nep-ino New Economics Papers
on Innovation
Issue of 2015‒08‒30
forty-five papers chosen by
Uwe Cantner
University of Jena

  1. Conditions of Diffusion of Competitiveness Clusters' Technologies: a Brief Theoretical Note By Iritié, B. G. Jean-Jacques
  2. The Impact of R&D Subsidy on Innovation: a Study of New Zealand Firms By Adam B. Jaffe; Trinh Le
  3. Unpacking the policy processes for addressing systemic problems: The case of the technological innovation system of offshore wind in Germany By Reichardt, Kristin; Rogge, Karoline S.; Negro, Simona
  4. Risks to the Returns to Medical Innovation: The Case of Myriad Genetics By Jeffrey Clemens; Stan Veuger
  5. Intangible investment and technical efficiency: The case of software-intensive manufacturing firms in Turkey By Fındık, Derya; Tansel, Aysit
  6. Great expectations. What efficiency can be reasonably anticipated in global teams? By Sylvie Chevrier; Annick Manco; Jeanne Salem
  7. Together at Last: The Endogenous Formation of Free Trade Agreements and International R&D Networks By Tran, Tat Thanh; Zikos, Vasileios
  8. Exploring the Role of ICT-enabled Social Innovation for the Active Inclusion of Young People By Joe Cullen; Clare Cullen; Emma Hamilton; Greg Holloway; Gigliola Paviotti; Veronique Maes
  9. RIO Country Report Germany 2014 By Wolfgang Sofka
  10. RIO Country Report Spain 2014 By Ana Fernandez Zubieta
  11. What is a Complex Innovation System? By J. Sylvan Katz
  12. RIO Country Report Cyprus 2014 By Lena Tsipouri; Sophia Athanassopoulou
  13. RIO Country Report Malta 2014 By Brian Warrington
  14. How to Define and Analyze Business Model Innovation in Service By Xavier Pavie; Eva Hsu; Hanns Justus Tillman Rödle; Raquel Orozco Tapia
  15. Investing in Higher Education, and Its Potential Impact on Research and Development for Technological Upgrading, Innovation, and Competitiveness By Robin SAKAMOTO
  16. Innovation in Local Public Services -the Solid Waste Sector from the perspective of Clean Development Mechanism landfill projects By Silvia Cruz; Faïz Gallouj; Sônia Paulino
  17. Analyzing interdependencies between policy mixes and technological innovation systems: the case of offshore wind in Germany By Kristin Reichardt; Karoline S. Rogge; Simona Negro; Marko Hekkert
  18. Impacts of policies on market formation and competitiveness: The case of the PV industry in Germany By Breitschopf, Barbara
  19. Industrial Agglomeration and Use of the Internet By Chia-Lin Chang; Michael McAleer; Yu-Chieh Wu
  20. Industrial and innovation policy as drivers of change By David Bailey; Lisa De Propris; Jürgen Janger
  21. Innovation, Absorptive Capacity and Growth Heterogeneity: Development Paths in Latin America 1970–2010 By Fulvio Castellacci; Jose Miguel Natera
  22. Innovation, Emissions Policy, and Competitive Advantage in the Diffusion of European Diesel Automobiles By Miravete, Eugenio J; Moral Rincón, Maria J; Thurk, Jeff
  23. The Convergence Paradox: The Global Evolution of National Innovation Systems By Fulvio Castellacci; Jose Miguel Natera
  24. Welfare systems, governance and social innovation: case study country profiles of Austria, Belgium and Italy By Stijn Oosterlynck; Yuri Kazepov,; Andreas Novy; Pieter Cools; Tatiana Sarius; Florian Wukovitsch
  25. From innovation to diversification: a simple competitive model By Fabio Saracco; Riccardo Di Clemente; Andrea Gabrielli; Luciano Pietronero
  26. Foresight for SMEs: How to Overcome the Limitations in Small Firms? By Konstantin Vishnevskiy; Dirk Meissner; Olga Egorova
  27. Vers une approche collaborative du développement des territoires. Le cas de la Haute-Alsace. By Cécile Perret
  28. Competition for Attention By Pedro Bordalo; Andrei Shleifer
  30. Beauty as a factor of economic and social development By Baggio, Rodolfo; Moretti, Vincenzo
  31. Competitiveness from Innovation, not Inheritance By Jamal Ibrahim Haidar; Karim Ouled Belayachi
  32. Energy Sector Innovation and Growth By Hartley, Peter; Medlock, Kenneth B., III; Temzelides, Ted; Zhang, Xinya
  33. Gesellschaftliche Individualisierung und betriebliche Innovation: Überlegungen zu Gegenstand und Auswirkungen einer überdehnten Instrumentalisierung von Subjektivität in der Arbeitswelt By Martin, Alexander
  34. Problèmes philosophiques posés par l’« économie de la connaissance » By Claude Roche
  35. Transmission of vocational skills at the end of career: horizon effect and technological or organisational change By Nathalie Greenan; Pierre-Jean Messe
  36. Technology Adoption, External Financing Frictions, and the Cross Sectional Returns By Lin, Xiaoji; Palazzo, Berardino
  37. Pre- and post-entrepreneurship labor mobility of entrepreneurs and employees in entrepreneurial firms By Nyström, Kristina
  38. Gender and Constraints to Entrepreneurship in Africa: New Evidence from Swaziland By Brixiova, Zuzana; Kangoye, Thierry
  39. The Dissemination of Management Innovations through Consultancy in the Postwar Period By Ćwiklicki, Marek; Alcouffe, Alain
  40. Directed Technical Change and Capital Deepening: A Reconsideration of Kaldor’s Technical Progress Function By Schlicht, Ekkehart
  41. Ready for Revolution? The English Economy before 1800 By Morgan Kelly; Cormac Ó Gráda
  42. The middle-income trap turns ten By Gill,Indermit S.; Kharas,Homi
  43. Thematic report: Macroeconomic models including specifically social and environmental aspects By Kurt Kratena
  44. [Standardization, a strategic tool for the Silver Economy] By Gérard-François Dumont
  45. On the efficiency of labor market reforms: How to solve the Spanish puzzle? By Sacht, Stephen

  1. By: Iritié, B. G. Jean-Jacques
    Abstract: Competitiveness clusters (or innovation clusters) are the focal point of french new industrial policy. They are based on classical cluster model and its well-known agglomeration positive externalities and on benefits of cooperation. After a brief literature review of cluster theory, we focus on the theoretical conditions under which french innovation clusters can foster production and diffusion of technological innovations. Our critical analysis points out three non-exhaustive conditions: (i) the capacity to coordinate and to incitate cooperation in R\D; (ii) the capacity to favor production and technological knowledge transfer; (iii) the capacity to promote and to keep R\D appropriation by cooperating innovators.
    Keywords: innovation cluster, coordination, cooperation, installed base, organisational absorptive capacity, collective appropriation.
    JEL: O20 O30 R10 R30
    Date: 2015–07–22
  2. By: Adam B. Jaffe; Trinh Le
    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.
