher ICT prices in low-income countries and (b) industrial composition.
    Keywords: E-Business,Knowledge Economy,Economic Theory&Research,Investment and Investment Climate,Information and Communication Technologies
    Date: 2015–06–30
  18. By: Asongu, Simplice; Andrés, Antonio R.
    Abstract: This paper examines two dimensions of the software piracy-development nexus to complement existing formal literature. It empirically assesses the incidence of piracy on the Human Development Index (HDI) and its constituents and then the instrumentality of Intellectual Property Right (IPR) treaties (laws) in the linkages. An instrumental variable or Two-stage least squares is applied on panel of 11 African countries with data for the period 2000-2010. Three main findings are established: (1) software piracy has a negative incidence on inequality adjusted human development; (2) the unappealing effect of piracy on the HDI is fuelled by per capita economic prosperity and life expectancy components of human emancipation; (3) software piracy increases literacy. Two major policy implications have been retained from the findings. Firstly, adherence to international IPRs protection treaties (laws) may not impede per capita economic prosperity and could improve life-expectancy. Secondly, adoption of tight IPRs regimes may negatively affect human development by diminishing the literacy rate and restricting diffusion of knowledge.
    Keywords: Software piracy; Human development; Intellectual property rights; Panel data, Instrumental variables.
    JEL: K42 O34 O38 O47 O57
    Date: 2014–12–03
  19. By: Novelli, Francesco
    Abstract: Characteristic features of Information Technology (IT), such as its intrinsic modularity and distinctive cost structure, incentivize IT vendors to implement growth strategies based on launching variants of a basic offering. These variants are by design substitutable to some degree and may contend for the same customers instead of winning new ones from competitors or from an expansion of the market. They may thus generate intra-organizational sales diversion – i.e., sales cannibalization. The occurrence of cannibalization between two offerings must be verified (the detection problem) and quantified (the measurement problem), before the offering with cannibalistic potential is introduced into the market (ex-ante estimation) and/or afterwards (ex-post estimation). In IT markets, both detection and measurement of cannibalization are challenging. The dynamics of technological innovation featured in these markets may namely alter, hide, or confound cannibalization effects. To address these research problems, we elaborated novel methodologies for the detection and measurement of cannibalization in IT markets and applied them to four exemplary case studies. We employed both quantitative and qualitative methodologies, thus implementing a mixed-method multi- case research design. The first case study focuses on product cannibalization in the context of continuous product innovation. We investigated demand interrelationships among Apple handheld devices by means of econometric models with exogenous structural breaks (i.e., whose date of occurrence is given a priori). In particular, we estimated how sales of the iPod line of portable music players were affected by new-product launches within the iPod line itself and by the introduction of iPhone smartphones and iPad tablets. We could find evidence of expansion in total line revenues, driven by iPod line extensions, and inter- categorical cannibalization, due to iPhones and iPads Mini. The second empirical application tackles platform cannibalization, when a platform provider becomes complementor of an innovative third party platform thus competing with its own proprietary one. We ascertained whether the diffusion of GPS-enabled smartphones and navigation apps affected sales of portable navigation devices. Using a unit-root test with endogenous breaks (i.e., whose date of occurrence is estimated), we identified a negative shift in the sales of the two leaders in the navigation market and dated it at the third quarter of 2008, when the iOS and Android mobile ecosystems were introduced. Later launches of their own navigation apps did not significantly affect these manufacturers’ sales further. The third case study addresses channel cannibalization. We explored the channel adoption decision of organizational buyers of business software applications, in light of the rising popularity of online sales channels in consumer markets. We constructed a qualitative channel adoption model which takes into account the relevant drivers and barriers of channel adoption, their interdependences, and the buying process phases. Our findings suggest that, in the enterprise software market, online channels will not cannibalize offline ones unless some typical characteristics of enterprise software applications change. The fourth case study deals with business model cannibalization – the organizational decision to cannibalize an existent business model for a more innovative one. We examined the transition of two enterprise software vendors from on-premise to on-demand software delivery. Relying on a mixed- method research approach, built on the quantitative and qualitative methodologies from the previous case studies, we identified the transition milestones and assessed their impact on financial performances. The cannibalization between on-premise and on-demand is also the scenario for an illustrative simulation study of the cannibalization.
