nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2016‒02‒29
ten papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Productivity and Organization in Portuguese Firms By Lorenzo Caliendo; Giordano Mion; Luca David Opromolla; Esteban Rossi-Hansberg
  2. Organisational change and the productivity effects of green technology adoption By Hottenrott, Hanna; Rexhäuser, Sascha; Veugelers, Reinhilde
  3. Does skill-biased technical change diffuse internationally? By Schulte, Patrick
  4. Structuration processes in complex dynamic systems - an overview and reassessment By Gräbner, Claudius; Heinrich, Torsten; Kudic, Muhamed
  5. The Geography of Innovation and Entrepreneurship By Backman, Mikaela; Lööf, Hans
  6. Immigration and Innovation: Chinese Graduate Students in U.S. Universities By Patrick Gaule; Mario Piacentini
  7. Have Global Value Chains Contributed to Global Imbalances? By Haltmaier, Jane
  8. Determinants of trade: the role of innovation in presence of quality standards By Maria Cipollina; Federica Demaria; Filomena Pietrovito
  9. Trade Competition, Technology and Labor Re-allocation By Bahar Baziki, Selva; Ginja, Rita; Borota Milicevic, Teodora
  10. Entrepreneurship and Innovation: New Entries, Survival, Growth By Alessandra Colombelli; Jackie Krafft; Marco Vivarelli

  1. By: Lorenzo Caliendo; Giordano Mion; Luca David Opromolla; Esteban Rossi-Hansberg
    Abstract: The productivity of firms is, at least partly, determined by a firm’s actions and decisions. One of these decisions involves the organization of production in terms of the number of layers of management the firm decides to employ. Using detailed employer-employee matched data and firm production quantity and input data for Portuguese firms, we study the endogenous response of revenue-based and quantity-based productivity to a change in layers: a firm reorganization. We show that as a result of an exogenous demand or productivity shock that makes the firm reorganize and add a management layer, quantity based productivity increases by about 4%, while revenue-based productivity drops by more than 4%. Such a reorganization makes the firm more productive, but also increases the quantity produced to an extent that lowers the price charged by the firm and, as a result, its revenue-based productivity.
    JEL: D22 D24 L23 F16 J24 J31
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:ptu:wpaper:w201604&r=tid
  2. By: Hottenrott, Hanna; Rexhäuser, Sascha; Veugelers, Reinhilde
    Abstract: This study investigates induced productivity effects of firms introducing new environmental technologies. The literature on within-firm organisational change and productivity suggests that firms can achieve higher productivity gains from adopting new technologies if they adapt their organisational structures. Such complementarity effects may be of particular importance for the adoption of greenhouse gas (GHG) abatement technologies. The adoption of these technologies is often induced by public authorities to limit the social costs of climate change, whereas the private returns are much less obvious. This study finds empirical support for complementarity between green technology adoption (either CO2-reducing or resources and energy efficiency-enhancing technologies) and organisational change. While the sole adoption of green technologies is associated with lower productivity, the simultaneous implementation of green technologies and organisational innovations is not.
    Keywords: technical change,environmental innovation,organisational change,productivity
    JEL: D23 O33 O32 Q55 L23 D24
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:zbw:dicedp:206&r=tid
  3. By: Schulte, Patrick
    Abstract: This paper studies the question whether skill-biased technical change diffuses internationally and that way contributes to the increasing relative skill demand in other countries. So far, the role of skill-biased technology diffusion has hardly been studied empirically. Using new sectoral data for a panel of 40 emerging and developed countries, 30 industries (covering manufacturing and service industries) and 13 years (1995-2007), the analysis shows that skill-biased technology diffusion is statistically and economically important in explaining skill-biased technical change. Countries further away from the skill-specific technological frontier subsequently show higher skill-specific productivity growth. For that, the bilateral distance between two countries proves to be an important mediating factor, whereas intersectoral trade linkages, so far, explain only a small part of it. The main results hold for both, developed and emerging countries.
