nep-ino New Economics Papers
on Innovation
Issue of 2015‒07‒25
39 papers chosen by
Uwe Cantner
University of Jena

  1. Intra-sector and inter-sector competition in a model of growth By Di Cintio, Marco; Grassi, Emanuele
  2. Innovation, Reallocation and Growth By William Kerr; Ufuk Akcigit; Nicholas Bloom; Daron Acemoglu
  3. Inventing Prizes: A Historical Perspective on Innovation Awards and Technology Policy By B. Zorina Khan
  4. Patent collateral, investor commitment and the market for venture lending By Yael V. Hochberg; Carlos J. Serrano; Rosemarie H. Ziedonis
  5. Effective research and innovation (R&I) policy in the EU-28: A causal and configurational analysis of political governance determinants By Turkeli S.; Kemp R.P.M.
  6. International and Russian Experience in the Management of Public Expenditure on R&D By Sokolov, Ilya; Hudko, Elizaveta; Moguchev, Nikita; Deshko, M.
  7. Does Creative Destruction Work for Chinese Regions? An Empirical Study on the Articulation between Firm Exit and Entry By Yi Zhou; Canfei He; Shengjun Zhu
  8. Innovation, Deregulation, and the Life Cycle of a Financial Service Industry By Hayashi, Fumiko; Li, Grace; Wang, Zhu
  9. The Innovative Content of the Investment Policy By Kushlin, Valery; Ustenko, Viktoria
  10. Cluster Evolution, Regional Innovation Systems and Knowledge Bases. The Development and Transformation of the ICT Cluster in Southern Sweden By Martin, Roman; Trippl, Michaela
  11. Recent Trends in the Development of Modern Management in the Context of Globalization By Gaponenko, A.; Savelyeva, Marina
  12. How does Part-time Work Affect Firm Performance and Innovation Activity? By Kira Pauka
  13. Measuring Recovery: The Impact of Exempting the Pharmaceutical Industry from Patent Reviews By Dean Baker
  14. Hamiltonian Potential Functions for Differential Games By Davide Dragone; Luca Lambertini; George Leitmann; Arsen Palestini
  15. The Effects of Copyright Law on Chinese Media Innovation By Wenjuan Zuo
  16. Social acceptance of green energy and dynamic electricity tariffs - a short review By Anna Kowalska-Pyzalska
  17. Institutions and the Entrepreneurial Discovery Process for Smart Specialization By Andrés Rodríguez-Pose; Callum Wilkie
  18. The Financing of Investment in European SMEs: Does economic integration matter? By Mary Arrieta
  19. Modern Views on the Role of Confidential Relations in the Structure of Inter-Firm Alliances By Lascaux, Alexander
  20. Innovation and Production in the Global Economy By Natalia Ramondo
  21. Luxembourg – diversifying a small open economy By Jan Strasky; Eckhard Wurzel
  22. How to jump further? Path dependent and path breaking in an uneven industry space By Shengjun Zhu; Canfei He; Yi Zhou
  23. Das Zukunftspanel Mittelstand Herausforderungen aus Unternehmersicht By May-Strobl, Eva; Welter, Friederike
  24. Endogenous Economic Growth with Disembodied Knowledge By Marchese, carla; Privileggi, Fabio
  25. Productivity lessons for the Asian region By Jungsoo Park, Lawrence Lau
  26. Legislation on Intellectual Property in the Russian Federation: Novels Introduced in the Civil Code of R.F. By the Federal Law of March 12, 2014 ¹ 35 Fz By Eduard P.Gavrilov
  27. Performance-related Pay and Productivity: Evidence from Japan By KATO Takao; KODAMA Naomi
  28. Dynamic Olley-Pakes Productivity Decomposition with Entry and Exit By Melitz, Marc J.; Polanec, Sašo
  29. Finding possibilities of R&D cooperation between South Korea and North Korea with bibliometrics By IL HWAN LEE
  31. Deindustrialization and tertiarization: structural changes in North West Italy By Antonio Accetturo; Luciana Aimone; Enrico Beretta; Silvia Camussi; Luigi Cannari; Daniele Coin; Laura Conti; Roberto Cullino; Alessandro Fabbrini; Cristina Fabrizi; Giovanni Iuzzolino; Alessandra Mori; Elisabetta Olivieri; Andrea Orame; Anna Laura Mancini; Elena Mattevi; Paolo Piselli; Davide Revelli; Paola Rossi; Diego Scalise; Alessandra Staderini; Giulia Martina Tanzi; Valerio Vacca
  32. The Dynamics of Inequality By Xavier Gabaix; Jean-Michel Lasry; Pierre-Louis Lions; Benjamin Moll
  33. Labor Market Polarization, the Decline of Routine Work, and Technological Change: A Quantitative Evaluation By Christian vom Lehn
  35. Permitting and Licensing Regimes for Renewable Energy Projects By Elena Merle-Beral; Katharina Gassner
  36. Raising competitiveness and long-term growth of the Slovenian economy By Urban Sila; Hermes Morgavi; Nataša Jemec
  37. Who Works for Whom? Worker Sorting in a Model of Entrepreneurship with Heterogeneous Labor Markets By Hubert Janicki; Henry Hyatt; Emin Dinlersoz
  38. Economic impacts of renewable power generation technologies and the role of endogenous technological change By Dr. Christian Lutz; Dr. Markus Flaute; Dr. Ulrike Lehr; Dr. Kirsten Svenja Wiebe
  39. Tax policy tools vs. sustainable development of agriculture. The case of Poland By Micha Soliwoda; Joanna Paw

  1. By: Di Cintio, Marco; Grassi, Emanuele
    Abstract: The role of patents is threefold: first, they are important to state the property rights of an invention; second, they are necessary to secure financing for starting a new venture; third, they are fundamental to recoup R&D investments. The main difficulty in preventing unauthorized use of an innovation is in the establishment of ranges and contexts of patents applicability. Noting the imperfections of the patent legal system, the authors are in a position to consider an economy with two levels of competition under different market structures: the inter-sector monopolistic competition and the intra-sector Cournot oligopoly. The explicit consideration of strategic interactions in a model of endogenous growth produces interesting results. Considering the sectorial market share as the indicator of patent system enforcement, the authors find that growth takes place, if and only if, there are some property rights of private knowledge produced by R&D activities. In turn, the patent system translates into a low degree of competition among firms. Its influence on the growth rate goes in a single unambiguous direction. As competition rises, few resources are available for R&D, so the growth rate goes down.