    Date: 2015–02–04
  20. By: Akhmetova, Zhanar (Department of Economics); Ferguson, Shon (Research Institute of Industrial Economics (IFN))
    Abstract: The paper answers two questions simultaneously. What is the effect of offshoring on firms' total factor productivity? What is the effect of offshoring on skill-biased technological change? We estimate a model of firm production that allows for the effect of offshoring on both total factor productivity and relative skilled labor productivity, and for spillovers between the two. The model is fitted to Swedish firm-level data between 2001–2011. We find positive effects of offshoring intensity on total factor productivity, particularly of small domestic firms and large foreign-owned firms, and on skill-biased technological change in production of firms with low offshoring intensity. Initiating offshoring results in skill-biased technological change in non-production activities of large domestic firms. We show that evaluating the impact of offshoring in a unified framework has implications for the estimation results.
    Keywords: Offshoring; Total factor productivity; Skill-biased technological change; Relative skilled labor demand
    JEL: D24 F14 F16
    Date: 2015–06–18
  21. By: Obschonka, Martin; Stuetzer, Michael; Gosling, Samuel D.; Rentfrow, Peter J.; Lamb, Michael E.; Potter, Jeff; Audretsch, David B.
    Abstract: In recent years, modern economies have shifted away from being based on physical capital and towards being based on new knowledge (e.g., new ideas and inventions). Consequently, contemporary economic theorizing and key public policies have been based on the assumption that resources for generating knowledge (e.g., education, diversity of industries) are essential for regional economic vitality. However, policy makers and scholars have discovered that, contrary to expectations, the mere presence of, and investments in, new knowledge does not guarantee a high level of regional economic performance (e.g., high entrepreneurship rates). To date, this “knowledge paradox” has resisted resolution. We take an interdisciplinary perspective to offer a new explanation, hypothesizing that “hidden” regional culture differences serve as a crucial factor that is missing from conventional economic analyses and public policy strategies. Focusing on entrepreneurial activity, we hypothesize that the statistical relation between knowledge resources and entrepreneurial vitality (i.e., high entrepreneurship rates) in a region will depend on “hidden” regional differences in entrepreneurial culture. To capture such “hidden” regional differences, we derive measures of entrepreneurship-prone culture from two large personality datasets from the United States (N = 935,858) and Great Britain (N = 417,217). In both countries, the findings were consistent with the knowledge-culture-interaction hypothesis. A series of nine additional robustness checks underscored the robustness of these results. Naturally, these purely correlational findings cannot provide direct evidence for causal processes, but the results nonetheless yield a remarkably consistent and robust picture in the two countries. In doing so, the findings raise the idea of regional culture serving as a new causal candidate, potentially driving the knowledge paradox; such an explanation would be consistent with research on the psychological characteristics of entrepreneurs.
    Keywords: Innovation; Personality; Knowledge; Culture; Entrepreneurship; Psychology; Regions; Cities
    JEL: L26 M13 O3
    Date: 2015–06
  22. By: Lynne Pepall; Dan Richards
    Abstract: Recent innovations in digital learning and web-based technologies have enabled scalability in educational services that has previously not been feasible presenting a potential disruption in traditional higher education markets. This paper explores the impact of these innovations in a vertically differentiated higher educational market with both selective and nonselective institutions. Selective institutions are characterized by peer effects and a revenue model that assures quality. Nonselective institutions have open admissions and are tuition driven. Students differ in their ability to benefit from educational services. We describe how selective and non-selective institutions compete for students through tuition and admission criteria and how free non-credentialed educational services such as MOOCs affect the market equilibrium. Our model also helps explain why selective institutions are the main proprietors of MOOCs.
    Keywords: Higher Education, Vertical Differentiation, Network Effects
    JEL: D43 I23
  23. By: Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: We explore the role of different types of self-employment for a persistence of the regional level of entrepreneurship over time. Our analysis for West German regions shows relatively strong effects for the historical self-employment rate in the non-agricultural sector, particularly in knowledge-intensive industries on current levels of new business formation. While self-employment by males shows a statistically significant relationship, the self-employment rate of females remains statistically insignificant. Also, no statistically significant effect can be found for the share of homeworkers that can be regarded a rather weak form of entrepreneurship.
