nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2018‒03‒05
ten papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Technology Polarization By Koki Oikawa; Minoru Kitahara
  2. Public financial support and innovation in Colombian manufacturing firms By Barrios, Fernando; Forero, Clemente; Perry, Guillermo
  3. Controlling working crowds: The impact of digitalization on worker autonomy and monitoring across hierarchical levels By Michael Beckmann; Lutz Bellmann; Elisa Gerten
  4. Threshold Policy Effects and Directed Technical Change in Energy Innovation By Lionel Nesta; Elena Verdolini; Francesco Vona
  5. Inter-Firm Networks and Firm Performance: The Case of Italy By Chiara Burlina
  6. Weaker jobs, weaker innovation. Exploring the temporary employment-product innovation nexus By Armanda Cetrulo; Valeria Cirillo; Dario Guarascio
  7. Changing Business Dynamism and Productivity : Shocks vs. Responsiveness By Ryan Decker; John Haltiwanger; Ron S. Jarmin; Javier Miranda
  8. Inter-firm Technological Proximity and Knowledge Spillovers By Koki Oikawa
  9. Multinational enterprises and global value chains: the OECD analytical AMNE database By Charles Cadestin; Koen De Backer; Isabelle Desnoyers-James; Sébastien Miroudot; Davide Rigo; Ming Ye
  10. Biased Technological Change and Employment Reallocation By Zsófia L. Bárány; Christian Siegel

  1. By: Koki Oikawa; Minoru Kitahara
    Abstract: We construct a new method to describe firm distributions within technology fields and investigate the relationship between those distributions and aggregate innovation. To locate firms on a technology space, we apply multidimensional scaling for the inter-firm technological dissimilarity matrices that are computed from patent citation overlaps among firms using the NBER US patent dataset. Our estimated firm distributions show increasing trends in technological distance and polarization on average, where we follow Duclos, Esteban and Ray (2004) to measure polarization. We construct a model of inter-group competition in which polarization stimulates aggregate R&D. The model fits data before 1990 but the impact of polarization is reversed after that. We attribute the structural change to the major patent reform in the United States in 1980s.
    URL: http://d.repec.org/n?u=RePEc:tcr:wpaper:e113&r=tid
  2. By: Barrios, Fernando; Forero, Clemente; Perry, Guillermo
    Abstract: We evaluate the impact of public financial support, both subsidies and credit, on different types of innovation in Colombian industry. We compare it with the effects of financing innovation with own resources and with private loans, and analyze the issue of crowding-out, for different classes of innovation. To control for potential selection bias, we apply Propensity Score Matching (PSM) techniques to a sample of 9173 manufacturing firms for the period 2011-2012, combining data from two available sources (Development and Technological Innovation Survey –EDIT6- and Annual Manufacturing Survey –EAM-). Results show that public financial support has a significant positive effect on products new for the international market and on process innovations. We further find that allocation of own resources of the firm to innovation activities has a positive effect on a wide variety of forms of innovation. Notwithstanding, its impact is substantially smaller than that of public funding in the cases of products new for the international market and on new processes. Commercial loans for innovation activities have no significant effects on either product or process innovations. Finally, we find that public funding increases the probability of allocating own resources to finance innovation activities, but reduces the probability of using private external sources.
    Keywords: Desarrollo, Economía, Finanzas públicas, Investigación socioeconómica, Sector financiero,
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:dbl:dblwop:1159&r=tid
  3. By: Michael Beckmann; Lutz Bellmann; Elisa Gerten (University of Basel)
    Abstract: This study investigates the impact of information and communication technologies (ICT) on worker autonomy and monitoring using the second wave of the German Linked Personnel Panel, a linked employer-employee data set. From a theoretical point of view, the impact of ICT on workplace organization is ambiguous. On the one hand, the fast diffusion of ICT among employees makes it possible to monitor professional activities, leading to greater centralization. On the other hand, ICT enable employees to work more autonomously, so that workplace organization becomes more decentralized. We find indeed evidence for the argument that both centralization and decentralization tendencies might appear simultaneously. If modern digital technologies are used for work, worker monitoring is increasing for all employees, but only managerial employees gain in autonomy. The use of instrumental variables estimation tightens our results in a manner that ICT increases both worker autonomy and monitoring, but only for managerial employees, where the ICT effect on autonomy exceeds the corresponding ICT effect on monitoring. All in all, our results support the view that digitalization unlike prior technological revolutions primarily affects the employment prospects and working conditions for employees at higher hierarchical levels.
    JEL: L22 M54 O33
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:bsl:wpaper:2018/09&r=tid
  4. By: Lionel Nesta (Université Côte d'Azur, CNRS, Gredeg, & OFCE Sciences Po Paris, France); Elena Verdolini (FEEM & CMCC, Italy); Francesco Vona (OFCE Sciences Po Paris France & Université Côte d'Azur, CNRS, Gredeg,)
    Abstract: This paper analyzes the effect of environmental policies on the direction of energy innovation across countries over the period 1990-2012. Our novelty is to use threshold regression models to allow for discontinuities in policy effectiveness depending on a country's relative competencies in renewable and fossil fuel technologies. We show that the dynamic incentives of environmental policies become effective just above the median level of relative competencies. In this critical second regime, market-based policies are moderately effective in promoting renewable innovation, while commandand-control policies depress fossil based innovation. Finally, market-based policies are more effective to consolidate a green comparative advantage in the last regime. We illustrate how our approach can be used for policy design in laggard countries.
    Keywords: Directed technical change, threshold models, environmental policies, policy mix.
