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on Technology and Industrial Dynamics |
| By: | Rupayan Pal |
| Abstract: | This paper compares equilibrium technology adoption in a differentiated duopoly under two alternative modes of product market competition, Cournot and Bertrand. It shows that the cost of technology has differential impact on technology adoption, that is, on cost-efficiency of the industry, under two alternative modes of product market competition. The possibility of ex post cost asymmetry between firms is higher under Bertrand competition than under Cournot competition. If the cost of technology is high, Bertrand competition leads to higher cost-efficiency than Cournot competition provided that the cost reducing effect of the technology is high. On the other hand, if the technology reduces the marginal cost of production by a very low amount, Cournot competition may lead to higher cost-efficiency than Bertrand competition.[IGIDR WP NO 1] |
| Keywords: | Differentiated duopoly; limit-pricing; price effect; selection effect; technology adoption; cournot; bertrand |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1941&r=tid |
| By: | Gumbau-Albert, Mercedes; Maudos, Joaquin |
| Abstract: | This paper analyses the importance of different technological inputs (R&D and human capital) and different spillovers in explaining the differences in patenting among Spanish regions in the period 1986-2003. The analysis is based on the estimation of a knowledge production function. A region’s own R&D activities and human capital are observed to have a positive significant effect on innovation output, measured by the number of patents. R&D spillovers weighted by the distance and the volume of trade flows between regions cause positive effects on a region’s patents. However, distance matters more than the intensity of trade flows and the R&D spillover effects between regions are bounded: spillovers from closer regions perform better than spillovers from distant regions. On the opposite side, human capital spillovers do not cause any effect outside the region itself. |
| Keywords: | patents; R&D; human capital; spillovers |
| JEL: | O18 O31 R11 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15260&r=tid |
| By: | Raquel Ortega-Argiles (European Commission, Joint Research Centre (JRC); Institute for Prospective Technological Studies (IPTS), Sevilla); Mariacristina Piva (Universita Cattolica del Sacro Cuore, Milano); Lesley Potters (European Commission, Joint Research Centre (JRC); Institute for Prospective Technological Studies (IPTS), Sevilla; Utrecht School of Economics, Utrecht); Marco Vivarelli (European Commission, Joint Research Centre (JRC); Institute for Prospective Technological Studies (IPTS), Sevilla; Universita' Cattolica del Sacro Cuore, Milano; Institute for the Study of Labour (IZA), Bonn) |
| Abstract: | This paper discusses the link between R&D and productivity across the European industrial and service sectors. The empirical analysis is based on both the European sectoral OECD data and on a unique micro longitudinal database consisting of 532 top European R&D investors. The main conclusions are as follows. First, the R&D stock has a significant positive impact on labour productivity; this general result is largely consistent with previous literature in terms of the sign, the significance and the magnitude of the estimated coefficients. More interestingly, both at sectoral and firm levels the R&D coefficient increases monotonically (both in significance and magnitude) when we move from the low-tech to the medium and high-tech sectors. This outcome means that corporate R&D investment is more effective in the high-tech sectors and this may need to be taken into account when designing policy instruments (subsidies, fiscal incentives, etc.) in support of private R&D. However, R&D investment is not the sole source of productivity gains; technological change embodied in gross investment is of comparable importance on aggregate and is the main determinant of productivity increase in the low-tech sectors. Hence, an economic policy aiming to increase productivity in the low-tech sectors should support overall capital formation. |
| Keywords: | R&D, productivity, high-tech sectors, innovation and industrial policy |
| JEL: | O33 |
| Date: | 2009–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-038&r=tid |