|
on Technology and Industrial Dynamics |
| By: | Elena Huergo; Lourdes Moreno |
| Abstract: | This paper analyzes the relationship between R&D expenditures, innovation and productivity growth, taking into account the possibility of persistence in firms’ behaviour. We study this relationship for a sample of Spanish manufacturing firms between 1990 and 2005, estimating a model with four equations: participation in technological activities, R&D intensity, the generation of innovations and the impact of these technological outputs on total factor productivity growth. Our results reflect the existence of true state dependence both in the decision of R&D investment and in the production of innovations. The omission of this persistence leads to an overestimation of the current impact of innovations on productivity growth. However, the presence of persistence in technological inputs and outputs entails current R&D activities having long–run effects on a firm’s productivity. |
| Keywords: | CDM model, productivity growth, persistence in R&D and innovation. |
| JEL: | D24 L6 O3 |
| Date: | 2010–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2010_41&r=tid |
| By: | Francesco Bogliacino (JRC-IPTS) |
| Abstract: | In this article, we analyse the microeconomic relationship between innovation and employment, using company data from R&D Scoreboard for Europe covering 2000-2008. We estimate a reduced form equation in which R&D can account for both product and process innovation. The existence of non constant elasticities is assessed, due to the combination of efficient scale and decreasing return to R&D: in our empirical estimates the scale effect tends to prevail for a given R&D intensity generating an increasing relationship between total turnover and employment. Our results have important implications for policymakers: R&D and innovation supporting policies should be correctly tailored and monitored since the results depend on the characteristics of the firms benefited. By the same token, calibration of general equilibrium models aimed at quantifying the employment impact of R&D and innovation policies should take into account that the average elasticity can be a very rough approximation. We claim that our results support the position that R&D and innovation policies should be tailored towards favouring entry by knowledge intensive firms, instead of supporting existing actors. |
| Keywords: | Technological change, corporate R&D, employment, panel data |
| JEL: | O33 J20 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201008&r=tid |
| By: | Pedro Mazeda Gil (CEF.UP, Faculdade de Economia, Universidade do Porto); Fernanda Figueiredo (CEAUL, Faculdade de Economia, Universidade do Porto) |
| Abstract: | This paper studies the firm size distribution arising from an endogenous growth model of quality ladders with expanding variety. The probability distribution function of a given cohort of firms is a Poisson distribution that converges asymptotically to a normal of log size. However, due to firm entry propelled by horizontal R&D, the total distribution - i.e., when the entire population of firms is considered - is a mixture of Poisson distributions which is systematically right skewed and exhibits a fatter upper tail than the normal distribution of log size. Our theoretical results qualitatively match the empirical evidence found both for the cohort and the total distribution, and which has been presented as a challenge for theory to explain. Moreover, by obtaining a total distribution with a gradually falling variance over a long time span, the model is able to address complementary empirical evidence that points to a total distribution subtly evolving over time. |
| Keywords: | Firm size distribution; Skewness; Heavy tails; Endogenous growth; Horizontal and vertical R&D |
| JEL: | O41 O38 L11 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:389&r=tid |
| By: | Janina Reinkowski; Björn Alecke; Timo Mitze; Gerhard Untiedt |
| Abstract: | This paper analyses the impact of public subsidies on private sector research and development (R&D) activity for East German firms. Using propensity score matching, our empirical results indicate that subsidized firms indeed show a higher level of R&D intensity and a higher probability for patent application compared to non-subsidized firms for our sample year 2003. On average we find an increase in the R&D intensity of about 3.7 percentage points relative to non-subsidized firms. The probability for patent applications rises by 21 percentage points. These results closely match earlier empirical results for East Germany. Given the fact that the East German innovation system is particularly driven by small and medium sized enterprises (SME), we put a special focus on the effectiveness of the R&D subsidies for this latter subgroup. Here no previous empirical evidence is available so far. Our findings indicate that policy effectiveness also holds for private R&D activity of SMEs, where the highest increase in terms of R&D intensity is estimated for micro businesses with up to 10 employees. |
| Keywords: | Propensity score matching; R&D subsidies; East Germany; SME |
| JEL: | C14 C21 O32 O38 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0204&r=tid |