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on Technology and Industrial Dynamics |
| By: | Douglas Hanley; Daron Acemoglu; Ufuk Akcigit; William Kerr |
| Abstract: | We develop a microeconomic model of endogenous growth where clean and dirty technologies compete in production and innovation-in the sense that research can be directed to either clean or dirty technologies. If dirty technologies are more advanced to start with, the potential transition to clean technology can be difficult both because clean research must climb several steps to catch up with dirty technology and because this gap discourages research effort directed towards clean technologies. Carbon taxes and research subsidies may nonetheless encourage production and innovation in clean technologies, though the transition will typically be slow. We characterize certain general properties of the transition path from dirty to clean technology. We then estimate the model using a combination of regression analysis on the relationship between R&D and patents, and simulated method of moments using microdata on employment, production, R&D, firm growth, entry and exit from the US energy sector. The model`s quantitative implications match a range of moments not targeted in the estimation quite well. We then characterize the optimal policy path implied by the model and our estimates. Optimal policy heavily relies on research subsidies as well as carbon taxes. We use the model to evaluate the welfare consequences of a range of alternative policy structures. For example, just relying on carbon taxes or delaying intervention both have significant welfare costs--though their implications for medium run temperature increases are quite different. |
| Keywords: | carbon cycle, directed technological change, environment, innovation, optimal policy |
| JEL: | O30 O31 O33 C65 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:pit:wpaper:534&r=tid |
| By: | Nikolas J. Zolas |
| Abstract: | This paper analyzes how firms decide where to patent in a heterogeneous firm model of trade with endogenous rival entry. In the model, innovating firms compete with rival firms on price, where rivals force the innovating firm to reduce markups and lower the innovating firm's probability of obtaining monopolistic profits. Patenting allows the innovating firm to reduce the number of rival rms by increasing their fixed overhead costs, thereby providing higher expected profits and increased markups from reduced competition. Countries with higher states of technology, more competition and better patent protection have a greater proportion of entrants who patent. Industries tend to follow a U-shaped pattern of patenting where industries with high heterogeneity in production and low substitution, along with industries with low heterogeneity in production and high substitution patent more frequently. Using a generalized framework of the model, I estimate market-based measures of country-level patent protection, which when compared with other IP indices, suggests that not enough international patenting is taking place. Finally, I test the predictions of the model using a newly available technology-to-industry concordance on bilateral patent flows and show that firms are increasingly sensitive to foreign IP protection. Countries that choose to maximize their IP protection can increase the number of foreign patents by almost 10%. |
| Keywords: | Patents, international trade, heterogeneous rms, endogenous markups, intellectual property, imperfect competition |
| JEL: | F12 F29 O34 L11 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:14-28&r=tid |
| By: | Juan A. Máñez (Universitat de València and ERI-CES, Departamento de Economía Aplicada II, Avda. dels Tarongers s/n, 46022 Valencia, Spain); María E. Rochina-Barrachina (Universitat de València and ERI-CES, Departamento de Economía Aplicada II, Avda. dels Tarongers s/n, 46022 Valencia, Spain); Amparo Sanchis-Llopis (Universitat de València and ERI-CES, Departamento de Economía Aplicada II, Avda. dels Tarongers s/n, 46022 Valencia, Spain); Juan A. Sanchis-Llopis (Universitat de València and ERI-CES, Departamento de Economía Aplicada II, Avda. dels Tarongers s/n, 46022 Valencia, Spain) |
| Abstract: | This paper analyses the sources of persistence in conducting R&D activities by SMEs. The data used is a panel of Spanish manufacturing firms drawn from the Survey of Business Strategies (ESEE), for the period 1990-2011. We estimate discrete time proportional hazard models accounting for firm observed and unobserved heterogeneity. Our results are consistent with a process of learning associated with the accumulation of R&D capital and with a self-sustained effect of engagement in R&D activities. In addition, we obtain that persistence in R&D in SMEs is also related to the success-breeds-success, sunk costs and demand-pull hypotheses. Finally, our findings also uncover some interesting differences in the underlying drivers of R&D persistence of SMEs as compared to their larger counterparts. |
| Keywords: | SMEs, R&D activities, persistence, learning, success-breeds-success, sunk costs, demand-pull, discrete time survival models |
| JEL: | C41 L60 O31 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1410&r=tid |
| By: | Joachim Wagner (Leuphana University Lueneburg, Germany) |
