nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2011‒01‒16
eight papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Do Business Subsidies Facilitate Employment Growth? By Heli Koski; Mika Pajarinen
  2. Knowledge sourcing and firm performance in an industrializing economy: The case of Taiwan (1992-2003) By Chang, Chia-Lin; Robin, Stéphane
  3. Breakthrough innovations and welfare: The role of innovators' loss aversion and experience. By Daniela Grieco
  4. Strategische Ausrichtung und Innovationstätigkeit von KMU im Raum Jena By Kaps, Katharina; Pfeil, Silko; Sauer, Thomas; Stoetzer, Matthias-Wolfgang
  5. Spatial Differentiation in Industrial Dynamics. A Core-Periphery Analysis Based on the Pavitt-Miozzo-Soete Taxonomy By Marco Capasso; Elena Cefis; Koen Frenken
  6. How SMEs Exploit Their Intellectual Property Assets: Evidence from Survey Data By Gaétan de Rassenfosse
  7. Framing the empirical findings on firm growth By Marco Capasso; Elena Cefis; Sandro Sapio
  8. Eco-innovation and economic performance in industrial clusters: evidence from Italy By Sara Tessitore; Tiberio Daddi; Fabio Iraldo

  1. By: Heli Koski; Mika Pajarinen
    Abstract: We use data from 15508 Finnish companies with 10 or more employees for the years 2003-2008 to explore the relationship between employment growth and three endogenously determined business subsidy types (i.e. employment subsidy, R&D subsidy and other business subsidies). We find a positive contemporary relationship between all business subsidy types and employment growth. Our findings suggest that R&D subsidies further contribute to the firms’ employment for one year after and employment and other subsidies for three years after the reception of subsidies. After that, the differences between the subsidized and non-subsidized firms vanish. We further find, in line with the empirical studies of Harrison et al. (2008) and Hall et al. (2008), that both product innovation and sales growth from a firm’s old products contribute to the firm’s employment growth. Process innovation, instead, does not seem to have any significant effect on employment.
    Keywords: public subsidies, technology policy, employment growth, Finland
    JEL: J23 L10 O33 O38
    Date: 2011–01–04
  2. By: Chang, Chia-Lin; Robin, Stéphane
    Abstract: We examine the impact of R&D and technology imports on firm performance in Taiwan’s manufacturing industry in a policy context of industrial upgrading. To do so, we estimate a Translog production function on two panels (covering 1992-1995 and 1997-2003), using stochastic frontier models. We find that the effects of both knowledge inputs become significant in a larger number of industries in the second panel. These results suggest that the policies encouraging innovation implemented from 1991 onwards paid off in the second half of the 1990s, with innovation driving firm sales. In traditional industries, the effect of innovation can be interpreted as an effort to catch up with the global technology frontier. In the electronics and high-technology industries, it rather testifies of the emergence of a new domain of specialization for Taiwan – which was largely enabled by the aforementioned innovation policies.
    Keywords: Manufacturing Industries; Newly Industrialized Countries; Technology Imports - Stochastic Frontier Estimation.
    JEL: L25 O33 L60
    Date: 2010–12–01
  3. By: Daniela Grieco (Department of Economics (University of Verona))
    Abstract: Technological refinements appears to be much more frequent than breakthrough innovations. We argue that this could be the result of an optimizing choice when the innovation revenues are exposed to Knightian uncertainty and innovators are loss-averse. The innovator's choice between breakthrough and incremental innovations is analyzed in the context of a neo-Schumpeterian growth model that accounts for the introduction of new goods and related sunk costs. The results show that the welfare generated by breakthrough innovations drops dramatically when agents are uncertainty-averse and/or loss-averse, but rises as innovators' experience increases.