    Keywords: Entrepreneurship, self-employment, new business formation, entrepreneurship culture, persistence
    JEL: L26 R11 O11
    Date: 2015–06–29
  24. By: Ekaterina Islankina (National Research University Higher School of Economics)
    Abstract: Today regions are becoming independent actors able to compete globally as globalization of competition is consistent with the localization of competitive advantage. In many ways regional competitiveness is based on the clustering concept. Changes in the global economic environment are making cluster linkages more important, too. Clusters are not capable of long-term excellence and development unless their members are acting in global markets and involved in international knowledge transfer. Thus, internationalization of clusters has turned out to be a new subject of innovation policy and regional development agenda, however lacking strong scientific background in Russia. The paper aims at discovering theoretical and analytical basis for clustering concept and internationalization, the reviewing of best internationalization practices from the clusters worldwide as well as exploring empirical issues of regional clusters` internationalization in Russia and their comparison with the EU outputs. A special emphasis is put on the articulation of practical guide for cluster management organizations responsible for the development of global linkages.
    Keywords: regional development, innovative clusters, internationalization, Russia, the EU
    JEL: F20 O O19 O57 R58
    Date: 2015
  25. By: Contreras, David Osuna
    Abstract: The main focus of this study was the transactional and collaborative nature of the engineering consultant – client relationship. The aim of the study was to determine the extent to which each one of these approaches describes real life business relationships in the engineering consulting context. The study revealed that, in New Zealand, relationships between engineering consultants and their clients were mostly of a collaborative nature. However, collaborative trust-based relationships were held between individuals, not between companies. Even though clients and consultants also engage in transactional relationships, the extent of this type of relationship was significantly low. It was also found that confrontational relationships do not constitute a third framework to in understanding client-consultant relationships. This type of relationship corresponds to a circumstantial context that is more common in transactional scenarios than in collaborative ones. The decision on whether a relationship evolves depended on the client’s and consultant’s interests. Regardless of how a relationship started, whether it is a transactional or collaborative beginning, its evolution was determined by the levels of trust that were built up over time. The challenge for consulting companies lies in taking the personal relationship between consultants and their clients to a state in which the individual expertise sought by clients was transferred to the company brand. A collaborative approach had direct implications on other elements of the consulting business model such as value proposition, customers, costs and revenue. Similarly, collaborative relationships were the essence of the “key partners” element of a client’s business model. Due to the highly tailored nature of engineering consulting businesses in New Zealand, it is considered to be a type of business which is very difficult to scale. Only transactional relationships offer the option to take advantage of economies of scale as these are easier to fit into standardised procedures. It is therefore considered that collaborative relationships will not fit a business model based on economies of scale. The following recommendations are provided should either party want to nurture a collaborative relationship: • Both clients and consultants should see each other as equally powerful while working together, as power imbalances of any kind can have negative consequences for the results of consulting projects. It is also suggested to establish a clear division of roles and responsibilities as this is a critical success factor in consulting projects. • It is important that both client and consultant have as much shared input as possible during the scope of work definition. If there are any modifications to the scope of work during the project, these should be discussed with the stakeholders in order to ensure that the revised scope of work meets the expectations of both parties. • The interaction between parties during the problem solving process should be kept as open as possible to maximise the two-way flow of ideas. For clients, it is suggested to allocate as much time as possible to the technical discussion with the consultant. • If there are contracting teams involved in the negotiation process, it is important to differentiate their role from any existing relationship between individuals. • An idea is a network. Building up collaborative networks with people from different backgrounds creates the right environment for the formation of innovative ideas. It is highly recommended to use collaborative interaction as the start of a client-consultant dynamic to foster the creation of new ideas and solutions.
    Keywords: Client consultant relationship, Transactional relationship, Collaborative relationship,
    Date: 2014
  26. By: Yann Algan (Département d'économie); Pierre Cahuc (Department of Economics)
    Abstract: This survey reviews the recent research on trust, institutions, and economic development. It discusses the various measures of trust and documents the substantial heterogeneity of trust across space and time. The conceptual mechanisms that explain the influence of trust on economic performance and the methods employed to identify the causal impact of trust on economic performance are reviewed. We document the mechanisms of interactions between trust and economic development in the realms of finance, innovation, the organization of firms, the labor market, and the product market. The last part reviews recent progress to identify how institutions and policies can affect trust.
