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on Technology and Industrial Dynamics |
| By: | Margarida Duarte; Diego Restuccia |
| Abstract: | The relative price of services rises with development. A standard interpretation of this fact is that productivity differences across countries are larger in manufacturing than in services. The service sector comprises heterogeneous categories. We document that many disaggregated service categories-such as transportation, communication, and finance-feature a negative income elasticity of relative prices, whereas the relative price of aggregate services is mostly driven by large expenditure categories in housing, collective government, and health that feature a positive income elasticity of relative prices. We also document a substantial reallocation of expenditures in services from categories with positive income elasticities (traditional services) to categories with negative elasticities (non-traditional services) as income rises. Using an otherwise standard multi-sector development accounting framework extended to include an input-output structure, we find that the cross-country income elasticity of sectoral productivity is large in non-traditional services (1.15), smaller in manufacturing (1.05) and much smaller in traditional services (0.67). Eliminating cross-country productivity differences in non-traditional services reduces aggregate income disparity by 58 percent, a 7.9-fold reduction in aggregate productivity differences. We also find that the heterogeneity between traditional and non-traditional services has a substantial impact on aggregate productivity and that the input-output structure is important in this assessment. |
| Keywords: | Productivity, services, input-output structure, non-traditional services. |
| JEL: | O4 O5 O11 O14 E01 E13 |
| Date: | 2019–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-628&r=all |
| By: | Furman, Jeffrey L. (Boston University Questrom School of Business); Nagler, Markus (LMU Munich); Watzinger, Martin (LMU Munich) |
| Abstract: | How important is information disclosure through patents for subsequent innovation? To answer this question, we examine the expansion of the USPTO Patent Library system after 1975. Before the Internet, patent libraries gave inventors access to patent documents. We find that after patent library opening, local patenting increases by 17% relative to control regions. Additional analyses suggest that the disclosure of technical information is the mechanism underlying this effect: inventors start to cite more distant prior art and the effect ceases after the introduction of the Internet. Our analyses thus provide evidence that disclosure plays an important role in cumulative innovation. |
| Keywords: | ; |
| Date: | 2019–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:136&r=all |
| By: | Link, Albert (University of North Carolina at Greensboro, Department of Economics); van Hasselt, Martijn (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | The relevant economics literature on the impact of R&D on patenting activity falls within two methodological areas of inquiry. The first area might be classified as a test of the Schumpeterian hypothesis. The second and lesser research area might be classified as an estimation of the knowledge production function relationship between R&D and patenting. This paper focuses on estimates of the R&D-to-patenting relationship for a random sample of small, entrepreneurial firms whose research projects were supported through the U.S. Small Business Innovation Research (SBIR) program. Our paper contributes to the R&D-to-patenting literature in two ways. It examines empirically a unique set of small, entrepreneurial firms funded by the public sector, and it explores the effect of the gender and ethnicity of firm owners on the propensity of their firms to patent from funded research projects. |
| Keywords: | Patenting; R&D; Entrepreneurship; Gender; Minorities; |
| JEL: | J15 J16 L26 O32 O34 |
| Date: | 2019–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2019_002&r=all |
| By: | Martin, Roman (Gothenburg University); Rypestøl , Jan Ole (University of Agder) |
| Abstract: | This paper deals with the geography of innovation networks and analyses combinatorial knowledge dynamics from a single cluster perspective. Addressing firms in the media cluster in Bergen, Norway, we examine how and from where companies acquire and combine different types of knowledge for their innovation activities. The empirical analysis, which is based on structured interviews with 22 media companies, identifies two main types of cluster firms: media content providers that rely heavily on symbolic knowledge and media technology providers that draw mostly on synthetic knowledge. Even though they draw on different knowledge bases, the two types of firms are strongly interlinked in their innovation activities and source knowledge from each other. Furthermore, we find that synthetic firms constitute a gateway to the regional R&D system and that the region acts as key arena for the combination of dissimilar knowledge bases. |
| Keywords: | innovation networks; knowledge bases; creative industries; new media; Norway |
| JEL: | L82 O14 O30 O31 |
| Date: | 2019–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2019_001&r=all |
| By: | Karim Badr (World Bank); Reham Rizk; Chahir Zaki |
| Abstract: | This paper attempts to shed light on the nexus between firm productivity and economies of agglomeration in Egypt. Using a large dataset of 62,108 firms in 342 four-digit activities in 27 regions governorates, we introduce three measures of agglomeration, which are urbanization or firm diversification, measured by the number of firms in the governorate, localization and specialization, measured by the average productivity in the governorate and sector (generating externalities and knowledge spillovers), and finally competition, measured by the number of firm operating in the same governorate and the same sector. We find strong evidence for the existence of agglomeration economies in Egypt after controlling for firm age, location, economic activity and legal status. In the Egyptian context, productivity spillovers gained from agglomeration economies outweighed the negative effects of congestion implied by our competition measure. The latter is chiefly due to the lack of good infrastructure. When regressions are run by firm size and activity, our main findings show, first, that micro and small firms are more likely to benefit from localization and diversification compared to medium and large firms. Finally, service firms benefit more from a high level of diversification, while manufacturing firms gain more from knowledge spillovers and specialization. Our results support promoting entrepreneurship through the creation of industrial clusters located outside Cairo to lessen disparities between regions and acquire the full advantages of agglomeration. |
| Date: | 2018–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:1239&r=all |
| By: | Lee, Kyungyul; Kwon, Youngsun |
| Abstract: | Competitive intensity is a level of competition intensification in a market or an industry. This is expressed in various forms and some paper measured the competitive intensity as the number of products that newly released each year in an industry (Putsis & Bayus, 2001). In other paper, they analyzed the competitive intensity as a market structure such as market concentration (Stavins, 2001) or the number of firms competing in one industry (Giachetti & Dagnino, 2014). Overall, the competitive intensity represents the complex competition within the market. Then how does competitive intensity affects to the company or to the organizational level? In modern times, corporate product innovation takes place rapidly, and the number of products and companies competing in a market is increasing geometrically. Unlike the past, a market that is monopolized by a single or few companies is hard to find except for public goods. In the smartphone market, 11 companies had competed in 2008, but the number of competing companies had risen dramatically, with more than 45 companies competed in 2016. The number of smartphones also rose sharply, with 50 new phones had launched in 2008, but about 545 new smartphones introduced in 2016. Disadvantage of the increase in the competitive intensity for the firm is that it has a major negative impact on the competitive advantage (D'Aveni, 1994). The decline in the competitive advantage of firms due to the rise of these competitive intensities makes them act newly when they enter or compete in the market... |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb18:190406&r=all |