nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2022‒04‒04
twelve papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Do various innovation linkages enhance innovation? International evidence By Goel, Rajeev K.
  2. The determinants of AI innovation across European firms By Igna, Ioana; Venturini, Francesco
  3. Structural change and firm dynamics in the south of Italy By Francesco Bripi; Raffaello Bronzini; Elena Gentili; Andrea Linarello; Elisa Scarinzi
  4. Closing the Italian digital gap: The role of skills, intangibles and policies By Flavio Calvino; Stefano DeSantis; Isabelle Desnoyers-James; Sara Formai; Ilaria Goretti; Silvia Lombardi; Francesco Manaresi; Giulio Perani
  5. Globalisation, productivity growth, and labour compensation By Dreger, Christian; Fourné, Marius; Holtemöller, Oliver
  6. Place-based policies and agglomeration economies: Firm-level evidence from special economic zones in India By Görg, Holger; Mulyukova, Alina
  7. Firm Productivity Growth and the Knowledge of New Workers By Michael Kirker; Lynda Sanderson
  8. The geographic proximity effect on domestic cross-sector vis-a-vis intra-sector research collaborations By Giovanni Abramo; Francesca Apponi; Ciriaco Andrea D'Angelo
  9. Market Power and Artificial Intelligence Work on Online Labour Markets By DUCH BROWN Nestor; GOMEZ-HERRERA Estrella; MUELLER-LANGER Frank; TOLAN Songul
  10. Innovation and patenting activities of COVID-19 vaccines in WTO members: Analytical review of Medicines Patent Pool (MPP) COVID-19 Vaccines Patent Landscape (VaxPaL) By Chiang, Ting-Wei; Wu, Xiaoping
  11. Contribution of Human Capital Accumulation to Canadian Economic Growth By Audra Bowlus; Youngmin Park; Chris Robinson
  12. Understanding the macroeconomic effects of public research: An application of a regression-microfounded CGE-model to the case of the Fraunhofer-Gesellschaft in Germany By Grant, Allan; Figus, Gioele; Schubert, Torben

  1. By: Goel, Rajeev K.
    Abstract: Whereas various drivers of the international innovative activity have been studied in the literature, our understanding of the contributions of different innovation linkages to innovation deserves more attention. Are the different innovation linkages equally complementary to research inputs in fostering innovation? This paper addresses the contributions of different innovation linkages to innovation, across two different measures of innovation. We find that a broader index of innovation linkages shows positive and significant spillovers on innovation, while joint ventures and university-industry collaborations fail to exert a significant influence. These spillovers are reinforced by the positive and expected impacts of R&D spending. In other results, greater venture capital investments boost innovation in most cases, while more FDI boosts one type of innovation output. These findings are uniquely shown to be sensitive across least- and most innovative nations when a quantile regression is employed. Implications for technology policy are discussed.
    Keywords: patents,innovation,innovation linkages,R&D,joint ventures,university-industry collaboration
    JEL: O31 O33 O38
    Date: 2022
  2. By: Igna, Ioana (CIRCLE, Lund University); Venturini, Francesco (University of Perugia)
    Abstract: Using patent data for a panel sample of European companies between 1995 and 2016 we explore whether the innovative success in Artificial Intelligence (AI) is related to earlier firms’ research in the area of Information and Communication Technology (ICT), and identify which company characteristics and external factors shape this performance. We show that AI innovation has been developed by the most prolific firms in the field of ICT, presents strong dynamic returns (learning effects), and benefits from complementaries with knowledge developed in network and communication technologies, high-speed computing and data analysis, and more recently in cognition and imaging. AI patent productivity increases with the scale of research but is lower in presence of narrow and mature technological competencies of the firm. AI innovating companies are found to benefit from spillovers associated with innovations developed in the field of ICT by the business sector; this effect, however, is confined to frontier firms. Our findings suggest that, with the take-off of the new technology, the technological lead of top AI innovators has increased mainly due to the accumulation of internal competencies and the expanding knowledge base. These trends help explain the concentration process of the world’s data market.
