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on Technology and Industrial Dynamics |
| By: | Tsuyoshi Nakamura (Department of Economics, Tokyo Keizai University); Hiroshi Ohashi (Faculty of Economics, University of Tokyo) |
| Abstract: | This paper examines the intra-firm diffusion of new technology in the Japanese steel industry. The introduction of the basic oxygen furnace was the greatest breakthrough in steel refining in the last century. Using unique panel data concerning capital utiliza- tion, the paper estimates total factor productivity by technology type, and associates the estimate with intra-firm diffusion. Estimation results reveal that the productivity difference between the old and new technologies plays an important role. The paper also finds that in operation, the old technology can better respond to changes in market demand, which brings about counter-cyclicality in the measured productivity. |
| Date: | 2007–02 |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2007cf471&r=tid |
| By: | Jyrki Ali-Yrkkö |
| Abstract: | This study analyses the motives and results of outsourcing. According to the results, companies have pursued outsourcing for a variety of reasons. Cost savings are the major driving force behind the outsourcing of production function. Increased flexibility, focusing and additional capacity are other important motives. In most cases, R&D outsourcing is driven by knowledge acquisition, but increasing R&D capacity and increasing flexibility are also important motives. In addition to outsourcing motives, another major result of the study concerns the results of out-sourcing. Approximately 50% of companies have completely achieved the original goals of outsourcing. Moreover, the targeted cost savings have been completely achieved in 40% of cases. |
| Date: | 2007–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1071&r=tid |
| By: | Eleonora Di Maria (University of Padova); Stefano Micelli (University of Venice) |
| Abstract: | Italian industrial districts are no longer self-contained systems of small firms, where firms' competitiveness is the result of physical proximity and links with global economy are limited to export sales. A new generation of firms is taking the lead, reshaping the form of districts through their innovative strategies focused on R&D, design and ICT. Most of these firms are leaders within their markets and organize their value chains by coupling district knowledge and competencies with opportunities offered by globalization processes. The rise of these open networks contributes to the transformation of industrial districts and the real drivers of the district firm's competitiveness. Based on a survey of 650 Italian SMEs from 41 Italian districts, the paper describes the characteristics of this new firm model, compared to the traditional district one. The paper also discusses implications for districts in terms of innovation dynamics and governance. |
| Keywords: | district firms, open networks, global value chain, innovation, governance |
| Date: | 2007–02 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0038&r=tid |
| By: | Laura Abramovsky (Institute for Fiscal Studies); Rupert Harrison (Institute for Fiscal Studies and University College London); Helen Simpson (Institute for Fiscal Studies) |
| Abstract: | <p>We investigate the relationship between the location of private sector R&D labs and university research departments in Great Britain. We combine establishment-level data on R&D activity with information on levels and changes in research quality from the Research Assessment Exercise. The strongest evidence for co-location is for pharmaceuticals R&D, which is disproportionately located near to relevant university research, particularly 5 or 5* rated chemistry departments. This relationship is stronger for foreign-owned labs, consistent with multinationals sourcing technology internationally. We also find some evidence for co-location with lower rated research departments in industries such as machinery and communications equipment.</p> |
| JEL: | O3 R11 R13 I23 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:07/02&r=tid |
| By: | Muge Ozman |
| Abstract: | The aim of this paper is to investigate the effect of technological opportunities and knowledge tacitness on inter-firm network formation, under two different industry regimes. In the first regime environment is stable and the aim of firms is to exploit knowledge. In this case, they attribute more value to repeated interactions with geographically close firms. In the second regime, there is environmental turbulence, which increases the value of access to novel information from distant partners for exploration. The question addressed is, under these regimes how do technological opportunities and knowledge tacitness influence structure of networks? The main contribution of the paper different from previous work is that it explicitly models the effect of history between two firms on networks that form. A simulation model is carried out where firms select partners and learn from them, which further shapes their selection process. The results reveal that in both regimes richer technological opportunities and higher tacitness generates local and global star firms depending on the parameter range. |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2007-07&r=tid |
| By: | Crespi, Gustavo; Criscuolo, Chiara; Haskel, Jonathan |
| Abstract: | We examine the relationships between productivity growth, IT investment and organisational change (DO) using UK firm data. Consistent with the small number of other micro studies we find (a) IT appears to have high returns in a growth accounting sense when DO is omitted; when DO is included the IT returns are greatly reduced, (b) IT and DO interact in their effect on productivity growth, (c) non-IT investment and DO do not interact in their effect on productivity growth. Some new findings are (a) DO is affected by competition; (b) US-owned firms are much more likely to introduce DO relative to foreign owned firms who are more likely still relative to UK firms; (c) our predicted measured TFP growth slowdown for firms who are not doing DO and/or are in the early stages of IT investment compare well with the macro numbers documenting a UK measured TFP growth slowdown. |
| Keywords: | information technology; organisational change; productivity growth |
| JEL: | D24 E22 L22 O31 |
| Date: | 2007–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6105&r=tid |
| By: | Bronwyn Hall (Institute for Fiscal Studies and University of California, Berkeley) |
