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on Technology and Industrial Dynamics |
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Issue of 2014‒06‒14
ten papers chosen by Fulvio Castellacci Norwegian Institute of International Affairs (NUPI) |
| By: | Dani Rodrik |
| Abstract: | Africa’s recent growth performance has raised expectations of a bright economic future for the continent after decades of decline. Yet there is a genuine question about whether Africa’s growth can be sustained, and if so, at what level. The balance of the evidence suggests caution on the prospects for high growth. While the region’s fundamentals have improved, the payoffs to macroeconomic stability and improved governance are mainly to foster resilience and lay the groundwork for growth, rather than to generate productivity growth on their own. The traditional engines behind rapid growth, structural change and industrialization, seem to be operating at less than full power. If African countries do achieve growth rates substantially higher, they will have to do so pursuing a growth model that is different from earlier miracles based on industrialization. This might be agriculture-led or services-led growth, but it will look quite different than what we have seen before. |
| JEL: | O11 O40 O55 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20188&r=tid |
| By: | Antonio Cubel; Vicente Esteve; Maria Teresa Sanchis; Juan A. Sanchis-Llopis |
| Abstract: | This paper analyses the relationship between total factor productivity (TFP) and innovation-related variables during the second half of the 20th century. We perform this analysis for several European countries (France, Germany, the United Kingdom, and Spain) and the U.S., extending Coe and Helpman’s (1995) empirical specification to include human capital. We use a new dataset of patents data for the past 150 years to calculate the stock of knowledge using the perpetual inventory method. Our time series empirical analysis confirms the heterogeneous relationship between innovation variables (domestic stock of knowledge, imports of knowledge, and human capital) and productivity. Our results reveal the extent to which observed differences in technology adoption patterns and the levels of endowment of such resources can explain differences in TFP dynamics across countries. The estimated coefficients confirm the considerable gap that still exists between the European countries and the U.S. in innovation-related variables. Furthermore, we obtain a finding that may have important implications for innovation policies: the higher the level of investment in human capital, the higher the level of investment in domestic innovation, and the higher the response of TFP to a 1% increase in any of the aforementioned variables. |
| Keywords: | OECD,international technology diffusion, patents, productivity, cointegration |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:uae:wpaper:0614&r=tid |
| By: | Alberto Galasso; Matthew Mitchell; Gabor Virag |
| Abstract: | Patents are a useful but imperfect reward for innovation. In sectors like pharmaceuticals, where monopoly distortions seem particularly severe, there is growing international political pressure to identify alternatives to patents that could lower prices. Innovation prizes and other non-patent rewards are becoming more prevalent in government’s innovation policy, and are also widely implemented by private philanthropists. In this paper we develop a model in which a patent buyout is effective, using information from market outcomes as a guide to the payment amount. We allow for the fact that sales may be manipulable by the innovator in search of the buyout payment, and show that in a wide variety of cases the optimal policy in our model still involves some form of patent buyout. The buyout uses two key pieces of information: market outcomes observed during the patent’s life, and the competitive outcome after the patent is bought out. We show that such dynamic market information can be effective at determining both marginal and total willingness to pay of consumers in many important cases, and therefore can generate the right innovation incentives in our model. |
| JEL: | O30 O34 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20197&r=tid |
| By: | Lisi, Domenico; Malo, Miguel |
| Abstract: | In this article, we study the impact of temporary employment (TE) on productivity and, in particular, we wonder if it differs according to sectors skill intensity. Our data set is an ad-hoc industry-level panel of European countries, which allows to deal with endogeneity problems. Our main result is that TE has a negative impact on productivity, but it is more damaging in skilled sectors. While an increase of 10 percentage points of the share of TE in skilled sectors decrease labour productivity growth about 1-1.5%, in unskilled sectors the decrease would be 0.5-0.8%. This result is robust to changes in the skill intensity index and in the sample composition. We also discuss policy implications of this result for labour market regulation. |
| Keywords: | Labour productivity, Temporary employment, Skill intensity, Differential effect. |
| JEL: | J24 J41 O47 |
| Date: | 2014–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56470&r=tid |
| By: | Westerberg, Hans Seerar (Ratio institute) |
| Abstract: | In this paper we analyze whether a firm’s return to its R&D stock is affected by seller-buyer interactions. We suggest that firms that are in close contact with their customers will be relatively more sensitive to their customers’ needs, and therefore adjust their R&D activities accordingly. This, in turn, will boost sales and increase the return to R&D. To the extent that seller-buyer interactions are costly, large and productive firms will have an advantage in overcoming such costs. We test these hypotheses using a fixed effects quantile regression framework. Results suggest that large firms active in industries characterized by frequent seller-buyer interactions have a higher return to R&D than other firms. |
| Keywords: | firm behavior; firm performance; production and organizations; firm size; diversification and scope |
| JEL: | D22 D29 L25 O32 |
| Date: | 2014–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0231&r=tid |
| By: | Edquist, Charles (CIRCLE, Lund University) |