    Keywords: Trust; Growth; Economic Development; Institutions; Well-being
    JEL: O11 O43 Z13
    Date: 2014
  27. By: Maikel Kishna; Eva Niesten; Simona Negro; Marko Hekkert
    Abstract: The aim of this study is to analyze the role of strategic alliances in creating legitimacy for an emerging sustainable technology. The literature has identified different ways in which alliances create legitimacy for firms, but it has failed to address the legitimacy of technologies. This paper contributes to this literature by identifying technology-sourced market legitimacy, technology-sourced social legitimacy and technology legitimacy. It focuses on the case of bio-plastics, which is emerging as a sustainable technology due to pressures towards environmentalism in the chemical industry. The analysis is based on a database that we constructed using secondary sources, and which contains information on 105 alliances in the field of bio-plastics over the period 1990-2013. The results show that firms increase their market and social legitimacy by accessing the sustainable technology of an alliance partner, by collaboratively developing a sustainable technology, or by providing the technology of a partner with access to customers and production capacity. Alliances also promote the desirability and appropriateness of a technology (i.e. technology legitimacy) by supplying multiple applications of the technology to an expanding number of markets, by exercising their signaling role, and by acting as institutional entrepreneurs. Alliances that stimulate technology-sourced market and social legitimacy are often bilateral and inter-firm alliances that produce and market sustainable technologies. In contrast, alliances that stimulate technology legitimacy are multilateral and inter-organizational alliances in the pre-competitive and R&D stages of the value chain.
    Date: 2015–06
  28. By: Jitao Tang (Ernst&Young LLP); Rosanne Altshuler (Rutgers University)
    Abstract: Most studies of foreign direct investment (FDI) spillovers focus on externalities of inward FDI to host country firms. However, spillovers may also be generated from outward FDI and flow to home country firms. We test for the presence of spillovers from U.S. multinational corporations to domestic U.S. firms in the same industry, downstream industries and upstream industries using firm level information from Standard and Poor’s Compustat data and industry level data on U.S. outward FDI from the U.S. Bureau of Economic Analysis. We find evidence of positive and significant spillovers flowing from multinational customers to their domestic suppliers. This is consistent with most previous studies of spillovers from inward FDI and may suggest a role for domestic policies that subsidize outward FDI. We also find that the presence of beneficial spillovers depends on several firm characteristics in
    Keywords: Multinational enterprises, Foreign direct investment, Productivity spillovers, Absorptive capacity
    JEL: F21 F23
    Date: 2015–01–04
  29. By: Jonathan I. Dingel
    Abstract: A growing literature suggests that high-income countries export high-quality goods. Two hypotheses may explain such specialization, with different implications for welfare, inequality, and trade policy. Fajgelbaum, Grossman, and Helpman (2011) formalize the Linder hypothesis that home demand determines the pattern of specialization and therefore predict that high-income locations export high-quality products. The factor-proportions model also predicts that skill abundant, high-income locations export skill intensive, high-quality products. Prior empirical evidence does not separate these explanations. I develop a model that nests both hypotheses and employ microdata on US manufacturing plants' shipments and factor inputs to quantify the two mechanisms' roles in quality specialization across US cities. Home-market demand explains at least as much of the relationship between income and quality as differences in factor usage.
    Date: 2015–06
  30. By: Stephanie Carretero (European Commission – JRC - IPTS); Csaba Kucsera (European Commission – JRC - IPTS)
    Abstract: This report elaborates five case studies of good practices of technology-enabled services for independent living of older adults at home from the 14 obtained in the deliverable 1 of the ICT-AGE project. The aim is to obtain policy lessons studying a group of variables related with the creation and implementation of these services by public long-term care systems, such as business case and models, training actions, scaling and market creation, evaluation process and organisation change, among others. A case study is provided per each good practice on the basis of the variables analysed.
    Keywords: long-term care, social investment, social return, information and communication technologies, active and healthy ageing, quality of care, productivity, carers, financial sustainability, care, savings, ageing in place, social innovation
    JEL: I00 I18
    Date: 2015–06
  31. By: Judith Schicklinski
    Abstract: Why are civil society dynamics concerning green spaces across European cities so interesting for socio-ecological transition? All over Europe self-organized civil society movements are emerging to tackle local challenges, becoming active players in local governance processes. These social experiments have even been intensified as a result of tight public local budgets. Their activities contribute to the functioning and well-being of a European society aiming for sustainability. Preserving the availability of bio-diverse green spaces is crucial for the socio-ecological transition of cities since besides providing recreational opportunities for city dwellers, they yield essential ecological benefits from cleaning the air to reducing noise, but also provide habitat for many species and plants and reduce local vulnerabilities to extreme climate events. In cities in which local governments have severe difficulties in affording the provision of green space, new self-organized initiatives have emerged for maintaining and even developing them. Initiatives such as urban gardening have proven that people are able to cooperate, to organize themselves and to take over responsibility for green spaces as well as even introducing new practices that support the socio-ecological transition. This Milestone will contribute to the questions: -how can citizen groups contribute to maintain existing green spaces which are available and accessible for all and possibly being expanded whilst assuring biodiversity and allowing diverse use for local needs (re-creation, community-based food-production, neighbourhood culture, common intergenerational and intercultural learning etc.) at the same time; -which policy framework allows for a constructive colaboration between local authorities, administration, economic actors and citizens, enabling innovative solutions in the area of urban food production, green-space management and participative urban development.
