nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2015‒01‒09
five papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Growth, Trade, and Inequality By Grossman, Gene; Helpman, Elhanan
  2. Techniques Choice, Misallocation and Total Factor Productivity By Uras, R.B.; Wang, P.
  3. Another brick in the wall? Technology leaders, patents, and the threat of market entry By Heger, Diana; Zaby, Alexandra K.
  4. Knowledge Spillovers, ICT and Productivity Growth By Corrado, Carol; Haskel, Jonathan; Jona-Lasinio, Cecilia
  5. The Role of Industry Classification in the Estimation of Research and Development Expenditures By Christian Awuku-Budu; Carol A. Robbins

  1. By: Grossman, Gene; Helpman, Elhanan
    Abstract: We introduce firm and worker heterogeneity into a model of innovation-driven endogenous growth. Individuals who differ in ability sort into either a research sector or a manufacturing sector that produces differentiated goods. Each research project generates a new variety of the differentiated product and a random technology for producing it. Technologies differ in complexity and productivity, and technological sophistication is complementary to worker ability. We study the co-determination of growth and income inequality in both the closed and open economy, as well as the spillover effects of policy and conditions in one country to outcomes in others.
    Keywords: endogenous growth; income distribution; income inequality; innovation; trade and growth
    JEL: D33 F12 F16 O41
    Date: 2014–11
  2. By: Uras, R.B. (Tilburg University, Center For Economic Research); Wang, P.
    Abstract: We develop a generalized production framework with endogenous “production techniques” that serve to organize raw factor inputs in an efficient manner. We establish a positive relationship between production flexibility and cost efficiency. By allowing firms to differ in technology scales,capital constraints and technique limitations, we illustrate an amplification of the detrimental effects of technique limitations by production flexibility. We apply the structure to studying, both theoretically and quantitatively, the consequences of capital and technique misallocation across firms for theTFP and the interplay of their TFP effects with production flexibility. Using firm-level data from U.S. manufacturing industries, we find that, due to the ampli…fication effect of production flexibility, technique misallocation generates more TFP losses than capital misallocation. Our quantitative results suggest that the relative importance of technique misallocation on TFP is substantial for a broad range of manufacturing industries –with larger TFP gains from removing technique misallocation in industries using more flexible production technologies.
    Keywords: Capital and Technique Misallocation; Production Flexibility; Aggregate Productivity
    JEL: D24 E23 O11 O33
    Date: 2014
  3. By: Heger, Diana; Zaby, Alexandra K.
    Abstract: Technology leaders protecting a technological headstart with a patent are provided with a powerful legal measure to restrict market entry. We analyze the impact of knowledge spillover on the decision to patent and the effect of varying patent breadth on the threat of market entry. An empirical test of our theoretical results suggests that (i) a large technological lead is protected by a patent only in industries with high knowledge spillover, and that (ii) patent breadth can mitigate the market entry threat.
    Keywords: patenting decision,disclosure requirement,patent breadth,market entry threat,IPC codes
    JEL: L13 O33 O34
    Date: 2014
  4. By: Corrado, Carol; Haskel, Jonathan; Jona-Lasinio, Cecilia
    Abstract: This paper looks at the channels through which intangible assets affect productivity. The econometric analysis exploits a new dataset on intangible investment (INTAN-Invest) in conjunction with EUKLEMS productivity estimates for 10 EU member states from 1998 to 2007. We find that (a) the marginal impact of ICT capital is higher when it is complemented with intangible capital, and (b) non-R&D intangible capital has a higher estimated output elasticity than its conventionally-calculated factor share. These findings suggest investments in knowledge-based capital, i.e., intangible capital, produce productivity growth spillovers via mechanisms beyond those previously established for R&D.
    Keywords: economic growth; ICT; intangible assets; intangible capital; productivity growth; spillovers
    JEL: E01 E22 O47
    Date: 2014–07
  5. By: Christian Awuku-Budu; Carol A. Robbins
    Abstract: This paper uses data from the National Science Foundation’s surveys on business research and development (R&D) expenditures that have been linked with data from the Census Bureau’s Longitudinal Business Database to produce consistent NAICS-based R&D time-series data based on the main product produced by the firm for 1976 to 2008.The results show that R&D spending has shifted away from domestic manufacturing industries in recent years. This is due in part to a shift in U.S. payrolls away from manufacturing establishments for R&D-performing firms.These findings support the notion of an increasingly fragmented production system for R&D-intensive manufacturing firms, whereby U.S. firms control output and provide intellectual property inputs in the form of R&D, but production takes place outside of the firms' U.S. establishments.
    Keywords: Business R&D, industry classification, factoryless goods producers, U.S. manufacturing firms, establishments
    Date: 2014–11

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