    JEL: O31 O34 O38
    Date: 2015–08
  3. By: Reichardt, Kristin; Rogge, Karoline S.; Negro, Simona
    Abstract: While empirical studies on technological innovation systems (TIS) usually focus on policy instruments and their suitability for curing identified weaknesses of such emerging systems, the underlying policy processes and their effects on these systems have been largely disregarded. We address this gap by exploring two crucial policy-making processes and their effects on the functioning and performance of the offshore wind TIS in Germany. Our findings indicate important positive and negative impacts of these processes on the TIS. For example, tardy reactiveness in policy action negatively influenced entrepreneurial activities, knowledge development and finally technology diffusion, whereas the incremental nature of the studied policy processes was necessary to improve TIS performance after it had been hampered by systemic problems. Based on our findings we derive policy implications and avenues for future research.
    Date: 2015
  4. By: Jeffrey Clemens; Stan Veuger
    Abstract: We describe the broad range of uncertainties faced by the developers of medical technologies. Empirically, we estimate the asset market incidence of two realizations of uncertainties we classify as within-market policy risks. The events we analyze concern the intellectual property of Myriad Genetics, Inc., an American molecular diagnostics firm. In June 2013, the Supreme Court invalidated several of Myriad's intellectual property claims. Subsequently, the Center for Medicare and Medicaid Services (CMS) re-evaluated the reimbursements it pays for the services at issue in the Supreme Court's ruling. Each of these events moved Myriad's market capitalization by several hundred million dollars, or on the order of 20 percent. Myriad's exposure to the realization of these events reflected the concentration of its revenue streams among the affected services. We discuss the implications of the risks we analyze for the total volume of medical innovation and for its organization across firms.
    JEL: H51 H57 I18 O31 O32 O34
    Date: 2015–08
  5. By: Fındık, Derya; Tansel, Aysit
    Abstract: This chapter analyzes the effect of intangible investment on firm efficiency with an emphasis on its software component. Stochastic production frontier approach is used to simultaneously estimate the production function and the determinants of technical efficiency in the software intensive manufacturing firms in Turkey for the period 2003-2007. Firms are classified based on the technology group. High technology and low technology firms are estimated separately in order to reveal differentials in their firm efficiency. The results show that the effect of software investment on firm efficiency is larger in high technology firms which operate in areas such as chemicals, electricity, and machinery as compared to that of the low technology firms which operate in areas such as textiles, food, paper, and unclassified manufacturing. Further, among the high technology firms, the effect of the software investment is smaller than the effect of research and development personnel expenditure. This result shows that the presence of R&D personnel is more important than the software investment for software intensive manufacturing firms in Turkey.
    Keywords: Intangible assets, Software investment, Efficiency, Software intensive firms, Stochastic frontier analysis, Production Function, Firms, Turkey.
    JEL: L21 L22 L23 L25
    Date: 2013–08–05
  6. By: Sylvie Chevrier (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - UPEM - Université Paris-Est Marne-la-Vallée); Annick Manco (IOGS - Institut d'Optique Graduate School); Jeanne Salem (Université de Paris Dauphine - Université de Paris Dauphine)
    Abstract: In the last twenty years, international firms have undergone various changes to become global firms. The inherent innovation potential of these global firms only materializes if the various entities cooperate efficiently and succeed in merging together their contributions. The object of this article is to examine the practical forms that this cooperation takes, so as to detect, by observing actors in global organisations, what barriers and difficulties they meet. This paper presents the empirical study of the dynamics of two R&D teams within a major French industrial group. By studying how the daily teamwork takes place, this article takes a critical look at the new models of organization and assesses how far they really favour innovation.
    Abstract: Depuis une vingtaine d’années, les firmes internationales se sont transformées pour devenir des firmes globales. Cependant, le potentiel d’innovation inhérent à ces firmes globales ne se concrétise que si les acteurs des différentes entités coopèrent efficacement et réussissent à intégrer leurs contributions. L’objet de cet article est donc d’examiner les formes concrètes de coopération des acteurs qui participent de ces entreprises globales, de déceler les obstacles qu’ils rencontrent et déterminer des modes de management les plus à même de concrétiser les gains potentiels de ces structures en réseau. Cet article s’appuie sur l’analyse empirique du fonctionnement de deux équipes projet dans un grand Groupe international d’origine française. L’analyse du fonctionnement quotidien de ces équipes projets ouvre la voie à une approche critique de ces nouveaux modèles d’organisations globales considérés comme les plus propices à l’innovation.
    Date: 2014–06–05
  7. By: Tran, Tat Thanh; Zikos, Vasileios
    Abstract: We study how free trade agreements between countries and international R&D networks between firms emerge endogenously. The government of each country can initiate bilateral free trade agreements to abolish the import tariffs of other countries. Firms can decide whether and with whom to form R&D collaborations. We build a new model of double-layer networks where the network of free trade agreements is formed in the first layer, and the R&D network is formed in the second layer. Consistently with the stylized facts, we find that free trade agreements can promote international R&D collaboration between firms. Private incentives to form free trade agreements are aligned with societal ones. For R&D networks, by contrast, we identify a conflict between private and social incentives.
    Keywords: Free trade agreements, R&D collaboration, tariffs, innovation.
    JEL: D85 F10 L13 L20 O31
    Date: 2014–11–20
  8. By: Joe Cullen (Arcola Research); Clare Cullen (Arcola Research); Emma Hamilton (Arcola Research); Greg Holloway (Arcola Research); Gigliola Paviotti (Arcola Research); Veronique Maes (Arcola Research)
    Abstract: This Report presents the final results of the study ‘ICT-enabled social innovation services for active inclusion of young people’ (IESI-Youth) which has been commissioned by the European Commission's Joint Research Centre, Institute for Prospective Technological Studies (JRC-IPTS) and implemented by Arcola Research in 2014. The overall objective of the study was to review the state of the art in the domain of active inclusion services for young people, with a specific focus on how ICTs can support active inclusion of disadvantaged youth to strengthen their skills and capacities and support them to participate fully in employment and social life. The study was conducted as preparatory activity contributing to the development of the broader research project on 'ICT enabled Social Innovation in support of the Implementation of the Social Investment Package (IESI) being implemented by JRC-IPTS in collaboration with DG Employment, Social Affairs and Inclusion (DG EMPL).
    Keywords: inclusion, young people, ICT, innovation
    JEL: I15 I24 I30 O20 O30 O31
    Date: 2015–07
  9. By: Wolfgang Sofka (Copenhagen Business School (Denmark))
    Abstract: The report offers an analysis of the R&I system in Germany for 2014, including relevant policies and funding, with particular focus on topics critical for two EU policies: the European Research Area and the Innovation Union. The report was prepared according to a set of guidelines for collecting and analysing a range of materials, including policy documents, statistics, evaluation reports, websites etc. The report identifies the structural challenges of the German research and innovation system and assesses the match between the national priorities and those challenges, highlighting the latest policy developments, their dynamics and impact in the overall national context.
