nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2016‒07‒09
ten papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Inter-industry labor flows By Neffke, Frank; Otto, Anne; Weyh, Antje
  2. Social Rate of Return to R&D on Various Energy Technologies: Where Should We Invest More? A Study of G7 Countries By Roula Inglesi-Lotz
  3. Directed Technical Change and Energy Intensity Dynamics: Structural Change vs. Energy Efficiency By Christian Haas; Karol Kempa
  4. Working Paper 06-16 - Young Firms and Industry Dynamics in Belgium By Michel Dumont; Chantal Kegels
  5. Incorporating innovation subsidies in the CDM framework: Empirical evidence from Belgium By Czarnitzki, Dirk; Delanote, Julie
  6. Estimating Cross-Industry Cross-Country Interaction Models Using Benchmark Industry Characteristics By Antonio Ciccone; Elias Papaioannou
  7. Agglomeration and Technological Spillovers: Firm-Level Evidence from China's Electric Apparatus Industry By He, Ming; Chen, Yang; Schramm, Ronald M.
  8. Migration, Labor Tasks and Production Structure in Europe. By Stefania Borelli; Giuseppe De Arcangelis
  9. Entrepreneurial Experimentation: A key function in Entrepreneurial Systems of Innovation By Lindholm-Dahlstrand, Asa; Andersson, Martin; Carlsson, Bo
  10. Technological capabilities, technological dynamism and innovation offshoring By Schubert, Torben; Baier, Elisabeth; Rammer, Christian

  1. By: Neffke, Frank; Otto, Anne (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Weyh, Antje (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Labor flows across industries reallocate resources and diffuse knowledge among economic activities. However, surprisingly little is known about the structure of such inter-industry flows. How freely do workers switch jobs among industries? Between which pairs of industries do we observe such switches? Do different types of workers have different transition matrices? Do these matrices change over time? Using German social security data, we generate stylized facts about inter-industry labor mobility and explore its consequences. We find that workers switch industries along tight paths that link industries in a sparse network. This labor-flow network is relatively stable over time, similar for workers in different occupations and wage categories and independent of whether workers move locally or over larger distances. When using these networks to construct inter-industry relatedness measures they prove better predictors of local industry growth rates than co-location or input-based alternatives. However, because industries that exchange much labor typically do not have correlated growth paths, the sparseness of the labor-flow network does not necessarily prevent a smooth reallocation of workers from shrinking to growing industries. To facilitate future research, the inter-industry relatedness matrices we develop are made available as an online appendix to this paper." (Author's abstract, IAB-Doku) ((en))
    Keywords: labour turnover, Arbeitskräftemobilität, zwischenbetriebliche Mobilität, sektorale Verteilung, Wirtschaftssektoren, Wirtschaftszweige, Wirtschaftsstrukturwandel
    JEL: J24 J62 R12 L14 O33
    Date: 2016–06–22
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:201621&r=tid
  2. By: Roula Inglesi-Lotz (Department of Economics, University of Pretoria)
    Abstract: The severity of investment in Research and Development (R&D) in the energy sector is undisputable especially considering the benefits of new technologies to sustainability, security and environmental protection. However, the nature and potential of various energy technologies that are capable to improve the energy and environmental conditions globally is a challenging task for governments and policy makers that have to make decisions on the allocation of funds in R&D. To do so, the optimal resource allocation to R&D should be determined by estimating the social rate of return for R&D investments. This paper aims to estimate the social rate of return of R&D on various energy applications and technologies such as energy efficiency, fossil fuels, renewable energy sources, and nuclear for the G7 countries. The results show that primarily R&D investment on Energy Efficiency technologies and Nuclear are the ones that yield high social benefits for all G7 countries while exactly the opposite holds for Fossil fuels.
