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on Technology and Industrial Dynamics |
| By: | David Popp; Jacquelyn Pless; Ivan Haščič; Nick Johnstone |
| Abstract: | Historically, innovation in the energy sector proceeded slowly and entrepreneurial start-up firms played a relatively minor role. We argue that this may be changing. Energy markets are going through a period of profound structural change. The rise of hydrofracturing lowered fossil fuel prices so much that natural gas is now the primary fuel for electricity generation in the US. Renewable energy technologies also experienced significant cost and performance improvements. However, integrating intermittent resources creates additional grid management challenges, requiring further innovation. This chapter documents the evolving roles of innovation and entrepreneurship in the energy sector. First, we provide an overview of the energy industry, highlighting that many new energy technologies are smaller, modular, and increasingly rely on innovation in other fast-moving high-tech sectors. We then conduct two descriptive data analyses that document a sharp decline in both clean energy patenting and start-up activity from about 2010 onwards. We discuss potential explanations and provide some evidence that while innovation in existing technologies may simply have been successful, continued innovation will be needed in enabling technologies that are more likely to depend on progress in other sectors. |
| JEL: | O31 Q4 Q42 Q55 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27145&r=all |
| By: | Quatraro, Francesco; Scandura, Alessandra (University of Turin) |
| Abstract: | This paper investigates the relationship between the involvement of academic inventors in local innovation dynamics and the patterns of regional technological diversification. Based on the combination of the evolutionary economic approach and the theories on regional innovation capabilities, and on the distinctive features of academic inventors, we hypothesise that knowledge spillovers accruing from the participation of university scientists to local patenting activity influence the extent of regional technological diversification. In addition, we posit that the involvement of academic inventors mitigates the path dependency engendered by the constraining role of the existing capabilities. The empirical results highlight the key role of academic institutions for the development of regional technological trajectories while contributing to the academic and policy debate on regional diversification strategies. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:202010&r=all |
| By: | Joshua R. Bruce; John M. de Figueiredo |
| Abstract: | This paper examines the U.S. government’s intramural research and development efforts over a 40-year period, drawing together multiple human capital, government spending, and patent datasets. The U.S. Federal Government innovates along four dimensions: technological, organizational, regulatory, and policy. After discussing these dimensions, the paper focuses on the inputs to and outputs of government intramural technological innovation. We measure innovative effort and results by accounting for the government scientists and dollars committed to R&D and patents created with government involvement. Overall, we show that intramural innovations, measured by government-assigned patents, are slightly more original and general, but less cited, than patents awarded to private-sector companies and extramural organizations patenting in the same technology classes. The majority of the 200,000 federal government scientists work at the Department of Defense, the Department of Energy, and NASA, and are largely in physical science and engineering occupations; the scientific expertise of other agencies is heavily weighted toward mathematics, social sciences, and data analytics. As these latter disciplines’ innovative outputs are less readily catalogued with patents, measuring total government innovative output with government-assigned patents is likely to over-emphasize innovations in engineering and physical sciences while under-reporting intramural innovations in other disciplines. We discuss the implications of our findings for both public- and private-sector innovation efforts and pose questions for future research. |
| JEL: | H41 H54 K0 O31 O34 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27181&r=all |
| By: | Rym AYADI; Giorgia GIOVANNETTI; Enrico MARVASI; Chahir ZAKI |
| Abstract: | We provide new evidence on the participation of firms within Global Value Chains (GVCs) for a large pool of MENA countries included in the World Bank Enterprise Surveys (WBES). Making use of several firm-level GVC participation indices, we find a positive association with firm productivity gains. Based on this result, we further investigate the complexity of GVC relationships and examine how sector/country connectivity affects firm productivity. Using a multi-level model, we augment our analysis by including centrality indicators calculated on the intermediate trade network, constructed from the EORA input-output tables. Positioning within the network structure of trade in intermediate products also plays a role. Our results indicate a positive effect of the connectivity of the sector on the Total Factor Productivity (TFP) of firms. Results remain robust after we control for the endogeneity between firm productivity and participation in GVCs. |
| Keywords: | global value chains, firm heterogeneity, MENA region, trade networks, productivity. |
| JEL: | F14 F15 L23 L25 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2020_03.rdf&r=all |
| By: | Désirée Rückert; Reinhilde Veugelers; Christoph Weiss |
