nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2006‒04‒08
five papers chosen by
Roberto Fontana
Universita Bocconi

  1. Persistence of Innovation in Dutch Manufacturing: Is it Spurious? By Wladimir Raymond; Pierre Mohnen; Franz Palm; Sybrand Schim van der Loeff
  2. What type of firm forges closer innovation linkages with Portuguese Universities? By Aurora A.C. Teixeira; Joana Costa
  3. Quality and Competition: An Empirical Analysis across Industries By Crespi, John M.; Marette, Stéphan
  4. Nascent and Infant Entrepreneurs in Germany. Evidence from the Regional Entrepreneurship Monitor (REM) By Joachim Wagner
  5. Is Firm Productivity Related to Size and Age? The Case of Large Australian Firms By Alfons Palangkaraya; Jongsay Yong; Andreas Stierwald

  1. By: Wladimir Raymond; Pierre Mohnen; Franz Palm; Sybrand Schim van der Loeff
    Abstract: This paper studies the persistence of innovation and the dynamics of innovation output in Dutch manufacturing using firm data from three waves of the Community Innovation Surveys (CIS), pertaining to the periods 1994-1996, 1996-1998, and 1998-2000. We estimate by maximum likelihood a dynamic panel data type 2 tobit model accounting for individual effects and handling the initial conditions problem. We find that there is no evidence of true persistence in achieving technological product or process innovations, while past shares of innovative sales condition, albeit to a small extent, current shares of innovative sales.
    Keywords: dynamic panel data type 2 tobit, innovation, spurious persistence
    JEL: C33 C34 O31
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_1681&r=tid
  2. By: Aurora A.C. Teixeira (CEMPRE, Faculdade de Economia, Universidade do Porto); Joana Costa (Faculdade de Economia and Faculdade de Letras, Universidade do Porto)
    Abstract: Using large-scale survey data for (1538) firms located in Portugal, we analyze which firm characteristics are conducive to establishing contacts with universities. Although almost half of the firms surveyed stated they had established some contacts with universities in the period 2001-2003, only a few (21.5%) consider universities an important source of knowledge and information for their innovation activities. A more disturbing finding is that 61% of the total firms claimed they had no intentions of establishing future contacts with universities and 38% would only be moderately interested in doing so (‘if requested’). The Universities of Minho, Porto and Aveiro are the ones that cover a higher percentage of contacts from firms. Furthermore, in terms of the most demanding type of contacts (protocols, partnerships and projects), the Técnica de Lisboa (Lisbon Technical), Aveiro and Porto are the best-ranked universities. Our analysis indicates that the firms’ propensity to draw on each of the Portuguese universities is explained by the characteristics of the different firms and their regional and industrial patterns. For instance, firms that have established contacts with the Aveiro, Coimbra, Évora, Lisboa, and the Nova (Lisbon) universities tend to be relatively R&D-intensive, whereas those that contact the Católica (Porto) and Porto universities are relatively large and export-intensive. If we exclude the Algarve and Beira Interior universities, firms that contact all the other universities tend to be relatively human capital-intensive. Firms belonging to ‘R&D and Engineering services’ show a relatively high propensity to draw on universities in general, and the Aveiro, Beira Interior, Católica (Porto), Porto and Técnica de Lisboa universities, in particular. ‘Textiles and leather’ firms establish more contacts with the Beira Interior and Minho universities, thus reflecting to some extent the specialization pattern of the corresponding region. An unambiguous and statistically robust finding is that proximity matters highly in firms-universities linkages - our estimations reveal that firms are more likely to contacts universities located nearby.
    Keywords: University, Firm, linkages
    JEL: O38 C25
    Date: 2006–03
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:207&r=tid
  3. By: Crespi, John M.; Marette, Stéphan
    Abstract: This paper empirically explores the link between quality and concentration in a cross-section of manufactured goods. Using concentration data and product quality indicators, an ordered probit estimation explores the impact of concentration on quality that is defined as an index of quality characteristics. The results demonstrate that market concentration and quality are positively correlated across different industries. When industry concentration increases, the likelihood of the product being higher quality increases and the likelihood of observing a lower quality decreases.
    Keywords: concentration, market structure, ordered probit, product differentiation, product quality.
    Date: 2006–03–28
    URL: http://d.repec.org/n?u=RePEc:isu:genres:12555&r=tid
  4. By: Joachim Wagner (Institute of Economics, University of Lüneburg)
    Abstract: Based on data from a recent representative survey of the adult population in Germany this paper documents that the patterns of variables influencing nascent and infant entrepreneurship are quite similar and broadly in line with our theoretical priors – both types of entrepreneurship are fostered by the width of experience and a role model in the family, and hindered by risk aversion, while being male is a supporting factor. Results of this study using cross section data are in line with conclusions from longitudinal studies for other countries finding that between one in two and one in three nascent entrepreneurs become infant entrepreneurs, and that observed individual characteristics – with the important exception of former experience as an employee in the industry of the new venture - tend to play a minor role only in differentiating who starts and who gives up.
    Keywords: Nascent entrepreneurs, infant entrepreneurs, Germany
    JEL: J23
    Date: 2005–03–01
    URL: http://d.repec.org/n?u=RePEc:lue:wpaper:1&r=tid
  5. By: Alfons Palangkaraya (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Jongsay Yong (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Andreas Stierwald (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
    Abstract: We investigate the relationship between productivity, size and age of large Australian firms employing more than 100 employees or holding assets in excess of $100 million. In addition, we also investigate the extent of productivity persistence among these firms by looking at transition matrices of productivity distribution and productivity-rank mobility. The empirical study is based on the IBISWorld database used to estimate translog cost function to measure (a residual based) productivity. We find evidence, though somewhat weak, that larger and older firms are on average less productive. Furthermore, we find stronger evidence for a high degree of inertia in terms of productivity ranking within an industry.
    JEL: L25
    Date: 2006–03
    URL: http://d.repec.org/n?u=RePEc:iae:iaewps:wp2006n07&r=tid

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