    Keywords: Incremental innovation, Breakthrough innovation, Uncertainty, Loss aversion, Experience
    JEL: D60 D81 O32
    Date: 2010–12
  4. By: Kaps, Katharina; Pfeil, Silko; Sauer, Thomas; Stoetzer, Matthias-Wolfgang
    Abstract: Das vom Bundesministerium für Bildung und Forschung (BMBF) geförderte Projekt KompNet2011 – Erfolgsfaktoren regionaler Innovationsnetze – untersucht die strategische Ausrichtung sowie die Innovationsaktivitäten von kleinen und mittelständischen Unternehmen (KMU) in der Region Jena. Für die 225 Befragungsteilnehmer stellt die Qualitätsführerschaft die wichtigste Strategie dar: Fast 80% weisen ihr eine hohe bzw. sehr hohe Bedeutung zu. Allerdings belegt der Datensatz auch die Tendenz zu Mischstrategien, da nur wenige Unternehmen eine eindeutige strategische Ausrichtung aufweisen. Das Innovationsverhalten der KMU in der Region ist stärker auf Produktinnovationen als auf Prozessinnovationen ausgerichtet und fokussiert außerdem intensiver auf Verbesserungen als auf Neuheiten. Zudem finden sich in der deskriptiven Auswertung Belege für eine hohe Bedeutung betriebswirtschaftlich orientierter Innovationsarten, d.h. Marketing- und Organisationsinnovationen sind von erheblicher Relevanz. Während Kunden die mit Abstand wichtigsten Innovationstreiber sind, werden Kostenbarrieren und gesetzliche Restriktionen als bedeutendste Innovationshemmnisse identifiziert. Fehlende technologische Informationen und fehlende Kooperationspartner wirken sich hingegen kaum negativ auf die Innovationstätigkeit aus. -- The research project „KompNet 2011 – Sucess factors of regional innovation networks“, funded by the Federal Ministry of Education and Research (BMBF), examines the innovation activities of small and medium-sized enterprises (SME) in and closely around Jena (Thuringia). According to the answers of 225 survey participants, quality leadership is the most important mode of strategy: Almost 80% claim that quality leadership has a high or very high importance as to the strategic orientation of their company. However, the data show a clear tendency to mixed strategies. Only a few regional SME have a clear strategic alignment. The innovation activities focus clearly on product innovation instead of process innovation. Furthermore the improvement of existing products and processes is much more relevant compared to the development of novelties. In addition the empirical analysis reveals a high importance of business-oriented types of innovation, i.e. marketing and organizational innovation. While customers clearly are the most important drivers of innovation, regional SME are highly hampered in their innovation projects by cost barriers and legal restrictions. Only a few participants point out the hampering effects due to a lack of technological information and absence of cooperation partners.
    Keywords: Innovationshemmnis,Innovationstreiber,Produktinnovation,Prozessinnovation,Unternehmensstrategie,Wettbewerbskräfte Porter,Business strategy,Competitive forces Porter,Drivers of innovation,Obstacles of innovation,Process innovation,Product Innovation
    JEL: L10 O31 O32
    Date: 2010
  5. By: Marco Capasso; Elena Cefis; Koen Frenken
    Abstract: We compare the industrial dynamics in the core, semi-periphery and periphery in The Netherlands in terms of firm entry-exit, size, growth and sectoral location patterns. The contribution of our work is to provide the first comprehensive study on spatial differentiation in industrial dynamics for all firm sizes and all sectors, including services. We find that at the aggregate level the spatial pattern of industrial dynamics is consistent with the spatial product lifecycle thesis: entry and exit rates are highest in the core and lowest in the periphery, while the share of persistently growing firms is higher in the periphery than in the core. Disaggregating the analysis to the sectoral level following the Pavitt-Miozzo-Soete taxonomy, findings are less robust. Finally, sectoral location patterns are largely consistent with the spatial product lifecycle model: Fordist sectors are over-represented in the periphery, while sectors associated with the ICT paradigm are over-represented in the core, with the notable exception of science-based manufacturing.