    Keywords: Citizen participation, Civil society, Green spaces, Local governance, Self-organisation, Social innovation, Socio-ecological transition, Urban green commons
    Date: 2015–06
  32. By: Konstantinos Chatzimichael (Dept of Economics, University of Crete, Greece); Dimitris Christopoulos (Panteion University); Spyro Stefanou (Pennsylvania State University); Vangelis Tzouvelekas (Department of Economics, University of Crete, Greece)
    Abstract: This paper develops a consistent theoretical framework for measuring irrigation water effective- ness and it�s impact on productivity growth rates by assuming a smooth transition process from traditional to modern irrigation technologies among individual farmers. The econometric model is based on a two-stage estimation procedure incorporating the transition process within a primal TFP decomposition framework. An empirical investigation addresses a panel of 56 small-scale greenhouse farms in Crete, Greece during the 2010-13 period. The results indicate that technical change driven by irrigation water techology improvement constirbutes significantly to total factor productivity growth. Further, the impact of specific climatic and soil conditions do not allow farmers to fully explore the potential of the new irrigation technology delaying adoption rates.
    Keywords: irrigation technology adoption and diffusion; irrigation effectiveness; productivity growth; translog-transition model; greenhouse farms, Crete, Greece
    JEL: C41 O16 O33 Q25
    Date: 2015–06–24
  33. By: Smink; Joost Koch; Eva Niesten; Simona Negro; Marko Hekkert
    Abstract: An underexplored issue in the institutional entrepreneurship (IE) literature is the difference between incumbents and new entrants in promoting institutional change for innovative technologies. We study the IE activities: cooperation, framing, and political tactics in the case of biomethane development in the Netherlands, during 2006-2012. While for decades biogas farmers have been unable to build a supporting institutional framework, incumbents recently arranged substantial government support. Our theoretical contribution lies in defining dimensions of the three core IE activities. We present empirical evidence that new entrants and incumbents employ all three activities, but in distinct ways. Thus, the incumbents’ IE activities lead to more substantial institutional change than new entrants’ activities. As a consequence, production shifts from electricity to gas and the scale of installations increases. We conclude that incumbents can accelerate institutional change, however their focus on large-scale installations makes it difficult for biogas farmers to contribute to biomethane production.
    Keywords: Sustainability transitions, Institutional entrepreneurship, renewable energy, incumbents, new entrants
    Date: 2015–06
  34. By: Bidyut Baruah; Anthony Ward
    Abstract: Research into entrepreneurship and associated terminologies is subject to a lack of clarity and consensus in definition or distinct research approach. Many researchers use different terms to denote or illustrate similar phenomena. Some emphasize the commonalities and defend the use of interchangeable terms, others strongly argue over their distinguishing features. This conceptual paper will discuss these inconsistencies and introduce a new approach called the ‘X’trapreneurship approach to classify distinct domains of entrepreneurship: independent process, bottom-up process and top-down process. This three domain approach will help in resolving the plague of inconsistencies surrounding entrepreneurial research areas giving researchers a distinct framework to identify the position of different entrepreneurial terminologies. Using this approach, a revised hierarchy of entrepreneurship terminologies is proposed in this paper which will bring some form of simplification and clarity thereby serving as a guideline for future research and adding a unique contribution to the entrepreneurial research field. Key words: ‘x’trapreneurship approach; entrepreneurship; intrapreneurship; corporate entrepreneurship; corporate venturing
    Date: 2015–06
  35. By: Stephanie Carretero (European Commission – JRC - IPTS)
    Abstract: This report collects six policy lessons to support public authorities at all levels of the EU Member States for the adequate implementation and use of new technologies in the field of long-term care service provision for older people. These policy lessons have been obtained through the ICT-AGE research project carried out by the JRC-IPTS and funded by DG EMPL, based on the cross-analysis of good practices of technology-enabled services to help older people live independently at home. These lessons are aimed to benefit the public long-term care authorities, to modernise their social protection systems in the field of long-term care, ensuring effectiveness, adequacy and sustainability. They can enable the Member States to carry out the actions and recommendations set out in the 2013 European Commission policy on Social Investment for Growth and Cohesion (SIP) and to implement the country-specific recommendations of the European Semester. The report also provides to the targeted public authorities with different existing instruments with those the European Union could help them to implement these policy lessons.