    Keywords: R&I system, R&I policy, ERA, innovation union, Semester analysis, Germany
    JEL: I20 O30 Z18
    Date: 2015–06
  10. By: Ana Fernandez Zubieta (Consejo Superior de Investigaciones Científicas (Spain))
    Abstract: The report offers an analysis of the R&I system in Spain for 2014, including relevant policies and funding, with particular focus on topics critical for two EU policies: the European Research Area and the Innovation Union. The report was prepared according to a set of guidelines for collecting and analysing a range of materials, including policy documents, statistics, evaluation reports, websites etc. The report identifies the structural challenges of the Spanish research and innovation system and assesses the match between the national priorities and those challenges, highlighting the latest policy developments, their dynamics and impact in the overall national context.
    Keywords: R&I system, R&I policy, ERA, innovation union, Semester analysis, Spain
    JEL: I20 O30 Z18
    Date: 2015–06
  11. By: J. Sylvan Katz (SPRU - Science Policy Research Unit, University of Sussex, Falmer, Brighton, UK)
    Abstract: Innovation systems are frequently referred to as complex systems, something that is intuitively understood but poorly defined. A complex system dynamically evolves in non-linear ways giving it unique properties that distinguish it from other systems. In particular, a common signature of complex systems is scale-invariant emergent properties. A scale- invariant property can be identified because it is solely described by a power law function, f(x) = kxa where the exponent, a, is a measure of the scale-invariance. The purpose of this paper is to describe and illustrate that innovation systems have properties of a complex adaptive system and in particular scale-invariant emergent properties indicative of their complex nature. These properties can be quantified and used to inform public policy. The global research system is an example of an innovation system. Peer-reviewed publications containing knowledge are a characteristic output. And citations or references to these articles are an indirect measure of the impact the knowledge has on the research community. These measures are used to illustrate how scale-invariant properties can be identified and quantified. Peer-reviewed papers indexed in Scopus and in the Web of Science were used as the data sources to produce measures of sizes and impact. Papers indexed in Scopus were classified into fields using the Scopus, NSF and MAPS schemes. The evolution of the overall and field level impact distributions were examined to see if they had a reasonable likelihood of being scale-invariant as they aged. Also, correlations between impact and size were explored to see if they were scale-invariant too. The findings show that the distribution of impact has a reasonable likelihood of being scale-invariant with scaling exponents that tended toward a value of less than 3.0 with the passage of time. Scale-invariant correlations are shown to exist between the evolution of impact and size with time and between field impact and sizes at points in time. However, it was found that care must be exercised making these measures as the method of classification may hide emerging properties. The confirmation that an innovation has common characteristics of an adaptive complex system and scale-invariant emergent properties allows us to confidently say that the global research system has a reasonable likelihood of being a complex innovation system. And using the recursive nature of scale-invariance it is reasonable to assume that regional, national, local and sectoral level systems contained within it are complex with scale- invariant properties too. Measures and models based on the scale-invariant properties of complex innovation systems can provide new and novel insights about an innovation system useful for informing public policy.
    Keywords: innovation system; scale-invariant; scale-free; complex system; complex adaptive system; power law; innovation policy; bibliometric; scientometric
    Date: 2015–07
  12. By: Lena Tsipouri (University of Athens (Greece) Author-Workplace-Homepage; Sophia Athanassopoulou (University of Athens (Greece) Author-Workplace-Homepage
    Abstract: The report offers an analysis of the R&I system in Cyprus for 2014, including relevant policies and funding, with particular focus on topics critical for two EU policies: the European Research Area and the Innovation Union. The report was prepared according to a set of guidelines for collecting and analysing a range of materials, including policy documents, statistics, evaluation reports, websites etc. The report identifies the structural challenges of the Cypriot research and innovation system and assesses the match between the national priorities and those challenges, highlighting the latest policy developments, their dynamics and impact in the overall national context.
    Keywords: R&I system, R&I policy, ERA, innovation union, Semester analysis, Cyprus
    JEL: I20 O30 Z18
    Date: 2015–06
  13. By: Brian Warrington (Independent Expert (Valletta, Malta))
    Abstract: The Country Report offers an analysis of the R&I system in Malta for 2014, including relevant policies and funding, with particular focus on topics critical for two EU policies: the European Research Area and the Innovation Union. The report was prepared according to a set of guidelines for collecting and analysing a range of materials, including policy documents, statistics, evaluation reports, websites etc. The report identifies the structural challenges of the Maltese research and innovation system and assesses the match between the national priorities and those challenges, highlighting the latest policy developments, their dynamics and impact in the overall national context.
    Keywords: R&I system, R&I policy, ERA, innovation union, Semester analysis, Malta
    JEL: I20 O30 Z18
    Date: 2015–06
  14. By: Xavier Pavie (PhD Program - Essec Business School); Eva Hsu (The Chinese University of Hong Kong - The Chinese University of Hong Kong); Hanns Justus Tillman Rödle (School of Business, Economics and Law - University of Gothenburg - (SWEDEN)); Raquel Orozco Tapia (Universidad Argentina de la empresa of Buenos Aires - Universidad Argentina de la empresa of Buenos Aires)
    Abstract: This research deals with the process of business model innovation in services. Definitions and explanations of both general innovation terminologies as well as specific service related once will be given and discussed. Moreover, reasons and implementation strategies will be identified and discussed. Last but not least a case will be elaborated how innovative companies in products can become innovative in services.
    Date: 2013–12–20
  15. By: Robin SAKAMOTO (Kyorin University)
    Abstract: The aim of this paper is to review the state of higher education development in ASEAN and formulate how research and development should proceed post 2015 to ensure technological upgrading, innovation and competitiveness.
    Keywords: Higher Education, Research and Development, Innovation
    Date: 2015–08
  16. By: Silvia Cruz (State University of Campinas Campinas); Faïz Gallouj (CLERSE - CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Université Lille 1 - Sciences et technologies); Sônia Paulino (University of Sao Paolo)
    Abstract: This paper is devoted to public services innovation in the municipal solid waste sector. It analyses the implementation of Clean Development Mechanism (CDM) projects in the Bandeirantes and São João landfills in the municipality of São Paulo, Brazil. The analysis is based on the concept of Public-Private Innovation Networks in services (ServPPINs). Using the ServPPIN concept it was possible to identify competence gaps affecting the stakeholders involved in these CDM projects. We focus in particular on those organisational and relational competence gaps that are likely to weaken innovation feasibility and reduce the quality of solid waste services supply. In fact, innovation is closely linked to the development of new competences among service providers and users. For the most part, these will arise out of changes in interactions between actors-given that the projects in question include the coordination of various actors (public, private, and citizen). Such innovations will also arise out of changes in the environmental aspect, since in addition to monitoring of the technical parameters required for the general operation of landfills which implement CDM projects, auditing is also carried out by the Designated Operational Entities (DOE), which are responsible for validation of these projects.
