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on Technology and Industrial Dynamics |
| By: | Dachs, Bernhard; Hud, Martin; Koehler, Christian; Peters, Bettina |
| Abstract: | The shift of employment from lower to higher productive firms is an important driver for structural change and industry dynamics. We investigate this reallocation in terms of employment gains and losses from innovation. New employment created by product innovation may be offset by employment losses in related products, known as 'cannibalisation' or 'business stealing' effects in the literature, by employment losses from process and organisational innovation and by general productivity increases. The paper investigates this effect empirically with a large dataset from the European Community Innovation Survey (CIS). We find that employment gains and losses increase with technology intensity of the sector. High-technology manufacturing shows the strongest employment gains and losses from innovation, followed by knowledge-intensive services, low-technology manufacturing and less knowledge-intensive services. The net contribution of innovation to employment growth is mostly positive, an exception being manufacturing industries in recession periods. |
| Keywords: | innovation,employment,reallocation,technology intensity,compensation effect,displacement effect,cannibalisation effect |
| JEL: | O33 J23 C26 D2 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16077&r=tid |
| By: | Paula Bustos; Gabriel Garber; Jacopo Ponticelli |
| Abstract: | We study the allocation of capital across regions, sectors and firms. In particular, we assess to what extent growth in agricultural productivity can lead to an increase in the supply of credit in industry and services. For this purpose, we identify an exogenous increase in agricultural profits due to the adoption of genetically engineered soy in Brazil. We find that regions with larger increases in agricultural productivity experienced larger increases in local bank deposits. However, there was no increase in local bank lending. Instead, capital was reallocated towards other regions through bank branch networks. This increase in credit supply affected firms' credit access through the extensive and intensive margin. First, regions with more bank branches receiving funds from soy areas experienced an increase in credit market participation of small and medium sized firms. In addition, banks experiencing faster deposit growth in soy areas increased their lending to firms with whom they had preexisting relationships. In turn, these firms grew faster in terms of employment and wage bill. Our estimates imply that the elasticity of firm growth to credit is largest in the manufacturing sector. These findings suggest that agricultural productivity growth can lead to structural transformation through a financial channel. |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:bcb:wpaper:444&r=tid |
| By: | Müller, Bettina; Murmann, Martin |
| Abstract: | We investigate the extent to which complementarities between technical and business skills of founders and employees matter for the generation of market novelties by new ventures. Using data about German start-ups, we find that there are no complementarities between technical and business skills within the group of founders, but that there are significant complementarities between technically trained founders and employees who have business skills. This suggests that the innovation potential of start-ups by technically trained founders is best explored by hiring employees who are trained in business. However, a reverse relationship does not exist: There are no complementarities between founders with business skills and employees with technical skills. |
| Keywords: | Entrepreneurship,Innovation,Human Capital,Skills,Complementarity |
| JEL: | J24 L23 L26 M13 M51 Q31 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16074&r=tid |
| By: | Yongseok Shin (Washington University in St. Louis); Tim Lee (University of Mannheim) |
| Abstract: | We build a multi-sector occupation-choice model where routinization leads to job and wage polarization across occupations, and to a structural change across industrial sectors. Our model also incorporates inequality between managers and workers, which we call vertical polarization (to differentiate from polarization among workers in horizontally differentiated occupations). Individuals are heterogeneous in managerial talent and worker human capital, and choose from four occupations: a manager or a high/middle/low-skill task worker. Their choices determine sector-level/aggregate TFPs. Consistent with the data, an increase in the productivity of the middle-skill/routine task leads to job and wage polarization across workers. A novelty is that routinization leads to vertical polarization---increases in the employment share and wages of managers relative to workers. The model predicts that the speed of polarization is faster in sectors that use the routine task more intensively. An empirical contribution is the documentation of new facts that support these predictions. The differential impact of routinization across sectors leads to structural change by shifting capital and labor toward sectors that are less dependent on the routine task. In the limiting balanced growth path, the routine task/occupation vanishes, but all sectors coexist and grow at the same rate. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed016:1464&r=tid |
| By: | Oleg Sidorkin |
| Abstract: | I study the impact of management quality on innovation input and output of manufacturing firms in ten emerging countries using data from the Management, Organization and Innovation (MOI) Survey. I find effects of management quality on the decisions of firms to invest in R&D hold for both EU and non-EU emerging countries. An improvement in management quality from the 25th percentile to the median is associated with a 4.5 percentage point increase in the propensity to invest in R&D and a 5.7 percent increase in R&D spending per employee. Furthermore, there are positive but weak effects of management quality on product innovation. The empirical results for individual management practices show that the quality of monitoring management is intimately connected with innovation input and output. The quality of incentive management is related to higher input into innovation, but not to innovation output. The overall effects of operations and targeting management quality do not prove to be significant. All results hold after controlling for differences in management quality by industries. Additional analysis of management quality asymmetry shows that the results are driven mainly by firms with low quality management. |
| Keywords: | management quality; R&D; innovation; emerging countries; |
| JEL: | L2 M2 O3 P2 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp555&r=tid |
| By: | Lorenz Kueng; Nicholas Li; Mu-Jeung Yang |
| Abstract: | How do firms in high-income countries adjust to emerging market competition? We estimate how a representative panel of Canadian firms adjusts innovation activities, business strategies, and exit in response to large increases in Chinese imports between 1999 and 2005. On average, process innovation declines more strongly than product innovation. In addition, initially more differentiated firms that survive the increase in competition have better performance ex-post, but are ex-ante more likely to exit. Differentiation therefore does not ensure insulation against competitive shocks but instead increases risk. |
| JEL: | F14 L2 O3 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22840&r=tid |
| By: | Dominik Boddin |
| Abstract: | In light of increased vertical specialization and the dominance of trade in intermediates rather than final goods, this paper seeks to raise awareness of the limitations of traditional trade measures on a gross output basis. To do so, this paper uses the WIOD, a world input output table, as an alternative trade measure to analyze the role of six newly industrialized economies in global value chains. The differences between measures on a gross output basis and value added basis are striking. Export shares measured by both methods differed by more than 20 percent for some industries. These findings highlight the need for more sophisticated world input output data to form a better understanding of global trade dynamics and country interdependencies. |
| Keywords: | Newly industrializing economies;International trade;Industrialization;Economic data and statistics;Data analysis;Global Value Chains, Vertical Specialization, Newly Industrialized Economies |
| Date: | 2016–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:16/207&r=tid |
| By: | Vahagn Jerbeshian |
| Abstract: | I model knowledge (patent) licensing and evaluate intellectual property regulation in an endogenous growth framework where the engine of growth is in-house R&D performed by high-tech firms. I show that high-tech firms innovate more and economic growth is higher when there is knowledge licensing, and when intellectual property regulation facilitates excludability of knowledge, than when knowledge is not excludable and there are knowledge spillovers among high-tech firms. However, the number of high-tech firms is lower, and welfare is not necessarily higher, when there is knowledge licensing than when there are knowledge spillovers. |
| Keywords: | knowledge licensing; in-house R&D; intellectual property regulation; endogenous growth; welfare; |
| JEL: | O31 O34 L16 L50 O41 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp566&r=tid |