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on Technology and Industrial Dynamics |
| By: | Long, Vicky (The Ratio Institute) |
| Abstract: | This study contributes to a meso (industry)-level understanding of the changing complexity of the general appropriability conditions in the digital era on the one hand, and the role of IPRs in that (appropriability) on the other hand, through a study of an industry sector – the Swedish video (computer) games industry – where digital distribution prevails and IPRs are important (copyrights in derivative works; trademarks in game titles).Combining analyses on EPO patent data, EUIPO trademark data, firm-level interviews and survey data, this study firstly identifies a paradoxical development: on the one hand, there is a clear digital take-off of IPRs’ propensity, namely firms tend to be more active in registering trademarks and valuing their copyrights (firm size and technological platform matter though). On the other hand, the digital traits – digitally induced high levels of interactivities (between supply and demand) and the digital division of a product (in provisions) – provide strong protections (to the innovation) from a technical standpoint, which offsets the importance of IPRs. Then what are IPRs for, in a technologically tight appropriability regime? This study further identifies that the increase of the importance of IPRs is not derived from IPRs’ protection function, but from their signalling function. In the digital era, new products easily disappear in the digital crowd, and IPRs can act as an important remedy by signalling the origin and quality of products as well as new innovations. This study provides a snapshot of the digital complexity pertinent to the issue of appropriability. |
| Keywords: | Intellectual Property Rights (IPRs); Appropriability; Video Games; Digitalization; Innovation |
| JEL: | L17 L24 O32 O34 |
| Date: | 2019–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0329&r=all |
| By: | Haichao Fan; Joshua S. Graff Zivin; Zonglai Kou; Xueyue Liu; Huanhuan Wang |
| Abstract: | This paper examines the effect of stringent environmental regulations on firms' environmental practices, economic performance, and environmental innovation. Reducing COD levels by 10% relative to 2005 levels is an aim of the Chinese 11th Five-Year Plan. Using a difference-in-differences framework based on a comprehensive firm-level dataset, we find that more stringent environmental regulations faced by firms are positively associated with a greater probability of reducing COD emissions; also, there exists an evident heterogeneous effect across industries with different pollution intensities. Stricter environmental regulations also account for the sharp decline in firms' profits, capital, and labor. After executing a complete chain of tests of the underlying mechanisms, we find that firms rely more on recycling and abatement investment than on innovations when meeting environmental requirements. |
| JEL: | D22 K32 O31 Q53 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26540&r=all |
| By: | Sampson, Thomas |
| Abstract: | This paper studies the origins and consequences of international technology gaps. I develop an endogenous growth model where R&D efficiency varies across countries and productivity differences emerge from firm-level technology investments. The theory characterizes how innovation and learning determine technology gaps, trade and global income inequality. Countries with higher R&D efficiency are richer and have comparative advantage in more innovation-dependent industries where the advantage of backwardness is lower and knowledge spillovers are more localized. I estimate R&D efficiency by country and innovation-dependence by industry from R&D and bilateral trade data. Calibrating the model implies technology gaps, due to cross-country differences in R&D efficiency, account for around one-quarter to one-third of nominal wage variation within the OECD. |
| Keywords: | technology gaps; trade; technology investment; Ricardian comparative advantage; international income inequality |
| JEL: | F11 F43 O14 O41 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:102812&r=all |
| By: | Katia Picaud-Bello; Thomas Johnsen (Audencia Recherche - Audencia Business School); Richard Calvi (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Mihalis Giannakis (Audencia Business School - Audencia Business School) |
| Abstract: | This paper aims to address the gap concerning our knowledge about early purchasing's involvement (EPI) in new product development (NPD) projects in contexts characterized by discontinuous innovation. We adopt a dynamic capability perspective to explore how existing sourcing and supplier relationship management capabilities are adapted when purchasing agents become involved in discontinuous innovations projects. We use an embedded case-study approach to study four NPD projects in a heating, ventilation, and air conditioning (HVAC) company. The case studies are based on interviews with managers and staff from the research and development, purchasing, and marketing departments, as well as suppliers involved in the projects. Our empirical findings capture emerging purchasing practices including a "reversed" sourcing process, purchasing-marketing interaction, and the coordination of "a learning atmosphere" between the R&D department and suppliers through proactive innovation meetings and creativity workshops. We derive propositions to conduct further research into the role of the purchasing department in times of discontinuous innovation. We also provide a framework of sourcing and supplier-relationship practices that firms can use when embarking on discontinuous innovation. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02380474&r=all |
| By: | Hyuk-Soo Kwon (Institute for Fiscal Studies); Jihong Lee (Institute for Fiscal Studies); Sokbae (Simon) Lee (Institute for Fiscal Studies and Columbia University and IFS); Ryungha Oh (Institute for Fiscal Studies) |
| Abstract: | This paper examines the trends in geographic localization of knowledge spillovers via patent citations, extracting multiple cohorts of new sample US patents from the period of 1976-2015. Despite accelerating globalization and widespread per-ception of the “death of distance,” our matched-sample study reveals signi?cant and growing localization e?ects of knowledge spillovers at both intra- and international levels after the 1980s. Increased localization e?ects have been accompanied by greater heterogeneity across states and industries. The results are robust to various methods of proxying the existing geography of knowledge production. |