    Keywords: skill-biased technical change,technology diffusion,distance,inputoutput linkages,industry-level data,emerging and developed countries
    JEL: F16 J24 O14 O33 C67
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:15088&r=tid
  4. By: Gräbner, Claudius; Heinrich, Torsten; Kudic, Muhamed
    Abstract: Many questions addressing the emergence and dynamics of economic networks are still unresolved, especially regarding dynamics on and of networks. Previous research shows that processes at the micro-level affect socio-economic systems at aggregated levels. These insights facilitated the development of models taking the network structure explicitly into account. However, what is still missing is a systemic network theory that considers the full complexity of socio-economic systems. We argue that sociological, economic and institutional theories are complementary in many respects and have the potential to fill this gap by providing the theoretical ground for an eclectic network theory. In this paper, we address key concepts that are concerned with structuration processes in socio-economic networks, review and reassess the literature in this field and discuss approaches to explain pattern formation processes at higher aggregation levels. We propose to take advantage of the complementarities of the above outlined yet unconnected research programs.
    Keywords: complex systems; innovation networks; structuration processes; network dynamics; evolutionary economics
    JEL: D85 L14 O31 O33
    Date: 2016–01–25
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:69095&r=tid
  5. By: Backman, Mikaela (Jönköping University, & Centre of Excellence for Science and Innovation Studies (CESIS)); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This introduction to the special issue “The Geography of Innovation and Entrepreneurship” in Annals of Regional Science surveys a collection of nine papers which consider agglomeration economies and spatial heterogeneity of regions and firms through the lenses of innovation and entrepreneurship. They all make use of extensive and detailed data sources that enable models to provide a richer picture of how firms, industries and regions are affected by innovation and entrepreneurship but also how these entities shape and foster renewal. These factors include spatial concentration, industry composition, labour market characteristics, immigration, firm characteristics, R&D activities and R&D collaboration. The papers add to the understanding of the geography of innovation and entrepreneurship by suggesting alternative ways of identifying spillovers, combing and integrating internal and external knowledge sources, and by estimating the impact on innovation, new firm formation and growth.
    Keywords: Innovation; entreprenurship; spillovers; regional economy; spatial heterogeneity
    JEL: C10 O30 R10
    Date: 2015–09–11
    URL: http://d.repec.org/n?u=RePEc:hhs:cesisp:0421&r=tid
  6. By: Patrick Gaule; Mario Piacentini
    Abstract: Immigration is rapidly changing the composition of the R&D workforce in the United States. We study here Chinese chemists and chemical engineers who migrate to the United States for their graduate studies. We analyze productivity at the individual researcher level, thus bypassing the identification issues that earlier studies had to confront when analyzing the relationship between immigration and innovation at the university or firm level. Using new data and measurement techniques, we find robust evidence that Chinese students make disproportionate contributions to the scientific output of their advisors and departments. We attribute this result to a selection effect as it is relatively more difficult for Chinese students to gain admission to U.S. PhD programs. Our results strengthen the case for liberal student migration policies.
    Keywords: high-skilled migration; students; universities; China;
    JEL: F22 I23 O15 O33 J61
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:cer:papers:wp529&r=tid
  7. By: Haltmaier, Jane (Board of Governors of the Federal Reserve System (U.S.))
    Abstract: Global value chains (GVCs) have grown rapidly over the past several decades. Over the same period, the aggregate value of current account imbalances has risen substantially. This paper looks at whether these developments are related. While there is a sizable literature that has documented the rise of global production networks, there have been few attempts to assess the potential effect on global imbalances. The paper uses measures of GVCs developed in the literature in panel regressions to assess the effect on global imbalances over the period 1995-2011. It is argued that these variables should be entered as a product rather than individually and that they should be lagged, not contemporaneous with the change in current account balances. The results suggest that GVC position weighted by participation and trade share is negatively related to a country's current account balance, i.e., moving upstream in the production process is negative for a country's current account. However, the effects on global imbalances over the period studied appear to be small.
