nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2018‒03‒26
eight papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Does Host Market Regulation Induce Cross Border Environmental Innovation? By Giovanni Marin; Antonello Zanfei
  2. Computerizing Industries and Routinizing Jobs: Explaining Trends in Aggregate Productivity By Aum, Sangmin; Lee, Sang Yoon (Tim); Shin, Yongseok
  3. Global Value Chains and Upgrading: What, When and How? By Gehl Sampath, Padmashree; Vallejo, Bertha
  4. Why do industries coagglomerate? How Marshallian externalities differ by industry and have evolved over time By Dario Diodato; Frank Neffke; Neave O?Clery
  5. What Shapes Local Innovation Policies? Empirical Evidence from Japanese Cities By OKAMURO, Hiroyuki; NISHIMURA, Junichi
  6. Integrating Third Parties in Digitally Mature Companies: Determinants of Innovation Success By Daria Arkhipova; Giovanni Vaia
  7. Entrepreneurship and Sustainability: The Need for Innovative and Institutional Solutions By BEN YOUSSEF, Adel; Boubaker, Sabri; Omri, Anis
  8. Targetting interventions in networks By Galeotti, Andrea; Golub, Benjamin; Goyal, Sanjeev

  1. By: Giovanni Marin (Università di Urbino 'Carlo Bo', Italy); Antonello Zanfei (Università di Urbino 'Carlo Bo', Italy)
    Abstract: This paper evaluates the effect of host-country environmental policy stringency on the offshoring of environmental patents for 2000 top world R&D performers. It is shown that a more stringent environmental regulation triggers both the extensive and intensive margin of patent offshoring in the field of environmental technologies. Results are robust to various different specifications, alternative definitions of regulation restrictions and to the consideration of possible endogeneity of regulation. It is suggested inter alia that R&D subsidies and non-market based instrument are more important than market-based instruments as drivers of cross-border environmental innovation.
    Keywords: MNE, environmental policy, patent data
    Date: 2018–03
  2. By: Aum, Sangmin; Lee, Sang Yoon (Tim); Shin, Yongseok
    Abstract: Aggregate productivity growth in the U.S. has slowed down since the 2000s. We quantify the importance of differential productivity growth across occupations and across industries, and the rise of computers since the 1980s, for the productivity slowdown. Complementarity across occupations and industries in production shrinks the relative size of those with high productivity growth, reducing their contributions toward aggregate productivity growth, resulting in its slowdown. We find that such a force, especially the shrinkage of occupations with above-average productivity growth through ``routinization,'' was present since the 1980s. Through the end of the 1990s, this force was countervailed by the extraordinarily high productivity growth in the computer industry, of which output became an increasingly more important input in all industries (``computerization''). It was only when the computer industry's productivity growth slowed down in the 2000s that the negative effect of routinization on aggregate productivity became apparent. We also show that the decline in the labor income share can be attributed to computerization, which substitutes labor across all industries.
    Date: 2018–02
  3. By: Gehl Sampath, Padmashree (UNU-MERIT, UNCTAD, and University of Aalborg); Vallejo, Bertha (UNU-MERIT, and University of Tilburg)
    Abstract: This paper focuses on explaining how technological capabilities interact with trade and GVCs participation to foster upgrading. We analyse trade performance of 74 developing countries in 2000 and 2010 from a perspective of learning, to understand what variables account for technological diversification over time when countries trade, including through GVCs. We find that technological capabilities not only condition the initial determination of local firms in trade and GVCs, but they also determine the extent to which local firms in developing countries manage to leverage knowledge flows and move into activities of greater technological complexity from a dynamic perspective. Our results point to the critical role of national learning variables in countries' performance over time. While emerging economies have synergistic relationships between variables that explain technological capabilities and their trade and GVC performance, this is not the case for developing countries as whole in our sample.
    Keywords: Trade, global value chains (GVCs), technological capabilities, learning, developing countries, least developed countries (LDCs), structural change, diversification, policy
    JEL: F14 L14 L16 L23 O14 O19 O25 O31 O33 O43
    Date: 2018–03–08
  4. By: Dario Diodato; Frank Neffke; Neave O?Clery
    Abstract: The fact that firms benefit from close proximity to other firms with which they can exchange inputs, skilled labor or know-how helps explain why many industrial clusters are so successful. Studying the evolution of coagglomeration patterns, we show that which type of agglomeration benefits firms has drastically changed over the course of a century and differs markedly across industries. Whereas, at the beginning of the twentieth century, industries tended to colocate with their value chain partners, in more recent decades the importance of this channels has declined and colocation seems to be driven more by similarities industries? skill requirements. By calculating industry-specific Marshallian agglomeration forces, we are able to show that, nowadays, skill- sharing is the most salient motive in location choices of services, whereas value chain linkages still explain much of the colocation patterns in manufacturing. Moreover, the estimated degrees to which labor and input-output linkages are reflected in an industry?s coagglomeration patterns help improve predictions of city-industry employment growth.