    Keywords: AI; ICT; patenting; European firms
    JEL: O31 O32 O34
    Date: 2022–03–02
  3. By: Francesco Bripi (Bank of Italy); Raffaello Bronzini (Bank of Italy); Elena Gentili (Bank of Italy); Andrea Linarello (Bank of Italy); Elisa Scarinzi (Bank of Italy)
    Abstract: In this paper, we study the structural change in the Centre-North and the South of Italy, focusing on its implications for productivity dynamics and its microeconomic determinants. We document three main results. First, between 2001 and 2018 the deindustrialization process involved both parts of Italy, but in the South it started after the financial crisis and was more pronounced. In the southern regions, the employment shares in low knowledge-intensive services increased more than in the Centre-North, whereas those in the high knowledge-intensive services increased less. Second, structural changes slowed down productivity growth in the Centre-North, but had no role in the fall of productivity registered in the South. Finally, in the Centre-North employment growth has been driven by the net creation of jobs among incumbents and larger firms. In contrast, employment dynamics in the southern regions largely reflected the process of firms entering and exiting the market, in particular in less knowledge-intensive service sectors, and in young and smaller enterprises.
    Keywords: structural change, firm dynamics, North-South gap, productivity growth, shift-share analysis
    JEL: R00 R11 L16 O41 O47
    Date: 2022–03
  4. By: Flavio Calvino (OECD); Stefano DeSantis (Italian National Institute of Statistics); Isabelle Desnoyers-James (OECD); Sara Formai (Bank of Italy); Ilaria Goretti (OECD); Silvia Lombardi (Italian National Institute of Statistics); Francesco Manaresi (OECD); Giulio Perani (Italian National Institute of Statistics)
    Abstract: The study identifies the main factors that affect the diffusion of digital technologies and their returns among Italian firms, highlighting the crucial role of public policies. It uses a unique data infrastructure that integrates information on digital technology adoption, firm performance, and workers’ and managers’ skills. The analysis shows that the low digitalisation of Italian firms, especially of SMEs, can be traced back to the low levels of three factors: i) workers’ skills, ii) management capabilities, and iii) accumulation of intangible assets. These factors are also crucial to maximise the effectiveness of public policies supporting firm digitalisation, such as the deployment of broadband infrastructure and fiscal incentives to investments in digital technologies. Finally, the analysis shows that the COVID-19 crisis contributed to further widening the digital gap between Italian firms, favouring ex-ante more digitalised companies, suggesting that public policies play a crucial role for the post-COVID-19 recovery.
    Date: 2022–03–15
  5. By: Dreger, Christian; Fourné, Marius; Holtemöller, Oliver
    Abstract: Since the onset of globalisation, production activities have become increasingly fragmented and organised in global value chains (GVC). These networks facilitate trade in intermediaries across industrial sectors and countries and change the conditions for policies to respond to shocks. In this paper, we contribute to the understanding of the effects of GVC on productivity and labour shares in advanced and emerging economies. As indicators for globalisation we use the foreign share in intermediate inputs and the foreign share in value added, extracted from international input output tables. Estimates based on local projections reveal a positive relationship between globalisation and productivity. Moreover, we are able to reject the hypothesis that a higher degree of international integration in country-industry pairs is negatively associated with the change in the labour share for advanced countries.
    Keywords: global value chains,globalisation,international trade integration,labour share,productivity
    JEL: F4 F6 J3
    Date: 2022
  6. By: Görg, Holger; Mulyukova, Alina
    Abstract: This paper exploits time and geographic variation in the adoption of Special Economic Zones in India to assess the direct and spillover effects of the program. We combine geocoded firm-level data and geocoded SEZs using a concentric ring approach, thus creating a novel dataset of firms with their assigned SEZ status. To overcome the selection bias we employ inverse probability weighting with time-varying covariates in a difference-in-differences framework. Our analysis yields that conditional on controlling for initial selection, the establishment of SEZs induced no further productivity gains for within SEZ firms, on average. This effect is predominantly driven by relatively less productive firms, whereas more productive firms experienced significant productivity gains. However, SEZs created negative externalities for firms in the vicinity which attenuate with distance. Neighbouring domestic firms, large firms, manufacturing firms and non-importer firms are the main losers of the program. Evidence points at the diversion of inputs from non-SEZ to SEZ-firms as a potential mechanism.
    Keywords: Special Economic Zones,India,TFP growth,firm performance,spillovers,time-varyingtreatment
    JEL: O18 O25 P25 R10 R58 R23 F21 F60
    Date: 2022
  7. By: Michael Kirker; Lynda Sanderson (The Treasury)
    Abstract: Linked employer-employee data from New Zealand is used to study the relationship between a firm’s productivity growth and its exposure to outside knowledge through the hiring of new workers with previous work experience. The estimated relationship between productivity growth and hiring is compared to the predictions implied by two different channels: worker quality and knowledge spillover. Although it is not possible to identify a causal relationship, the productivity of a worker’s previous employer is correlated with subsequent productivity growth at the hiring firm. The patterns of this correlation are consistent with both the worker quality and knowledge spillover channels operating simultaneously. Furthermore, if knowledge spillover is occurring, the results suggest the type of knowledge spilling over relates to technological knowledge allowing firms to become more capital intensive, rather than knowledge that improves the efficiency of utilising existing inputs.