| Date: | 2019–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:cemmap:58/19&r=all |
| By: | Juan Pablo Herrera Saavedra; Ginette Sofía Lozano Maturana; Jacobo Campo Robledo; Alejandra Catalina Parra Ochoa |
| Abstract: | In the last century, the relation between competition and innovation has been a subject of particular interest, considering the important role that technological progress plays on economic growth and social welfare. Moreover, for several decades, the interest and discussion in regards to this matter has been the focus of heated debates among economists, jurists; and, most notably, among Competition and Industrial Property Authorities, since competition and innovation are the main axes in any modern approach to industrial policy. This paper examines the relation between competition and innovation, based on the estimation of panel data models for 75 countries between 2007 and 2015. The results show an inverted-U relation between innovation and competition. In other words, increases in competition generates innovation to a certain level (turning point) where the effect of competition on innovation is negative. This is consistent with Aghion et al. (2005) approach. The results are robust to different variables used as a proxy for innovation. |
| Keywords: | Industrial Property, Competition, Panel Data, GMM, inverted-U. |
| JEL: | C32 L11 L22 M13 |
| Date: | 2019–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:col:000458:017720&r=all |
| By: | Konstantins Benkovskis (Bank of Latvia); Olegs Tkacevs (Bank of Latvia) |
| Abstract: | This study provides new evidence on sector-specific differences in the age-productivity profiles in a country that has witnessed substantial shifts in the economic structure and features flexible labour market and high labour force participation among the elderly. Using a matched employer–employee dataset of Latvian firms, the paper unveils a conventional hump-shaped or downward sloping relationship in manufacturing and trade, but almost no or very small negative effect of ageing workforce in knowledge-intensive service sectors that largely employ high-skilled white-collar employees. The results suggest that investing in human capital, in particular training of elderly employees as well as addressing severe skill shortages in the ICT services sector have to be considered to reduce the downward pressure of ageing on firm performance. It also highlights the importance of efforts made by public institutions in improving health care and promoting healthier lifestyles to increase the number of healthy life years. |
| Keywords: | firm productivity, ageing population, age-productivity profile |
| JEL: | C23 L25 |
| Date: | 2019–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:ltv:dpaper:201903&r=all |
| By: | Olga Ivanova; d'Artis Kancs; Mark Thissen |
| Abstract: | This is the first study that attempts to assess the regional economic impacts of the European Institute of Innovation and Technology (EIT) investments in a spatially explicit macroeconomic model, which allows us to take into account all key direct, indirect and spatial spillover effects of EIT investments via inter-regional trade and investment linkages and a spatial diffusion of technology via an endogenously determined global knowledge frontier with endogenous growth engines driven by investments in knowledge and human capital. Our simulation results of highly detailed EIT expenditure data suggest that, besides sizable direct effects in those regions that receive the EIT investment support, there are also significant spatial spillover effects to other (non-supported) EU regions. Taking into account all key indirect and spatial spillover effects is a particular strength of the adopted spatial general equilibrium methodology; our results suggest that they are important indeed and need to be taken into account when assessing the impacts of EIT investment policies on regional economies. |
| Keywords: | DSGE modelling, innovation, productivity, human capital, SCGE model, spatial spillovers. |
| JEL: | C68 D58 F12 R13 R30 |
| Date: | 2019–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2019_10&r=all |
| By: | Olga Ivanova; d'Artis Kancs; Mark Thissen |
| Abstract: | The Regional Trade Flows and Input output Data for Europe are constructed at the regional NUTS2 level with sectoral NACE2 detail and developed for spatial macroeconomic modelling and social-economic analysis for answering a wide-range of policy questions, including policies related to investments in innovation, human capital, green infrastructure and Sustainable Development Goals. The Regional Trade Flows and Input output Data for Europe are particularly well suited for structural modelling such as spatial computable general equilibrium models, as all data are fully internally consistent. In the Regional Trade Flows and Input output Data all European regions are connected with each other via inter-regional trade flows, input use and output supply in form of regional trade matrices, input output tables and supply-use tables. This data base is result of a joint collaborative effort over a decade of several research institutes across Europe, including the Netherlands Environmental Assessment Agency (PBL), the European Commission (DG JRC) and the University of Groningen (Ivanova, Kancs and Stelder 2009, Thissen et al. 2014, Thissen et al. 2018, Ivanova, Kancs and Thissen 2019). Among others, the new EU Economic Modelling System (EU-EMS) developed within the EU Framework Programme for Research and Innovation makes use of the Regional Trade Flows and Input output Data for Europe. |
| Keywords: | Inter-Regional Trade Flows, Input output Tables, data, Europe, spatial spillovers, SCGE, modelling. |
| JEL: | C68 D58 F12 R13 R30 |
| Date: | 2019–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2019_06&r=all |
| By: | Elisabeth Christen; Michael Pfaffermayr; Yvonne Wolfmayr |
