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on Technology and Industrial Dynamics |
| By: | Andrea Conte (University of Turin and Max Planck Institute of Economics, Jena); Marco Vivarelli (Catholic University of Piacenza, Max Planck Institute of Economics, Jena, CSGR, Warwick University and IZA Bonn) |
| Abstract: | This paper discusses the determinants of three alternative measures of innovative output by looking at firm’s own formal R&D activities and at the acquisition of external technology (TA) in its embodied and disembodied components. These input-output relationships are also discussed by distinguishing between small and large firms and those belonging to low-tech and high-tech sectors. The empirical analysis focuses on the Italian industrial sector over the period 1998-2000, using a subsample of 2,949 firms from the third European Community Innovation Survey (CIS 3). A bivariate probit analysis framework is used to investigate the determinants of product and process innovations, while truncated regressions are used to discuss innovation intensity. This paper also discusses an alternative test procedure that permits an extension of Cragg’s test in the analysis of survey data with weighted observations. Results show that R&D is strictly linked to product innovation, while TA is crucial in fostering process innovation; however, both inputs increase a firm’s innovative intensity. Significant evidence is also found that small firms and firms belonging to low-tech sectors rely more on the acquisition of external technologies and on cooperation agreements, while larger firms in high-tech sectors rely more on their own formal R&D. |
| Keywords: | R&D, product and process innovation, embodied technical change, CIS 3, bivariate probit, Cragg’s test |
| JEL: | O31 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1878&r=tid |
| By: | Maria J. Gil-Molto (Loughborough University Economics Department); Claudio A. Piga (Loughborough University Economics Department) |
| Abstract: | We analyze the determinants of entry and exit in the European Airline Markets in the post-liberalization period. Unlike previous studies, we find that the presence of charter or seasonal operators and the level of quality provided by the incumbents are relevant to explain entry and exit. Differential traits in the main low cost airlines' entry and exit behavior are also analysed. |
| Keywords: | Entry, Exit, Airlines, Conditional Logit |
| JEL: | L11 L93 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:lbo:lbowps:2005_10&r=tid |
| By: | Hoernig, Steffen |
| Abstract: | The European Union will be introducing a Europe-wide patent, the so-called Community Patent. Its aim is to foster innovative activity, but strategic effects between firms competing in R&D have not been considered in the official discourse. We show that, even if these are taken into account, the Community Patent will increase innovative activity and welfare. On the other hand, if the decision of participating in R&D is considered, then this increased R&D will be concentrated into fewer firms. Furthermore, we show that existing asymmetries between countries and firms are bound to increase. |
| Keywords: | Community patent, R&D race, Participation in R&D |
| JEL: | L52 O34 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:unl:unlfep:wp467&r=tid |
| By: | Miren Lafourcade; Giordano Mion |
| Abstract: | This paper investigates whether the geographic distribution of manufacturing activities depends on the size of plants. Using Italian data we find, as in Kim (1995) and Holmes and Stevens (2002, 2004), that large plants are more concentrated than small plants. However, considering distance-based patterns via spatial auto-correlation, we find that small establishments actually exhibit a greater tendency to be located in adjacent areas. These apparently contradictory findings raise a measurement issue regarding co-location externalities, and suggest that large plants are more likely to cluster within narrow geographical units (concentration), while small establishments would rather co-locate within wider distance-based clusters (agglomeration). This picture is consistent with different size plants engaging in different transport-intensive activities. |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:pse:psecon:2005-42&r=tid |
| By: | Giovanni Dosi; Marco Grazzi |
| Abstract: | In this work, inspired by Winter [2006], in fact of vintage 1968, we discuss the relation between three dierent levels of analysis of technologies, namely as (i) bodies of problem-solving knowledge, (ii) organizational procedures, and (iii) input-output relations. We begin by arguing that the "primitive" levels of investigation, "where the action is", are those which concern knowledge and organizational procedures, while in most respects the I/O representation is just an ex post, derived, one. Next, we outline what we consider to be important advances in the understanding of productive knowledge and of the nature and behaviors of business organizations which to a good extent embody such a knowledge. Finally, we explore some implications of such "procedural" view of technologies in terms of input-output relations (of which standard production functions are a particular instantiation). We do that with the help of some pieces of evidence, drawing both upon incumbent literature and our own elaboration on micro longitudinal data on the Italian industry. |