    Date: 2013–09–19
  17. By: Kristin Reichardt; Karoline S. Rogge; Simona Negro; Marko Hekkert
    Abstract: One key approach for studying emerging technologies in the field of sustainability transitions is that of technological innovation systems (TIS). While most TIS studies aim at deriving policy recommendations – typically by identifying system barriers – the actual role of these proposed policies in the TIS is rarely looked at. In addition, often single policy instruments instead of more encompassing policy mixes are considered. We address these shortcomings by applying a more comprehensive policy mix concept within the TIS approach. In doing so we analyze interdependencies between the policy mix and the TIS by shedding light on the role of the policy mix for TIS functioning and performance as well as how TIS developments influence the evolution of the policy mix. We explore these interdependencies for the case of offshore wind in Germany, using data from event history analysis and expert interviews. We find highly dynamic interdependencies with reoccurring patterns of systemic problems and adjustments of the policy mix, which are fuelled by high policy mix credibility and supportive actors. Our study constitutes a first step incorporating the policy mix concept into the TIS approach, thereby enabling a better understanding of real dynamics occurring in TIS.
    Date: 2015–08
  18. By: Breitschopf, Barbara
    Abstract: This paper analyzes the impact of German policies promoting PV on industry structures and technological changes in the PV sector. A quantitative analysis is conducted by applying a set of policy variables derived from demand-, supplierand R&D-focused policies. To depict the industry structure, the production volume in MW of German PV module and cell manufacturers offers a good basis to derive structural variables. Patent applications are used to illustrate technological changes and competitiveness. The approach includes a descriptive as well as a multivariate analysis relying on the operationalization of demand policies and a policy mix. The results underpin the significance of demand policies and a policy mix for market formation and knowledge generation. But they also indicate that policies enhancing PV demand induce growth in PV industries abroad as well, which in turn affects domestic industry structures.
    Date: 2015
  19. By: Chia-Lin Chang (National Chung Hsing University, Taichung, Taiwan); Michael McAleer (National Tsing Hua University, Taiwan; Erasmus University Rotterdam, the Netherlands, Complutense University of Madrid, Spain); Yu-Chieh Wu (National Chung Hsing University, Taichung, Taiwan)
    Abstract: Taiwan has been hailed as a world leader in the development of global innovation and industrial clusters for the past decade. This paper investigates the effects of industrial agglomeration on the use of the internet and internet intensity for Taiwan manufacturing firms, and analyses whether the relationships between industrial agglomeration and total expenditure on internet usage for industries are substitutes or complements. The sample observations are based on 153,081 manufacturing plants, and covers 26 2-digit industry categories and 358 geographical townships in Taiwan. The Heckman selection model is used to adjust for sample selectivity for unobservable data for firms that use the internet. The empirical results from two-stage estimation show that: (1) for the industry overall, a higher degree of industrial agglomeration will not affect the probability that firms will use the internet, but will affect the total expenditure on internet usage; and (2) for 2-digit industries, industrial agglomeration generally decreases the total expenditure on internet usage, which suggests that industrial agglomeration and total expenditure on internet usage are substitutes.
    Keywords: Industrial agglomeration and clusters; Global innovation; Internet penetration; Manufacturing firms; Sample selection; Incidental truncation
    JEL: D22 L60
    Date: 2015–08–17
  20. By: David Bailey; Lisa De Propris; Jürgen Janger
    Abstract: This deliverable draws on the findings of all Area3 outputs and it present the project's perspecitive on how to shape and design a new industrial policy for Europe. The Europe’s 2020 Strategy clearly outlines the ambition for EU member states to pursue a smart, sustainable and inclusive growth: this means designing a the strategy that aims at achieving a socio-ecological transition by fostering economic growth as well as social development (e.g. with respect to employment, gender or cultural aspects) whilst also pushing for Europe’s green shift. To deliver the EU 2020 strategy a new definition of competitiveness needs to be considered. Aiginger et al. (2013) propose defining competitiveness as the ability to deliver beyond-GDP goals’. Competitiveness should be based on capabilities like skills, innovation, institutions, an empowering social system, and ecological ambitions. Outcomes should be defined by the achievement of ecological, social and economic goals. The new industrial policy for Europe will be underpinned by four game changers: (a) From GDP to beyond-GDP (b) A new definition of competitiveness (c) the green shift and (d) high road growth. Aiginger (2015) proposes to define industrial policy as economic policy to promote the competitiveness of a country or region, where competitiveness is defined as the ability to deliver the beyond-GDP goals. This means an industrial policy that shows leadership towards Europe’s green shift; this means not only pursuing -for instance- energy efficiency and applications of the circular economy, but that supports the conversion of the economy into a green-intensive economy with the creation of new sectors, new processes, new products and the emergence of “green gazelles”, that can deliver growth and jobs through ecological innovations. Industrial policy should foster the long-run transition, not decelerate structural change. This is a demanding challenge, given vested interests and the traditional role of governments to preserve the status quo and national champions. Refocusing on the economy’s industrial base is a necessity to anchor long term socio-economic prosperity, particularly after the experience of bubbles in financial and real estate markets. A new industrial policy for Europe should therefore pursue a balanced economy and support the transition of traditional, narrowly defined manufacturing sectors to an advanced and distributed manufacturing sector able of greater value creation, innovation and creativity. A new industrial policy for Europe should be delivered by means of a portfolio of instruments that simultaneously steer demand and supply sides to move in the same direction creating and additive effect as against a cancelling-out effect. Such portfolio needs to avoid trade-offs between technological change and growth/employment priorities. Policy changes need to provide long-run and consistent signals, which provide certainty for businesses in making long term investments and short term adjustment. Technological upgrading instrument needs to be mission-oriented programmes, compatible with existing capabilities but enabling capabilities to be diversified. Universities, investment in intangible assets, new technologies and key enabling technologies, and entrepreneurship will be crucial to secure Europe on a growth path compatible with a beyond GDP competitive agenda.
    Keywords: Industrial innovation, Industrial policy, Innovation, Innovation policy, Intangible assets, New technologies, Patents, Post-industrialisation, Research, SMEs, Sustainable growth
    JEL: L5 L52 L53 L59
    Date: 2015–08
  21. By: Fulvio Castellacci (TIK Centre, University of Oslo, Norway); Jose Miguel Natera (Universidad Metropolitana, Mexico)
    Abstract: The paper carries out an analysis of long-run development paths in Latin America in the period 1970-2010. We focus on three main dimensions – openness, industrial structure and innovation – and analyze how changes in these factors, and the specific combination of them adopted by each country, have affected its income per capita growth. We apply Johansen cointegration approach to time series data for 18 Latin American countries. The analysis leads to two main results. First, we show that Latin American countries have followed different growth trajectories depending on the combination of policies they have adopted to catch up. Secondly, we find a clear correspondence between policy strategies, on the one hand, and growth performance, on the other. Countries that have managed to combine imitation and innovation policy have experienced a higher rate of growth than those economies that have only made efforts to improve their imitation capability.
