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on Technology and Industrial Dynamics |
| By: | Paula Bustos; Juan Manuel Castro Vincenzi; Joan Monras; Jacopo Ponticelli |
| Abstract: | The introduction of new technologies in agriculture can foster structural transformation by freeing workers who find occupation in other sectors. The traditional view is that this reallocation of workers towards manufacturing can lead to industrial development. However, when workers moving to manufacturing are mostly unskilled, this process reinforces a country's comparative advantage in unskilled-labor intensive industries. To the extent that these industries undertake less innovative activities, this change in industrial specialization can lead to lower long run growth. We highlight this mechanism in an endogenous growth model and provide empirical evidence using a large and exogenous increase in agricultural productivity due to the legalization of genetically engineered soy in Brazil. Our results indicate that improvements in agricultural productivity, while positive in the short-run, can generate specialization in less-innovative industries and have negative effects on manufacturing productivity in the long-run. |
| JEL: | F1 F16 F43 O1 O13 O4 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25871&r=all |
| By: | Andrew Foerster; Andreas Hornstein; Pierre-Daniel Sarte; Mark W. Watson |
| Abstract: | We find disparate trend variation in TFP and labor growth across major U.S. production sectors over the post-WWII period. When aggregated, these sector-specific trends imply secular declines in the growth rate of aggregate labor and TFP. We embed this sectoral trend variation into a dynamic multi-sector framework in which materials and capital used in each sector are produced by other sectors. The presence of capital induces important network effects from production linkages that amplify the consequences of changing sectoral trends on GDP growth. Thus, in some sectors, changes in TFP and labor growth lead to changes in GDP growth that may be as large as three times these sectors' share in the economy. We find that trend GDP growth has declined by more than 2 percentage points since 1950, and that this decline has been primarily shaped by sector-specific rather than aggregate factors. Sustained contractions in growth specific to Construction, Nondurable Goods, and Professional and Business and Services make up close to sixty percent of the estimated trend decrease in GDP growth. In addition, the slow process of capital accumulation means that structural changes have endogenously persistent effects. We estimate that trend GDP growth will continue to decline for the next 10 years absent persistent increases in TFP and labor growth. |
| JEL: | E23 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25867&r=all |
| By: | Langinier, Corinne; Ray Chaudhuri, A. (Tilburg University, Center For Economic Research) |
| Abstract: | We develop a theoretical framework to investigate the impact of patent policies and emission taxes on green innovation that reduces the emission output ratio, and on the emission level. In the absence of green consumers, the introduction of patents results in a paradox whereby increasing emission tax beyond a certain threshold leads to a discrete increase in the emission level, which may be avoided by reducing the patenting cost. In the presence of green consumers, this paradox is restricted to an intermediate range of tax rates, and at sufficiently high tax rates, reducing the patenting cost may increase the emission level. Also, higher emission taxes increase green investment only if the fraction of green consumers is sufficiently small, and the magnitude of this effect decreases as this fraction increases.Moreover, a stricter patentability requirement is only effective at reducing emissions if the fraction of green consumers is sufficiently small. |
| Keywords: | patent; clean technologies; environmentally friendly consumers |
| JEL: | O34 L13 Q50 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:03e766c3-0046-4ddf-b9aa-44fb81ed9458&r=all |
| By: | F. Fusillo; F. Quatraro; S. Usai |
| Abstract: | The literature on the determinants of green technologies (GTs) has already identified regulation as a key driver of environmental innovations. However, relatively little is known on how the regulatory framework affect the knowledge generation process. This paper contributes this literature by investigating the impact of collaboration networks and environmental regulation, and of their interaction, on the generation of green technologies. The empirical analysis is carried out on a newly constructed dataset of European firms over the period 2005-2012 and it is articulated in two steps. Firstly, we test the existence of a relationship between the environmental regulation, as measured by the OECD Environmental Policy Stringency index, and GTs, proxied by patent applications. We then employ a dynamic network analysis model to explore the dual role of GTs both as determinant of the collaboration network and as outcome of firm collaboration strategies. We find that, even though there exists a strong and positive relationship, the regulatory framework has not a direct effect on GTs but rather it stimulates firms to search for new qualified collaboration. Then, it is the nature and the structure of these collaborations that encourages firms to generate new green technological knowledge. |
