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on Technology and Industrial Dynamics |
| By: | Pierre-Philippe Combes (Institut d'Études Politiques [IEP] - Paris, CEPR - Center for Economic Policy Research - CEPR, AMSE - Aix-Marseille School of Economics - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - EHESS - École des hautes études en sciences sociales); Laurent Gobillon (CEPR - Center for Economic Policy Research - CEPR, PSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC), PSE - Paris School of Economics, INED - Institut national d'études démographiques) |
| Abstract: | We propose an integrated framework to discuss the empirical literature on the local determinants of agglomeration effects. We start by presenting the theoretical mechanisms that ground individual and aggregate empirical specifications. We gradually introduce static effects, dynamic effects, and workers' endogenous location choices. We emphasise the impact of local density on productivity but we also consider many other local determinants supported by theory. Empirical issues are then addressed. Most important concerns are about endogeneity at the local and individual levels, the choice of a productivity measure between wage and TFP, and the roles of spatial scale, firms' characteristics, and functional forms. Estimated impacts of local determinants of productivity, employment, and firms' locations choices are surveyed for both developed and developing economies. We finally provide a discussion of attempts to identify and quantify specific agglomeration mechanisms. |
| Keywords: | Agglomeration gains,Density,Sorting,Learning,Location choices |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01071761&r=tid |
| By: | Arne Isaksen; Franz Tödtling; Michaela Trippl |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2016_05&r=tid |
| By: | Özak, Ömer |
| Abstract: | This research explores the effects of the geographical distance to the pre-industrial technological frontier on economic development. It establishes theoretically and empirically that there exists a persistent non-monotonic effect of distance to the frontier on development. In particular, exploiting a novel measure of the travel time to the technological frontier and variations in its location during the pre-industrial era, it establishes a robust persistent U-shaped relation between the distance to the pre-industrial technological frontier and economic development. Moreover, it demonstrates that isolation from the frontier has had a positive cumulative effect on innovation and entrepreneurial activity levels, suggesting isolation may have fostered the emergence of a culture conducive to innovation, knowledge creation, and entrepreneurship. |
| Keywords: | E02, F15, F43, N10, N70, O11, O14, O31, O33, Z10 |
| JEL: | E02 F15 F43 N10 O10 O11 O14 O25 O31 O33 Z10 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74737&r=tid |
| By: | Tedi Skiti (Department of Economics, Duke University) |
| Abstract: | How does strategic investment affect entry of new technologies and market structure? This article investigates the role of competition in firms’ technology adoption decisions in the U.S. wireline broadband industry. I present a model of strategic entry deterrence and study how internet service providers’ interactions affect their technology deployment at local markets. The goal is to capture an important trade-off: cable firms adopt a new cable system to provide higher speeds, but the adoption has a preemptive effect on fiber firms’ entry. I collect and combine unique firm-level data on broadband technology deployment and markets under entry threat for New York State. I provide evidence of strategic investment by cable incumbents to deter fiber entry. Counterfactual scenarios suggest that the industry has experienced 16% excessive investment in cable adoption and 12% underinvestment in fiber entry both of which are explained by these deterrence strategies. In addition, subsidies to cable incumbents in small markets reduce fiber entry rate by 50%. I also find that policies that promote statewide entry mitigate the effects from these deterrence strategies and increase fiber entry rate by 30%. These results have wide implications for technology diffusion, quality provision and optimal subsidy policy in markets with strategic technology adoption and entry threat. |
| Keywords: | Broadband, Strategic Investment, Technology Adoption, Entry Threat, Deterrence |
| JEL: | L13 L41 L96 |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:1615&r=tid |
| By: | Stanislao Gualdi (CentraleSupélec); Antoine Mandel (PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We investigate the interplay between technological change and macroeconomic dynamics in an agent-based model of the formation of production networks. On the one hand, production networks form the structure that determines economic dynamics in the short run. On the other hand, their evolution reflects the long-term impacts of competition and innovation on the economy. We account for process innovation via increasing variety in the input mix and hence increasing connectivity in the network. In turn, product innovation induces a direct growth of the firm's productivity and the potential destruction of links. The interplay between both processes generate complex technological dynamics in which phases of process and product innovation successively dominate. The model reproduces a wealth of stylized facts about industrial dynamics and technological progress, in particular the persistence of heterogeneity among firms and Wright's law for the growth of productivity within a technological paradigm. We illustrate the potential of the model for the analysis of industrial policy via a preliminary set of policy experiments in which we investigate the impact on innovators' success of feed-in tariffs and of priority market access. |
| Keywords: | Production network,Network formation,Scale-free networks,Firms demographics,distribution of firms' size,Zipf law,general equilibrium,monopolistic competition,disequilibrium |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01382483&r=tid |
| By: | de Vries, Gaaitzen (University of Groningen); Chen, Quanrun (University of International Business and Economics); Hasan, Rana (Asian Development Bank); Li, Zhigang (Asian Development Bank) |