    Keywords: long-term care, social investment, social return, information and communication technologies, active and healthy ageing, quality of care, productivity, carers, financial sustainability, care, savings, ageing in place, social innovation, silver economy, digital single market, ecare, ehealth, ICTs, technology, digital, ageing
    JEL: I00 I18
    Date: 2015–06
  36. By: Casey Warman; Christopher Worswick
    Abstract: The earnings and occupational task requirements of immigrants to Canada are analyzed. The growing education levels of immigrants in the 1990s have not led to a large improvement in earnings as one might expect if growing computerization and the resulting technological change was leading to a rising return to non-routine cognitive skills and a greater wage return to university education. Controlling for education, we find a pronounced cross-arrival cohort decline in earnings that coincided with cross-cohort declines in cognitive occupational task requirements and cross-cohort increases in manual occupational task requirements. The immigrant earnings outcomes had only a small effect on overall Canadian earnings inequality.
    JEL: J15 J24 J31 J61 J71
    Date: 2015–06
  37. By: de Silva, Indunil; Sumarto, Sudarno
    Abstract: The aim of this study is twofold. First, despite the vast empirical literature on testing the neoclassical model of economic growth using cross-country data, very few studies exist at the sub-national level. We attempt to fill this gap by utilizing panel data over the 2002-2012 period, a modified neoclassical growth equation, and a dynamic panel estimator to investigate the effect of both health and education capital on economic growth and poverty at the district level in Indonesia. Secondly, whilst most existing cross-country studies tend to concentrate only on education as a measure of human capital, we expand the analysis and probe the effects of health capital as well. As far as we are aware, no study has done a direct and comprehensive examination of the impacts of health on growth and poverty at the sub-national level. Thus this study is a premier at the sub-national level, and our findings will be particularly relevant in understanding the role of both health and education capital in accelerating growth and poverty reduction efforts.
    Keywords: Neoclassical Growth, Poverty, Human Capital, Health, Education, Dynamic Panel
    JEL: H7 I3 O4
    Date: 2014–01–16
  38. By: Landis,Florian; Timilsina,Govinda R.
    Abstract: Large-scale deployment of renewable energy technologies, such as wind power and solar energy, has been taking place in industrialized and developing economics mainly because of various fiscal and regulatory policies. An understanding of the economy-wide impacts of those policies is an important part of an overall analysis of them. Using a perfect foresight computable general equilibrium model, this study analyzes the economy-wide costs of achieving a 10 percent share of wind power in Brazil?s electricity supply mix by 2030. Brazil is in the midst of an active program of wind capacity expansion. The welfare loss would be small, 0.1 percent of total baseline welfare in the absence of the 10 percent wind power expansion. The study also finds that, in the case of Brazil, production subsidies financed through increased value-added tax would have superior impacts on welfare and greenhouse gas mitigation, compared with a consumption mandate where electricity utilities are allowed to pass the increased electricity supply costs directly to consumers. These two policies would impact various production sectors differently to achieve the wind power expansion targets: the burden of the mandate falls mostly on electricity-intensive production and consumption, whereas the burden of the subsidy is distributed toward goods and services with higher value added.
    Keywords: Energy Production and Transportation,Environment and Energy Efficiency,Climate Change Mitigation and Green House Gases,Climate Change Economics,Energy and Environment
    Date: 2015–06–30
  39. By: Hanushek, Eric A. (Stanford University); Ruhose, Jens (Ifo Institute for Economic Research); Woessmann, Ludger (Ifo Institute for Economic Research)
    Abstract: Although many U.S. state policies presume that human capital is important for state economic development, there is little research linking better education to state incomes. In a complement to international studies of income differences, we investigate the extent to which quality-adjusted measures of human capital can explain within-country income differences. We develop detailed measures of state human capital based on school attainment from census micro data and on cognitive skills from state- and country-of-origin achievement tests. Partitioning current state workforces into state locals, interstate migrants, and immigrants, we adjust achievement scores for selective migration. We use the new human capital measures in development accounting analyses calibrated with standard production parameters. We find that differences in human capital account for 20-35 percent of the current variation in per-capita GDP among states, with roughly even contributions by school attainment and cognitive skills. Similar results emerge from growth accounting analyses.