    Keywords: R&D, Energy, Energy fuels, return
    Date: 2016–06
    URL: http://d.repec.org/n?u=RePEc:pre:wpaper:201651&r=tid
  3. By: Christian Haas (University of Giessen); Karol Kempa (Frankfurt School of Finance and Management)
    Abstract: This paper uses a theoretical model with Directed Technical Change to analyse the observed heterogeneous energy intensity developments. Based on the empirical evidence on the underlying drivers of energy intensity developments, we decompose changes in aggregate energy intensity into structural changes in the economy (Sector Effect) and within-sector energy efficiency improvements (Efficiency Effect). We analyse how energy price growth and the relative productivity of both sectors affect the direction of research and hence the relative importance of the aforementioned two effects. The relative importance of these effects is determined by energy price growth and relative sector productivity that drive the direction of research. In economies that are relatively more advanced in sectors with low energy intensities, the Sector Effect dominates energy intensity dynamics given no or moderate energy price growth. In contrast, the Efficiency Effect dominates energy intensity developments in economies with a high relative technological level within their energy-intensive industries if moderate energy price growth is above a certain threshold. We further show that temporal energy price shocks might induce a permanent redirection of innovation activities towards sectors with low-energy intensities.
    Keywords: directed technical change, energy efficiency, energy intensity, structural change
    JEL: O33 Q43 Q55
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:mar:magkse:201610&r=tid
  4. By: Michel Dumont; Chantal Kegels
    Abstract: Recent studies reveal the importance of entrants and young firms for job creation, productivity and economic growth. Some scholars argue that the falling rate at which new firms are established, can explain, to a certain extent, the productivity slowdown witnessed in most OECD countries. Belgium appears to stand out unfavourably from other countries in its very low start-up rate. This paper reviews the empirical cross-country evidence, provides some additional analysis of the role of young firms in industry-level employment and productivity dynamics in Belgium and concludes with a discussion of the implications for economic policy.
    JEL: D22 D24 E23 E24 H32 L25 L26 L53
    Date: 2016–06–24
    URL: http://d.repec.org/n?u=RePEc:fpb:wpaper:1606&r=tid
  5. By: Czarnitzki, Dirk; Delanote, Julie
    Abstract: This paper integrates innovation input and output effects of R&D subsidies into a modified Crépon-Duguet-Mairesse (CDM) model. Our results largely confirm insights of the input additionality literature, i.e. public subsidies complement private R&D investment. In addition, results point to positive output effects of both purely privately funded and subsidy-induced R&D. Furthermore, we do not find evidence of a premium or discount of subsidy-induced R&D in terms of its marginal contribution on new product sales when compared to purely privately financed R&D.
    Keywords: CDM model,R&D,subsidies,innovation policy
    JEL: C14 C30 O38
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:16045&r=tid
  6. By: Antonio Ciccone; Elias Papaioannou
    Abstract: Empirical cross-industry cross-country models are applied widely in economics, for example to investigate the determinants of economic growth or international trade. Estimation generally relies on US proxies for unobservable technological industry characteristics, for example industries' dependence on external finance or relationship-specific inputs. We examine the properties of the estimator and find that estimates can be biased towards zero (attenuated) or away from zero (amplified), depending on how technological similarity with the US covaries with other country characteristics. We also develop an alternative estimator that yields a lower bound on the true effect in cross-industry cross-country models of comparative advantage.
    JEL: F10 G30 O40
    Date: 2016–06
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:22368&r=tid
  7. By: He, Ming (Division of Economics, Xi'an Jiaotong-Liverpool University); Chen, Yang (Division of Economics, Xi'an Jiaotong-Liverpool University); Schramm, Ronald M. (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: We use a spatial autoregressive model to study the determinants of firm-level productivity growth using longitudinal data on China's electric apparatus industry over the period of 1999-2007. Factors considered include technological spillover, R&D and export behavior, agglomeration economies, and public expenditure. We propose modifications to Kelejian and Prucha's (1998) FE-2SLS procedure and Mutl and Pfaffermayr's (2011) RE-FG2SLS procedure to cope with the technical difficulties with our unbalanced panel. Statistical evidence strongly favors the fixed effects model over the random effects model. According to our estimates, there are large and signiffcant technological spillovers among firms. Individually, firms benefit from their own R&D and export activities. Market competition and public expenditure in the local and neighboring jurisdictions are found to be important determinants to productivity. Our model also provides direct evidence that the technological spillover effects attenuate rapidly in spatial distance. Finally, the inter-regional spillover effects are found to be more pronounced and more significant on urban districts or jurisdictions with smaller geographical areas. Geographic proximity to neighbors and special administrative role jointly contribute to this observation.