| Abstract: | This paper provides new insight into the firm-level employment impacts of trade cost changes at the industry level in the Austrian services sector. We apply a two-part model of firm survival (exit) and firm growth. Separate regressions for firm entry rates at the industry-region level complete the picture of total trade-induced net job creation. We implement the trade cost measure introduced by Chen and Novy (2011) and base it on own estimates of industry specific substitution elasticities. Falling trade costs in the Austrian services sector over the period 2000 to 2014 resulted in net job creation of about 19,000 jobs accounting for 9.5 percent of overall job flows in the sector. The smallest and least productive firms contract while large and productive firms expand as predicted by theory. Most adjustments occur at the extensive margin due to changes in the probability of firm survival. |
| Keywords: | Services trade, Trade costs, Elasticity of substitution, Firm-level evidence, Heterogenous firms, Gravity model, Job flows, Trade and employment |
| Date: | 2019–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2019:i:593&r=all |
| By: | Xuepeng Liu; Aaditya Mattoo; Zhi Wang; Shang-Jin Wei |
| Abstract: | Most manufacturing activities use inputs from the financial and business services sectors. But these services sectors also compete for resources with manufacturing activities, provoking concerns about deindustrialization attributable to financial services in developed countries like the United States and United Kingdom, and business services in developing countries like India and the Philippines. This paper examines the implications of services development for the export performance of manufacturing sectors. We develop a methodology to quantify the indirect role of services in international trade in goods and construct new measures of revealed comparative advantage based on value-added exports. We show that the development of financial and business services enhances the revealed comparative advantage of manufacturing sectors that use these services intensively but not of other manufacturing sectors. We also find that a country can partially overcome the handicap of an underdeveloped domestic services sector by relying more on imported services inputs. Thus, lower services trade barriers in developing countries can help to promote their manufacturing exports. |
| JEL: | F1 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26542&r=all |
| By: | Xingtong Han; Lei Xu |
| Abstract: | We study how input-output networks affect the speed of technology adoption. In particular, we model the decision to adopt the programming language Python 3 by software packages. Python 3 provides advanced features but is not backward compatible with Python 2, which implies it comes with adoption costs. Moreover, packages are dependent on other packages, meaning one package’s adoption decision is affected by the adoption decisions of other packages because many packages are linked to each other. We build a dynamic model of technology adoption that incorporates an input-output network and estimate it using a complete dataset of Python packages. We are among the first to link the literature of dynamic discrete choice models to network analysis. We also contribute to the literature on technology adoption by showing the adverse effects that input-output networks can have on how technology is adopted in a dynamic setting. We show that a package’s adoption decision is significantly affected by the adoption decisions of its dependency packages. We conduct counterfactual analyses of cost subsidies that target a community level and show that network structure is crucial to determining an optimal policy of cost subsidy. |
| Keywords: | Economic models; Firm dynamics; Productivity |
| JEL: | C61 L23 L86 O14 O33 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:19-51&r=all |
| By: | Adrien G. Bilal; Niklas Engbom; Simon Mongey; Giovanni L. Violante |
| Abstract: | This paper develops a random-matching model of a frictional labor market with firm and worker dynamics. Multi-worker firms choose whether to shrink or expand their employment in response to shocks to their decreasing returns to scale technology. Growing entails posting costly vacancies, which are filled either by the unemployed or by employees poached from other firms. Firms also choose when to enter and exit the market. Tractability is obtained by proving that, under a parsimonious set of assumptions, all workers’ and firm decisions are characterized by their joint marginal surplus, which in turn only depends on the firm’s productivity and size. As frictions vanish, the model converges to a standard competitive model of firm dynamics which allows a quantification of the misallocation cost of labor market frictions. An estimated version of the model yields cross-sectional patterns of net poaching by firm characteristics (e.g., age and size) that are in line with the micro data. The model also generates a drop in job-to-job transitions as firm entry declines, offering an interpretation to U.S. labor market dynamics around the Great Recession. All these outcomes are a reflection of the job ladder in marginal surplus that emerges in equilibrium. |
| JEL: | E24 E32 J41 J63 J64 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26547&r=all |
| By: | Rachel Bocquet (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Sandra Dubouloz (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc) |
| Abstract: | The two main perspectives regarding the drivers of managerial innovation (MI)-institutional and rational-are often presented as contrasts in previous literature. This article seeks to bridge the two perspectives in an effort to analyze the external antecedents of MI in an open innovation framework. Using the French Organizational Change and Computerization survey, this analysis reveals that MI is influenced not only by active external search strategies but also by coercive pressures and a quest for legitimacy. The results also indicate a substitution effect between external search activity and absorptive capacity in relation to MI. That is, openness is beneficial for managerial innovation in manufacturing firms but internal obstacles still dominate. |
| Keywords: | Managerial innovation,Open innovation,Rational approach,Institutional theory,Manufacturing firms |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02380541&r=all |