| Abstract: | This paper examines the trends in skill and activity upgrading in global value chains (GVCs) and the drivers of upgrading in Asian economies. It uses the newly constructed ADB Multi-Region Input-Output Tables as well as occupation data on jobs by educational attainment and business activities, namely research and development; production; logistics, sales, and marketing; administration and back-office; and headquarter activities. Our results suggest an ongoing specialization process in high-income Asian countries and in developing member countries (DMCs) toward high-skilled knowledge-intensive activities. The pace of upgrading differs across Asian countries, being more rapid and encompassing in the People’s Republic of China in comparison to other DMCs. We use a structural decomposition method to account for the drivers of the trends observed. In particular, technological change in GVCs that is biased toward knowledge-intensive activities is important in accounting for the trends observed. |
| Keywords: | functional upgrading; global multiregional input–output model; global supply chains; structural decomposition analysis; World Input-Output Database |
| JEL: | D57 F16 F63 |
| Date: | 2016–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0496&r=tid |
| By: | Brad Hershbein; Lisa B. Kahn |
| Abstract: | We show that skill requirements in job vacancy postings differentially increased in MSAs that were hit hard by the Great Recession, relative to less hard-hit areas, and that these differences across MSAs persist through the end of 2015. The increases are prevalent within occupations, more pronounced in the non-traded sector, driven by both within-firm upskilling and substitution from older to newer firms, accompanied by increases in capital stock, and are evident in realized employment. We argue that this evidence reflects the restructuring of production toward more-skilled workers and routine-labor saving technologies, and that the Great Recession accelerated this process. |
| JEL: | D22 E32 J23 J24 M51 O33 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22762&r=tid |
| By: | Zysman, John; Kenney, Martin |
| Abstract: | This report argues that computer-intensive automation (CIAutomation) is likely to change the nature of work and manufacturing value creation in the emerging Platform Economy. The industrial and service changes based on low-cost computation, as they become more generalized, may reverse Robert Gordon’s observations about the slowing growth in productivity. However, the increased adoption of CIAutomation also poses profound dilemmas for society that revolve around whether this automation will be used to solely to replace workers or can be integrated into production of goods and services in ways that augment human capacities and intelligence. Finally, we speculate upon the role of the state in in governing and shaping the emergence of the Platform Economy. |
| Keywords: | Platforms, automation, gig economy, governance, public policy |
| JEL: | D78 L86 O33 |
| Date: | 2016–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:61&r=tid |
| By: | Bauer, Fredric (Department of Chemical Engineering, Lund University); Coenen, Lars (CIRCLE, Lund University); Hansen, Teis (Department of Human Geography, Lund University); McCormick, Kes (IIIEE, Lund University); Palgan, Yuliya Voytenko (IIIEE, Lund University) |
| Abstract: | The concept of a bioeconomy can be understood as an economy where the basic building blocks for materials, chemicals and energy are derived from renewable biological resources. Biorefineries are considered an integral part of the development towards a future sustainable bioeconomy. The purpose of this literature review is to synthesize current knowledge about how biorefinery technologies are being developed, deployed, and diffused, and to identify actors, networks and institutions relevant for these processes. A number of key findings can be obtained from the literature. First, investing more resources in R&D will not help to enable biorefineries to cross the ‘valley of death’ towards greater commercial investments. Second, while the importance and need for entrepreneurship and the engagement of small and medium-sized enterprises (SMEs) is generally acknowledged, there is no agreement how to facilitate conditions for entrepreneurs and SMEs to enter into the field of biorefineries. Third, visions for biorefinery technologies and products have focused very much on biofuels and bioenergy with legislation and regulation playing an instrumental role in creating a market for these products. But there is a clear need to incentivize non-energy products to encourage investments in biorefineries. Finally, policy support for biorefinery developments and products are heavily intertwined with wider discussions around legitimacy and social acceptance. |
| Keywords: | bioeconomy; biorefineries; biorefinery technology; technological innovation systems |
| JEL: | L73 O33 Q23 Q55 |
| Date: | 2016–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2016_027&r=tid |
| By: | Dakpo, K Hervé; Desjeux, Yann; Jeanneaux, Philippe; Latruffe, Laure |
| Abstract: | The objective of the article is to assess productivity change in French agriculture during 2002-2014, namely total factor productivity (TFP) change and its components technological change and efficiency change. For this, we use the economically-ideal Färe-Primont index which verifies the multiplicatively completeness property and is also transitive, allowing for multi-temporal/lateral comparisons. To compare the technology gap change between the six types of farming considered, we extend the Färe-Primont to the meta-frontier framework. Results indicated that during 2002-2014, all farms had a TFP progress. Pig/poultry farms had the lowest TFP increase while beef farms had the highest (19.1%). The latter had the strongest increase in efficiency change, while technological progress was the highest for mixed farms. The meta-frontier analysis indicates that field crop farms’ technology is the most productive of all types of farming. |
| Keywords: | total factor productivity, Färe-Primont index, meta-frontier, French farms, Agricultural and Food Policy, Farm Management, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:244793&r=tid |