    Keywords: product differentiation,endogenous growth,market structure,R&D
    JEL: E10 L13 L16 O31 O40
    Date: 2015
  2. By: William Kerr (Harvard University); Ufuk Akcigit (University of Pennsylvania); Nicholas Bloom (Stanford); Daron Acemoglu (Massachusetts Institute of Technology)
    Abstract: We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between high- and low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using detailed US Census micro data on firm-level output, R&D and patenting. The model provides a good fit to the dynamics of firm entry and exit, output and R&D, and its implied elasticities are in the ballpark of a range of micro estimates. We find industrial policy subsidizing either the R&D or the continued operation of incumbents reduces growth and welfare. For example, a subsidy to incumbent R&D equivalent to 5% of GDP reduces welfare by about 1.5% because it deters entry of new high-type firms. On the contrary, substantial improvements (of the order of 5% improvement in welfare) are possible if the continued operation of incumbents is taxed while at the same time R&D by incumbents and new entrants is subsidized. This is because of a strong selection effect: R&D resources (skilled labor) are inefficiently used by low-type incumbent firms. Subsidies to incumbents encourage the survival and expansion of these firms at the expense of potential high-type entrants. We show that optimal policy encourages the exit of low-type firms and supports R&D by high-type incumbents and entry.
    Date: 2015
  3. By: B. Zorina Khan
    Abstract: Prizes for innovations are currently experiencing a renaissance, following their marked decline during the nineteenth century. However, Daguerre’s “patent buyout,” the longitude prize, inducement prizes for butter substitutes and billiard balls, the activities of the Royal Society of Arts and other “encouragement” institutions, all comprise historically inaccurate and potentially misleading case studies. Daguerre, for instance, never obtained a patent in France and, instead, lobbied for government support in a classic example of rent-seeking. This paper surveys empirical research using more representative samples drawn from Britain, France, and the United States, including “great inventors” and their ordinary counterparts, and prizes at industrial exhibitions. The results suggest that administered systems of rewards to innovators suffered from a number of disadvantages in design and practice, some of which might be inherent to their non-market orientation. These findings in part explain why innovation prizes lost favour as a technology policy instrument in both the United States and Europe in the period of industrialization and economic growth.
    JEL: N80 O3 O31
    Date: 2015–07
    Abstract: This paper investigates the market for lending to technology startups (i.e. venture lending) and examines two mechanisms that facilitate trade within it: the ’saleability’ of patent collateral and financial intermediaries. We find that intensified trading in the secondary market for patent assets increases the annual rate of startup lending, particularly for startups with more re-deployable patent assets. Moreover, we show that the credibility of venture capitalist commitments to refinance and grow fledgling companies is vital for startup debt provision. Following a severe and unexpected capital supply shock for VCs, we find a striking flight to safety among lenders, who continue to finance startups whose investors are better able to credibly commit to refinancing their portfolio companies, but withdraw from otherwise promising projects that may have most needed their funds. The findings are consistent.
    Keywords: fi nancing innovation, patent collateral, venture capital, market for patents.
    JEL: L14 L26 G24 O16 O3
    Date: 2015–07
  5. By: Turkeli S.; Kemp R.P.M. (UNU-MERIT)
    Abstract: Effective research and innovation RI policy depends on the extent to which ideas, interests and institutional mechanisms for policy making work together rather than work against each other. In a political governance model for effective RI policy in the EU-28, the separate influence of inter-ministerial coordination, regulatory impact assessment extended to sustainability checks, parliamentary committee surveillance, media attention and societal consultation is investigated. Interaction effects are investigated in a set-theoretic analysis for the econometrically best-fit model. Our results show that the societal consultation, policy-informed opposition and sector-informed informal policy coordination are necessary but not sufficient to bring about effectiveness to RI policy. Their influence on effectiveness of RI policy depends on the combination with either media attention or Regulatory Impact Analysis RIA extended to sustainability checks. We reached these results with the help of ordered logit estimations and fuzzy-set qualitative comparative analyses using 2011-2013 SGI data of Bertelsmann Stiftung and Lexis Nexis Academic.
    Keywords: Mathematical Methods; Economic Development: General; Innovation and Invention: Processes and Incentives; Comparative Studies of Particular Economies; Cultural Economics: Public Policy;
    JEL: O10 O31 P52 Z18 C02
    Date: 2015
  6. By: Sokolov, Ilya (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Hudko, Elizaveta (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Moguchev, Nikita (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Deshko, M. (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: This paper presents an analysis of the international governance of R&D, the peculiarities of the activities of international research organizations and different types of legal form of organizations (Academy of Sciences, universities, research institutes) in the institutional environment of R&D in different countries, the analysis of the structure and dynamics of financing costs research in OECD countries and Russia, revealed features international distribution and delivery of budget funds to contractors.
    Keywords: R&D, OECD, public expenditure
    Date: 2015–06
  7. By: Yi Zhou; Canfei He; Shengjun Zhu
    Abstract: Creative destruction is a key driving force behind industrial development. The continuing process of creative destruction provides an impetus to regional industrial renewal. Our analytical framework that emphasizes the ways in which firm exit creates a stimulus for firm entry, resulting in incremental innovation and productivity increase is complementary to the process of technological change and industrial renewal articulated by Schumpeter who pays attention to how new entrants bring in radical innovation and new products, making incumbents’ products and technologies obsolete and force them to exit or catch up. Using firm-level data of China’s industries during 1998-2008, this paper seeks to argue that the articulation between firm exit and entry has been constantly shaped by an assemblage of various factors, including firm characteristics, industrial linkages, regional institutions and geographical proximity.
    Keywords: Creative destruction, Firm Exit, Firm Entry, Industrial Dynamics, China
    Date: 2015–07
  8. By: Hayashi, Fumiko (Federal Reserve Bank of Kansas City); Li, Grace (International Monetary Fund); Wang, Zhu (Federal Reserve Bank of Richmond)
    Abstract: This paper examines innovation, deregulation, and fi rm dynamics over the life cycle of the U.S. ATM and debit card industry. In doing so, we construct a dynamic equilibrium model to study how a major product innovation (introducing the new debit card function) interacted with banking deregulation drove the industry shakeout. Calibrating the model to a novel data set on ATM network entry,exit, size, and product offerings shows that our theory fits the quantitative pattern of the industry well. The model also allows us to conduct counterfactual analyses to evaluate the respective roles that innovation and deregulation played in the industry evolution.