| Keywords: | Theory of Production, Organizational Routines, Problem-solving Knowledge, Production Function, Micro-heterogeneity |
| Date: | 2005–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2005/26&r=tid |
| By: | Vesa Kanniainen; Seppo Kari; Jouko Ylä-Liedenpohja |
| Abstract: | The paper shows how entrepreneurial taxes interact with the career choice of individuals, the quality of entrepreneurs, and their effort and investments. It is particularly relevant to differentiate the early effects on start-up enterprises with substantial uncertainty from the tax effects on mature firms where the uncertainty is resolved. That is why the neutrality results of dividend taxation from mature company theory do not carry over to start-up enterprises. The Nordic dual model encourages (discourages) the establishment of new enterprises by entrepreneurs who anticipate high (low) profitability. |
| Keywords: | dual income taxation, enterprise taxes |
| JEL: | H25 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1623&r=tid |
| By: | Machiel van Dijk; Machiel Mulder |
| Abstract: | This paper explores the question whether regulation in telecommunications encourages or hampers the development of new technologies. <P> Contrary to other network industries, the telecommunications industry is more and more characterized by competing network technologies, such as cable, copper, and wireless. Regulation is, however, still needed as in several components of telecommunications sources of market power remain. The key issue in the regulation of access to a network is the possible trade-off between static efficiency and dynamic efficiency. Favourable conditions for access to the network contribute to allocative efficiency and productive efficiency, but can negatively affect incentives for investments in upgrading of existing infrastructures and developing new ones. <P> In the Netherlands, regulation of the telecommunication industry is designed to enhance competition between alternative infrastructures without affecting the technology choice of both incumbents and entrants. In the market for unbundled access to the local loop and the market for high quality wholesale access, a trade-off exists between static efficiency and dynamic efficiency. Regulated access tariffs, which are based on average costs, seem to be a good compromise between static and dynamic efficiency. Tariffs for access to the local loop reflect actual costs of the existing copper infrastructure, giving entrants incentives to make efficient make-or-buy decisions. In addition, the threat of infrastructure competition in the local loop, as well as the service-based competition between providers using different infrastructures, i.e. copper and cable, provide incentives for the incumbent to increase efficiency. <P> Our overall conclusion is that Dutch regulation of the telecommunication industry gives efficient incentives for technological developments such as the deployment of broadband. |
| Keywords: | telecommunication; telecom; network; network industries; broadband; regulation; market failure |
| JEL: | L51 O38 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:memodm:131&r=tid |
| By: | Maria Savona; André Lorentz |
| Abstract: | The paper provides fresh empirical evidence on the relative role of changes in final and intermediate demand as affecting the changes in the sectoral structure of advanced economies. These latter have led, over the last three decades, to the massive growth of service sectors. The paper draws upon the recently released OECD Input-Output (I-O) tables. The empirical analysis is based on an I-O Structural Decomposition Analysis carried out on 13 manufacturing and service sectors, from the end of 1960s to the end of 1990s. Although heterogeneous sectoral patterns emerge, we find that the structural changes leading to the growth of services, particularly KIBS (Knowl-edge Intensive Business Services), are mainly (domestic) demand-led, whereas the role of foreign trade remains marginal even in the last decade. We infer that, even in the case of the most technologically advanced service sectors, (domestic) demand constraints affect the degree of exploitation of technological opportunities and the patterns of growth. |
| Keywords: | Structural change, Growth of Services, Input–Output Structural Decomposition Analysis |
| Date: | 2005–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2005/25&r=tid |