| Abstract: | Measuring the private returns to R&D requires knowledge of its private depreciation or obsolescence rate, which is inherently variable and responds to competitive pressure. Nevertheless, most of the previous literature has used a constant depreciation rate to construct R&D capital stocks and measure the returns to R&D, a rate usually equal to 15 per cent. In this paper I review the implications of this assumption for the measurement of returns using two different methodologies: one based on the production function and another that uses firm market value to infer returns. Under the assumption that firms choose their R&D investment optimally, that is, marginal expected benefit equals marginal cost, I show that both estimates of returns can be inverted to derive an implied depreciation rate for R&D capital. I then test these ideas on a large unbalanced panel of US manufacturing firms for the years 1974 to 2003. The two methods do not agree, in that the production function approach suggests depreciation rates near zero (or even appreciation) whereas the market value approach implies depreciation rates ranging from 20 to 50 per cent, depending on the period. The concluding section discusses the possible reasons why this is true. |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:06/23&r=tid |
| By: | Bronwyn Hall (Institute for Fiscal Studies and University of California, Berkeley); Francesca Lotti; Jacques Mairesse |
| Abstract: | Italian manufacturing firms have been losing ground with respect to many of their European competitors. This paper presents some empirical evidence on the effects of innovation on employment growth and therefore on firms' productivity with the goal of understanding the roots of such poor performance. We use firm level data from the last three surveys on Italian manufacturing firms conducted by Mediocredito- Capitalia, which cover the period 1995-2003. Using a modified version of the model proposed by Harrison, Jaumandreu, Mairesse and Peters (2005), which separates employment growth rates into those associated with old and new products, we provide robust evidence that there is no employment displacement effect stemming from process innovation. The sources of employment growth during the period are split equally between the net contribution of product innovation and the net contribution from sales growth of old products. However, the contribution of product innovation is somewhat lower than that for the four comparison European countries considered by Harrison et al. |
| Keywords: | Innovation, employment, productivity, Italy. |
| JEL: | L60 O31 O33 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:06/24&r=tid |
| By: | Lundin, Nannan (Örebro University); Sjöholm, Fredrik (Research Institute of Industrial Economics); Ping, He (National Bureau of Statistics of China); Qian, Jinchang (National Bureau of Statistics of China) |
| Abstract: | Science & Technology (S&T) is high on the Chinese policy agenda but there are large uncertainties on the actual S&T development. For instance, previous studies tend to focus only on large and medium-sized enterprises (LMEs). The situation in Chinese small firms is far less explored. This paper aims to examine the role of S&T-based small firms. More precisely, we examine how much S&T that has been accounted for by small firms and how their S&T intensity differs across industries and ownership groups. We also analyze how various firm characteristics differ over size categories and S&T status. This study is based on newly processed micro level data provided by the National Bureau of Statistics with information on a large number of S&T indicators for small-, medium-, and large-sized manufacturing firms in China in 2000 and 2004. Our results suggest that small firms in Chinese S&T resemble their role in many other countries. They account for a comparably small share of total S&T and most small firms are not engaged in any S&T. However, those small firms that do engage in S&T tend to be more S&T intensive and have a higher output in terms of patents than larger Chinese S&T firms. |
| Keywords: | Technology; SMEs; China; S&T; R&D |
| JEL: | O30 O31 O53 |
| Date: | 2007–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0695&r=tid |
| By: | Lundin, Nannan (Örebro University); Sjöholm, Fredrik (Research Institute of Industrial Economics); Ping, He (National Bureau of Statistics of China); Qian, Jinchang (National Bureau of Statistics of China) |
| Abstract: | This paper examines how Science and Technology (S&T) contribute to job creation in the Chinese manufacturing sector. The ambition of transforming China into an innovation-oriented nation and the emphasis on indigenous innovation capacity building have placed Science and Technology (S&T) high on the Chinese policy agenda. At the same time, the need for job creation is pressing, both to absorb the huge supply of underemployed people, and to enable the annual 20 million new labor market entrants to find employment. We examine the relationship between S&T and job growth in the Chinese industrial sector. S&T can be expected to have both positive and negative effects on employment. For instance, new technology might increase competitiveness and enable Chinese firms to expand their labor force. On the other hand, new technology might be labor-saving, thereby enabling Chinese firms to produce more output with fewer employees. Based on a large sample of manufacturing firms in China between 1998 and 2004, we analyze how S&T affect employment growth. Our results suggest that S&T activities have no effect on job creation. |
| Keywords: | China; Science and Technology; Job-Creation |
| JEL: | J21 O14 O33 |
| Date: | 2007–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0697&r=tid |
| By: | David Bryce; Sidney Winter |
| Abstract: | Firm growth and expansion is widely believed to be guided by the desire to leverage existing resources. But which resources? The answer depends largely on context.the peculiarities of industries, firms, technologies, production, customers, and a host of other dimensions. This fact makes pointing to any particular set of resources as the source of expansion decisions potentially problematic and makes more difficult tests of theories such as the resource-based view of the firm. This paper tackles the problem by developing a general inter-industry relatedness index that can be usefully applied across industry and firm contexts. The index harnesses the relatedness information embedded in the multi-product organization and diversification decisions of every firm in the US manufacturing economy. The index is general in that it implicitly varies the underlying resources upon which expansion proceeds with the industries in question and provides a percentile relatedness rank for every possible pair of fourdigit SIC manufacturing industries. The general index is tested for predictive validity and found to perform as expected. Applications of the index in strategy research are suggested. |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:06-31&r=tid |