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on Technology and Industrial Dynamics |
| By: | Jelena Reljic; Rinaldo Evangelista; Mario Pianta |
| Abstract: | The diffusion of digital technologies and their impact on employment and skills is investigated in this article considering six major European countries (Germany, France, Spain, Italy, the Netherlands and the United Kingdom) and 42 manufacturing and service industries over the 2009-2014 period. We analyse two key dimensions of digitalisation - industries' consumption of intermediate inputs from digital-intensive sectors and investment in ICT tangible and intangible assets per employee. We first investigate their effect on total employment finding that job creation in industries is supported by high digital consumption and reduced by high digital investment. We then explore how these variables have shaped the evolution of four professional groups - Managers, Clerks, Craft and Manual workers, defined on the basis of ISCO classes - and the increasingly polarised skill structure of European economies. |
| Keywords: | Digital technology; Innovation; Employment; Skills; European industries. |
| Date: | 2019–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2019/36&r=all |
| By: | Jihong Lee; Hyunkyeong Lim |
| Abstract: | Since the 1980s, the US has experienced a surge in patenting and R&D. To better understand the phenomena, we explore the evolution of the mar- ket value of knowledge capital with a novel firm-level dataset. While the importance of R&D has steadily declined, the market value of patents made a large and sustained gain in the new millennium. An additional patent per million dollars of R&D improves firm value by 11% in the latest decade compared to 3% three decades ago. The increased patent rents are driven largely by young firms, suggesting a positive role of the US patent system. |
| Keywords: | Innovation; ?rm value; patent; R&D |
| JEL: | O31 O34 O38 G30 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:snu:ioerwp:no105&r=all |
| By: | Plechero, Monica (University of Florence); Mandar, Kulkarni (International Institute of Information Technology); Chaminade, Cristina (Lund University); Balaji, Parthasarathy (International Institute of Information Technology) |
| Abstract: | Economic geographers have recently made important contributions to the relationship between regional transformation, industrial specialisation and innovation networks in the emergence of new industries. However, most contemporary research has focused on the influence of networks on regional trajectories, paying lip service to how regional trajectories also influence network configurations. Furthermore, international comparative research on how specific regional innovation system (RIS) trajectories may shape innovation networks in new industrial sectors is underdeveloped. The paper investigates how the trajectories of Bangalore and Beijing RISs influence the objectives and geographical configuration of innovation networks in the new media industry. The coevolution of the different elements of the RIS trajectory points to the unfolding of politically and institutionally driven trajectory in Beijing and cognitively driven trajectory in Bangalore. These trajectories lead to specific barriers and opportunities for the development of innovation networks in new industries. |
| Keywords: | RIS trajectories; Innovation networks; New media industry; Beijing; Bangalore |
| JEL: | O19 O30 R50 |
| Date: | 2019–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2019_015&r=all |
| By: | Hanna Hottenrott (aTUM School of Management, Technical University of Munich, Arcisstraße 21, 80333 Munich, Germany, bZEW – Leibniz Centre for European Economic Research, L7, 1, Mannheim, Germany.); Robert Richstein (cManchot Graduate School, Heinrich Heine University Düsseldorf, Universitätsstraße 1, 40225 Düsseldorf, Germany) |
| Abstract: | New knowledge-intensive firms contribute to innovation, competition, and employment growth, but externalities like knowledge spillovers can prevent entrepreneurs from appropriating the full returns from their investments. In addition, uncertainty and information asymmetry pose challenges for financing. Public policy programs therefore aim to support start-ups. This study evaluates the effects of participation in such programs on the performance of start-ups in high-tech and knowledge-intensive sectors that were founded in Germany between 2005 and 2012. Distinguishing between grants and subsidized loans and after matching recipients and non-recipients based on a broad set of founder and company characteristics, we find that both grants and subsidized loans facilitate tangible investment, employment and revenue growth. Grants are, however, better suited to increasing R&D investments than loans are. Combined with grants, subsidized loans facilitate turning research results into marketable products by means of investments in tangible assets. Start-ups that participate in both types of programs outperform grant-only recipients in terms of innovation performance, employment and future revenues. Finally, program participation does not crowd out private venture capital. |
| Keywords: | financing constraints, subsidies, R&D, high-tech start-ups, innovation policy |
| JEL: | G32 H25 O38 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2019-23&r=all |
| By: | Antanina Garanasvili |
| Abstract: | Aim of this analysis is to study whether the global recession of 2008 had a significant effect on how stock markets value firmsâ investments in knowledge and branding as well as complementary investments in patents and trademarks. Building on data from European Intellectual Property Office (EUIPO) and European Patent Office (EPO) we construct a firm panel covering R&D, marketing and IP investments over the period 2005-2012. In addition, we estimate market value equations for the years 2005-2008 and 2009-2012. Empirical findings suggest that there are interesting differences in which investments contributed to market value before and after 2008. First, investments in R&D contribute far more significantly to the market value after the crisis than before. Second, it becomes apparent that after the crisis patent quality arises as a significant factor which increases value of the companies. At the same time patent quantity ceases to be an influencing factor in the market value equation after 2008. |