    JEL: G2 L10 O30
    Date: 2015–07–20
  9. By: Kushlin, Valery (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Ustenko, Viktoria (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: According to the new challenges Russia needs to provide access to the path of sustainable economic growth n the medium term period, which involves the activation of investment policy, not only quantitatively but also qualitatively, so to go to the innovation-oriented and high-performance economy. The paper analyzes three possible scientific innovation inve-vestment policy of Russia in the conditions of high uncertainty, heated global crisis: 1) Local Leadership "; 2) "The rapid pursuit"; 3) "Adaptation to the off-season." It is shown how should combine all three at the same time the above script. Proposals aimed at improving the strategic-agency and program-oriented planning of scientific and innovative development of the mechanism of stimulation of innovative activity of Russian business, improving state management of innovative projects. Reasonable measures for the development of venture financing of innovative projects, use of mechanisms, "technology platforms" as a bridge between science, government and manufacturing business, the use of modern public-private partnerships, and more effective harnessing of innovation in order to modernize the economy of the human factor.
    Keywords: venture capital investment, public-private partnerships, investment policy, innovative modernization, intellectual resources, national innovation system, technology platforms, human potential
    Date: 2015–05
  10. By: Martin, Roman (CIRCLE, Lund University); Trippl, Michaela (CIRCLE, Lund University)
    Abstract: This paper extends research on long-term cluster evolution with a context sensitive conceptual framework that highlights how configurations of regional innovation systems (RIS), their knowledge base specificities and policy actions can shape cluster development and transformation. By doing so, we redress the neglect of regional context specific factors by current accounts of cluster life cycle models. The empirical part of the paper deals with the evolution of the ICT cluster in Scania, southern Sweden. The emergence of the cluster in the early 1980s was enabled by a strong analytical and synthetic knowledge base in the region, and the subsequent growth was driven by intense collaboration between industry and academia. The changing geography of the ICT industry in the past decade brought along new challenges for the existing companies and led to a transformation of the cluster towards a new growth trajectory. Cluster transformation was facilitated by policy actions that promoted symbolic knowledge activities in the region. The strategy was to combine existing competences in mobile communication with new competences in media and design, and to develop new industrial activities around the theme of New Media, which integrates analytical, synthetic and symbolic knowledge. In the case of Scania, the endowment of the RIS of a variety of knowledge bases and their combination has led to successful cluster development in spite of challenges resulting from changing socio-economic conditions.
    Keywords: Cluster evolution; knowledge bases; regional innovation systems; innovation policy; ICT; New Media; Sweden
    JEL: B52 O33 O38
    Date: 2015–07–20
  11. By: Gaponenko, A. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Savelyeva, Marina (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Constant changes, an increase in the rate of diffusion of innovation lead to the transformation of the management. A key function is training. It recognizes the most innovative companies, introducing new methods of organization of the process, that is engaged in the management of innovation. One of the key facilities management becomes knowledge, knowledge management is allocated in a separate direction. Along with the management of knowledge in modern management practices stand out as relatively independent kinds of reputation management company, managing customer loyalty, brand management organization, its image and so forth.
    Keywords: innovation, innovative companies, knowledge management
    Date: 2015–06
  12. By: Kira Pauka (University of Basel)
    Abstract: This paper analyzes how part-time work affects financial and innovative firm performance. Moreover, it provides a detailed examination of part-time work by defining three different forms of part-time work (large, medium and small part-time work) depending on weekly working hours. Considering human capital theory, I expect part-time workers to have lower work experience and to accumulate less human capital. Thus I hypothesize that part-time work affects both, financial and innovative firm performance, negatively. For the empirical investigation I use a large German firm-level data set. The analysis shows that increasing part-time work has a significant negative impact on financial firm performance. Specifically, there are differences with regard to the considered categories of part-time work. Part-time workers having the fewest working hours per week have the strongest negative impact on financial firm performance. However the negative effect of part-time work does not remain for innovative firm performance. The results show no significant difference between part-time and full-time workers in their impact on innovative firm performance.
    Keywords: part-time work, financial firm performance, innovation
    JEL: J21 L25 M50
    Date: 2015
  13. By: Dean Baker
    Abstract: This paper analyzes the impact of an amendment to Senate Bill 1137, offered by Senator Thomas Tillis, which would exempt patents related to pharmaceuticals and biological products from the Inter Partes Review (IPR) process. The IPR process was established in the America Invents Act, which was passed and signed into law in 2012. The process is intended to provide a quick and low-cost way in which dubious patent claims can be challenged by those who might be affected. In the first two years in which it was in place, almost one-third of challenged claims were canceled or removed according to data from the United States Patent and Trademark Office (USPTO). Based on this data, the paper argues that the IPR process appears to be an effective mechanism for quickly removing dubious patent claims before they impose major costs on the economy.
    Keywords: patents, pharma, pharmaceutical, inter partes review, drugs
    JEL: I I1 I18
    Date: 2015–07
  14. By: Davide Dragone (Department of Economics, University of Bologna, Italy); Luca Lambertini (Department of Economics, University of Bologna, Italy; ENCORE, University of Amsterdam, The Netherlands; The Rimini Centre for Economic Analysis, Italy); George Leitmann (College of Engineering, University of California at Berkeley, United States of America); Arsen Palestini (MEMOTEF, Sapienza University of Rome, Italy)
    Abstract: We introduce the concept of Hamiltonian potential functions for non-cooperative open-loop differential games and we characterize sufficient conditions for their existence. We also identify a class of games admitting a Hamiltonian potential and illustrate the related properties of their dynamic structure. Possible similarities with the theory of quasi-aggregative games are discussed. As an illustration, we consider an asymmetric oligopoly game with process innovation.
    Date: 2015–02
  15. By: Wenjuan Zuo (Wuhan Media and Communications College of Central China Normal University)
    Abstract: The recent case between Qiong Yao, a famous Chinese writer, and the screenwriter/director Yu Zheng has raised much controversy within the Chinese society. In this case, Yu has been accused of infringing Qiong’s copyright work by shooting it into a movie without license. Irrespective of the vast social influences, the case per se, from a legal perspective, is not as heavily disputed. However, for those who work in the media industry, this case raises the alarm that China as a country has gradually formed the idea of copyright protection. This process inevitably will be a painful one since most of the media workers, in the process of pursuing goals with media values such as unveiling the truth of a event, and the production of a media innovation such as a type of new television program, can no longer ignore the effects of copyright law on media innovation during the age of new media. Existing literature fails to examine the myriad relationship between copyright law and media to clearly indicate the role that copyright law should play in the media sector.This paper analyzes the rationales behind the Chinese media culture and answers why media worker in China, in the transition period of new media, have often lack the incentives or motivations in media innovation. This can be exemplified by the fact that Chinese tends to buy licensed TV programs such as “China’s Got Talent” or the “Where Is My Father”, the copyright of which belong to foreign owned corporations. This paper seeks to answer this question from the perspective of the relationship between copyright law protection and media, i.e., is copyright law an impeding factor that serves to hold back media production innovation? If so, how should the conflict between law and media innovation be resolved? The prevailing principle of “the idea and expression dichotomy”, from the perspective that idea is not legally protected but only expression is, has caused considerable confusion among media workers. What seems to be a perfectly reasonable legal principle might appear absolutely unreasonable in the media industry. This paper conducts interdisciplinary research on the effects of copyright law on Chinese media.The conclusion of this case will contribute to clarifying existing confusions between copyright law and media as described above, and strives to conclude a guidance that Chinese media workers can follow in pursuing media achievements while not violating copyright laws.