    Keywords: economic growth, human capital, cognitive skills, schooling, U.S. states
    JEL: I25 O47 J24
    Date: 2015–06
  40. By: Möller, Joachim (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: The upcoming changes caused by the forth industrial revolution provoke discussions about potential shifts in the structures of the economy and the working environment. The so called "Industrie 4.0" implicates chances as well as negative effects on the labour market. This paper takes a look at the consequences of technological change in history and at possible impacts on future occupations and qualifications. Studies from Anglo-Saxon countries identify highly qualified persons as the winners of the new industrial revolution and the middle class as the loser. According to more recent studies, one of the main challenges will be artificial intelligence. Hence, complex occupations requiring creativity and social intelligence will be needed. In the German economy, high-quality consumer goods, chemical products as well as machinery and equipment will offer great potentials. The main precondition for success will be a good "operating system" containing infrastructure, education, and legal security as well as data security, while employees will need to be more flexible. To achieve a secure and humane working environment employee participation, creative leeway and social partnership are crucial.
    JEL: O33 J23 J24 J81
    Date: 2015–06–25
  41. By: Pedro M. G. Martins
    Abstract: This paper provides a comprehensive assessment of structural change patterns in the world economy. It uses a new dataset on sectoral employment produced by the International Labour Organization, which is complemented by national accounts and population data from the United Nations Department of Economic and Social Affairs. The sample includes 169 countries, representing about 99 percent of the world's output and population in 2013. One of the main contributions of this paper is its focus on the sub-regional level, which has been hitherto absent from the literature. We provide an assessment of 13 sub-regions in Africa, Asia and Latin America in order to offer deeper and richer insights into the recent dynamics of structural change. Overall, our results suggest that within-sector productivity improvements were the key driver of output per capita growth in most sub-regions. Nonetheless, structural change has also played a critical role in enhancing economic performance since 2002 – mainly through services. Changes in the demographic structure and employment rates have also contributed to the recent performance, albeit to a much lesser extent. Accelerating the pace of structural change – by exploiting existing productivity gaps – will be crucial to sustain current economic growth rates in developing regions.
    Keywords: Structural change, labour productivity JEL Classifications: J20, O11, O40
  42. By: MIYAGAWA Tsutomu; EDAMURA Kazuma; OZAKI Masahiko; KIM YoungGak; TAKIZAWA Miho; TONOGI Konomi; HARADA Nobuyuki
    Abstract: A number of empirical studies on intangibles have shown that the accumulation of intangibles contributes to productivity growth. We overview the effects of intangible investment on the Japanese economy by using data at the aggregate and firm levels. Our estimates show that the amount of intangible investment in Japan was almost 40 trillion yen per annum in the 2000s, and its ratio to gross domestic product (GDP) is about 7%. However, as the growth rate of intangibles in Japan was low in the 2000s, the contribution of intangibles to productivity was the lowest among the advanced countries. When we compare intangible investment by industry between Japan and Korea, in some IT-intensive service industries, the amount in Japan is lower than that in Korea. Intangible investment, in particular, organizational investment including organizational management and human resource management, is also crucial for firm growth. Using the interview surveys on management practices based on the influential Bloom and Van Reenen's study, we compare management scores between Japan and Korea. Although the overall management score in Japan is higher than that in Korea, the gap has contracted. We also find that management score is positively correlated with organizational reform, IT utilization, and human resource management which takes employees' specialties seriously. The results of our survey show that the complimentary role of intangibles' other assets is crucial for productivity growth at the aggregate and firm levels. Thus, the government should take more comprehensive investment enhancing policies, considering the role of intangibles.
