nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2015‒10‒10
six papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. The Intellectual Property Right and Firm Survival in Different Growth Stages By S0-Jin Lim
  2. Input Capabilities and Product Adoption By Swati Dhingra; John Morrow; Johannes Boehm
  3. The impact of the financial crisis on investments in innovative firms By Giebel, Marek; Kraft, Kornelius
  4. The Promise and Potential of Linked Employer-Employee Data for Entrepreneurship Research By Christopher Goetz; Henry Hyatt; Erika McEntarfer; Kristin Sandusky
  5. Understanding the productivity slowdown. The importance of entry and exit of workers By Thomas von Brasch; Ådne Cappelen; Diana-Cristina Iancu
  6. Trade, Technologies, and the Evolution of Corporate Governance By Schymik, Jan Simon

  1. By: S0-Jin Lim (Korea Institute of Intellectual Property)
    Abstract: As the ratio of intangible assets in firm’s market value is increasing, the business strategy on knowledge assets including intellectual property rights is becoming the key factor determining firm’s performance and survival. This study empirically examines the impacts of IPR on the firm survival using 619,314 firm-year observations of South Korean manufacturing firms in 2000-2012, based on the assumption that those effects depend on the types, quantity, attributes of IPR and the growth stage and industries of a firm. We find that one unit increase of patent stock, design and trademark in firms could reduce the hazard ratio by 0.9%, 10.3% and 13.6% respectively. As to the attributes of patents, one unit increase of the numbers of claims, IPC classification and the ratio of joint applied patent could reduce the hazard ratio by 0.4%, 2.1%, and 5.3% respectively. And, in regard to the discriminative effects of those variables according to the growth stage of a business, the positive effect of the quantity of patent stock is decreasing and that of patent’s quality is increasing as a firm grows.
    Keywords: Intellectual Property Right, Firm Survival, Cox proportional hazard model, growth stage
  2. By: Swati Dhingra (London School of Economics); John Morrow (London School of Economics); Johannes Boehm (Sciences Po)
    Abstract: Multi-product firms dominate production and exporting, and product turnover contributes substantially to aggregate growth. This paper examines the sources of core competencies in product adoption for Indian manufacturing establishments. We show that firms are twice as likely to add products in their Top 5 upstream and downstream sectors. Similarity to a sector's input (but not output) structure predicts product adoption, controlling for average adoption rates of all products of the firm's sector. These results show that vertical linkages drive product adoption and that within sectors, firms' product capabilities depend on economies of scope rather than product market complementarities. Unlike single product firms, multi-product firms can internalize product adoption to focus on products that have upstream or downstream linkages to existing products.
    Date: 2015
  3. By: Giebel, Marek; Kraft, Kornelius
    Abstract: This paper investigates the impact of the financial crisis on investment decisions in innovative versus non-innovative firms. Firms are defined as being innovative if they have introduced a new product to the market. The empirical test is based on data for the years before and after the recent financial crisis. Probit estimations show that innovative firms are more likely to suffer from the financial crisis and to reduce their investment expenditures in general. To some extent these reductions are due to problems in the acquisition of external capital. Using difference-in-differences methods, it turns out that innovative firms realize the same reduction in growth rates in turnover, but a stronger reduction in investment growth than non-innovative firms.
    Keywords: financial crisis,innovation,investment,credit constraints,difference-in-differences
    JEL: G01 G30 O16 O30
    Date: 2015
  4. By: Christopher Goetz; Henry Hyatt; Erika McEntarfer; Kristin Sandusky
    Abstract: In this paper, we highlight the potential for linked employer-employee data to be used in entrepreneurship research, describing new data on business start-ups, their founders and early employees, and providing examples of how they can be used in entrepreneurship research. Linked employer-employee data provides a unique perspective on new business creation by combining information on the business, workforce, and individual. By combining data on both workers and firms, linked data can investigate many questions that owner-level or firm-level data cannot easily answer alone - such as composition of the workforce at start-ups and their role in explaining business dynamics, the flow of workers across new and established firms, and the employment paths of the business owners themselves.
    Date: 2015–09
  5. By: Thomas von Brasch; Ådne Cappelen; Diana-Cristina Iancu (Statistics Norway)
    Abstract: Many OECD countries have experienced a slowdown in measured labour productivity from 2005 and onwards. Norway is no exception in this respect. Most countries use a simple aggregate of hours worked when measuring labour productivity. One way to improve measurement of labour services is to control for worker characteristics. A theoretical rationale for doing so is given by Diewert and Lippe (2010). We generalise previous analyses by allowing for exit and entry of workers when measuring labour services using Norwegian microdata. We find that the bias from using hours worked compared to a labour index capturing various compositional effects can be substantial and systematic over time. In the case of Norway the bias explains about a quarter of the productivity slowdown after 2005.
    Keywords: Labour productivity; Index numbers; Unit value indices; Drobisch index
    JEL: C43 E24 J24 O47
    Date: 2015–09
  6. By: Schymik, Jan Simon
    Abstract: Do international trade and technological change influence how firms create incentives for human capital? I present a model that incorporates agency problems into a framework with firm heterogeneity and human capital. My model indicates that trade liberalizations and skill-biased technological change alter the way how the largest firms in an economy incentivize their managers. Increases in managerial reservation wages lead to a reduction in corporate governance investments and a rise in performance compensation since monitoring managers becomes less efficient. Using data on CEO compensation and entrenchment opportunities in public industrial firms in the U.S., I document strong empirical regularities in support of the model predictions. Firms allow for more managerial entrenchment and offer larger CEO compensation when their industries become more open to trade or when production becomes more I.T. intensive.
    Keywords: International Trade and Firm Organization; Agency Problems in International Trade; Endogenous Managerial Entrenchment; Corporate Governance and CEO Compensation
    JEL: F1 F16 G34 J33 L22 O33
    Date: 2015–09

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