| Keywords: | proximity;innovation networks;Green technologies;firms' strategies;environmental regulation;Dynamic Network Analysis |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201907&r=all |
| By: | Dechezlepretre, Antoine; Sato, Misato |
| Abstract: | This article reviews the empirical literature on the impacts of environmental regulations on firms’ competitiveness, as measured by trade, industry location, employment, productivity and innovation. The evidence shows that environmental regulations can lead to statistically significant adverse effects on trade, employment, plant location and productivity in the short run, in particular in a well-identified subset of pollution- and energy-intensive sectors, but that these impacts are small relative to general trends in production. At the same time, there is evidence that environmental regulations induce innovation in clean technologies, but the resulting benefits do not appear to be large enough to outweigh the costs of regulations for the regulated entities. As measures to address competitiveness impacts are increasingly incorporated into the design of environmental regulations, future research will be needed to assess the validity and effectiveness of such measures, and to ensure they are compatible with the environmental objectives of the policies. |
| JEL: | J1 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:77700&r=all |
| By: | Giovanni Dosi; Mariacristina Piva; Maria Enrica Virgillito; Marco Vivarelli |
| Abstract: | This paper addresses, both theoretically and empirically, the sectoral patterns of job creation and job destruction in order to distinguish the alternative effects of embodied vs disembodied technological change operating into a vertically connected economy. Disembodied technological change turns out to positively affect employment dynamics in the üupstreamùù sectors, while expansionary investment does so in the üdownstreamùù industries. Conversely, the replacement of obsolete capital vintages tends to exert a negative impact on labour demand, although this effect turns out to be statistically less robust. |
| Keywords: | Innovation; disembodied and capital-embodied technological change; employment; job- creation; job-destruction; sectoral interdependencies. |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2019/14&r=all |
| By: | Brunello, Giorgio (University of Padova); Wruuck, Patricia (European Investment Bank) |
| Abstract: | Labour markets are currently in a phase of cyclical recovery and undergoing structural transformation due to globalisation, demographic trends, advancing digital technologies and automation and changes in labour market institutions. Against this background, businesses increasingly report that the limited availability of skills poses an impediment to corporate investment. Genuine skill constraints can negatively affect labour productivity and hamper the ability to innovate and adopt technological developments. For individual Europeans, not having "the right skills" limits employability prospects and access to quality jobs. For Europe at large, persistent skill gaps and mismatches come at economic and social costs. This paper reviews the recent economic literature on skill mismatch and skill shortages with a focus on Europe a focus on Europe. |
| Keywords: | skill, shortages, mismatch, Europe |
| JEL: | J24 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12346&r=all |
| By: | Bernardo S. Buarque; Ronald B. Davies; Dieter F. Kogler; Ryan M. Hynes |
| Abstract: | This paper investigates the creation and integration of Artificial Intelligence (AI) patents in Europe. We create a panel of AI patents over time, mapping them into regions at the NUTS2 level. We then proceed by examining how AI is integrated into the knowledge space of each region. In particular, we find that those regions where AI is most embedded into the innovation landscape are also those where the number of AI patents is largest. This suggests that to increase AI innovation it may be necessary to integrate it with industrial development, a feature central to many recent AI-promoting policies. |
| Keywords: | Artificial Intelligence; Geography of Innovation; Knowledge Space; Technological Change; Regional Studies |
| JEL: | O33 O31 R11 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:wpaper:201911&r=all |
