nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2016‒01‒29
five papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Innovator Mobility in Finland and Denmark By Bagger, Jesper; Maliranta, Mika; Määttänen, Niku; Pajarinen, Mika
  2. Technological drivers of R&D location By Mafini Dosso; Antonio Vezzani
  3. Leading R&D Investors for the Dynamics of Innovation Ecosystems By Mafini Dosso; Fernando Hervas; Antonio Vezzani
  4. The Impact of Information and Communication Technology Adoption on Multinational Firm Boundary Decisions By Wenjie Chen; Fariha Kamal
  5. A Simple Measure of Economic Complexity By Sabiou Inoua

  1. By: Bagger, Jesper; Maliranta, Mika; Määttänen, Niku; Pajarinen, Mika
    Abstract: Abstract Workers have different abilities in research, development and innovation (R&D&I) activities. Firms have different “prospects for innovation”. Innovation is facilitated by matching innovators, i.e. workers that are specialized in R&D&I to firms with good prospects for innovation. Aggregate productivity growth requires that firms with the best prospects for innovation are quickly matched to innovators. The mobility of innovators is also important for positive knowledge spillovers to materialize. We use Finnish and Danish linked employer-employee data to study labour mobility, focusing on innovators. For Finland, Denmark is an interesting benchmark country because its labour market is generally considered very flexible. We find that overall labour mobility is significantly lower in Finland than in Denmark. However, relative to other occupation groups, innovators are actually more mobile in Finland than in Denmark. In Finland, innovators tend to cluster in firms that are among the most productive in their industry.
    Keywords: Research and development, innovation, occupational choice, labour mobility, innovator mobility, resource allocation
    JEL: J24 J62
    Date: 2016–01–13
    URL: http://d.repec.org/n?u=RePEc:rif:report:48&r=tid
  2. By: Mafini Dosso (European Commission – JRC - IPTS); Antonio Vezzani (European Commission – JRC - IPTS)
    Abstract: We discuss the link between corporate R&D internationalization strategies and the countries' technological specialisation. Technological proximity and a country specialisation in emerging technologies are key technological determinants for the location of foreign R&D investments of MNCs. These results imply that countries' technological profiles shape the type of R&D activities they are able to attract. Important policy implications reside in the fact that emerging technologies often derive from the use of existing technologies for new purposes and that radical innovations steam from the (re)combination of mature and emerging technologies from different domains are presented. Accordingly, countries willing to attract R&D-based investments should facilitate the cross-fertilization of existing and new fields and industries.
    Keywords: International Knowledge seeking, Multinational Corporations (MNCs), Patents, Emerging Technologies, Technological Proximity
    Date: 2015–11
    URL: http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc98311&r=tid
  3. By: Mafini Dosso (European Commission – JRC - IPTS); Fernando Hervas (European Commission – JRC - IPTS); Antonio Vezzani (European Commission – JRC - IPTS)
    Abstract: This Policy brief discusses the key role of large R&D investors in the dynamics of innovation ecosystems. In a context of accelerated technological change and increasing global competition, firms should develop complex innovative solutions requiring the interaction of multiple-players. Therefore, knowledge integration becomes a key strategic dimension to keep the edge in the global competition and ecosystems of innovation are privileged ‘places’ where it can be organised in a way that ensures the creation of a higher collective value. Evidence shows that leading R&D investors can play a pivotal role in the establishment and development of such ecosystems, by bringing the necessary assets (resources, knowledge, capabilities and leadership) to activate their dynamics (along the three dimensions of interdependence, integration and initiative). This brief identifies a number of policy interventions to support the functioning of such innovation ecosystems and calls to tailor the interventions in accordance to the stage of development of the given ecosystem.
    Keywords: ecosystem of innovation, corporate R&D, knowledge integration
    Date: 2015–08
    URL: http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc97270&r=tid
  4. By: Wenjie Chen; Fariha Kamal
    Abstract: This paper evaluates the effect of adopting internet-enabled information and communication technology (ICT) adoption on the decision to reorganize production across national borders (foreign boundary decision) by multinational enterprises (MNE). Using a transaction cost framework, we argue that ICT adoption influences foreign boundary decisions by lowering coordination costs both internally and externally for the firm. We propose that the heterogeneity in the technology’s characteristics, namely complexity and the production processes’ degree of codifiability, moderate this influence. Using a difference-in-differences methodology and exploiting the richness of confidential U.S. Census Bureau microdata, we find that overall ICT adoption is positively associated with greater likelihood of in-house production, as measured by increases in intra-firm trade shares. Furthermore, we find that more complex forms of ICT are associated with larger increases in intra-firm trade shares. Finally, our results indicate that MNEs in industries in which production specifications are more easily codified in an electronic format are less likely to engage in intra-firm relative to arms-length trade following ICT adoption.
    Date: 2016–01
    URL: http://d.repec.org/n?u=RePEc:cen:wpaper:16-01&r=tid
  5. By: Sabiou Inoua
    Abstract: We show from a simple model that a country's technological development can be measured by the logarithm of the number of products it makes. We show that much of the income gaps among countries are due to differences in technology, as measured by this simple metric. Finally, we show that the so-called Economic Complexity Index (ECI), a recently proposed measure of collective knowhow, is in fact an estimate of this simple metric (with correlation above 0.9).
    Date: 2016–01
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1601.05012&r=tid

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