    Keywords: Coagglomeration, Marshallian externalities, labor pooling, value chains, manufacturing, services, regional diversification
    JEL: J24 O14 R11
    Date: 2018–03
  5. By: OKAMURO, Hiroyuki; NISHIMURA, Junichi
    Abstract: Increasing attention has been paid to regional innovation systems. However, previous studies have so far only focused on (the regional impact of) national policies or specific regions. To date, no studies have been carried out on the implementation and variety of local research and development (R&D) subsidy programs at the municipality level. Our research fills this gap by using information on R&D subsidy programs from local authorities in Japan collected via websites and our original survey. Our research confirms 151 R&D subsidy programs conducted by 131 cities among all cities in 2015 and investigates the determinants of the implementation and design of local R&D subsidy programs at city level (length and upper limit of subsidies, and flexibility of subsidy conditions) considering both demand- and supply-side factors. The empirical results suggest that, after controlling for city type and population size, supply-side factors including local government conditions significantly affect the implementation of public R&D subsidy programs. In contrast, we find that demand-side factors matter more for the design of subsidy programs than supply-side factors.
    Keywords: local authority, innovation policy, R&D subsidy, policy design, city
    JEL: H71 O38 R58
    Date: 2018–03
  6. By: Daria Arkhipova (Dept. of Management, Università Ca' Foscari Venice); Giovanni Vaia (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: We develop and empirically analyse a theoretical model that examines both the antecedents of digital maturity and the involvement of external third parties in companies undergoing digital transformation. We use structural equation modelling technique to test our propositions using the survey data from IT executives on self-reported importance scores they assign to different types of IT competences. We find that digitally mature companies are more likely to establish partnerships with the third parties with a purpose of jointly carrying out digital innovation projects.
    Keywords: digital transformation, digital maturity, sourcing decisions
    JEL: M40
    Date: 2018–03
  7. By: BEN YOUSSEF, Adel; Boubaker, Sabri; Omri, Anis
    Abstract: The role of innovation and institutional quality for achieving sustainability are important issues tackled by current sustainable development debates, particularly in developing countries. Using a modified environmental Kuznets curve model, the present study improves our understanding of the critical roles of innovation, institutional quality, and entrepreneurship in structural change toward a sustainable future for Africa. Our empirical results show that formal and informal entrepreneurship are conducive to reduced environmental quality and sustainability in 17 African countries however informal entrepreneurship contributes more than formal entrepreneurship to this environmental degradation. The relationship between entrepreneurship and sustainable development turns strongly positive in the presence of high levels of innovation and institutional quality. This study contributes to this emerging research strand by clarifying the conditions that allow African countries to move toward more sustainable economies. Our results highlight the important roles played by innovation and institutions for achieving sustainability in Africa.
    Keywords: Entrepreneurship; Sustainability; Innovation; Institutional quality.
    JEL: M21 O31 Q56
    Date: 2017–12–01
  8. By: Galeotti, Andrea; Golub, Benjamin; Goyal, Sanjeev
    Abstract: Individuals interact strategically with their network neighbors. A planner can shape incentives in pursuit of an aggregate goal, such as maximizing welfare or minimizing volatility. We analyze a variety of targeting problems by identifying how a given profile of incentive changes is amplified or attenuated by the strategic spillovers in the network. The optimal policies are simplest when the budget for intervention is large. If actions are strategic complements, the optimal intervention changes all agents' incentives in the same direction and does so in proportion to their eigenvector centralities. In games of strategic substitutes, the optimal intervention is very different: it moves neighbors' incentives in opposite directions, dividing local communities into positively and negatively targeted agents, with few links across these two categories. To derive these results and characterize optimal interventions more generally, we introduce a method of decomposing any potential intervention into principal components determined by the network. A particular ordering of principal components describes the planner's priorities across a range of network intervention problems.
    Date: 2018–03–15

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