nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2011‒01‒30
five papers chosen by
Rui Baptista
Technical University of Lisbon

  1. The job creation effect of R&D expenditures By Francesco Bogliacino; Marco Vivarelli
  2. Endogenous Market Structures and Innovation By Federico Etro
  3. The use of intellectual property rights by French firms. By Gallié, Emilie-Pauline; Legros, Diego
  4. The micro processes underlying small firms'integration into territorial innovation dynamics - a knowledge based perspective By Rani Jeanne Dang; Christian Longhi; Catherine Thomas
  5. Sunk costs, market contestability, and the size distribution of firms By Kessides, Ioannis N.; Tang, Li

  1. By: Francesco Bogliacino (European Commission, JRC-IPTS); Marco Vivarelli (Università Cattolica)
    Abstract: In this study we use a unique database covering 25 manufacturing and service sectors for 16 European countries over the period 1996-2005, for a total of 2,295 observations, and apply GMM-SYS panel estimations of a demand-for-labour equation augmented with technology. We find that R&D expenditures have a job-creating effect, in accordance with the previous theoretical and empirical literature discussed in the paper. Interestingly enough, the labour-friendly nature of R&D emerges in both the flow and the stock specifications. These findings provide further justification for the European Lisbon-Barcelona targets.
    Keywords: Technological change, corporate R&D, employment, product innovation, GMMSYS
    JEL: O33
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:ieb:wpaper:2011/1/doc2010-55&r=tid
  2. By: Federico Etro (Department of Economics, University Of Venice, Ca’ Foscari)
    Abstract: One of the pioneering works on endogenous market structures, by Tandon (1984), has extended the standard Cournot model with linear demand to endogenous entry and sunk R&D costs to show that the endogenous number of firms is independent from the size of the market. I generalize the model in many directions and show that, as long as the exogenous fixed costs are positive, the endogenous market structure is naturally characterized by an inverted-U relation between market size and number of firms, in line with the celebrated hypothesis of Sutton (1991).
    Keywords: Oligopoly, Endogenous entry, Sunk costs, RD investment
    JEL: L1
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:ven:wpaper:2010_29&r=tid
  3. By: Gallié, Emilie-Pauline; Legros, Diego
    Abstract: In attempting to appropriate their innovations, firms can choose from a range of mechanisms, including patents, trade secrets and lead-times. Yet, little is known about how firms choose different appropriability mechanisms. The aim of this paper is to determine how the use of intellectual property rights(IPs)by French firms is related to their characteristics, activities, competitive strategies and the industry sector in which they operate. Among their characteristics, we test the role of the human resource strategies in keeping employees. Our empirical model is based on the French 2004 Community Innovation Survey(CIS). Our results show that firms have different strategies in the choice of the means of protection according to their basic economic characteristics of firms, their activities and industry environment. They also put in evidence of the role of human resources strategies. Firms that finance R&D training prefer to use non-statutory means.
    Keywords: Appropriability; Intellectual property rights; Innovation; Human resources strategies; Multivariate probit;
    JEL: C35 O32 O34
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/5000&r=tid
  4. By: Rani Jeanne Dang (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Christian Longhi (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Catherine Thomas (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis)
    Abstract: The paper is concerned with the process of SMEs' insertion into innovation projects within regional clusters. The objective is to contribute to a better understanding of this process by examining the underlying mechanisms of territorial innovation dynamics. A particular attention is given to the interplay between the features of territorial dynamics of innovation identified, and SMEs' capacity to participate to collaborative innovation projects. In this perspective, the article analyse the front-end process of territorial inter-organizational innovation, the early stage during which partners negotiate and establish collaborative innovation projects. Rather than investigating how clusters facilitate the access to new resources and knowledge, the crucial question here is how clusters allow the combination of different component of knowledge among heterogeneous actors. First, our findings reveal the key underlying role of architectural knowledge in local innovation processes. Second, they suggest that the nature of architectural knowledge inside the cluster influences the capacity and the motivation of SMEs to participate to local innovation projects. These findings contribute to theory by developing a grounded model of territorial dynamics of innovation and of SMEs integration into localised innovation projects
    Keywords: clusters; SMEs; architectural innovation; knowledge; local innovation projects
    Date: 2010–06–28
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00504079&r=tid
  5. By: Kessides, Ioannis N.; Tang, Li
    Abstract: This paper offers a new economic explanation for the observed inter-industry differences in the size distribution of firms. The empirical estimates--based on three temporal (1982, 1987, and 1992) cross-sections of the four-digit United States manufacturing industries--indicate that increased market contestability, as signified by low sunk costs, tends to reduce the dispersion of firm sizes. These findings provide support for one of the key predictions of the theory of contestable markets: that market forces under contestability would tend to render any inefficient organization of the industry unsustainable and, consequently, tighten the distribution of firms around the optimum.
    Keywords: Markets and Market Access,Economic Theory&Research,Water and Industry,Access to Markets,Debt Markets
    Date: 2011–01–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5540&r=tid

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