    Keywords: Global value chains; current account balances
    JEL: F1 F4
    Date: 2015–12–18
    URL: http://d.repec.org/n?u=RePEc:fip:fedgif:1154&r=tid
  8. By: Maria Cipollina (UNIMOL - University of Molise [Campobasso] - University of Molise); Federica Demaria (MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Institut national de la recherche agronomique (INRA) - Institut de recherche pour le développement [IRD] - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - IAMM); Filomena Pietrovito (UNIMOL - University of Molise [Campobasso] - University of Molise)
    Abstract: This paper analyses the role that quality standards and innovation play on trade volume, by using a gravity model. The role of innovative activity and quality standards in enhancing trade performance is widely accepted in the literature. However, in this paper, we argue that the net effect of quality standards on trade depends on the producers’ ability to innovate and comply with these requirements. In particular, by using a sample of 60 exporting countries and 57 importing countries, for a wide range of 26 manufacturing industries over the period 1995-2000, we show that the most innovative sectors are more likely to enhance the overall quality of exports, and then gain a competitive advantage. We also find that this effect depends on the level of technology intensity at sector-level and on the level of economic development of exporting country.
    Keywords: trade policies,non-tariff measures,innovation,trade flows,gravity model
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01259114&r=tid
  9. By: Bahar Baziki, Selva (Central Bank of the Republic of Turkey); Ginja, Rita (Department of Economics); Borota Milicevic, Teodora (Department of Economics)
    Abstract: This paper studies the changes in labor allocation across firms and industries in response to changes in technology (captured by the adoption of information and communication technologies, ICT) and import competition, due to increased exposure to trade competition from China. We use detailed matched worker-firm data from the Swedish manufacturing sector. We provide new evidence on the mobility of heterogeneous workers across firms and document increased assortative matching of workers in ICT intensive industries. However, the sorting patterns are not uniform across industries within this group. The adoption of ICT along with stronger Chinese import competition results in a significant skill upgrade within high-wage firms. Incontrast, in the absence of strong pressures in import competition, sorting occurs at the low end of the worker-firm distribution, i.e. low-skill workers allocate to low-wage firms. Industries with low ICT intensity do not exhibit any of these sorting patterns. We rationalize our empirical findings through a labor market matching model which is able to explain the increased assortative matching in ICT intensive industries through an increase in the relative demand for qualifiedd workers.
    Keywords: Wage Inequality; Employment Dynamic; Assortative Matching; Import Competition; Technological Change
    JEL: E24 F16 J31 J63 O33
    Date: 2015–12–26
    URL: http://d.repec.org/n?u=RePEc:hhs:uunewp:2016_001&r=tid
  10. By: Alessandra Colombelli (DIGEP, Politecnico di Torino; BRICK, Collegio Carlo Alberto); Jackie Krafft (Université Nice Sophia Antipolis; GREDEG-CNRS); Marco Vivarelli (Università Cattolica del Sacro Cuore, Milano; Institute for the Study of Labor (IZA))
    Abstract: This paper investigates the reasons why entry per se is not necessarily good and the evidence showing that innovative startups survive longer than their non-innovative counterparts. In this framework, our own empirical analysis shows that greater survival is achieved when startups engage successfully in both product innovation and process innovation, with a key role of the latter. Moreover, this study goes beyond a purely microeconomic perspective and discusses the key role of the environment within which innovative entries occur. What shown and discussed in this contribution strongly supports the proposal that the creation and survival of innovative start-ups should become one qualifying point of the economic policy agenda.
    Keywords: innovation, startups, survival, product innovation, process innovation
    JEL: L26 O33
    Date: 2016–02
    URL: http://d.repec.org/n?u=RePEc:gre:wpaper:2016-04&r=tid

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