    Keywords: Chinese Copyright Law, Media Innovation in China, Law and Media, Chinese TV program
  16. By: Anna Kowalska-Pyzalska
    Abstract: This paper presents a review of recent literature on consumer energy behaviors and willingness to pay for innovative products in the energy market. Among such products green energy and dynamic electricity tariffs will be considered. Social and psychological factors, that influence the adoption of these products will be discussed. Consumer engagement and acceptance of green energy as well as dynamic electricity tariffs are necessary to make the diffusion of these products possible and effective. In conclusion some research challenges and potential research gaps will be described.
    Keywords: Dynamic pricing; Green energy; Social acceptance; Consumer behavior; Willingness to pay; Diffusion of innovation
    JEL: C63 O33 Q48 Q55
    Date: 2015–07–17
  17. By: Andrés Rodríguez-Pose; Callum Wilkie
    Abstract: Smart specialization approaches to regional innovation policies have attracted, and in all likelihood will continue to attract, considerable attention. With this attention has come significant interest in one of the approach’s defining features: the ‘entrepreneurial discovery process’ (EDP). While this interest has yielded substantial progress in the development of a comprehensive collective understanding of the EDP, several important, even vital, aspects of the EDP remain ‘under-‘ or even ‘unaddressed’. This essay aims to fill what we consider to be two prominent gaps in the aforementioned collective understanding by, first, identifying the actors who are responsible for the EDP, investigating their respective roles, and exploring how they should be engaged, and, second, by dissecting the relationship between the EDP and the institutional context within which it occurs recognizing that institutions can exercise tremendous influence on the effectiveness and outcomes of the EDP. Four prominent conclusions emerge from this exercise – each of which is made explicit in the final section of the paper – that will hopefully contribute to the more effective implementation and execution of the EDP across diverse socioeconomic and institutional contexts.
    Keywords: Smart specialisation, entrepreneurial discovery process (EDP), innovation, innovation policy, institutions, Europe.
    Date: 2015–07
  18. By: Mary Arrieta (University of Greenwich)
    Abstract: The main research objective is to compare internal to external financing sources in and outside the Eurozone, and the way this affects investment, competitiveness and firm success in the long term. Of particular interest is investment in innovation projects of non-research intensive SMEs and how these compare throughout Europe. Aim: To inform industrial policy design at European level. Data: Mainly drawn from the Survey on the Access to Finance of Enterprises (SAFE) by the European Central Bank (ECB), and merged with business data at country level available in and outside the Eurozone. Methodology: Advanced Panel Data and Survival (Frailty) Models
    Keywords: Investment and financing, SMEs, innovation
    JEL: L00 G00 C10
  19. By: Lascaux, Alexander (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Trusting relationships play a pivotal role in the structures of interfirm cooperation, particularly in the highly uncertain and complex technological environment characterized by frequent and radical innovations. The very fact of forging long-term cooperative relationships hinges upon a high level of trust development. Firms experience trust in competence, benevolence and integrity of their partners in interfirm economic exchanges, which makes it possible to maintain durable cooperative structures.
    Keywords: trusting relationships, interfirm cooperation, inter-firm alliances
    Date: 2015–06
  20. By: Natalia Ramondo (UCSD)
    Abstract: The decline in the costs of multinational production (MP) has led some countries to specialize in innovation and others to specialize in production. To study the aggregate and distributional implications of this phenomenon, we develop a quantifiable general equilibrium model of trade andMP. Specialization is endogenously determined as a result of comparative advantage and home market effects (HME) that arise from the interaction between increasing returns to innovation and geographical frictions. The model yields simple structural expressions for bilateral trade and MP that we use to calibrate it across a set of OECD countries. Comparative statics exercises reveal that the reduction in the cost of MP or the integration of China into the world economy may hurt countries that are driven to specialize in production due to HMEs, although these losses tend to be very small. Contrary to popular fears, we find that production workers gain even in countries that further specialize in innovation.
    Date: 2015
  21. By: Jan Strasky; Eckhard Wurzel
    Abstract: Developing activities in areas other than finance would help to sustain growth and deal with the declining potential output and trend productivity growth that Luxembourg’s economy is facing. Given the relatively high labour costs, Luxembourg’s future comparative advantages are likely to lie in higher value added and skill intensive activities. Further development of Luxembourg’s high living standards thus requires strengthening the economy’s growth potential via further diversification of activity in high value added sectors. Stepping up investment in knowledge based capital and enterprise innovation can help Luxembourg to maintain and further develop comparative advantages in high value added activities. The government is promoting the formation of enterprise clusters by providing networking, infrastructure investment and financial support for research and development. To enhance the efficiency of the government’s policy, high priority should be given to outcome-oriented evaluation. This is required to ensure that costly infrastructure investment yields good results. Further efforts should be made to create synergies via cross-border initiatives, in particular with respect to research. Experience in other countries points to the importance of regulatory framework conditions in product and labour markets to spur enterprise dynamics. Regulation in professional services can be made more competition friendly, and impediments to labour force participation, notably for women, can be reduced. Productivity and innovation are also affected by the effectiveness of the secondary education system to produce skilled workers, which in Luxembourg is hampered by high repetition rates among students. This Working Paper relates to the 2015 OECD Economic Survey of Luxembourg (<P>Luxembourg – diversifier une petite économie ouverte<BR>Développer l’activité dans des domaines autres que la finance permettrait de soutenir la croissance et de faire face à la baisse de la production potentielle et de la croissance tendancielle de la productivité que connaît l’économie luxembourgeoise. Étant donné les coûts de main-d’oeuvre relativement élevés, les avantages comparatifs futurs du Luxembourg vont vraisemblablement reposer sur des activités à plus haute valeur ajoutée et à plus forte intensité de main-d’oeuvre qualifiée. Par conséquent, la progression du niveau de vie du Luxembourg, déjà élevé, exige le renforcement du potentiel de croissance de l’économie à travers une diversification plus poussée dans des secteurs d’activité à forte valeur ajoutée. Investir plus massivement dans le capital intellectuel et dans la capacité d’innovation des entreprises peut aider le Luxembourg à maintenir et à renforcer des avantages comparatifs dans des activités à forte valeur ajoutée. Le gouvernement s’emploie à promouvoir la mise en place de pôles d’entreprises en favorisant la constitution de réseaux, en investissant dans les infrastructures et en aidant financièrement la recherche-développement. Pour améliorer l’efficacité de la politique publique, il faudrait accorder une priorité élevée à la réalisation d’évaluations axées sur les résultats, afin de s’assurer que les investissements dans les infrastructures, qui sont coûteux, produisent des résultats satisfaisants. Il faut aussi s’employer davantage à générer des synergies par le biais d’initiatives transfrontalières, en particulier en matière de recherche. L’expérience d’autres pays fait ressortir l’importance que peut jouer le cadre réglementaire des marchés des produits et de l’emploi pour insuffler un nouveau dynamisme aux entreprises. Il est possible de rendre la réglementation des services professionnels plus favorable à la concurrence et de réduire les facteurs pesant sur le taux d’activité, notamment des femmes. L’efficacité du système d’enseignement secondaire au Luxembourg, qui se caractérise par un taux de redoublement élevé et a du mal à produire des travailleurs qualifiés, affecte également la production et l’innovation. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de Luxembourg, 2015 ( ique-luxembourg.htm).