    Date: 2015–08
  22. By: Miravete, Eugenio J; Moral Rincón, Maria J; Thurk, Jeff
    Abstract: Spurred by Volkswagen's introduction of the TDI diesel engine in 1989, market penetration of diesel cars in Europe increased from 10% in 1990 to over 50% in 2000. Using Spanish automobile registration data, we estimate an equilibrium discrete choice, oligopoly model of horizontally differentiated products. We find that changing product characteristics and the increasing popularity of diesels leads to correlation between observed and unobserved (to the researcher) product characteristics, an aspect we allow for in the estimation. Despite widespread imitation by its rivals, Volkswagen was able to capture 32% of the potential innovation rents and diesels accounted for approximately 60% of the firm's profits. Moreover, diesels amounted to an important competitive advantage for European auto makers over foreign imports. We provide evidence that the greenhouse emissions policy enacted by European regulators, and not preferential fuel taxes, enabled the adoption of diesels. In so doing, this non-tariff policy was equivalent to a 20% import tariff; effectively cutting imports in half.
    Keywords: diesel cars; emission standards; import tariff equivalence; innovation rents
    JEL: F13 L62 O33
    Date: 2015–08
  23. By: Fulvio Castellacci (TIK Centre, University of Oslo, Norway); Jose Miguel Natera (Universidad Metropolitana, Mexico)
    Abstract: This paper presents an empirical analysis of the global evolution of national innovation systems. The study identifies six main dimensions, three of which are related to the techno-economic domain (innovation and technological capabilities, openness and infrastructures), while the other three refer to countries’ socio-institutional system (education, political institutions and social cohesion). The empirical analysis describes the cross-country distribution of a large number of indicators measuring these six dimensions, and how these factors have evolved during the period 1980-2008. The results point out the existence of a convergence paradox: national systems worldwide have become more similar in terms of their socio-institutional framework but increasingly more different with respect to their techno-economic pillars.
    Date: 2015–08
  24. By: Stijn Oosterlynck; Yuri Kazepov,; Andreas Novy; Pieter Cools; Tatiana Sarius; Florian Wukovitsch
    Abstract: This paper presents stylized profiles of the welfare regimes of Austria, Italy and Belgium. It gives a brief overview of the demographic condition and socioeconomic dynamics (especially poverty) of the respective countries, its social policies and expenditures, the situation and policies with regard to labour market and activation, education and the position of ethnic minorities and housing. We combine this with descriptions of the vertical and horizontal governance system of its welfare regime. Finally, on the basis of the all this, we reflect on how a range of governance challenges for socially innovative initiatives, related to the need to coordinate a multiplicity of actors and instruments and work across various spatial scales, express themselves in each of these three welfare regimes. The main aim of this paper is to act as a background document to facilitate the comparison between case studies of socially innovative initiatives and assess how the type of welfare regime and its horizontal and vertical governance system shape the forms of social innovation that emerge in particular countries.
    Keywords: social innovation, welfare regime, governance, housing, labour market activation, education, ethnic minorities
    JEL: I H77 P16
    Date: 2015–07
  25. By: Fabio Saracco; Riccardo Di Clemente; Andrea Gabrielli; Luciano Pietronero
    Abstract: Few attempts have been proposed in order to describe the statistical features and historical evolution of the export bipartite matrix countries/products. An important standpoint is the introduction of a products network, namely a hierarchical forest of products that models the formation and the evolution of commodities. In the present article, we propose a simple dynamical model where countries compete with each other to acquire the ability to produce and export new products. Countries will have two possibilities to expand their export: innovating, i.e. introducing new goods, namely new nodes in the product networks, or copying the productive process of others, i.e. occupying a node already present in the same network. In this way, the topology of the products network and the country-product matrix evolve simultaneously, driven by the countries push toward innovation.
    Date: 2015–08
  26. By: Konstantin Vishnevskiy (National Research University Higher School of Economics); Dirk Meissner (National Research University Higher School of Economics); Olga Egorova (National Research University Higher School of Economics)
    Abstract: This paper describes an approach to foresight for SME enterprises. Foresight has become a frequently used tool for technology and innovation management generally limited large corporations. Presumably this is mainly due to the complexity of the corporate foresight concept itself and the need to invest substantial resources. To overcome this challenge and make corporate foresight also applicable for small and medium sized enterprises an adjusted methodological approach is developed taking into account the special requirements and limitations of SMEs. Based on an analysis of best practices for the development of theoretical and methodological approaches to foresight for SMEs an approach is developed taking into account the limitations of financial, human and time resources inherent to SMEs is introduced.
    Keywords: corporate foresight, SMEs, roadmapping, innovation, scenarios
    JEL: O11 O18 O32
    Date: 2015
  27. By: Cécile Perret (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie)
    Abstract: Cet article, illustré par le cas de la Haute-Alsace, envisage le territoire de trois façons : comme un espace de coopération et d'innovation, sous l'angle d'un construit social à la fois support identitaire aux pratiques d'acteurs et producteur d'identité et, enfin, comme un espace de rétroaction. Ces trois façons d'envisager le territoire permettent de mettre en évidence l'émergence d'une approche collaborative du territoire qui s'appuie sur des valeurs et des pratiques sous-tendues par l'histoire de l'Alsace pour fédérer l'ensemble des citoyens autour du projet régional.
    Date: 2015–08–21
  28. By: Pedro Bordalo; Andrei Shleifer
    Abstract: We present a model of market competition in which consumers? attention is drawn to the products? most salient attributes. Firms compete for consumer attention via their choices of quality and price. Strategic positioning of a product affects how all other products are perceived. With this attention externality, depending on the cost of producing quality some markets exhibit ?commoditized? price salient equilibria, while others exhibit ?de-commoditized? quality salient equilibria. When the costs of quality change, innovation can lead to radical shifts in markets, as in the case of decommoditization of the coffee market by Starbucks. In the context of financial innovation, the model generates the phenomenon of ?reaching for yield?.
  29. By: Pascal Le Masson (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Armand Hatchuel (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Olga Kokshagina (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Benoit Weil (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: As underlined in Arthur’s book “the nature of technology” we are very knowledgeable on the design of objects, services or technical systems, but we don’t know much on the dynamics of technologies. Still contemporary innovation often consists in designing techniques with systemic impact. They are pervasive– both invasive and perturbing-, they recompose the family of techniques. Can we model the impact and the design of such techniques? More specifically: how can one design generic technology, ie a single technology that provokes a complete reordering of families of techniques? Recent advances in design theories open new possibilities to answer these questions. In this paper we use C-K design theory and a matroid-based model of the set of techniques to propose a new model (C-K/Ma) of the dynamics of techniques, accounting for the design of generic technologies. We show: • F1: C-K/Ma offers a computational model for designing a technique with systemic impact. • F2: C-K/Ma accounts for some phenomena associated to generic technology design. • F3: C-K/Ma offers an efficient guide for the design of technologies with systemic impact, based on generativity and genericity criteria
    Date: 2015
  30. By: Baggio, Rodolfo; Moretti, Vincenzo
    Abstract: We discuss here how beauty can be considered a determinant for economic and social growth and what is its importance. We do this by following a line which links beauty with creativity and innovation; commonly reputed the main engines of development, especially in a globalized and highly technological and competitive world, in which many traditional differences in terms of space, time, size, and economic power have dramatically changed.