    Date: 2016–03–03
    URL: http://d.repec.org/n?u=RePEc:xjt:rieiwp:2016-02&r=tid
  8. By: Stefania Borelli (Dipartimento di Scienze Sociali ed Economiche, Sapienza-Università di Roma); Giuseppe De Arcangelis (Dipartimento di Scienze Sociali ed Economiche, Sapienza-Università di Roma)
    Abstract: This paper assesses the effect of the immigration on the production structure in a selection of European countries in 2001-2009 with a task-based approach. The infl ow of immigrants represents an increase in the relative supply of manual-physical (or simple) tasks, hence favoring simple-task intensive sectors. We use a new OECD dataset, PIAAC, to calculate the index of simple-task intensity at the country-industry level. The analysis con rms that the increase in migration stocks caused a positive impact on the value added of sectors that use more intensively simple tasks. These effects are more intense when considering countries as Italy and Spain characterized by a recent, rapid and intense in flow of migrants. Endogeneity issues are discussed and instruments based on a gravity approach are used in estimation.
    Keywords: Rybczynski Effect, International Migration, PIAAC, Gravity Equation.
    JEL: F22 C25
    Date: 2016–05
    URL: http://d.repec.org/n?u=RePEc:saq:wpaper:4/16&r=tid
  9. By: Lindholm-Dahlstrand, Asa (CIRCLE, Lund University); Andersson, Martin (CIRCLE, Lund University); Carlsson, Bo (CIRCLE, Lund University)
    Abstract: There is a need for a conceptual approach that, with reference to explicit micro-level mechanisms and processes of industrial dynamics, articulates the role and function of entrepreneurial experimentation in innovation systems. This paper develops the concept of ‘entrepreneurial systems of innovation’ to address this gap in the literature. We argue that entrepreneurial experimentation comprises both ‘technical’ and ‘market’ experimentation, and that entrepreneurship must be conceptualized in terms of its function in innovation systems rather than as an outcome. At the systems level, the central function of entrepreneurial experimentation is to foster creation, selection and scaling-up of innovations. Spinoffs and acquisitions are proposed as examples of micro-mechanisms that give rise to system-wide entrepreneurial experimentation. Interaction between established organizations and new innovative entrants, through spinoffs and acquisitions, is an important characteristic of vibrant entrepreneurial systems of innovation.
    Keywords: entrepreneurship; experimentation; innovation systems; new technology-based firms; entrepreneurial systems of innovation; scaling up; growth
    JEL: L22 L26 O31 O33
    Date: 2016–06–22
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2016_020&r=tid
  10. By: Schubert, Torben; Baier, Elisabeth; Rammer, Christian
    Abstract: In this paper we analyze the conditions under which firms decide to offshore innovation. We consider the role of internal technological capabilities and technological dynamism in the firm environment, distinguishing speed and uncertainty of technological change. Using unique data from the German Innovation Survey we find that while high speed of technological change tends to drive innovation offshoring, high uncertainty about future technology developments results in more innovation offshoring only for firms with low internal technological capabilities. Firms with high technological capabilities instead are less likely to offshore innovation when uncertainty is high. We argue that these differences in offshoring behaviour reflect differing strategic objectives. We show that for firms with low technological capabilities asset augmentation is more important while for firms with high technological capabilities asset exploitation is more important. When faced by high technological uncertainty firms with low technological capabilities offshore innovation strategically in order to reduce uncertainty by augmenting their asset base. For firms with high technological capabilities asset augmentation is less important. When faced by high technological uncertainty they prefer to innovate onshore in order to keep stronger control of their key assets.
    JEL: O32 F21 F23 L22
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:16044&r=tid

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