nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2016‒06‒18
eight papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Green Skills By Davide Consoli; Giovanni Marin; David Poop; Francesco Vona
  2. The impact of green innovation on energy intensity: an empirical analysis for 14 industrial sectors in OECD countries By Jules-Daniel Wurlod; Joëlle Noailly
  3. Productivity effects of eco-innovations using data on eco-patents By Giovanni Marin; Francesca Lotti
  4. Exploration, exploitation and innovation performance: Disentangling environmental dynamism By Pilar Bernal; Juan P. Maicas; Pilar Vargas
  5. Dynamic R&D Choice and the Impact of the Firm's Financial Strength By Peters, Bettina; Roberts, Mark J.; Vuong, Van Anh
  6. Corporate R&D intensity decomposition: Theoretical, empirical and policy issues By Pietro Moncada-Paternò-Castello
  7. Trade and Innovation: Matched Worker-Firm-Level Evidence By Tuhkuri, Joonas
  8. Productivity spillovers through labor flows: The effect of productivity gap, foreign-owned firms, and skill-relatedness By Zsolt Csafordi; Laszlo Lorincz; Balazs Lengyel; Karoly Miklos Kiss

  1. By: Davide Consoli (INGENIO (CSIC-UPV) (Institute of Innovation and Knowledge Management) (CSIV-UPV)); Giovanni Marin (Scuola Superiore Sant'Anna [Pisa]); David Poop (Syracuse University); Francesco Vona (OFCE)
    Abstract: The catchword ‘green skills’ has been common parlance in policy circles for a while, yet there is little systematic empirical research to guide public intervention for meeting the demand for skills that will be needed to operate and develop green technology. The present paper proposes a data-driven methodology to identify green skills and to gauge the ways in which the demand for these competences responds to environmental regulation. Accordingly, we find that green skills are high-level analytical and technical now-how related to the design, production, management and monitoring of technology. The empirical analysis reveals that environmental regulation triggers technological and organizational changes that increase the demand for hard technical, engineering and scientific skills. Our analysis suggests also that this is not just a compositional change in skill demand due to job losses in sectors highly exposed to trade and regulation.
    Keywords: Green technology; Green skill; Environmental Regulation and Green Skills
    JEL: J24 Q52
    Date: 2015–04
  2. By: Jules-Daniel Wurlod; Joëlle Noailly
    Abstract: This paper analyses the impact of green innovation on energy intensity in a set of 14 industrial sectors in 17 OECD countries over the 1975-2005 period. We create a stock of green patents for each industrial sector and estimates a translog cost function to measure the impact of green innovation on energy intensity, next to other factors such as input substitution and autonomous technical change. We find that green innovation has contributed to the decline in energy intensity in the majority of sectors: the median elasticity of energy intensity with respect to green patenting is estimated at -0.03 in our sample. Hence, a 1% increase in green patenting activities in a given sector is associated with a 0.03% decline in energy intensity. The magnitude of the effect is larger in energy-intensive sectors and in more recent years. We also find that the impact of an additional green patent on energy intensity is larger than an average non-green patent. Our results are robust to alternative definitions of patents.
    Keywords: Energy intensity, Green innovation; Patents; Technology; Cost function.
    JEL: Q41 O33
    Date: 2016–06–03
  3. By: Giovanni Marin (IRCrES-CNR); Francesca Lotti (Bank of Italy)
    Abstract: We investigate the productivity effects of eco-innovations at the firm level using a modified version of the CDM model (Crepon et al., 1998). The distinctive nature of environmental innovations, especially as regards the need for government intervention to create market opportunities, is likely to affect the way they are pursued and their effect on productivity. The analysis is based on an unbalanced panel sample of Italian manufacturing firms merged with data on patent applications and balance sheet information. When looking at innovation’s return on productivity , we observe that eco-innovations exhibit a generally lower return relative to other innovations, at least in the short run. This differential effect is more pronounced for polluting firms, which are likely to face higher compliance costs for environmental regulations than other firms. This result holds for both the extensive (probability of patenting) and intensive (patent count) margin.
    Keywords: R&D, innovation, productivity, patents, eco-patents.
    JEL: L60 Q55
    Date: 2016–06
  4. By: Pilar Bernal (University of Zaragoza); Juan P. Maicas (University of Zaragoza); Pilar Vargas (University of La Rioja)
    Abstract: Environmental dynamism has recently attracted the attention of scholars studying the relationships between exploration and exploitation strategies and innovation performance. Surprisingly, although extant research has already acknowledged its multidimensional character, it has only been analyzed in an aggregate fashion. In this paper, we distinguish two components of environmental dynamism, the pace of market evolution and the pace of technology evolution, and we elaborate on their different impacts in the context of exploration and exploitation strategies. More precisely, we argue that while a rapid pace of technology evolution has opposite impacts on the relationships between exploration (positive), exploitation (negative) and innovation performance, a rapid pace of market evolution positively affects both exploration and exploitation. Our findings provide substantial support for our prediction using a large panel of Spanish innovating firms for the period 2008-2012.