    Keywords: innovation, creativity, beauty, economic and social growth, work well done
    JEL: O1 O3 O44
    Date: 2015–08–19
  31. By: Jamal Ibrahim Haidar; Karim Ouled Belayachi
  32. By: Hartley, Peter (Rice University and University of Western Australia); Medlock, Kenneth B., III (Rice University); Temzelides, Ted (Rice University); Zhang, Xinya (Rice University)
    Abstract: We study the optimal transition from fossil fuels to renewable energy in a neoclassical growth economy with endogenous technological progress in energy production from fossil fuels and renewable energy sources. Innovations keep fossil energy cost under control even as increased exploitation raises mining costs. Nevertheless, the economy eventually transitions to renewable energy. Learning-by-doing in renewable energy production implies that it is optimal to transition to renewable energy before the cost of fossil fuels reaches parity with renewable energy costs. Since energy costs escalate as the transition approaches, growth of consumption and output decline sharply around the transition. The energy shadow price remains more than double current values for over 75 years around the switch time, resulting in a continued drag on output and consumption growth. The model highlights the important role that energy can play in influencing economic growth.
    Date: 2014
  33. By: Martin, Alexander
    Abstract: Dieser in Teilen essayistisch gehaltene Aufsatz greift die aktuell geführte Diskussion über die Veränderung der betrieblichen Organisation von Erwerbsarbeit in Zeiten eines "flexiblen Kapitalismus" (Sennett 1998) auf und wirft einen Blick auf zentrale Merkmale, Ursachen und Konsequenzen dieser Entwicklung. Vor dem Hintergrund eines spätestens seit den 1960er Jahren auszumachenden soziostrukturellen und soziokulturellen Gesellschaftswandels einerseits, sowie verschärften ökonomischen Wettbewerbsbedingungen andererseits, wird in diesem Beitrag die veränderte Erzeugung organisationaler Bindung und Kontrolle einer kritischen Analyse unterzogen. Gegenstand und Ausgangspunkt der Überlegungen bildet der durch neoliberale Transformationsbemühungen semantisch als "Befreiungsprojekt" (Dörre 2012, S. 63) aufgeladene Kontroll- und Bindungsmechanismus der Selbstverwirklichung. Aus der nunmehr gegebenen Möglichkeit, neue Arbeits- und Organisationskonzepte als freiwillige Gabe und Zugewinn individueller Handlungsautonomie gegenüber den Beschäftigten darstellen zu können, resultiert eine in der Reziprozität des sozialen Handelns angelegte Verpflichtung zum Arbeiten in eben diesen neuen Strukturen. Betriebliche Bindung und Kontrolle werden somit über die Idee der Reziprozität als subversiv wirkender Integrationsmodus ermöglicht. Die Überlegungen münden in der These, dass die mittels einer überdehnten instrumentalisierten Subjektivierung von Arbeit erzeugte Bindung und Kontrolle die unternehmerische Innovations- und Wettbewerbsfähigkeit langfristig zu vermindern droht. Mit der hier in Anschlag gebrachten Argumentation wird also der dysfunktionale Charakter einer überdehnten "Instrumentalisierung von Subjektivität" (Kocyba 2000) angesprochen. Problematisch scheint in diesem Zusammenhang vor allem die ökonomische Fundierung zu sein, die in letzter Konsequenz zur Homogenisierung sowie Individualisierung und Entsolidarisierung des betrieblichen Handelns führt. Insofern droht der Kontroll- und Bindungsmechanismus nicht nur wirkungslos zu werden, sondern entfaltet gleichsam auch einen negativen Einfluss auf die unternehmerische Innovations- und Wettbewerbsfähigkeit. Der Schwerpunkt des vorliegenden Beitrags liegt auf der Analyse der diese Entwicklung konstituierenden Faktoren und Mechanismen. Insofern wird mit den Ausführungen der Grundstein gelegt, um den Gegenstand der betrieblichen "Instrumentalisierung von Subjektivität" näher bestimmen und verstehen zu können, während hingegen die Darstellung der Auswirkungen dieser Entwicklung noch weitere Ausarbeitung bedarf und hier nur schemenhaft skizziert wird.
    Keywords: Gesellschaftlicher Wandel,Bindung,Kontrolle,Subjektivierung von Arbeit,betriebliches Sozialgefüge,Innovationsfähigkeit
    Date: 2015
  34. By: Claude Roche (LIP - Laboratoire d'innovation pédagogique - Université Catholique de Lille)
    Abstract: Notre objet est de caractériser certaines des mutations induites par ce qu’on appelle « l’économie de la connaissance». Nous partons de l’idée que nos économies évoluent fortement car le travail devient massivement intellectuel et cela touche, pensons-nous la nature même des connaissances produites en entreprise, ainsi que le mode de leur gouvernance. Ces mutations sont mal comprises des économistes, pour des raisons méthodologiques. En effet le travail intellectuel est fondamentalement immesurable – son efficacité renvoie à sa seule pertinence - alors que la mesurabilité est un présupposé des principales théories. Nous appuyant sur Kant, nous montrerons qu’il s’agit d’une aporie majeure, qui atteint jusqu’au projet d’une science économique (toute science pour Kant, procède par délimitation préalable de son objet, et donc présuppose la mesurabilité). Contre l’illusion scientifique, nous poserons que cette économie doit être interrogée de deux points de vue spécifiques, épistémologique et managérial : avec deux résultats La mutation de la nature de la connaissance Pour la littérature spécialisée (Foray), la connaissance est un « en-soi » défini extérieurement au monde économique. C’est une erreur, et nous poserons que, du fait de la complexité des objets, y apparaissent des modes spécifiques de connaître : à la fois collectifs et transdisciplinaires (Schmid). Tel est le cas de la conception innovante, du design thinking et du codesign dans le développement duquel nous sommes impliqués. Nous décrirons ces pratiques en détail insistant notamment sur ce que l’ancrage économique fonctionne comme une contrainte d’objectivation. Nous poserons alors l’hypothèse qu’elles peuvent dépasser les apories de la connaissance éclatée considérées comme caractéristiques de la « post-modernité»(Lyotard) Il s’agira alors de qualifier économiquement ces pratiques ; et le ferons de façon réflexive à partir de l’expérience récente du management Une tension entre efficacité opérationnelle et pilotage financier La caractéristique de cette économie est qu’elle génère une tension entre deux logiques de gouvernance de l’entreprise : l’efficacité opérationnelle et la rationalité gestionnaire. Celle-ci domine toujours, mais elle échoue à saisir l’efficacité de la connaissance car ses notions centrales - ressource, capital - sont par essence privatives, là où une connaissance privatisée devient inopérante. Stricto-sensu, elle n’est qu’une ressource répartie (un pseudo-capital pour Llerana). Nous montrerons par contre que le management s’est adapté à cette réalité ; nous le ferons en réinterprétant les doctrines managériales récentes. Nous décrirons alors cette tension par des exemples vécus, montrant qu’elle peut conduire à un dialogue de pilotage, au sens de Lorino, opposant le principe financier à celui de l’efficacité du travail intellectuel. Jusqu’où peut aller ce dialogue ? Jusqu’à intégrer des intérêts extérieurs à l’entreprise ? La logique le voudrait. Car le propre du connaitre est d’englober les enjeux de son contexte. Cela s’observe d’ailleurs dans certains dispositifs « d’open innovation » souvent sensibles aux questions de développement durable (Von Hippel). Nous ne pourrons cependant en juger de façon fiable. Cette contribution n’ayant de sens que de montrer les conditions d’une telle interrogation
    Date: 2014–10–09
  35. By: Nathalie Greenan (CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Éducation nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS); Pierre-Jean Messe (CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Éducation nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS, GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Université du Maine)
    Abstract: The main contribution of this paper is to study empirically how the horizon effect and the technological or organisational changes interact to explain the probability of being an internal trainer at the end of career. We use data from a French matched employer-employee survey on Organisational Changes and Computerisation (COI) conducted in 2006. It contains information both on employees’ knowledge transmission practices and employers’ technological or organisational changes. We find that the shorter the horizon of a worker aged 50 and over, the higher is her probability of being an internal trainer, but only in firms that did not experience any changes. In changing firms, we find the same effect provided that the older worker benefited from a training session to update her skills.