    Keywords: innovation, education, infrastructure, government policy, intangible assets, entrepreneurship, recherche et développement, entrepreneuriat, diversification, éducation
    JEL: H52 H54 I25 L25 L52 L53 O31 O32 O38
    Date: 2015–07–23
  22. By: Shengjun Zhu; Canfei He; Yi Zhou
    Abstract: By using the proximity product index, recent studies have argued that regional diversification emerged as a path-dependent process, as regions often branch into industries that are related to preexisting industrial structure. It is also claimed that developed countries that start from the core, dense areas in the uneven industry space have more opportunities to jump to new related industries and therefore have more opportunities to sustain economic growth than do developing countries that jump from peripheral, deserted areas. In this paper, we differentiate two types of regional diversification—path-dependent and path-breaking—and ask questions from a different angle: can developing countries/regions jump further in the industry space to break path-dependent development trajectories and more importantly to catch up with developed ones? Based on China’s export data, this paper shows that regions can jump further by investing in extra-regional linkages and internal innovation. Not only do these two sets of factors promote regions’ jumping capability, but they also contribute to regions’ capability of maintaining a comparative advantage in technologically distant and less related industries. In addition, different extra-regional linkage and internal innovation factors have affected regional diversification to different extents, and these effects also vary across regions and industries. Empirically, this research seeks to find a more promising future for developing countries/regions. Theoretically, our research testifies some key findings of theoretical works in evolutionary economic geography by using a quantitative framework. In addition, this paper includes some economic and institutional factors that have been left out in previous studies.
    Keywords: path-dependent, path-breaking, industrial relatedness, proximity index, transition industries
    Date: 2015–07
  23. By: May-Strobl, Eva; Welter, Friederike
    Abstract: Als Ergänzung der im Jahr 2014 durchgeführten Expertenbefragung zu den Herausforderungen des deutschen Mittelstands (Zukunftspanel Mittelstand) wird nun basierend auf der Mittelstandsbefragung des IfM Bonn die Unternehmersicht dargestellt. Es zeigt sich, dass von den acht identifizierten Handlungsfeldern die Sicherung der Wettbewerbs- und Innovationsfähigkeit weit oben rangiert. Hingegen erscheinen in der Gesamtschau unternehmerischer Herausforderungen ansonsten als hochrangig angesehene Themen wie der Fachkräftemangel und die Bürokratiebelastung nicht prioritär. Unterschiede werden für die Teilgruppen des Mittelstands herausgearbeitet, um Hinweise für die Gestaltung von Mittelstandspolitik zu geben.
    Abstract: This paper complements our expert survey on the challenges for the German Mittelstand in 2014 (The IfM Bonn Future Panel on SMEs) by taking into consideration the entrepreneurs' point of view. The results of our business survey show that (out of eight relevant action fields) the companies' top priority is to preserve or even enhance competitiveness and innovation capabilities. Topics such as demand for skilled labour or bureaucratic burdens which are highlighted in other policy contexts and discourses turn out to be less important. We identify specific challenges for different segments of the Mittelstand in order to provide policy makers with information for the design of Mittelstand support policies.
    Keywords: Mittelstand,Herausforderungen des Mittelstands,Mittelstandspolitik,German Mittelstand,challenges for entrepreneurs and Mittelstand (SMEs),SME policies
    JEL: L20 L26
    Date: 2015
  24. By: Marchese, carla; Privileggi, Fabio (University of Turin)
    Abstract: Mainstream endogenous growth models assume that new knowledge is embodied into new intermediate or final goods, monopolistically supplied by the patent holder. Recent technological progress, however, often gives rise to pure intellectual contents, such as software codes or business models, directly usable in the production of final goods. Once a content of this type has been produced, it is in fixed supply, that is, the inventor can only rent it out (or sell it) or not; hence the quantity restriction typical of monopoly cannot arise, while competition is viable (Chantrel et al., 2012; Marchese and Privileggi, 2014). We show that, however, as long as the inventor owning a patent can control through license activation devices the access to the intellectual content of the workers using her invention in the final goods production, monopolistic exploitation becomes viable and will occur. It turns out that in this framework both the level of wages and of consumption and the rate of growth of the economy are smaller than in the first best, while with elastic labor supply also labor employment is negatively impacted. This implies that some standard public policies devised for correcting ineciencies in development can perform poorly in this framework.
    Date: 2015–06
  25. By: Jungsoo Park, Lawrence Lau
    Abstract: This study investigates how the patterns of productivity growth have changed over the past few decades for the Asian economies in comparison with the advanced economies. The findings indicate that the Asian economies are in the process of transition in terms of pattern of growth. It seems that the 4 NIEs have already transitioned from input-based growth to productivity-based growth, and the remaining Asian economies are starting to show signs of transition in the past decade. Scrutinizing the recent trends in human capital, R&D, patent statistics, and inward FDIs, they all indicate that the productivity growth will be stronger in the Asian region than before and will constitute the major basis for growth.