    Keywords: Entry, exit, spatial product lifecycle, Fordist paradigm, ICT paradigm
    JEL: L25 L26 L60 L80 O18 O33 R10
    Date: 2010–01–10
  6. By: Gaétan de Rassenfosse (Melbourne Institute of Applied Economic and Social Research, and Intellectual Property Research Institute of Australia, The University of Melbourne)
    Abstract: This paper seeks to understand how motives to patent affect the use of the patent portfolio with a particular focus on motives aimed at the monetization of intellectual property (IP). The analysis relies on data from an international survey conducted by the European Patent Office (EPO). The main results can be summarized as follows. First, small and medium-sized enterprises (SMEs) exhibit a much stronger reliance on ‘monetary patents’ than large companies and nearly half of the SMEs in the sample patent for monetary reasons. Second, SMEs tend to use their patents more actively than large firms. Third, smaller companies generally have a higher proportion of their portfolio that is licensed but the licensing rate is significantly higher in the U.S. An American SME is twice as likely as a European SME to have a high share of its portfolio that is actually licensed, witnessing a fragmented market for technology in Europe.
    Keywords: Financing constraint, intellectual property strategy, market for technology, motives to patent, multivariate ordered models, technology licensing
    JEL: O32 O34 O38 G21 G24
    Date: 2010–12
  7. By: Marco Capasso; Elena Cefis; Sandro Sapio
    Abstract: This paper proposes a general framework to account for the divergent results in the empirical literature on the relation between firm sizes and growth rates, and on many results on growth autocorrelation. In particular, we provide an explanation for why traces of the LPE sometimes occur in conditional mean (i.e. OLS) autoregressions of firm size or firm growth, and in conditional median (i.e. least absolute deviation) autoregressions, but never in high or low quantile autoregressions. Based on an original empirical analysis of the population of manufacturing firms in the Netherlands between 1994 and 2004, we find that there is no peculiar role played by the median of the growth distribution, which is approximately equal to zero independent of firm size. In economic terms, this is equivalent to saying that most of the phenomena of interest for industrial dynamics can be studied without reference to the behaviour of the median firm, and many "average" relations retrieved in the literature, starting from the negative relation between average size and average growth, are driven by the few dynamic firms in the sample rather than the many stable ones. Moreover, we observe the tent shape of the empirical firm growth rate distribution and confirm the skewness-size and the variance-size relations. The identified quantile regression patterns - autoregressive coefficients above 1 for fast decliners, and below 1 for fast growers - can be obtained by assuming negative variance-size scaling and Laplace growth rate distributions, and are robust to a mild positive relationship between skewness and size. A relationship between quantile regression patterns and previous findings is therefore uncovered.
    Keywords: Firm growth; Law of Proportionate Effect; quantile regression; heterogeneity; variance-size scaling.
    JEL: L11 L25 L60
    Date: 2010–01–10
  8. By: Sara Tessitore (Lab. MaIn – Scuola Superiore Sant’Anna, Pisa); Tiberio Daddi (Lab. MaIn – Scuola Superiore Sant’Anna, Pisa); Fabio Iraldo (– Institute for Environmental and Energy Policy and Economics, Bocconi University, Milan, Italy)
    Abstract: The article aims to investigate the presence of a correlation between eco-innovation and economic performance of an industrial district. The case analyzed in this article takes its cue from a study on a sample of 54 Italian industrial districts entitled "Eco-Districts" that, based on a series of criteria, has compiled a list of the most eco-efficient industrial districts. After selecting two districts in the field, but analyzed in this study for their different levels of eco-innovation, the article assesses the economic performance of the last three years through the analysis of trends in four indicators. However, the results show that only in some cases there is a connection between eco innovation and economic performance.
    Keywords: industrial clusters, industrial districts, eco-innovation, economic performance
    Date: 2010–02–23

This nep-tid issue is ©2011 by Rui Baptista. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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