| JEL: | G32 E32 O32 O34 |
| Date: | 2019–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:jmp:jm2019:pga1043&r=all |
| By: | Joern Block (Faculty of Management, Trier University / Erasmus School of Economics (ESE) and Erasmus Institute of Management (ERIM), Erasmus University Rotterdam); Christian Fisch (Faculty of Management, Trier University / Erasmus School of Economics (ESE) and Erasmus Institute of Management (ERIM), Erasmus University Rotterdam); Kenta Ikeuchi (Research Institute of Economy, and Trade and Industry (RIETI)); Masatoshi Kato (School of Economics, Kwansei Gakuin University) |
| Abstract: | Regional science has long been concerned with measuring the spatial distribution of innovation activity. While patents are frequently used as an indicator of regional innovation, we introduce trademarks as an additional indicator. Specifically, we explore the spatial distribution of trademark applications using a detailed and comprehensive dataset of 47 Japanese prefectures from 1999 to 2012. In addition to mapping differences in trademarks across regions, we identify correlates at the regional level that provide initial insights into potential determinants of regional innovation. For example, regional trademark activity is positively associated with regional entrepreneurship and with strong private service and finance sectors. Overall, our results reveal associations unique to trademarks that patent-based measures of innovation cannot uncover. With these results, we contribute to research in regional science and to the evolving literature on trademarks of this discipline. |
| Keywords: | Trademarks; regional innovation; Japan; prefectures; spatial distribution; patents. |
| JEL: | L80 O34 O53 R12 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:200&r=all |
| By: | Emmanuel Chavez (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper analyses the impact of a public research and development (R&D) subsidy to private firms in Mexico. My estimates suggest that the subsidy has a positive impact on personnel allocated to innovation activities, but it does not have an effect on stronger measures of R&D performance, such as research personnel, patents or private R&D spending. I argue that awarded firms would have performed their planned R&D projects in case they were not granted the public funds. Additional public funds seem to be invested to allocate more personnel on already planned projects, but not to carry out additional ones. Specifically, I analyse the Programa de Estimulos a la Innovacion (PEI) subsidy. The program's rules set a grade threshold below which no R&D projects get the grants and above which some projects are granted. This granting process allows to use a fuzzy regression discontinuity approach to identify causal inference. |
| Keywords: | Public Policy,Regression Discontinuity,Innovation,Research and Development,Impact Evaluation |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-02355106&r=all |
| By: | Stoehr, Niklas; Braesemann, Fabian; Zhou, Shi |
| Abstract: | The digital transformation is driving revolutionary innovations and new market entrants threaten established sectors of the economy such as the automotive industry. Following the need for monitoring shifting industries, we present a network-centred analysis of car manufacturer web pages. Solely exploiting publicly-available information, we con- struct large networks from web pages and hyperlinks. The network properties disclose the internal corporate positioning of the three largest automotive manufacturers, Toyota, Volkswagen and Hyundai with respect to innovative trends and their international outlook. We tag web pages concerned with topics like e-mobility & environment or autonomous driving, and investigate their relevance in the network. Toyota and Hyundai are concerned with e-mobility throughout large parts of their web page network; Volkswagen devotes more specialized sections to it, but reveals a strong focus on autonomous driving. Sentiment analysis on individual web pages uncovers a relationship between page linking and use of positive language, particularly with respect to innovative trends. Web pages of the same country domain form clusters of different size in the network that reveal strong correlations with sales market orientation. Our approach is highly transparent, reproducible and data driven, and could be used to gain complementary insights into innovative strategies of firms and competitive landscapes. |
| Date: | 2019–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:bu5zs&r=all |
| By: | Alhusen, Harm; Bennat, Tatjana |
| Abstract: | Innovation processes consist of interactive learning mechanisms that combine different knowledge sources. Using a set of 72 exploratory interviews with small- and medium-sized enterprises (SMEs) and regional innovation consultants, this paper analyzes the combination of STI (science-technology -innovation) and DUI (innovation based on learning-by-doing, -using and -interacting) modes of innovation. We show that SMEs integrate STI-based knowledge into DUI-routines through mechanisms with varying levels of complexity. The mechanisms we describe differ with respect to a) effects on innovativeness, b) the absorptive capacities required and c) incurred costs. Based on these mechanisms, d) cognitive, organizational and financial barriers to combinatorial innovation modes are derived. We find that e) regional innovation consultancies play an important role in fostering combinatorial innovation modes. We therefore explore the role of regional innovation policy and its effects on firms' combination of innovation modes. Our findings point out innovation drivers that facilitate SMEs' capacity to absorb STI-based knowledge. Based on our empirical findings, we derive implications for innovation policy with regards to absorptive capacities in SMEs. |
| Keywords: | Innovation modes,DUI,Regional Innovation System,R&D cooperation,Knowledge bases,Regional innovation policy |
| JEL: | D23 D83 L10 L22 O31 O33 O38 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:212019&r=all |
| By: | Paul Gaggl; Rowena Gray; Ioana Marinescu; Miguel Morin |
