nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2007‒09‒02
six papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Organisation of Innovation in High-Tech Industries: Acquisitions as Means for Technology Sourcing. By Marcus Wagner
  2. Prior knowledge and entrepreneurial innovative success By Uwe Cantner; Maximilian Goethner; Andreas Meder
  3. Do ‘Liberal Market Economies’ Really Innovate More Radically than ‘Coordinated Market Economies’? Hall & Soskice Reconsidered By Akkermans, Dirk; Castaldi, Carolina; Los, Bart
  4. Innovation, Firm Dynamics, and International Trade By Andrew Atkeson; Ariel Burstein
  5. Global Knowledge and Local Inequality - Industry Level Evidence By Ahmed S. Rahman
  6. Strategic R&D with Knowledge Spillovers and Endogenous Time to Complete By Lukach, R.; Kort, P.M.; Plasmans, J.E.J.

  1. By: Marcus Wagner
    Abstract: Innovation activities in the semiconductor industry provide considerable challenges for technology and innovation management. In particular, firms frequently face make-or-buy decisions and such decisions have considerable management implications. The semiconductor industry has a long history of radical innovations which are taking place through distinct industry cycles of high and low demand. The paper investigates these issues for the Electronic Design Automation industry which is a specific sub-segment of the semiconductor industry. Based on database searches and structured interviews, the paper analyses empirically the reasons for make or buy decisions with regard to innovation and the level of acquisition activities of innovative small firms in the Electronic Design Automation industry. This analysis is supported by an analysis of the SEC filings of large firms in the Electronic Design Automation industry.
    Date: 2007
  2. By: Uwe Cantner (School of Business and Economics, Friedrich-Schiller University Jena, Germany); Maximilian Goethner (School of Business and Economics, Friedrich-Schiller University Jena, Germany); Andreas Meder (School of Business and Economics, Friedrich-Schiller University Jena, Germany)
    Abstract: This paper is concerned with the relationship between innovative success of entrepreneurs and their prior knowledge at the stage of firm formation. We distinguish between different kinds of experience an entrepreneur can possess and find evidence that the innovative success subsequent to firm formation is enhanced by entrepreneur's prior technological knowledge but not by prior market and organizational knowledge. Moreover we find that prior technological knowledge gathered through embeddedness within a research community has an additionally positive influence on post start-up innovative success. This is a first hint towards the importance of collective innovation activities.
    Keywords: Entrepreneurship, Networks, Prior knowledge
    JEL: L25 O31 Z13
    Date: 2007–08–27
  3. By: Akkermans, Dirk; Castaldi, Carolina; Los, Bart (Groningen University)
    Abstract: In their influential book Varieties of Capitalism; The Institutional Foundations of Comparative Advantage, Peter A. Hall and David Soskice argue that the technological specialization patterns of developed countries are largely determined by the ?varieties of capitalism? prevailing in these countries. They hypothesize that ?liberal market economies? (LMEs) specialize in radical innovation, while ?coordinated market economies? (CMEs) focus more on incremental innovation. We argue that Hall and Soskice?s empirical test of this hypothesis is fundamentally flawed and propose a more appropriate and rigorous test of their conjecture, based on patent citation data. The manufacturingwide industry-level results indicate that the hypothesis does not survive further scrutiny.
    Date: 2007
  4. By: Andrew Atkeson; Ariel Burstein
    Date: 2007–08–24
  5. By: Ahmed S. Rahman (United States Naval Academy)
    Abstract: This paper attempts to ascertain if skill-biased technologies developed in R&D-active countries diffuse to the rest of the world. First, using a model of international trade, I show the effects of skill-bias knowledge diffusion. The theory suggests that skill-biased technological diffusion need not increase skill premia, as sectoral biases can exert countervailing forces. Second, I test implications from the theory using United Nations industry data. Skill-biased knowledge diffusion tends to be associated with rising local skill-premia more in skill-intensive industries than unskill-intensive ones. Thus sectoral biases can help us see the extent of such technological spillovers.
    Date: 2007–07
  6. By: Lukach, R.; Kort, P.M.; Plasmans, J.E.J. (Tilburg University, Center for Economic Research)
    Abstract: It is shown that asymmetry in R&D efficiency between firms is an important factor determining feasibility of the preemption and attrition scenarios in competitive R&D with time to build. Scenarios of attrition and preemption games are most likely to occur when competitors have similar R&D efficiencies. In case of largely asymmetric firms the games of attrition and preemption are very unlikely, thus the R&D duration choices of firms are determined by the actual trade-off between the benefits of earlier innovation and the costs of faster R&D project completion.
    Keywords: R&D Investment;Competition;Preemption;Attrition.
    JEL: C72 D21 O31
    Date: 2007

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