    JEL: Q58 Q55 Q42 Q48 O34
    Date: 2018–01–30
    URL: http://d.repec.org/n?u=RePEc:fce:doctra:1805&r=tid
  5. By: Chiara Burlina
    Abstract: This study investigates a particular type of network, the inter-firm network (IFN), and its impact on performances of Italian firms between 2010-2015. After revising the literature on alliances and networks for what concerns the geographical and industrial dimension, I focus my attention on networks’ performance and innovation propensity. The empirical analysis, based on a sample of about 4,000 firms, is divided in two parts: firstly, applying a “differencein- difference” technique, is tested the impact of being in an IFN; secondly, focusing on year 2013, are measured the different effects of IFN characteristics. Results demonstrate that belonging to an IFN has a positive impact on firms’ growth. Moreover, industry heterogeneity of members and internationalisation scope (rather than innovation) turn out to be the main factors increasing firm’s profitability and economic growth.
    Keywords: Inter-firm network, Alliances, Performance, Difference-in-Difference, Innovation.
    JEL: C3 L25 P25 R12
    Date: 2018–01
    URL: http://d.repec.org/n?u=RePEc:pad:wpaper:0216&r=tid
  6. By: Armanda Cetrulo; Valeria Cirillo; Dario Guarascio
    Abstract: This work explores the relationship between temporary employment and product innovation focusing on five major European economies (France, Germany, Italy, Spain and the Netherlands) observed between 1998 and 2012. Building on the conceptual framework proposed by Kleinknecht et al. (2014), the analysis distinguishes sectors according to their technological characteristics and regimes finding that industries using temporary employment tend to have a weaker product innovation propensity. The negative correlation between temporary employment and innovation is stronger in medium and hightech sectors, identified using both the "Cumulativeness" proxy stemming from Peneder's classification (Peneder, 2010) as well as distinguishing between different Schumpeterian regimes - Schumpeter Mark I vs II - of knowledge accumulation.
    Keywords: product innovation, labor market flexibility, temporary employment
    Date: 2018–02–22
    URL: http://d.repec.org/n?u=RePEc:ssa:lemwps:2018/06&r=tid
  7. By: Ryan Decker; John Haltiwanger; Ron S. Jarmin; Javier Miranda
    Abstract: The pace of job reallocation has declined in all U.S. sectors since 2000. In standard models, aggregate job reallocation depends on (a) the dispersion of idiosyncratic productivity shocks faced by businesses and (b) the marginal responsiveness of businesses to those shocks. Using several novel empirical facts from business microdata, we infer that the pervasive post-2000 decline in reallocation reflects weaker responsiveness in a manner consistent with rising adjustment frictions and not lower dispersion of shocks. The within-industry dispersion of TFP and output per worker has risen, while the marginal responsiveness of employment growth to business-level productivity has weakened. The responsiveness in the post-2000 period for young firms in the high-tech sector is only about half (in manufacturing) to two thirds (economy wide) of the peak in the 1990s. Counterfactuals show that weakening productivity responsiveness since 2000 accounts for a significant drag on a ggregate productivity.
    Keywords: Dynamism ; Entrepreneurship ; Job reallocation ; Labor supply and demand ; Productivity
    JEL: J23 D22 O47 E24 D24 L26 M13
    Date: 2018–02–02
    URL: http://d.repec.org/n?u=RePEc:fip:fedgfe:2018-07&r=tid
  8. By: Koki Oikawa
    Abstract: This paper has two objectives. One is to survey previous studies concerning indicators of technological proximity and distance to identify technological relationships between firms, particularly in terms of spillovers of technology and knowledge. The other objective is to reexamine the spillover effect in research and development by combining the traditional technological proximity with a measurement of within-field technological relationships, which is based on patent citation overlaps. I find that the average technological proximity is increasing over these three decades in the United States and within-field technological proximity shows sizable variations, and that the spillover effect is underestimated unless the changes in within- field proximities are taken into account.Length: 27 pages
    URL: http://d.repec.org/n?u=RePEc:tcr:wpaper:e114&r=tid
  9. By: Charles Cadestin (OECD); Koen De Backer (OECD); Isabelle Desnoyers-James (OECD); Sébastien Miroudot (OECD); Davide Rigo (OECD); Ming Ye (OECD)
    Abstract: In order to better understand the interdependencies between trade and investment in global value chains (GVCs), the OECD has developed a new dataset on the Activities of Multinational Enterprises (AMNE). This dataset starts from official AMNE statistics and combines the information with Inter-Country Input-Output (ICIO) tables to provide new insights on the trade-investment nexus in GVCs. This dataset allows the contribution of domestic firms, multinational enterprises (MNEs) and their foreign affiliates to global trade and production to be assessed. This paper details the methodology that was used to create the data, as well as the main assumptions and challenges in the work.
    Keywords: global input-output, global value chains, linkages, Multinational enterprises, trade in value-added
    JEL: F14 F23 L16 L23
    Date: 2018–02–27
    URL: http://d.repec.org/n?u=RePEc:oec:traaab:211-en&r=tid
  10. By: Zsófia L. Bárány; Christian Siegel
    Abstract: To study the drivers of the employment reallocation across sectors and occupations between 1960 and 2010 in the US we propose a model where technology evolves at the sector-occupation cell level. This framework allows us to quantify the bias of technology across sectors and across occupations. We implement a novel method to extract changes in sector-occupation cell productivities from the data. Using a factor model we find that occupation and sector factors jointly explain 74-87 percent of cell productivity changes, with the occupation component being by far the most important. While in our general equilibrium model both factors imply similar reallocations of labor across sectors and occupations, quantitatively the bias in technological change across occupations is much more important than the bias across sectors.
    Keywords: biased technological change; structural change; employment polarization
    JEL: O41 O33 J24
    Date: 2018–02
    URL: http://d.repec.org/n?u=RePEc:ukc:ukcedp:1801&r=tid

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