nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2019‒03‒04
five papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Optimal Capital Taxation in an Economy with Innovation-Driven Growth By Chen, Ping-ho; Chu, Angus C.; Chu, Hsun; Lai, Ching-Chong
  2. Higher Education Subsidy Policy and R&D-based Growth By Takaaki Morimoto; Ken Tabata
  4. Identifying leadership skills required in the digital age By Klus, Milan F.; Müller, Julia
  5. Different Types of IT Skills in Occupational Training Curricula and Labor Market Outcomes By Fabienne Kiener; Ann-Sophie Gnehm; Simon Clematide; Uschi Backes-Gellner

  1. By: Chen, Ping-ho; Chu, Angus C.; Chu, Hsun; Lai, Ching-Chong
    Abstract: This paper examines whether the Chamley-Judd result of a zero optimal capital tax rate is valid in an innovation-driven growth model. We examine how the optimal capital tax rate varies with externalities associated with R&D and innovation. Our results show that the optimal capital tax rate is higher when (i) the "stepping on toes effect" is smaller, (ii) the "standing on shoulders effect" is stronger, or (iii) the extent of creative destruction is greater. By calibrating our model to the US economy, we find that the optimal capital tax rate is positive, at a rate of around 11.9 percent. We also find that a positive optimal capital tax rate is more likely to be the case when there is underinvestment in R&D.
    Keywords: Optimal capital taxation; R&D externalities; innovation
    JEL: E62 O31 O41
    Date: 2019–02
  2. By: Takaaki Morimoto (Graduate School of Economics, Osaka University,Institute of Social and Economic Research, Osaka University, Japan); Ken Tabata (School of Economics, Kwansei Gakuin University)
    Abstract: We examine how a subsidy policy for encouraging more individuals to pursue higher education affects economic growth in an overlapping generations model of R&D-based growth, including both product development and process innovation. We show that such a policy may have a negative effect on the long-run economic growth rate. When the market structure adjusts partially in the short run, the effect of an education subsidy on economic growth is ambiguous and depends on the values of the parameters. However, when the market structure adjusts fully in the long run, the education subsidy expands the number of firms but reduces economic growth. These unfavorable predictions of an education subsidy on economic growth are partly consistent with the empirical findings that mass higher education does not necessarily lead to higher economic growth.
    Keywords: Higher Education, Occupational Choice, R&D, Product Development, Process Innovation
    Date: 2018–02
  3. By: Jacques Bughin; Tobias Kretschmer; Nicolas van Zeebroeck
    Abstract: With the increasing availability of digital technologies, many firms are planning to develop digitally-enabled business models. Digital technologies can give an impulse to realign strategies through two channels: Initial use of digital technologies may help firms spot their potential and encourage firms to develop digitally-supported business models, or emerging digital technologies may present a threat to firms, who then initiate a process of strategic renewal to relieve the pressure. We study how the adoption of new digital technologies is associated with changes to the strategy of the firm, and how both are shaped by a firm’s perception of the competitive stress created by new technological developments. Using two detailed survey-based datasets on firms’ expectations, adoption and strategy renewal for a wide range of AI and digital technologies, we find a strong positive association between the degree of strategy change and the adoption of advanced digital technologies. This relationship does not seem mediated by the level of competitive stress from digital technology, which is itself strongly associated with strategy change. Our results suggest a tight coupling between (technological) structure and strategy.
    Keywords: Digital transformation, Strategic Organization Design, Technology adoption, Strategic renewal, Digital strategy, Big data, Artificial Intelligence
    Date: 2019–01
  4. By: Klus, Milan F.; Müller, Julia
    Abstract: Is leadership changing in an increasingly digitalised work environment? This question arises in corporate practice, societal debates, and in business management research. The evolution of digital technologies changes working environments considerably and creates new challenges for executives. So far, however, only little research has been conducted on how these challenges and technology-driven changes are associated with altered requirements for the skill set needed by executives. In this paper we bridge that gap by applying a three-stage research design. First, we develop a novel conceptual framework in which we categorise leadership skills and associate them with tasks, management level, and leadership experience. Building on this, we conduct semi-structured interviews with executives and systematically investigate job advertisements at the management level. Our interview results show that communication skills, subject-specific knowledge, self-organisation skills, and self-reflection skills are considered particularly relevant in times of rapid technology-driven change. Furthermore, many interview participants identify empathy and an open-mindedness towards the new as crucial personal traits. Our job advertisement analysis further reveals that executives need to be able to speak English, have IT skills, and be flexible, motivated, and stress tolerant.
    JEL: M12 M15 M51 M54 O32 O33
    Date: 2018
  5. By: Fabienne Kiener (University of Zurich, Department of Business Administration); Ann-Sophie Gnehm (University of Zurich, Institute of Sociology); Simon Clematide (University of Zurich, Institute of Computational Linguistics); Uschi Backes-Gellner (University of Zurich)
    Abstract: Due to an increasing diffusion of information technologies (IT), the labor market requires more and more so-called “IT skills”. Recent studies confirm that IT skills are relevant for individual labor market outcomes. However, so far researchers do not use a consistent definition and measure of IT skills. In our paper, we distinguish different types of IT skills that may lead to structurally different labor market out-comes like wages. To measure these different types of IT skills, we propose an innovative way of measuring skills based on training curricula of apprenticeship occupations. We use modern computational linguistics methods, i.e. a topic model-ling algorithm called Non-Negative Matrix Factorization. By doing so, we identify different types of IT skills like e.g. implementing ICT (Information and Communi-cations Technologies), developing applications, designing webpages or installing software, handling system technology, CNC (Computerized Numerical Control), CAD (Computer-Aided Design), and handling control technology. Our results show that although IT skills in general have a positive effect on wages, different types of IT skills are associated with differing labor market returns, e.g. general digital skills like ICT and developing applications relate to higher wages than technology-specific IT skills like handling system technology.
    Keywords: IT skills, information technologies, apprenticeship, training, curricula
    JEL: J24 O33
    Date: 2019–02

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