| By: | Zhaoyingzi Dong; Yingcheng Li; Pierre-Alexandre Balland; Siqi Zheng |
| Abstract: | Economies producing more complex products tend to be wealthier and grow more quickly. Therefore, a key issue for cities around the world is to develop new specializations into more complex industries. In China, local governments tend to use industrial land subsidy as a policy tool to attract new firms in desired industries and promote industrial growth. However, relatively little is known about the impact of this policy tool on the economic complexity of Chinese cities. Drawing upon the recent literature on the principle of relatedness and economic complexity, this paper investigates the impact of this industrial land policy (ILP) on the diversification of Chinese cities into more complex industries. The empirical results support our hypothesis that those cities providing higher intensity of land subsidy are more likely to enter new industries, in particular the most complex ones. |
| Keywords: | : Economic Complexity, Industry Complexity, Industrial Land Policy, Industrial Diversification |
| JEL: | O25 O38 R11 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1916&r=all |
| By: | Luc Jacolin; Massil Keneck; Alphonse Noah |
| Abstract: | This paper investigates the impact of mobile financial services - MFS (mobile money, and mobile credit and savings) on the informal sector. Using both parametric and non-parametric methods on panel data from 101 emerging and developing countries over the period 2000-15, we find that MFS negatively affect the size of the informal sector. According to estimates derived from propensity score matching, MFS adoption decreases the informal sector size in a range of 2.4 – 4.3 percentage points of GDP. These formalization effects may stem from different possible transmission channels: improvement in credit access, increase in the productivity/profitability of informal firms attenuating subsistence constraints typical of entrepreneurship in the informal sector, as well as possible induced growth of firms already in the formal sector. The robustness of these results is supported by the use of an alternative estimation approach (instrumental variables). These findings lay the groundwork for the scarce literature on the macroeconomic impact of mobile financial services, a major dimension of the growing drive towards economic digitalization transiting through industry-level MW. |
| Keywords: | Mobile financial services, Mobile money, Financial innovation, Digitalization, Informal sector, Developing countries. |
| JEL: | C26 E26 O33 G29 L96 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:721&r=all |
| By: | Grillitsch, Markus (CIRCLE, Lund University); Nilsson, Magnus (CIRCLE, Lund University) |
| Abstract: | Regional development is a dynamic process where relatively stable periods are interrupted by phases of more rapid transformation and disruption. Such dynamics are heavily influenced by the scope and nature of knowledge networks. Trust is a key mechanism influencing the mobilization of networks for learning and innovation and thereby an important factor for understanding regional development. This paper sets out to unpack the role of trust in regional development by advancing a differentiated view that sheds light on why, when, and how trust affects regional development dynamics in a positive or negative way. Avenues for future research are identified. |
| Keywords: | Regional dynamics; trust; networks; path-dependency; path emergence; lock-in |
| JEL: | L14 L16 R11 |
| Date: | 2019–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2019_008&r=all |
| By: | Amendolagine, Vito (Università di Pavia); Chaminade, Cristina (Lund University); Guimón, José (Autonomous University of Madrid); Rabellotti, Roberta (Università di Pavia) |
| Abstract: | R&D related foreign direct investments represent a powerful mechanism for cross-border knowledge sharing that can stimulate the process of technological catch-up. However, low-income countries and smaller middle-income countries remain largely excluded from this kind of global flows of knowledge. In this chapter, we discuss the motivations and implications of this type of FDI for low and middle income countries, building on a critical review of the existing literature and analyse the trajectory of R&D FDI during the period 2003-2017 by region and industry. The data is used as a point of departure to discuss potential policies specially tailored for low and middle income countries and their capacity to attract and anchor R&D related FDI for technological catch up. The paper finalizes outlining a future research agenda. |
| Keywords: | Foreign Direct Investment; Technology driven FDI; International technology transfer; South-South FDI; Developing countries; Less developed countries; Emerging Economies; Innovation policy |
| JEL: | O19 O24 O32 O57 |
| Date: | 2019–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2019_009&r=all |