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on Technology and Industrial Dynamics |
| By: | Spyros Arvanitis (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Woerter (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | Aim of this study is to combine micro-aspects of firm behaviour with macro-aspects of business development and identify market conditions (for example, price competition) and firm characteristics (for example, type of R&D partners) that enable a firm to have a procyclical, anti-cyclical or non-systematic R&D investment behaviour. New elements of our analysis are: (a) the identification in our data of the above three main types of R&D behaviour with respect to the fluctuation of overall economic activity as measured by a standard composite indicator of the business conditions at industry level and (b) the investigation of a series of hypotheses as to innovation-relevant firm characteristics that underline the three different behaviour categories. The empirical results confirm to large extent our hypotheses and allow us to make profiles of the three types of R&D behaviour. |
| Keywords: | R&D, anti-cyclical behaviour, pro-cyclical behaviour |
| JEL: | O3 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:11-277&r=tid |
| By: | Noriaki Matsushima; Koki Arai; Ikuo Ishibashi; Fumio Sensui |
| Abstract: | Using a simple downstream duopoly model with vertical relations and downstream R&D, we investigate the effect of non-assertion of patents (NAP) provisions. A monopoly upstream firm decides whether to employ NAP provisions. If it does so, it freely incorporates the R&D outcomes into its inputs. Incorporation improves the efficiency of the downstream firms' production. We have interpreted the introduction of NAP provisions as a source of technology spillover. Using the technologies of two downstream firms is optimal for the upstream firm if and only if the degree of technology spillover is small. In addition, if the ex ante cost difference between the downstream firms is significant, such technology spillovers erode both the profit of the efficient downstream firm and social welfare. We interpret our result in the context of an actual antitrust case related to this model. |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:0807&r=tid |
| By: | Schimke, Antje; Brenner, Thomas |
| Abstract: | This paper investigates whether the economic factors that are related to firm growth in the literature also determine the development path of firms. This means that we test which economic factors possess the ability to remain effective for a longer period of time. We examine three variables: firm size, innovation effort and export share. To this end, we use panel-data on 178 German manufacturing firms over the period from 1992 to 2007. We find that the determinants of permanent growth path are not the same as the determinants of firm growth at one point in time. -- |
| Keywords: | firm growth,firm growth paths,firm size,export,innovation effort |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitwps:21&r=tid |
| By: | Daron Acemoglu |
| Abstract: | This paper proposes a tractable model to study the equilibrium diversity of technological progress and shows that equilibrium technological progress may exhibit too little diversity (too much conformity), in particular, foregoing socially beneficial investments in “alternative” technologies that will be used at some point in the future. The presence of future innovations that will replace current innovations imply that social benefits from innovation are not fully internalized. As a consequence, the market favors technologies that generate current gains relative to those that will bear fruit in the future; current innovations in research lines that will be profitable in the future are discouraged because current innovations are typically followed by further innovations before they can be profitably marketed. A social planner would choose a more diverse research portfolio and would induce a higher growth rate than the equilibrium allocation. The diversity of researchers is a partial (imperfect) remedy against the misallocation induced by the market. Researchers with different interests, competences or ideas may choose non-profit maximizing and thus more diverse research portfolios, indirectly contributing to economic growth. |
| JEL: | C65 O30 O31 O33 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16984&r=tid |
| By: | Iraj Hashi; Nebojsa Stojcic; Shqiponja Telhaj |
| Abstract: | This paper aims to explore the factors influencing the ability of firms to compete in globalised markets. The Austrian and evolutionary economics and the endogeneous growth literature highlight the role of innovation activities in enabling firms to compete more effectively - and expand their market share. On the basis of these theories, and using a large panel of firms from several Central and East European Countries (CEECs), this paper attempts to identify the factors and forces which determine the ability of firms to compete in conditions of transition. The competitiveness of firms, measured by their market share, is postulated to depend on indicators of firms' innovation behaviour such as improvements in cost-efficiency, labour productivity and investment in new machinery and equipment as well as characteristics of firms and their environment such as location, experience, technological intensity of their industries and the intensity of competition. To control for the dynamic nature of competitiveness and the potential endogeneity of its determinants, and to distinguish between short and long run effects of firm behaviour, a dynamic panel methodology is employed. The results indicate that the competitiveness of firms in transition economies is enhanced with improvements in their cost efficiency, productivity of labour, investment and their previous business experience while stronger competition has a negative impact on it. |
| Keywords: | competitiveness, restructuring, transition economies, market share, dynamic panel analysis |
| JEL: | O31 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnstan:0424&r=tid |