    Date: 2015–06
    Abstract: Global Entrepreneurship and Development Index or the Global Entrepreneurship and Development Index (GEDI) In 2013 positioned Indonesia at ranked 76 of 118 countries. Compared with the ASEAN countries, the position are still far below Singapore (13), and still below Malaysia (57), Brunei Darussalam (58), Thailand (65). This fact shows that Indonesia has not been optimal in building its entrepreneurial yet. To enhance the development of entrepreneurship, the Indonesian government has launched a National Entrepreneurship Movement (GKN), with the aim to increase the number of Indonesia’s entrepreneurs, where now the number of entrepreneurs approximately 0.25% of the total population. In an effort to maintain and improve the position of entrepreneurship that has been achieved today, entrepreneurial practitioners should build sustainable entrepreneurship for creating a strong entrepreneurial competitiveness, sustainable and mutually supportive by involving the synergies of the various elements of society. With the creation of sustainable entrepreneurship, the competitiveness level can be realized nationally and globally. The sustainable entrepreneurship focuses on entrepreneurial skills to achieve the success through social and environmental change or social innovations. Entrepreneurship is not only generating economic success but also the entrepreneurs (sustainable entrepreneurs) should be able to manage the "triple bottom line" (company profitability, potential benefits to the environment, and potential benefits to the community) by balancing economic health, social equity and environmental sustainability through the entrepreneurial behaviors. Lately, a lot of scientific discussions concerning entrepreneurship theory and practice related to sustainable entrepreneurship in a goal-oriented society, ethics, economics, and ecology have bee done. Even some studies on sustainable entrepreneurship have been more developed compared with the business and environment studies, especially in matters of affecting changes in social practices and business environments. However, the question is "How do we understand the characteristics, motivation and factors driving sustainable ecopreneurs to innovate?" The next question is, "How can the implementation of sustainable entrepreneurship in Indonesia in order to be able to compete on a global level?". This paper aims to discuss the conceptual approach of sustainable entrepreneurship and to outline how sustainable entrepreneurs to innovate in bringing additional benefits for the community and the environment.
    Keywords: Keywords: sustainable entrepreneurship, competitiveness, social, global, environment.
    JEL: Q01
    Date: 2014–05–22
  44. By: Andrew Sharpe
    Abstract: It is widely recognized that productivity growth is the key driver of long-run increases in living standards. Therefore, a slowdown in productivity growth is a major cause for concern. This has in fact been the situation in Ontario since 2000. After advancing at a 1.9 per cent average annual rate between 1987 and 2000, business sector productivity growth has fallen to 0.5 per cent per year between 2000 and 2012, the second lowest growth rate among the provinces. Indeed, given the relative size of Ontario’s economy, the province’s weak productivity growth has largely been responsible for Canada’s overall poor productivity performance. The objective of this report is to explain the slowdown in productivity growth in Ontario since 2000. The report provides an overview of the productivity performance of the Ontario economy, with a focus on the 2000-2012 period. The report also examines both the supply-side and demand-side factors that influenced Ontario’s productivity performance. The main cause of Ontario’s lackluster productivity growth is found to be the deterioration of external demand conditions. The drop in international exports, due to weak demand growth in the United States, loss of cost competitiveness linked to the appreciation of Canadian dollar and increasing international competition, played a direct role in the slowdown in Ontario’s productivity growth.
    Keywords: Ontario, Canada, Productivity, Cost Competitiveness, International Trade
    JEL: D24 J24 O47 N12 N32 N52 N62 N72 N92
    Date: 2015–06
  45. By: Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Summary This paper uses the World Input-Output Database (WIOD) to analyse changes of Europe’s position in global specialisation and location patterns of exporting activity within Europe by means of a number of competitiveness indicators. We consider both manufacturing as well as tradable services. The study analyses the increasing role of services–industry linkages, the differentiation in specialisation and competitiveness patterns amongst groups of EU member countries pointing to the increasing concentration of manufacturing activity in the ‘Central European Manufacturing Core’ and to competitive weaknesses of some of the EU’s core economies as well as of some of the lower- and medium-income economies (‘Europe’s periphery’). We also undertake an econometric analysis of the determinants of a range of competitiveness indicators, including explanatory variables such as labour productivity, skill composition or labour compensation per employee as highlighted by traditional trade theories as well as domestic and foreign business services linkages or vertical cross-border production integration to account for phenomena which have come to shape the global trade landscape more recently. 
    Keywords: competitiveness, European economy, Europe’s periphery, global trade specialisation, international production networks, vertical trade integration, services–manufacturing linkages
    JEL: F02 F14 F15
    Date: 2015–05

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