nep-tid 2009-07-17 papers

on Technology and Industrial Dynamics

Issue of 2009‒07‒17
two papers chosen by
Rui Baptista
Technical University of Lisbon

Firms’ Innovative Performance: The Mediating Role of Innovative Collaborations By Lee, Lena; Wong, Poh Kam
Technology diffusion and growth By Erzo G.J. Luttmer

Firms’ Innovative Performance: The Mediating Role of Innovative Collaborations

By:	Lee, Lena; Wong, Poh Kam
Abstract:	While existing studies have provided many insightful discussions on the antecedents to innovative collaborations and the benefits of collaborative behavior, few studies have focused on the mediating role of innovative collaborations in enhancing the firm’s technological innovative performance. In this paper, we investigate the mediating role of the firm’s innovative collaborations in the relation between government innovation support and the firm’s product and process innovation intensities. As a mediating factor in the innovation process, innovative collaborations form part of the innovative inputs that contribute to the firm’s product and process innovation intensities. Using arguments derived from the resource-based theory, we found that while receipts of government innovation support help increase the firm’s level of innovative inputs as observed in its collaboration intensity, it is equally important for firms to internalize management practices that encourage maximum leverage of government innovation support for pursuits of innovative collaborations. In a similar vein, while innovative collaborations are necessary for realizing innovative outputs including product and process innovations, it is not a sufficient condition for achieving strong innovative performance. The firm’s internal capabilities as observed in its learning, R&D, resource allocation, manufacturing, marketing, organizing, and strategic planning abilities have a positive influence on the relationship between innovative collaborations and innovative outputs.
Keywords:	Innovative Performance; Innovative Collaboration; Firm’s Contextual Factors
JEL:	D23 M1 O32
Date:	2009–06–19
URL:	http://d.repec.org/n?u=RePEc:pra:mprapa:16193&r=tid

Technology diffusion and growth

By:	Erzo G.J. Luttmer
Abstract:	Suppose firms are subject to decreasing returns and permanent idiosyncratic productivity shocks. Suppose also firms can only stay in business by continuously paying a fixed cost. New firms can enter. Firms with a history of relatively good productivity shocks tend to survive and others are forced to exit. This paper identifies assumptions about entry that guarantee a stationary firm size distribution and lead to balanced growth. The range of technology diffusion mechanisms that can be considered is greatly expanded relative to previous work. High entry costs slow down the selection process and imply slow aggregate growth. They also push the firm size distribution in the direction of Zipf's law.
Keywords:	Technology ; Productivity
Date:	2009
URL:	http://d.repec.org/n?u=RePEc:fip:fedmwp:672&r=tid

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