nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2019‒01‒21
five papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Firm Size and Innovation in the Service Sector By Audretsch, David; Hafenstein, Marian; Kritikos, Alexander S.; Schiersch, Alexander
  2. Technological Spillover Effects of State Renewable Energy Policy: Evidence from Patent Counts By Wancong Fu; Chong Li; Jan Ondrich; David Popp
  3. Technological Diversification of U.S. Cities during the Great Historical Crises By Mathieu Steijn; Pierre-Alexandre Balland; Ron Boschma; David Rigby
  4. Global Value Chains and Vertical Specialization: The case of Portuguese Textil, Leather, and Shoes exports By Tiago Domingues
  5. The Rise and Fall of Family Firms in the Process of Development By Maria Rosaria Carillo; Vincenzo Lombardo; Alberto Zazzaro

  1. By: Audretsch, David (Indiana University); Hafenstein, Marian (DIW Berlin); Kritikos, Alexander S. (DIW Berlin); Schiersch, Alexander (DIW Berlin)
    Abstract: A rich literature links knowledge inputs with innovative outputs. However, most of what is known is restricted to manufacturing. This paper analyzes whether the three aspects involving innovative activity - R&D; innovative output; and productivity - hold for knowledge intensive services. Combining the models of Crepon et al. (1998) and of Ackerberg et al. (2015), allows for causal interpretation of the relationship between innovation output and labor productivity. We find that knowledge intensive services benefit from innovation activities in the sense that these activities causally increase their labor productivity. Moreover, the firm size advantage found for manufacturing in previous studies nearly disappears for knowledge intensive services.
    Keywords: MSMEs, R&D, service sector, innovation, productivity, entrepreneurship
    JEL: L25 L60 L80 O31 O33
    Date: 2018–12
  2. By: Wancong Fu; Chong Li; Jan Ondrich; David Popp
    Abstract: We examine the effect of in-state and out-of-state renewable energy policies on wind energy patenting. Using a semiparametric fixed-effects Tobit model, we regress patent counts on a series of policy variables within a state and a spatially weighted average for each of these policies implemented in other states. We develop a lower bound for the marginal effects and find important differences across policy types. For renewable portfolio standards, overall demand matters. Policies in other states increase innovation, but own-state policies do not. In contrast, for financial incentives such as tax incentives and subsidy policies, own-state policies induce innovation.
    JEL: C40 O31 Q42 Q48 Q55
    Date: 2018–12
  3. By: Mathieu Steijn; Pierre-Alexandre Balland; Ron Boschma; David Rigby
    Abstract: Regional resilience is high on the scientific and policy agenda. An essential feature of resilience is diversifying into new activities. But, little is known about whether major economic crises accelerate or decelerate regional diversification, and whether the impact differs between specialised and diverse regions. This paper offers systematic evidence on the effects of three of the largest crises in U.S. history (the Long Depression 1873-1879, the Great Depression 1929-1934, and the Oil Crisis 1973-1975) on the development of new technological capabilities within U.S. metropolitan areas. We find that crises reduce the pace of diversification in cities and that they narrow the scope of diversification to more closely related activities. We also find that more diverse cities outperform more specialised cities in diversifying during times of crisis but more diverse cities do not have a stronger focus on less related diversification during these unsettled times.
    Keywords: Technological diversification, regional resilience, major historical crises, related diversification, U.S. cities, entry of technologies, patents
    JEL: R11 D83 O33
    Date: 2019–01
  4. By: Tiago Domingues (GEE)
    Abstract: This paper evaluates the growing participation of the Portuguese economy, and especially of the textiles, leather, and shoes industry, in the so-called Global Value Chains (GVCs).We use the 2016 edition of the World Input-Output Database (WIOD) to empirical assess the changes in the geography of imports and exports of the Portuguese textiles, leather and shoes industry as well as quantify the growing vertical specialization in this sector. We also measure value added, import and employment coefficients for the Portuguese economy and the Portuguese textiles, leather, and shoes sector. The results show that Portuguese textiles, leather, and shoes trade have been more concentrated in Spain, Italy, India and China and less concentrated in Germany, France, and the United Kingdom. This sector is more relevant in the Portuguese economy than in any other Eurozone economy in terms of output, employment and value-added, and it has been recovering its relevance in the Portuguese economy since 2009.Textiles, leather, and shoes is the manufacturing industry with the higher potential to generate new jobs in Portugal. Despite the negative contribution of the financial crisis, vertical specialization of Portuguese textiles, leather, and shoes exports have been increasing ever since.
    Keywords: Global value chains; Textile, leather, and shoes; Input-Output models
    JEL: C67 D57 E01 F14 L67
    Date: 2018–12
  5. By: Maria Rosaria Carillo (University of Naples Parthenope); Vincenzo Lombardo (University of Naples Parthenope); Alberto Zazzaro (University of Naples Federico II, CSEF and MoFiR)
    Abstract: This paper explores the causes and the consequences of the evolution of family firms in the growth process. The theory suggests that in early stages of development, valuable family specific human capital stimulated the productivity of family firms and the development process. However, in light of the rise in the importance of managerial talents for firms' productivity in later stages, family firms generated a misallocation of managerial talents, curbing productivity and economic growth. Evidence supports the dual impact of family firms in the development process and the role of socio-cultural characteristics in observed variations in the productivity of family firms.
    Keywords: Family firms, economic development and growth, culture and social structure, allocation of talents, industrialization
    JEL: D2 J62 L26 O14 O33 O4 Z1
    Date: 2019–01

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