    Keywords: total factor productivity, Asian economies, economic growth
    JEL: O47 O57
    Date: 2015–04
  26. By: Eduard P.Gavrilov (National Research University Higher School of Economics)
    Abstract: This paper is a short English version of my various articles on this topic published in Russian, in journals: «The business and the law» (Chozjaistvo i pravo) and «The patents and licenses» (Patenti i licenzii). As is known modern Russian revolution in the field of intellectual property legislation occurred January 1, 2008: on this day Russian intellectual property legislation was codified, included in the text of the Civil code of the Russian Federation as part fourth of the Civil Code (CC). Part fourth of the Russian CC (Federal law ¹230-FZ, 2006) entered into force on January 1, 2008. Second Revolution in this field took place during 2014: Federal law ¹35-FZ, 2014, substantially amending the Fourth part on the CC, entered into force on October the first 2014. The essence and evaluation of these amendments is the subject matter of this paper. Factually the Federal Law ¹35-FZ (2014) is the eleventh law amending the text of the part fourth of the CC. But all previous amendments were small and not substantional. As far as amendments introduced by the law ¹35-FZ (2014) are concerned, they are numerous and very, very substantional. I cannot say that the law ¹35-FZ (2014) represents a new Revolution in the field of intellectual property legislation of my country, but I convinced, that the law is a rather big step towards building a modern system of intellectual property legislation in Russia. Before entering into force of the law ¹35-FZ (2014) (thereafter - law 35-FZ), the Part fourth of the CC contained 328 articles. The law 35-FZ amends 169 articles of it and adds to it new seven articles
    Keywords: K19
    Date: 2015
  27. By: KATO Takao; KODAMA Naomi
    Abstract: Traditionally, Japanese firms are known for the use of a pay system which rewards their workers for long-term skill development through on-the-job training within the firm. Changing its traditional reward system to performance-related pay (PRP) which ties pay to shorter-term performance is one of the most often-discussed topics concerning Japan's human resource management (HRM) policies/practices in the last two decades or so. Proponents of the change urge Japanese firms to abandon their traditional reward system and adopt PRP in order to boost productivity and maintain/regain global competitiveness. Opponents question their underlying premise that PRP boosts enterprise productivity. The controversy has not been resolved in large part due to the lack of rigorous evidence on the productivity effect of PRP in Japan. In this paper, we provide such evidence by estimating production functions augmented by PRP, using unique firm-level panel data. Unlike prior studies that use cross-sectional data, we are able to estimate fixed effect models and hence identify the productivity effect of PRP separately from that of time-invariant unobserved firm characteristics such as corporate culture, tradition, and inherent managerial quality. Overall, we find no significant productivity effect of PRP, which tends to favor skeptics. However, we also find evidence that PRP does yield significant productivity gains for firms that no longer subscribe to the traditional "lifetime employment" practice; and for firms that use employee involvement and tap into local knowledge of frontline workers. As such, our findings point to the importance of HRM complementarity. Changing the traditional pay system to PRP without changing the rest of the traditional Japanese HRM system such as "lifetime employment" is ineffective. Likewise, it is futile to offer workers incentive (PRP) while neglecting to provide them with an opportunity to share their productivity-enhancing local knowledge (employee involvement).
    Date: 2015–07
  28. By: Melitz, Marc J.; Polanec, Sašo
    Abstract: In this paper, we propose an extension of the productivity decomposition method developed by Olley & Pakes (1996). This extension provides an accounting for the contributions of both firm entry and exit to aggregate productivity changes. It breaks down the contribution of surviving firms into a component accounting for changes in the firm-level distribution of productivity and another accounting for market share reallocations among those firms - following the same methodology as the one proposed by Olley & Pakes (1996). We argue that the other decompositions that break-down aggregate productivity changes into these same four components introduce some biases in the measurement of the contributions of entry and exit. We apply our proposed decomposition to the large measured increases of productivity in Slovenian manufacturing during the 1995-2000 period and contrast our results with those of other decompositions. We find that, over a 5-year period, the measurement bias associated with entry and exit is substantial, accounting for up to 10 percentage points of aggregate productivity growth. We also find that market share reallocations among surviving firms played a much more important role in driving aggregate productivity changes.
    Date: 2015
    Abstract: North Korea is a one of most isolated country in terms of politics, economy, culture, and even technologies in the world. Republic of Korea (South Korea) had kept trying conversations with North Korea for developing relationship but social structures of both countries are quite different and that made political cooperation very hard. Thus, Korean government had tried other approaches such as supporting foods to people in North Korea or making a cooperative industrial cluster in North Korea. Technology collaboration between two countries also could be an alternative method for developing relations but it was very rare until now. First reason is that it is hard to contact scientist each other in both countries. Second reason is there are worries technology collaboration make an unintended development of nuclear weapon or other technologies related military. It made a concrete barrier against technology cooperation. However, technology collaboration is still a helpful instrument to development relationship between two countries except for technologies related military weapon. In this study, research and development condition of North Korea were derived using publication analysis. This study aims to find out who are major collaboration countries or institutes with North Korea in the world and which research fields are suitable for collaboration with North Korea. Here, analysis of North Korean’s presence in the world’s scientific literature, it could help to give some information of starting point of technological collaboration between South Korea and North Korea.
    Keywords: North Korea, R&D Cooperation, Bibliometrics
  30. By: Radovan Pejanovi (University of Novi Sad, Faculty of Agriculture, Department of Agricultural Economics and Rural Sociology); Dunja Demirovi (University of Novi Sad, Faculty of Sciences, Department of Geography, Tourism and Hotel Management); Vladimir Niki (University of Novi Sad, UNESCO Chair for Entrepreneurial Studies)
    Abstract: The role of universities has changed. Universities are not only focused on transferring knowledge and conducting research, but have become a link between the state and the economic environment. The new role of the university is referred to as its third mission through which the university becomes an institution that monitors development in society and actively is involved in solving its problems. In order to determine the appropriate development model of the third mission, at the University of Novi Sad (Serbia) was conducted survey on four levels: university - the Rector, faculties - dean, the department directors/heads of departments and staff. 200 employees at the University were surveyed, and the starting point for research was the questionnaire HE-Innovate tool, designed by the European Commission and Organisation for Economic Co-operation and Development (OECD). Research conducted at the University of Novi Sad presents empirical results of an entrepreneurial university in Serbia and indicates which are the key aspects of the strategic approach in the development of the University as an entrepreneurial university, as well as how to improve the quality of scientific research and educational work and therefore its internationalization.