| Abstract: | Using a new survey on digitalisation activities of firms in the EU and the US, we identify digitalisation profiles based on the current use of digital technologies and future investment plans in digitalisation. Our analysis confirms the trend toward digital polarisation and a growing digital divide in the corporate landscape with, on one side, many firms that are not digitally active, and on the other side, a substantial number of digitally active firms forging ahead. Old small firms, with less than 50 employees and more than 10 years old, are significantly more likely to be persistently digitally non-active. We show that these persistently non-digital firms are less likely to be innovative, increase employment or command higher mark-ups. These trends are likely to exacerbate the digital divide across firms in the EU and the US. |
| Keywords: | digital technology, investment, firm performance |
| Date: | 2020–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:ete:msiper:654659&r=all |
| By: | Massimiliano Mazzanti (University of Ferrara; SEEDS, Italy); Antonio Musolesi (University of Ferrara; SEEDS, Italy) |
| Abstract: | Innovation is a primary engine of sustainable growth. This paper provides new semiparametric econometric policy evaluation methods and estimates a green knowledge production function for a large, 30-year panel dataset of high-income countries. Because of the high degree of uncertainty surrounding the data-generating process and the likely presence of nonlinearities and latent common factors, the paper considers semiparametric panel specifications that extend the parametric multifactor error model and the random trend model. It also adopts a recently proposed information criterion for smooth model selection to compare these semiparametric models and their parametric counterparts. The results indicate that (1) the semiparametric additive specification with individual time trends is the preferred model, (2) threshold effects and nonlinearities are relevant features of the data that are obscured in parametric specifications, and (3) the effect of environmental policy is significant and clearly heterogeneous when modeled as a nonparametric function of certain knowledge inputs. The evidence shows a relevant nonlinear policy inducement effect occurring through R&D investments. |
| Keywords: | Innovation, knowledge, environmental policy, policy assessment, policy heterogeneity, large panels, cross-sectional dependence, factor models, random trend model, spline functions, model selection. |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0920&r=all |
| By: | Burchardi, Konrad B.; Chaney, Thomas; Hassan, Tarek Alexander; Tarquinio, Lisa; Terry, Stephen |
| Abstract: | We show a causal impact of immigration on innovation and dynamism in US counties. To identify the causal impact of immigration, we use 130 years of detailed data on migrations from foreign countries to US counties to isolate quasi-random variation in the ancestry composition of US counties that results purely from the interaction of two historical forces: (i) changes over time in the relative attractiveness of different destinations within the US to the average migrant arriving at the time and (ii) the staggered timing of the arrival of migrants from different origin countries. We then use this plausibly exogenous variation in ancestry composition to predict the total number of migrants flowing into each US county in recent decades. We show four main results. First, immigration has a positive impact on innovation, measured by the patenting of local firms. Second, immigration has a positive impact on measures of local economic dynamism. Third, the positive impact of immigration on innovation percolates over space, but spatial spillovers quickly die out with distance. Fourth, the impact of immigration on innovation is stronger for more educated migrants. |
| Keywords: | dynamism; Endogenous Growth; Innovation; Migrations; patents |
| JEL: | J61 O31 O40 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14719&r=all |
| By: | JosŽ Peres-Caj’as (Universitat de Barcelona, Spain); Kristin Ranestad (Lund University, Sweden) |
| Abstract: | Rather than exogenous endowments, natural resources can be seen as economically exploitable resources thanks to knowledge improvements. This underscores the need to understand why some natural resource abundant countries are able to develop their own technologies while others are not. We tackle this issue by looking at the evolution of engineering faculties and graduate engineers from 1850 to 1939 in Andean and Nordic countries, two regions where natural resources were critical at the onset of modern economic growth. We find the consolidation of a knowledge gap between Andean and Nordic countries during the First Globalization that was materialized in: a) a drastic difference in the total number of locally trained engineers; b) the role that these engineers played in their respective labor markets. These differences were the result of differences in public support to primary education and migration traditions. Both, in turn, are linked to historical and geographic contingencies. |
| Keywords: | Human capital, Technology, Innovation, First Globalization, Patents, Mining |
| JEL: | N40 N50 N80 O33 O38 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:ahe:dtaehe:2005&r=all |
| By: | Rutzer, Christian (University of Basel); Niggli, Matthias (University of Basel) |
| Abstract: | In this paper, we use a data-driven approach to predict the "green potential" of ISCO occupations based on their corresponding skills. With this information, we can investigate the relationship between environmental regulations and occupation-level employment in the manufacturing sector of 19 European countries for the period 1992-2010. Our empirical results highlight heterogeneous occupational employment changes in response to an increase in environmental policy stringency. More specically, we nd a decrease in labor demand for occupations with relatively low green potential and an increase for occupations with relatively high green potential. Thus, at least in the short term, greening the economy may create winners and losers across occupations and countries. |
| Keywords: | environmental regulation, green transition, labor market, supervised learning |
| JEL: | J23 J24 Q52 |
| Date: | 2020–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2020/09&r=all |