| Abstract: | Electricity is a general purpose technology and the catalyst for the second industrial revolution. Developing countries are currently making huge investments in electrification, with a view to achieving structural change. What does history say about its impact on the structure of employment? We use U.S. Census data from 1910 to 1940 and measure electrification with the length of higher-voltage electricity lines. Instrumenting for electrification using hydroelectric potential, we find that the average expansion of high-voltage transmission lines between 1910 and 1940 increased the share of operatives in a county by 3.3 percentage points and decreased the share of farmers by 2.1 percentage points. Electrification can explain 50.5% of the total increase in operatives, and 18.1% of the total decrease in farmers between 1910 and 1940. At the industry level, electrification drove 15.7% of the decline in the share of agricultural employment and 28.4% of the increase in the share of manufacturing employment between 1910 and 1940. Electrification was thus a key driver of structural transformation in the U.S. economy. |
| Keywords: | technological change, electrification, structural change |
| JEL: | E25 E22 J24 J31 N32 N72 O33 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7930&r=all |
| By: | Youngsheng Xu (Georgia State University); Naoki Yoshihara (School of Management, Kochi University of Technology) |
| Abstract: | In this paper, we examine the performance of the market mechanismby focusing on whether no one, in the `long-run', can be left behind withtechnological innovation in the economy. We show that the market mechanism with technological innovation unavoidably leaves some individuals behind. We extend this negative result to a broader class of resource allocation mechanisms. |
| Keywords: | dynamic market competition with technological innovation, Hicksian Optimism, the Walrasian allocation rule, Pareto eciency, individual rationality |
| JEL: | D30 D51 D60 O33 P10 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2019-11&r=all |
| By: | Andrea Coveri; Mario Pianta |
| Abstract: | Building on a Post-Keynesian theoretical framework, integrated with an analysis of technology, this article investigates the structural determinants of income distribution. We develop a simultaneous model on wage and profit dynamics identifying as key determinants productivity growth, capital-labour conflict, the relevance of trade unions and different strategies of technological change and offshoring. We perform an industry-level analysis on 38 manufacturing and service sectors for six major European countries from 1994 to 2014. Wage and profit dynamics is shown to be rooted in structural change, productivity growth and capital-labour conflict, with profits driven by product innovation and offshoring, and wages rising faster where new products are relevant and trade unions have a greater role. |
| Keywords: | Income distribution; innovation; offshoring; Europe; industries. |
| Date: | 2019–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2019/35&r=all |
| By: | Bjerre-Nielsen, Andreas |
| Abstract: | This paper investigates endogenous network formation by heterogeneous agents. The agents' types determine the value of linking and we incorporate spillovers as utility from indirect connections. We provide sufficient conditions for a class of networks with sorting to be stable for low to moderate spillovers; with only two types these networks are the unique pairwise stable ones. We also show that this sorting is suboptimal for moderate to high spillovers despite otherwise obeying the conditions for sorting in Becker 1973. This shows that in our sorted networks a tension between stability and efficiency is present. We analyze a policy tool to mitigate suboptimal sorting. |
| Date: | 2019–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:jn4a6&r=all |
| By: | Maximiliano Dvorkin; Alexander Monge-Naranjo |
| Abstract: | We construct a dynamic general equilibrium model with occupation mobility, human capital accumulation and endogenous assignment of workers to tasks to quantitatively assess the aggregate impact of automation and other task-biased technological innovations. We extend recent quantitative general equilibrium Roy models to a setting with dynamic occupational choices and human capital accumulation. We provide a set of conditions for the problem of workers to be written in recursive form and provide a sharp characterization for the optimal mobility of individual workers and for the aggregate supply of skills across occupations. We craft our dynamic Roy model in a production setting where multiple tasks within occupations are assigned to workers or machines. We solve for the balanced-growth path and characterize the aggregate transitional dynamics ensuing task-biased technological innovations. In our quantitative analysis of the impact of task-biased innovations in the U.S. since 1980, we find that they account for an increased aggregate output in the order of 75% and for a much higher dispersion in earnings. If the U.S. economy had higher barriers to mobility, it would have experienced less job polarization but substantially higher inequality and lower output as occupation mobility has provided an "escape" for the losers from automation. |
| Keywords: | dynamic roy models, automation, human capital, aggregation |
| JEL: | E24 J23 J24 J62 O33 E25 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2019-064&r=all |
| By: | Guzman, Jorge; Oh, Jean Joohyun; Sen, Ananya |
| Abstract: | Entrepreneurial motivation is central for the process of economic growth. However, evidence on the motivations of innovative entrepreneurs, and how those motivations differ across fundamental characteristics, remains scant. We conduct three field experiments with the MIT Inclusive Innovation Challenge to study how innovative entrepreneurs respond to messages of money and social impact, and how this varies across gender and culture. We find consistent evidence that women and individuals located in more altruistic cultures are more motivated by social impact messages than money, while men and those in less altruistic cultures are more motivated by money than social impact. The estimates are not driven by differences in the type of company, its size, or other observable characteristics, but instead appear to come from differences in the underlying motivations of innovative entrepreneurs themselves. |
| Date: | 2019–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:t7crk&r=all |