nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2005‒12‒01
nine papers chosen by
Roberto Fontana
Universita Bocconi

  1. Knowledge and Productivity in the World's Largest Manufacturing Corporations Level:Panel Data analysis on Compustat and Patent data By Lionel Nesta
  2. An Empirical Model of Growth Through Product Innovation By Dale T. Mortensen; Rasmus Lentz
  3. Identifying Technology Spillovers and Product Market Rivalry By Nick Bloom; Mark Schankerman; John Van Reenen
  4. Persistence of Innovation: Stylised Facts and Panel Data Evidence By Bettina Peters
  6. Lobbying and Technology Diffusion By Bart Hobijn; Diego Comin
  7. Portfolio strategies of life science venture capital firms in the USA and Europe By Holger Patzelt; Dodo zu Knyphausen-Aufseß; Yasmin Habib
  8. Entrepreneurship, frictions, and wealth By Marco Cagetti; Mariacristina De Nardi
  9. How do early stage high technology investors select their investments? By Clarysse, B.; Knockaert, M.; Lockett, A.

  1. By: Lionel Nesta (Observatoire Français des Conjonctures Économiques)
    Abstract: This paper examines the relationship between the characteristics of firm knowledge in terms of capital, diversity and relatedness, and productivity. Panel data regression models suggest that unlike knowledge diversity, knowledge capital and knowledge relatedness explain a substantial share of the variance of firm productivity. Activities based on a related set of technological knowledge are more productive than those based on unrelated knowledge because the cost of co-ordinating productive activities decreases as the knowledge used in these activities is being integrated efficiently. The impact of knowledge relatedness on productivity in high-technology sectors is higher than in other sectors.
    Keywords: productivity; intangible assets; market value; panel data
    JEL: G12 O31 L65
    Date: 2005
  2. By: Dale T. Mortensen; Rasmus Lentz (Department of Economics Boston University)
    Keywords: Labor demand, labor productivity, firm size, firm growth, product innovation.
    JEL: E2 E6 J2 J3
    Date: 2005
  3. By: Nick Bloom; Mark Schankerman; John Van Reenen
    Abstract: Government policies to support R&D are predicated on empirical evidence of R&D"spillovers" between firms. But there are two countervailing R&D spillovers: positive effectsfrom technology spillovers and negative effects from business stealing by product marketrivals. We develop a general framework showing that technology and product marketspillovers have testable implications for a range of performance indicators, and exploit theseusing distinct measures of a firm's position in technology space and product market space.We show using panel data on U.S. firms between 1981 and 2001 that both technology andproduct market spillovers operate, but that net social returns are several times larger thanprivate returns. The spillover effects are also revealed when we analyze three high-techsectors in detail - pharmaceuticals, computer hardware and telecommunication equipment.Using the model we evaluate three R&D subsidy policies and show that the typical focus ofsupport for small and medium firms may be misplaced.
    Keywords: Spillovers, R&D, market value, patents
    JEL: O31 O32 O33 F23
    Date: 2005–02
  4. By: Bettina Peters (Centre for European Economic Research ZEW)
    Abstract: This paper investigates whether firms innovate persistently or discontinuously over time using an innovation panel data set on German manufacturing and service firms for the period 1994-2002. We find that innovation behaviour is permanent at the firm-level to a very large extent. Using a dynamic random effects discrete choice model and a new estimator recently proposed by Wooldrigde (2005), we further shed some light on the driving forces for this phenomenon. The econometric results confirm the hypothesis of true state dependence for manufacturing as well as for service sector firms. In addition to past innovation experience, the results further highlight the important role of knowledge provided by skilled employees and unobserved individual heterogeneity in explaining the persistence of innovation.
    Keywords: innovation, persistence, state dependence, unobserved heterogeneity, dynamic random effects panel probit model
    JEL: O31 L20 C23 C25
    Date: 2005–11–21
  5. By: Nauro F. Campos; Mariana Iootty
    Abstract: What are the determinants of firm entry and exit in Brazil? How do entry and exit rates affect productivity? This paper tries to answer these questions using panel data for about 104 Brazilian manufacturing sectors (3-digit level) for the period 1996 to 2002. Our results show that the share of exports in sectoral output is one main determinant of entry and exit rates. The results also suggest that in years of real per capita GDP decline, export propensity is associated with entry rates, while in years of GDP expansion, sectoral growth is positively associated with net entry. Finally, our results show that exit (and to a lesser extent, entry and net entry) is a very robust determinant of total factor productivity across industrial sectors in Brazil.
    JEL: L6 C33 O12
    Date: 2005
  6. By: Bart Hobijn; Diego Comin (Economics New York University)
    Keywords: Technology Diffusion, Lobbies, Institutions
    JEL: N10 O30 O57
    Date: 2005
  7. By: Holger Patzelt; Dodo zu Knyphausen-Aufseß; Yasmin Habib
    Abstract: Motivated by the different development stages of both, the venture capital (VC) as well as the life science industry in the USA and Europe, we investigate portfolio strategies of US-American and European VC firms active in this sector. We analyse portfolios of 88 VCs financing a total of 1050 life science ventures. Our results show that US life science VCs are equally likely to have a focus on early stage ventures and to diversify across investment stages as their European counterparts. However, the latter invest more in the US industry than vice versa, more in traditional life science technologies developing therapeutics and diagnostics, and less in new medical technology and healthcare/IT firms. Regarding the VCs' internationalisation strategies, our results reveal that VCs investing globally and US VCs focusing on their home market invest more in medical technology and healthcare/IT and less in diagnostics firms than European VCs with European investees only. We conclude that European life science ventures developing medical and healthcare/IT technologies should internationalise early enough into the USA in order to access the US VC market. Therapeutics and diagnostics companies in the USA, on the other hand, may find good opportunities to raise VC in Europe.
    Date: 2005–11
  8. By: Marco Cagetti; Mariacristina De Nardi
    Abstract: Although the role of financial constraints on entrepreneurial choices has received considerable attention, the effects of these constraints on aggregate capital accumulation and wealth inequality are less known. Entrepreneurship is an important determinant of capital accumulation and wealth concentration and, conversely, the distribution of wealth affects entrepreneurial choices in presence of borrowing constraints. We construct a model that matches wealth inequality very well, for both entrepreneurs and non- entrepreneurs. We find that more restrictive borrowing constraints generate less wealth concentration, but also reduce average firm size, aggregate capital, and the fraction of entrepreneurs. We also find that voluntary bequests are an important channel that allows some high-ability workers to establish or enlarge an entrepreneurial activity: with accidental bequests only, there would be fewer large firms, fewer entrepreneurs, and less aggregate capital, but also less wealth concentration.
    Keywords: Loans ; Wealth
    Date: 2005
  9. By: Clarysse, B.; Knockaert, M.; Lockett, A.
    Abstract: This study examines the selection behaviour of 68 European early stage high tech VCs. In particular, we examine whether or not these VCs exhibit heterogeneity in their selection behaviour. To examine these issues we employ a conjoint analysis methodology. Our results indicate that VCs exhibit substantial heterogeneity in investment selection behaviour. Employing a cluster analysis three types of investors emerge: those who focus on technology, those who focus on finance and those who focus on people. We then examine the drivers of these differences, being the sectoral focus, the sources of funds and the human capital of the investment manager.
    Date: 2005–11–18

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