| Abstract: | The concept of a holistic innovation policy is defined in this paper, and it is discussed what it is, why it is relevant and how it can be implemented. One of the main conclusions is that the innovation policies in European countries are still linear (and not holistic), in spite of the fact that the linear view has been completely abandoned by innovation researchers – and replaced by a systemic view on innovation processes. Why innovation policy is still linear is also discussed. Further it is noted that a considerable number of EU Member States have created public organizations (Councils) for innovation and/or research policy placed above ministries and usually chaired by the Prime Minister. The role and character of these bodies is discussed. The empirical results are based on a questionnaire sent to 23 EU Member States, out of which 19 (83%) responded. The work with this report was carried out for the European Research and Innovation Area Committee (ERAC) of the European Commission (DG RTD). |
| Keywords: | Innovation; Innovation Policy; Holistic innovation policy; Research policy; The linear view; Systems of innovation |
| JEL: | L38 M38 O25 O31 O32 O33 |
| Date: | 2014–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2014_008&r=tid |
| By: | Karl Aiginger |
| Abstract: | Industrial policy is back on the agenda and the consensus is that it must be different 'this time' from the past. We redefine industrial policy for industrialised countries as a strategy to promote 'high-road competitiveness', understood as the ability of an economy to achieve 'Beyond-GDP' Goals. 'High-road strategies' are based on advanced skills, innovation, supporting institutions, ecological ambition and an activating social policy. This 'new industrial policy' is systemic, working in alignment with other policy strands and supporting social and environmental goals; it affects the structure of the economy as the whole not only the manufacturing sector. Short-term actions, such as protecting employment in unviable companies, low prices for fossil fuels, or reducing wages in high-income economies are counterproductive. To pursue an industrial policy that targets society's ultimate goals without public micromanagement will be challenging. It could be achieved (i) by setting incentives, particularly those impacting on technical progress (e.g. to make it less labour-saving and more energy-saving), (ii) by the use of the important role governments have in the education and research sectors, (iii) by greater public awareness and (iv) if consumer preferences will call for socio-ecological transition. |
| Keywords: | New industrial policy, climate change, competitiveness, innovation strategy |
| JEL: | H50 L16 L50 O20 O32 O38 O40 Q30 Q40 Q50 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfeppr:y:2014:m:6:d:0:i:13&r=tid |
| By: | Radicic D.; Pugh G.; Hollanders H.J.G.M.; Wintjes R.J.M. (UNU-MERIT) |
| Abstract: | This study investigates the impact of innovation support programmes on SME innovation in traditional manufacturing industries in seven EU regions. Recent literature identifying sources of potential government failure in innovation policy suggests that the effects of public support measures to increase private innovation may be disappointing. Our results are consistent with this hypothesis, yet also suggest a direction for policy reform to overcome government failure and, thereby, to increase the potential additionality of innovation support programmes. Innovation support programmes in the EU typically adopt a cream skimming selection strategy namely, programme managers systematically select firms on the basis of observable characteristics conducive to innovation. The econometric analysis of a new survey database reported in this paper suggests that cream skimming leads to firms being selected for programme participation that benefit less than would randomly selected firms. The policy corollary is that, subject to due diligence checking, allocation of innovation support by lottery should give rise to greater programme additionality than does the prevalent cream skimming approach. We conclude with some practical guidelines for allocation by lottery, which were developed for a recently launched innovation support programme for SMEs. Key words innovation; SMEs; traditional manufacturing industry; public innovation support; government failure; evaluation |
| Keywords: | Semiparametric and Nonparametric Methods: General; Multiple or Simultaneous Equation Models: Truncated and Censored Models; Switching Regression Models; Management of Technological Innovation and R&D; Technological Change: Government Policy; |
| JEL: | O32 O38 C14 C34 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014033&r=tid |
| By: | Rexhäuser, Sascha; Löschel, Andreas |
| Abstract: | Many countries, especially in Europe, have ambitious goals to transform their national energy systems towards renewable energies. Technological change in both renewable production and efficient use of energy can help to make these targets come true. Using a panel of German firms linked to the PATSTAT patent data, we study invention in both types of energy technologies and how their inventors differ in terms of central firm-specific characteristics. More importantly, we study the relation between conventional (i.e. non-energy) invention and energy invention within the firms. The results from dynamic count data models point to a stimulating effect of conventional inventions for energy efficiency technologies but have no effect on inventions in renewable energies. -- |
| Keywords: | innovation,invention,renewable energy,energy efficiency,dynamic count data |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14036&r=tid |
| By: | Mattes, Katharina; Müller, Simon; Jäger, Angela; Weidner, Nadezda; Weißfloch, Ute |
| Abstract: | Rising energy prices and political goals which address climate change, such as the reduction of greenhouse gas emissions, increase the importance of using renewable energies and technologies for generating these. Since the manufac-turing industry is one of the major energy consumers in Germany, this paper focuses on the diffusion of renewable energy technologies to generate power in the manufacturing industry. Using data from the German Manufacturing Survey 2012 for 1,594 firms, we analyse the relation between the usage of renewable energy technology and firms' characteristics, also accounting for structural de-terminants. In addition, the reasons for the decision to use these technologies and, in particular, the relevance of the political framework are examined. Our findings show that the producers of end-consumer goods are more likely to use renewable energy technologies compared to other manufacturing firms. The availability of resources plays a substantial role, whereas the energy intensity of the firm is less important for the introduction of renewable energy technologies. When considering the chosen reasons for adoption, firms mentioned most fre-quently that they anticipate rising energy prices. The policy mix, however, is less often mentioned and mostly together with other reasons. -- |
| Keywords: | renewable energy technologies,manufacturing industry,technology adoption,diffusion of innovations,quantitative analysis |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s62014&r=tid |