    Date: 2014–10
  36. By: Lin, Xiaoji (OH State University); Palazzo, Berardino (Boston University)
    Abstract: We explore the asset pricing implications of technological change in a model with costly technology adoption and external financing frictions. Firms adopt the latest technology embodied in new capital to reach the technology frontier, but entail adoption costs and external financing costs. The central finding is that optimal technology adoption is an important determinant of the cross section of stock returns. The model predicts that technology adopting firms are less risky than non-adopting firms. Intuitively, by restricting firms from freely upgrading the existing vintage capital to the technology frontier, costly technology adoption and external financing frictions reduce firms' real and financial flexibilities, and hence generate the risk dispersion between technology adopting firms and non-adopting firms. The model is qualitatively and in many cases quantitatively consistent with the key empirical regularities in the cross sectional returns.
    JEL: E23 E44 G12
    Date: 2015–01
  37. By: Nyström, Kristina (Centre of Excellence in Science & Innovation Studies (CESIS), Department of Industrial Economics and Management, Royal Institute of Technology (KTH), and The Ratio Institute.)
    Abstract: This chapter provides a literature review of existing research and identifies research gaps related to the labor mobility of both entrepreneurs and employees in entrepreneurial firms. Regarding entrepreneurs, there is a lot of research on their individual characteristics, including prior experience, and how the individual characteristics and experiences influence the performance of the firm. However, less is known on the post-entrepreneurship employment activity of entrepreneurs and how their prior experiences influence their future labor market careers. Regarding the labor mobility of employees in entrepreneurial firms, there is an emerging stream of literature on the individual characteristics of these employees. However, many issues related to their prior experience remain unexplored. Furthermore, labor mobility after working with an entrepreneurial firm is relatively less explored at this point. Accordingly, this chapter intends to summarize current research and outline avenues for future research regarding a) pre-entrepreneurship labor mobility of entrepreneurs and b) post-entrepreneurship labor mobility of entrepreneurs, as well as c) pre-entrepreneurship labor mobility of employees in entrepreneurial firms and d) post-entrepreneurship labor mobility of employees in entrepreneurial firms. In addition, the role of institutions and, in particular, employment protection laws (EPLs) for labor mobility of entrepreneurs and employees in entrepreneurial firms are discussed.
    Keywords: entrepreneurship; labor mobility; employees in entrepreneurial firms
    JEL: J21 J62 L26
    Date: 2015–08–21
  38. By: Brixiova, Zuzana (University of Cape Town); Kangoye, Thierry (African Development Bank)
    Abstract: This paper contributes to closing a knowledge gap on gender, entrepreneurship and development by linking the entrepreneurial productivity to start-up capital and skills. The empirical analysis of a survey of entrepreneurs in Swaziland confirmed the importance of start-up capital for sales. Women entrepreneurs have smaller start-up capital and are less likely to fund it from the formal sector than their men counterparts, pointing to a possible room for policy interventions. Further, business training is positively associated with sales performance of men entrepreneurs, but has no effect on women. However, this does not call for abolishing training programs for women entrepreneurs. Instead their design and targeting should be revisited.
    Keywords: gender and entrepreneurship, start-up capital, skills, training, multivariate analysis
    JEL: L53 O12
    Date: 2015–08
  39. By: Ćwiklicki, Marek; Alcouffe, Alain
    Abstract: The purpose of the paper is to fulfill and to refine the role of consultancy and professional bodies in dissemination of management innovations in the Inter- and Postwar Period that was in these days scientific management in Europe. The proposition is set upon the case of French consultancies and organizing bodies (i.e. professional societies and associations) and their activities to popularize the scientific management movement with a special reference to the Henry Bernaténé’s output.
    Keywords: business history, dissemination, management innovation, consultancy
    JEL: B2 B3 M1
    Date: 2013
  40. By: Schlicht, Ekkehart
    Abstract: This note proposes a growth model that is derived from the standard Solow growth model by replacing the neoclassical production function with Kaldor’s technical progress function while maintaining a marginalist theory of factor prices in the spirit suggested by von Weizsäcker (1966, 1966b). The hybrid model so obtained accounts for balanced growth in a way that appears less arbitrary than the Solow model, especially because it directly accounts for Harrod neutral technical change, without any need for further assumptions.
    Keywords: directed technical change; directed technological change; bias in innovation; technical progress function; neoclassical production function; Harrod neutrality; Hicks neutrality; Cambridge theory of distribution; marginal productivity theory; Kaldor; Kennedy; von Weizsäcker; Solow model
    JEL: O30 O40 E12 E13 E25 B59 B31
    Date: 2015–06–19
  41. By: Morgan Kelly; Cormac Ó Gráda
    Abstract: Sustained economic growth in England can be traced back to the early seventeenth century. That earlier growth, albeit modest, both generated and was sustained by a demographic regime that entailed relatively high wages, and by an increasing endowment of human capital in the form of a relatively adaptable and skilled labour force. Healthier and savvier English workers were better equipped to profit from the technological possibilities available to them, and to build on them. Technological change and economic growth stemmed from such human capital rather than Boserupian forces. They were the product of England’s resource endowment and its institutions.