    Keywords: Exploration; Exploitation; Environment; Technology, Market
    JEL: O31 O32 O33
    Date: 2016–03
  5. By: Peters, Bettina (Centre for European Economic Research (ZEW)); Roberts, Mark J. (Pennsylvania State University and NBER); Vuong, Van Anh (University of Cologne and Institute of Energy Economics)
    Abstract: This article investigates how a firm's financial strength affects its dynamic decision to invest in R&D. We estimate a dynamic model of R&D choice using data for German firms in high-tech manufacturing industries. The model incorporates a measure of the firm's financial strength, derived from its credit rating, which is shown to lead to substantial differences in estimates of the costs and expected long-run benefits from R&D investment. Financially strong firms have a higher probability of generating innovations from their R&D investment, and the innovations have a larger impact on productivity and profits. Averaging across all firms, the long run benefit of investing in R&D equals 6.6 percent of firm value. It ranges from 11.6 percent for firms in a strong financial position to 2.3 percent for firms in a weaker financial position.
    Keywords: R&D choice; financial strength; innovation; productivity; dynamic structural model
    JEL: G30 O31 O32
    Date: 2016–06–02
  6. By: Pietro Moncada-Paternò-Castello (European Commission – JRC - IPTS)
    Abstract: Research and development (R&D) indicators are increasingly used not only to facilitate international comparisons, but also as targets for policies stimulating research. An example of such an indicator is R&D intensity. The decomposition method of R&D intensity was conceived with the aim of evaluating aggregate R&D intensity and explaining the differences in R&D intensity between countries. For policy purposes, it is particularly important to determine whether the differences are intrinsic (e.g. due to firms’ underinvestment in R&D) or structural (e.g. due to differences in the sectors that make up an economy). Despite its importance for analytical purposes, the theoretical and methodological framework enabling decomposition of corporate R&D intensity has been elaborated only recently, and it is still not commonly used in the literature. Moreover, examination of the R&D intensity of firms in different industries and at different layers of aggregation leads to mixed results, the reasons for which are not fully understood. This paper aims to review the theoretical and methodological frameworks of corporate R&D intensity decomposition and how it is applied in the literature in order to determine the policy implications of empirical results that at first sight may seem to be contradictory. More specifically, this paper surveys the literature to determine (i) the theoretical framework of determinants of corporate R&D intensity, (ii) the methodologies that have been put in place to decompose corporate R&D intensity and the empirical results reached and (iii) the likely reasons for the contrasting results. Finally, the paper points out the possible policy implications and suggests some potential avenues for future research in this area.
    Keywords: corporate R&D intensity gap; decomposition; literature survey; R&D policy.
    JEL: O30 O32 O38 O57 F23 R39
    Date: 2016–04
  7. By: Tuhkuri, Joonas
    Abstract: This paper examines the relationship between globalization and innovation. To do so, it draws from data that match the full population of workers and private-sector firms in Finland tracking them from 1995 to 2009. To correct for endogeneity the paper considers variation in trade exposure from China during its entry to the world market using a fixed effects model. While the literature on trade and innovation has emphasized the role of firms in driving onshore innovation, the main conclusion of this research is that globalization increases the share of innovators within firms.
    Keywords: Trade, Innovation, China, Employment
    JEL: F14 F16 J24 L60 L24
    Date: 2016–06–03
  8. By: Zsolt Csafordi (Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences); Laszlo Lorincz (Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences); Balazs Lengyel (Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences and International Business School, Budapest); Karoly Miklos Kiss (Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences and University of Pannonia, Faculty of Business and Economics)
    Abstract: What puts productivity spillovers into effect through worker mobility across firms? Productivity difference between the sending and receiving firms have been found to drive these spillovers; while an alternative explanation suggests that labor flows from foreign-owned companies provide productivity gains for the firm. We argue here that skill-relatedness across firms also matters because industry-specific skills are important for organizational learning and production. Hungarian employee-employer linked panel data from 2003-2011 imply that productivity gap rules out the effect of foreign spillovers. Furthermore, we find that flows from skill-related industries outperform the effect of flows from unrelated industries.
    Keywords: skill-relatedness network, firm productivity, knowledge spillover, labor mobility, productivity gap, foreign ownership
    JEL: D22 J24 J60 M51
    Date: 2016–05

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