    Keywords: the third mission, entrepreneurship, social role, internationalization, University of Novi Sad (Serbia)
    JEL: I25
  31. By: Antonio Accetturo (Bank of Italy); Luciana Aimone (Bank of Italy); Enrico Beretta (Bank of Italy); Silvia Camussi (Bank of Italy); Luigi Cannari (Bank of Italy); Daniele Coin (Bank of Italy); Laura Conti (Bank of Italy); Roberto Cullino (Bank of Italy); Alessandro Fabbrini (Bank of Italy); Cristina Fabrizi (Bank of Italy); Giovanni Iuzzolino (Bank of Italy); Alessandra Mori (Bank of Italy); Elisabetta Olivieri (Bank of Italy); Andrea Orame (Bank of Italy); Anna Laura Mancini (Bank of Italy); Elena Mattevi (Bank of Italy); Paolo Piselli (Bank of Italy); Davide Revelli (Bank of Italy); Paola Rossi (Bank of Italy); Diego Scalise (Bank of Italy); Alessandra Staderini (Bank of Italy); Giulia Martina Tanzi (Bank of Italy); Valerio Vacca (Bank of Italy)
    Abstract: The paper analyzes the recent evolution of the economies of the Italian North West, focusing on the phenomena of de-industrialization and the transition to a service economy. The comparison is made with a group of European regions defined as “advanced industrial.” Results show that the sluggish economic growth of the North West (which has worsened in the last decade) has taken place in a context of heavy economic structural changes. Some of these, which are specific to the North West, seem to have further hampered the competitiveness of the area, such as a too slow transition towards technology-intensive manufacturing sectors and to knowledge intensive services. The international comparison shows persistent gaps regarding important factors for growth and innovation; among these, the small firm size, delays in the human capital accumulation, the weakness of the economic and financial situation of enterprises. Even in the long recession, we observe signs of dynamism, like some highly competitive firms and territories, which are able to compete even at international level.
    Keywords: growth, structural change, innovation, human capital, financial structure.
    JEL: E3 L1 O3 E2 G2
    Date: 2015–07
  32. By: Xavier Gabaix; Jean-Michel Lasry; Pierre-Louis Lions; Benjamin Moll
    Abstract: The past forty years have seen a rapid rise in top income inequality in the United States. While there is a large number of existing theories of the Pareto tails of the income and wealth distributions at a given point in time, almost none of these address the fast rise in top inequality observed in the data. We show that standard theories, which build on a random growth mechanism, generate transition dynamics that are an order of magnitude too slow relative to those observed in the data. We then suggest parsimonious deviations from the basic model that can explain such changes, namely heterogeneity in mean growth rates or deviations from Gibrat's law. These deviations are consistent with theories in which the increase in top income inequality is driven by the rise of "superstar" entrepreneurs or managers.
    JEL: D31 E24
    Date: 2015–07
  33. By: Christian vom Lehn (Brigham Young University)
    Abstract: Technological change is a prominent hypothesis for the recent polarization of the labor market and the related decline for occupations specializing in performing routine tasks. In this paper, I provide a quantitative evaluation of this hypothesis. To do so, I build an extension of the standard growth model which allows for endogenous determination of the demand and supply for occupational labor in response to investment specific technological change. I further evaluate the extent to which this channel of technological change can account for recent declines in aggregate employment and the labor share of income. My analysis finds that technological change is able to account for a large fraction of changes in occupational employment and earnings, as well as the decline in the labor share, through the year 2000, but is unable to reconcile many of these patterns in the subsequent decade. In particular, after 2000, the model significantly overpredicts wages and hours for higher skilled occupations. This is at odds with both the recent measured slowdown in demand for these occupations as well as the hypothesis that slowing technological change can account for this phenomenon.
    Date: 2015
    Abstract: The development of electrical and electronic industry has led to increase not only in the production of new goods, but also in scraps generation. The rapid movements in electronic industry, e-waste including obsolete and substandard electronic products have become the fastest growing components in the solid waste stream in most Nigerian cities and this waste contained hazardous chemical elements that pose serious environmental threats. The aim of this paper is to assess electronic waste management system and the environmental impacts on Kaduna metropolis. Materials for this study were obtained from structured oral interviews and field observations. Secondary sources of materials were obtained from desk review method. The results of the study showed that e-waste products were generated from the use of electrical equipment such as battery, electrical cables, televisions, cell phones, computer parts and accessories among others. The rate of generation has been exacerbated by increases in population and technological upgrading due to increase in economical well being of Nigerians. The results also showed that the e-wastes are indiscriminately dumped on open spaces in the metropolis. There is also neither characterization of this e-waste non organized recycling, except by local scavengers (yan bolas) that operate backyard recycling by disassembling or open burning of the e-waste to extract materials of immediate values such as cable, plastic, ICs, transistors and metals leaving behind the toxic metals which are potent pollutants. E-wastes are known to contain toxic heavy metals that are linked to major ailments peculiar to humans. The paper therefore recommends strong legislation enforcement on importation of obsolete and substandard electrical and electronic products and a good e-waste handling and recycling strategies that are economical and environmental friendly.