    Keywords: Economic history; Industrial revolution
    Date: 2014–11
  42. By: Gill,Indermit S.; Kharas,Homi
    Abstract: Since we introduced the term ?middle-income trap? in 2006, it has become popular among policy makers and researchers. In May 2015, a search of Google Scholar returned more than 3,000 articles including the term and about 300 articles with the term in the title. This paper provides a (non-exhaustive) survey of this literature. The paper then discusses what, in retrospect, we missed when we coined the term. Today, based on developments in East Asia, Latin America, and Central Europe during the past decade, we would have paid more attention to demographic factors, entrepreneurship, and external institutional anchors. We would also make it clearer that to us, the term was as much the absence of a satisfactory theory that could inform development policy in middle-income economies as the articulation of a development phenomenon. Three-quarters of the people in the world now live in middle-income economies, but economists have yet to provide a reliable theory of growth to help policy makers navigate the transition from middle- to high-income status. Hybrids of the Solow-Swan and Lucas-Romer models are not unhelpful, but they are poor substitutes for a well-constructed growth framework.
    Keywords: Economic Theory&Research,Emerging Markets,Labor Policies,Inequality,Climate Change Economics
    Date: 2015–08–26
  43. By: Kurt Kratena
    Abstract: A significant reduction of the global environmental consequences of European consumption and production activities are the main objective of the policy simulations carried out in this paper. For this purpose three different modelling approaches have been chosen. Two macroeconomic models following the philosophy of consistent stock-flow accounting for the main institutional sectors (households, firms, banks, central bank and government) are used for quantifying the impact of several different policies. These policies comprise classical tax reforms (pricing of resources and emissions) as well as policies aiming at behavioural change in private and public consumption and at technological change (energy and resource efficiency and renewable sources). A Dynamic New Keynesian (DYNK) model is used for a comparison between classical green tax reform and taxing direct and indirect (footprint) energy and resource use of consumers. An important leading principle of the modelling work is the simultaneous treatment of economic (GDP, employment), social (income distribution, unemployment) and environmental issues. The paper shortly describes the different modelling approaches and highlights the most important features for the evaluation of the impacts of different policies. Then the different policy scenarios that are carried out with each model are described. The policy scenarios are not directly comparable between the different models, but show some similarities. The simulation results of the different policy scenarios are then analyzed and discussed. Two important conclusions can be drawn from the simulation results: (i) important trade-offs and synergies exist between the different economic, social and environmental goals (ii) simple policy scenarios mainly putting all the effort in one simple instrument (e.g. tax reform) are not likely to achieve an optimal result. A combination of instruments is most likely to achieve results satisfying the different economic, social and environmental goals.
    Keywords: Behavioural economics, Ecological innovation, Economic growth path, Innovation policy, New technologies
    JEL: C54 Q54 B52
    Date: 2015–07
  44. By: Gérard-François Dumont (ENEC - Espaces, Nature et Culture - UP4 - Université Paris-Sorbonne - CNRS)
    Abstract: [Generational demographic effects and increased life expectancy: the two combined phenomena, unprecedented in the history of humanity, facing with many challenges. In 2014, France has 16 million people aged 60 or over. According to the average projection, they would be 20 million in 2030. How to respond to their needs? The question is at the heart of Silver economy sector aimed at encouraging innovations to accompany advancing age and reduce loss of autonomy. A real potential in terms of economic benefits and employment for many sectors of activities. Voluntary standards exist but gaps are identified as penalizing the structuring of the sector. Areas such as basic needs (food, displacement capacity...), the living environment (environment, local shops...) or health (access to care, prevention) represent high potential markets. Nine key areas are identified: food, transport, housing, workplace, health and social Action, financial services, leisure and sports tourism, consumer goods and information technologies. This expression comes from elsewhere needs of older workers themselves and their caregivers, according to the national survey presented in this report, place the food, health and new technologies in the top three of their service expectations . In the area of the Silver Economy, voluntary standards and private standards already exist, but many gaps remain. These deficiencies penalize the structuring of the sector. For an entrepreneur, consult a voluntary standard allows to save time and deploy its activity in optimal conditions, which meet the needs and requirements of the sector. The findings of the report encourage all economic actors involved in the growth of the sector (service providers, industry, SMEs, start-ups, ...) to become involved in developing, together, voluntary standards that meet the needs of the market.]
    Abstract: Effets démographiques générationnels et augmentation de l’espérance de vie : ces deux phénomènes combinés, inédits dans l’histoire de l’Humanité, confrontent la société française à de nombreux défis. En 2014, la France compte 16 millions de personnes âgées de 60 ans ou plus. Selon la projection moyenne, elles seraient 20 millions en 2030. Comment répondre à leurs besoins ? La question est au cœur de la Silver économie, filière qui vise à encourager les innovations pour accompagner l’avancée en âge et faire reculer la perte d’autonomie. Un vrai potentiel en termes de retombées économiques et d’emploi pour de très nombreux sec-teurs d’activités. Des normes volontaires existent, mais des manques sont identifiés comme pénalisant la structuration de la filière. Les domaines comme les besoins fondamentaux (alimentation, ca-pacité de déplacement...), le cadre de vie (environnement, proximité de commerces...) ou la santé (accès aux soins, prévention) représentent des marchés à fort potentiel. Neuf secteurs clés sont identifiés : agroalimentaire, transports, habitat, lieu de travail, santé et action so-ciale, services financiers, sports loisirs et tourisme, biens de consommation et technologies de l’information. Cette expression de besoins provient d’ailleurs des seniors eux-mêmes et de leurs aidants qui, selon l’enquête nationale présentée dans ce rapport, placent l’alimentation, la santé et les nouvelles technologies dans le trio de tête de leurs attentes de services. Dans le domaine de la Silver économie, des normes volontaires et référentiels privés exis-tent déjà, mais de nombreux manques persistent. Ces lacunes pénalisent la structuration de la filière. Pour un entrepreneur, consulter une norme volontaire permet de gagner du temps et de déployer son activité dans des conditions optimales, qui répondent aux besoins et aux exigences du secteur. Les conclusions de ce rapport encouragent tous les acteurs écono-miques concernés par la croissance de la filière (prestataires, industriels, PME, start-ups,...) à s’impliquer pour élaborer, ensemble, des normes volontaires qui correspondent aux be-soins du marché.
    Date: 2015–02
  45. By: Sacht, Stephen
    Abstract: In this paper we shed light on the relationship between labor market policy, entrepreneurship and youth unemployment prior to and in the aftermath of the global financial crisis in Spain. We discuss the situation, where labor market and macroeconomic policies were largely inefficient in reducing high levels of (youth) unemployment after 2007. We rise the question why in a situation of low inflation rates, an increase in (youth) unemployment had been observed although the labor market becomes more flexible due to the associated structural reform in 2010. We call this the Spanish Puzzle. The main reason for this observation can be found in the phenomena of downward nominal rigidity and the existence of a liquidity trap. Given the recovery of the Spanish economy in 2015, this development is grounded on (besides the increase in private consumption and a trade surplus) several policy measurements in order to strengthen entrepreneurial activity in 2013. The corresponding boost in private investment expenditure can be identified as the sustainable main driver for job creation in the long run.
    Keywords: Spain,Labor Market Policy,Entrepreneurship,Youth Unemployment,Macroeconomic Policy
    JEL: E24 E61 J13 L26
    Date: 2015

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