| Abstract: | This paper uses comparable firm level data from France, Italy and Spain to test a hypothesis derived by Bustos (AER 2011) in a model that explains the decision of heterogeneous firms to export and to engage in R&D. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of firms with exports and R&D dominates that of exporters without R&D, which in turn dominates that of firms that neither export nor engage in R&D. These results are in line with findings for Argentina reported by Bustos, and with findings for Germany and Denmark. The model, therefore, seems to be useful to guide empirical work on the relation between exports, R&D and productivity. |
| Keywords: | Exports, R&D, productivity, EFIGE data, France, Italy, Spain |
| JEL: | F14 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:310&r=tid |
| By: | Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Pier-Paolo Saviotti (GAEL - Grenoble Applied Economic laboratory - Aucune) |
| Abstract: | In this paper, we present a methodology to represent and measure knowledge which takes into account knowledge heterogeneity and its sectoral level theoretical and empirical implications in knowledge intensive environments. We draw on work on recombinant knowledge, extending the approach to include the way the dynamics of technological knowledge creation evolves according to a life cycle; testing the existence of concepts such as technological paradigms; mapping the characteristics of the search process in the phases of exploration and exploitation during this technology life cycle and detecting the differences in sectoral evolution that can be explained by the properties of the knowledge base. We use European Patent Office data (1981-2005) to propose some operational metrics for the knowledge base and its evolution in two knowledge intensive sectors: biotechnology and telecommunications. Our empirical results show that there are interesting and meaningful differences across sectors, which are linked to the different phases of the technology life cycles. |
| Keywords: | Knowledge base, knowledge intensive sectors, variety, coherence, cognitive distance, technological classes, patents |
| Date: | 2014–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01070557&r=tid |
| By: | Marcelo Santos (Departamento de Gestão e Economia and CEFAGE-UBI); Tiago Neves Sequeira (Departamento de Gestão e Economia and CEFAGE-UBI); Alexandra Ferreira Lopes |
| Abstract: | We relate technological adoption (of different technologies) with income inequality. We discovered that some technologies such as aviation, cell phones, electric production, internet, telephone, and TV are skill-complementary in raising inequality. We constructed standardized indexes of skill-complementary technological adoption for modern Information and Communication Technologies (ICT), older ICT, production and transport technologies. We found strong evidence that older ICT and transport technologies (and less frequently modern ICT) tend to increase inequality. Additionally, we discovered that results are much stronger in rich countries than in poor ones. Our results are quite robust to a series of changes in specifications, estimators, samples, and measurement of technology adoption. These results may bring insights to the design of incentive-schemes for technology adoption. |
| Keywords: | Income inequality; Technological adoption. |
| JEL: | I32 O10 O33 O50 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2014_10&r=tid |
| By: | Ron Boschma |
| Abstract: | Klepper’s theory of industry clustering based on organizational reproduction and inheritance through spinoffs challenged the Marshallian view on industry clustering. The paper provides an assessment of Klepper’s theoretical and empirical work on industry clustering. We explore how ‘new’ his spinoff theory on industry clustering was, and we investigate the impact of Klepper’s theory on the economic geography community. Klepper’s work has inspired especially very recent literature on regional branching that argues that new industries grow out of and recombine capabilities from local related industries. Finally, the paper discusses what questions on industry location are still left open or in need of more evidence in the context of Klepper’s theory. |
| Keywords: | Klepper, spinoff dynamics, agglomeration economies, Marshall, industry clustering, evolutionary economic geography |
| JEL: | B15 B52 O18 R11 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1418&r=tid |
| By: | Zhen Zhu (IMT Lucca Institute for Advanced Studies); Michelangelo Puliga (IMT Lucca Institute for Advanced Studies); Federica Cerina (Department of Physics, University of Cagliari); Alessandro Chessa (IMT Lucca Institute for Advanced Studies); Massimo Riccaboni (IMT Lucca Institute for Advanced Studies) |
| Abstract: | The fragmentation of production across countries has become an important feature of the globalization in recent decades and is often conceptualized by the term, global value chains (GVCs). When empirically investigating the GVCs, previous studies are mainly interested in knowing how global the GVCs are rather than how the GVCs look like. From a complex networks perspective, we use the World Input-Output Database (WIOD) to study the global production system. We find that the industry-level GVCs are indeed not chain-like but are better characterized by the tree topology. Hence, we compute the global value trees (GVTs) for all the industries available in the WIOD. Moreover, we compute an industry importance measure based on the GVTs and compare it with other network centrality measures. Finally, we discuss some future applications of the GVTs. |
| Keywords: | Complex Networks; Tree; Input-Output; Value-Added; Globalization |
| JEL: | C67 F10 F15 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ial:wpaper:11/2014&r=tid |