    Keywords: Obsolete, toxic, heavy metals, pollution, management, e-waste, recycling
    JEL: A10
  35. By: Elena Merle-Beral; Katharina Gassner
    Keywords: Science and Technology Development - Engineering Environment - Climate Change Mitigation and Green House Gases Environment - Environment and Energy Efficiency Energy - Energy Production and Transportation Energy - Energy and Environment
    Date: 2015–06
  36. By: Urban Sila; Hermes Morgavi; Nataša Jemec
    Abstract: The rapid growth after independence stopped in 2008 as the global crisis exposed important structural weaknesses. Large state involvement and rigid labour and product markets lowered productivity. Weak corporate governance and easy credit before the crisis led to high indebtedness and overinvestment. Slovenia was slow to deal with the underlying structural problems. Gradually, important reforms have been implemented which raised credibility of Slovenia in the financial markets and boosted confidence. But economic recovery has been sluggish, many people are unemployed and living standards still remain below the pre-crisis levels. Cost competitiveness and export market performance deteriorated, and there have been marked improvements only recently. Better corporate governance and management practices in the state owned sector and privatisations can attract FDI and raise efficiency. Low innovative activity could be boosted by more FDI, stronger framework for entrepreneurial activity and better start-up support. Relatively high minimum wage is potentially reducing employment opportunities of low-skilled workers. Limiting the minimum wage growth, and lowering the high tax wedge on labour income could boost employment. Efficiency should be raised in early and tertiary education to enhance skills. Despite generous public support, overall students’ performance could be improved and there are marked differences between students from different socioeconomic backgrounds. This Working Paper relates to the 2015 OECD Economic Survey of Slovenia (<P>Renforcer la compétitivité et la croissance à long terme de l'économie Slovène<BR>La croissance rapide suite à l'indépendance s'est arrêtée en 2008 alors que la crise mondiale a révélé d'importantes faiblesses structurelles. La participation de l'État et des marchés du travail rigides ont abaissé la productivité. Une faible gouvernance des entreprises et une facilité d'accès au crédit avant la crise ont conduit à un endettement élevé et au surinvestissement. La Slovénie a été lente à traiter les problèmes structurels sous-jacents. Peu à peu, des réformes importantes ont été mises en oeuvre qui ont amélioré la crédibilité de la Slovénie dans les marchés financiers et ont renforcé la confiance. Mais la reprise économique a été lente, beaucoup de gens sont au chômage et les conditions de vie restent toujours en dessous des niveaux d'avant-crise. La compétitivité des coûts et la performance des marchés d'exportation se sont détériorées, il y a eu des améliorations marquées que récemment. Des meilleures pratiques de gouvernance d'entreprise et de gestion des secteurs conduits par l'État et les privatisations peuvent attirer l'IDE et augmenter l'efficacité. Une faible activité innovante pourrait être stimulée d'avantage par l'IDE, en créant un environnement plus solide pour l'activité entrepreneuriale et un meilleur support pour de nouvelles entreprises de petite taille. Le salaire minimum relativement élevé réduit potentiellement les possibilités d’emploi de travailleurs peu qualifiés. Limiter la croissance du salaire minimum, et l'abaissement de la charge fiscale sur les revenus du travail pourrait stimuler l'emploi. L'efficacité doit être soulevée dans l'éducation précoce et tertiaire pour améliorer les compétences. Malgré le soutien public, la performance de l'ensemble des étudiants pourrait être améliorée et il y a des différences marquées entre les élèves de différents milieux socio-économiques. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Slovénie, 2015 ( ique-slovenie.htm).
    Keywords: taxation, education, innovation, labour market, productivity, R&D, fiscalité, marchés du travail, innovation, éducation
    JEL: E24 F21 G3 H2 I2 J24 K2 L26 L33 O3
    Date: 2015–07–15
  37. By: Hubert Janicki (U.S. Census Bureau); Henry Hyatt (US Census Bureau); Emin Dinlersoz (U.S. Census Bureau)
    Abstract: Compared with mature firms, young firms, most of which represent entrepreneurial activity, disproportionately hire younger, nonemployed individuals, and provide them with lower earnings. Furthermore, in recent years the number of young firms has been declining, along with their employment share, employee size, and worker earnings. To account for these facts, this paper introduces heterogeneous labor markets with search frictions to a dynamic model of entrepreneurship. Individuals differ in productivity and wealth. They can choose not to work, become entrepreneurs, or work in one of two sectors: a corporate versus an entrepreneurial sector. The differences in production technology and labor market frictions across the sectors lead to sector-specific wages. Worker sorting across sectors arises, as individuals with lower assets and higher productivity tend to take lower-paying jobs in the entrepreneurial sector because they do not have enough savings to smooth consumption while unemployed until the arrival of a higher-paying corporate sector job offer. This sorting is found to be consistent with the data on the average net worth of workers in young versus mature firms. The model is also used to explore potential mechanisms behind the recent decline in entrepreneurship in the U.S.
    Date: 2015
  38. By: Dr. Christian Lutz (GWS - Institute of Economic Structures Research); Dr. Markus Flaute (GWS - Institute of Economic Structures Research); Dr. Ulrike Lehr (GWS - Institute of Economic Structures Research); Dr. Kirsten Svenja Wiebe (GWS - Institute of Economic Structures Research)
    Abstract: This paper brings together the debate on economic impacts of renewable energy (RE) deployment and the discussion on modelling endogenous technological change on the global markets for the different renewable power generation technologies. Economic impacts of RE deployment are still mostly discussed on national level, where different effects have been identified. Recent research for Germany shows positive effects on the macro level and different distributional impacts. High investment in solar photovoltaics (PV) from 2010 to 2012 and induced increases in the RE surcharge are the main drivers. At the same time, cost reductions for wind and solar PV take place on global markets, with global learning curves explaining the cost reductions very well. This calls for better including the international dimension into the modelling. The complex feedback loops between global cost curves and national policies, which react to global learning with some time lags, are not yet integrated into quite complex economic models. These models have to capture different RE technologies, different industries, either delivering the RE technologies or strongly depending on electricity prices, which are influenced by national support policies and macroeco- nomic development. As a first step to better understand the role of international markets, assumptions on RE exports based on global scenarios can be used. Results show the importance of global markets at least for the German RE industries. If the international dimension is taken into account, mainly positive economic impacts of further RE deployment can be observed.
    Keywords: renewable energy, global learning curves, policies, economic models
    JEL: Q28 Q29 C51
    Date: 2015
  39. By: Micha Soliwoda (Institute of Agricultural and Food Economics – National Research Institute); Joanna Paw (Institute of Agricultural and Food Economics – National Research Institute)
    Abstract: A transition from conventional to sustainable model of agriculture depends on various factors. Sustainable development of farms may be described in terms of three dimensions, ("economic, environmental and social"). The Green Growth paradigm indicates the significance of economic policy interventions, including subsidies and tax incentives. A gap in the literature on agricultural economics and finance explains the need for studies on a fiscal dimension of sustainability of farms.The main aim of the paper was to highlight the role of selected tax policy tools from the perspective of sustainable development of agriculture. The research goals were as follows (1) to present a review of selected tax policy instruments in an international context, (2) to analyse the impact of selected tools on making pro-environmental actions (based on experts' opinions). Our paper concluded with proposals and recommendations on the aforesaid process for policymakers. Fiscal instruments that may affect sustainability in agriculture exist in the majority of Old Member States of European Union (e.g. the Netherlands, Germany, Austria). The ongoing “Agricultural tax” (‘podatek rolny’) that affect a majority of Polish farms and their organization of production favours leads to maintaining sustainability of agriculture (given an environmental dimension of sustainability). The existing tax instruments have a neutral or positive impact on environmental sustainability. The highest medium positive impact on the medium are characterized by capital allowances and deductions for the purchase of new environmental technologies.Polish policymakers should reasonably developed a more detailed fiscal policy instruments, e.g. investment reliefs (similarly, as in the Netherlands), subjective exemptions in respect of agro-environmental practices. In the near future a key role in environmental protection will be played by a group of small farm households. These entities will be responsible for provision of public goods for Polish agricultural sector.
    Keywords: agricultural taxation, sustainable development, agricultural finance, fiscal instruments, family farms
    JEL: Q14 H25 Q01

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