    Keywords: productivity; labour mobility; human capital; knowledge diffusion
    JEL: D24 J24 J62 O33
    Date: 2022–03
  8. By: Giovanni Abramo; Francesca Apponi; Ciriaco Andrea D'Angelo
    Abstract: Geographic proximity is acknowledged to be a key factor in research collaborations. Specifically, it can work as a possible substitute for institutional proximity. The present study investigates the relevance of the "proximity" effect for different types of national research collaborations. We apply a bibliometric approach based on the Italian 2010-2017 scientific production indexed in the Web of Science. On such dataset, we apply statistical tools for analyzing if and to what extent geographical distance between co-authors in the byline of a publication varies across collaboration types, scientific disciplines, and along time. Results can inform policies aimed at effectively stimulating cross-sector collaborations, and also bear direct practical implications for research performance assessments.
    Date: 2022–02
  9. By: DUCH BROWN Nestor (European Commission - JRC); GOMEZ-HERRERA Estrella; MUELLER-LANGER Frank; TOLAN Songul (European Commission - JRC)
    Abstract: We investigate three alternative but complementary indicators of market power on one of the largest online labour markets (OLMs) in Europe: (1) the elasticity of labour demand, (2) the elasticity of labour supply, and (3) the concentration of market shares. We explore how these indicators relate to an exogenous change in platform policy. In the middle of the observation period, the platform made it mandatory for employers to signal the rates they were willing to pay as given by the level of experience required to perform a project, i.e., entry, intermediate or expert level. We find a positive labour supply elasticity ranging between 0.06 and 0.15, which is higher for expert-level projects. We also find that the labour demand elasticity increased while the labour supply elasticity decreased after the policy change. Based on this, we argue that market-designing platform providers can influence the labour demand and supply elasticities on OLMs with the terms and conditions they set for the platform. We also explore the demand for and supply of AI-related labour on the OLM under study. We provide evidence for a significantly higher demand for AI-related labour (ranging from +1.4% to +4.1%) and a significantly lower supply of AI-related labour (ranging from -6.8% to -1.6%) than for other types of labour. We also find that workers on AI projects receive 3.0%-3.2% higher wages than workers on non-AI projects.
    Keywords: Online labour markets, artificial intelligence, market power, exogenous change in platform policy
    Date: 2022–02
  10. By: Chiang, Ting-Wei; Wu, Xiaoping
    Abstract: This working paper provides a statistical analysis of 74 patent families which cover subject matter relevant to ten COVID-19 vaccines. These vaccines have accounted for 99% of the global COVID-19 vaccine production as of 31 December 2021, comprising over ten billion doses. Eight of them, namely BNT162b2 (Pfizer/BioNTech), AZD1222 (AstraZeneca/Oxford), Ad26.COV2-S (J&J), mRNA1273 (Moderna), BBIBP-CorV (Sinopharm/Beijing), Coronavac (Sinovac), Covaxin (Bharat/ICMR), and NVX-CoV2373 (Novavax), have been approved by the World Health Organization (WHO) for inclusion in its Emergency Use Listing (EUL). The analysis is based on VaxPaL, a COVID-19 vaccines patent database developed by the Medicines Patent Pool (MPP). Through the detailed examination of patent applicants, filing dates, and offices of first and subsequent filing, the paper identifies patterns and trends of innovation and patenting activities of COVID-19 vaccines in WTO Members, and presents the legal status of the 74 patent families in 105 jurisdictions. This information may provide useful background for policymakers on the significance and potential impact of these patent families with relevance to the access to and production of these vaccines in their individual countries. This, in turn, may help support practical assessments as to potential options within and beyond the current TRIPS framework to promote equitable access to COVID-19 vaccines.
    Keywords: COVID-19,vaccine,patent,whole virus,viral vector,protein subunit,mRNA,filing dates,office of first filing,office of subsequent filing,legal status
    JEL: K11 K15 K30 O30 O31 O34 I18
    Date: 2022
  11. By: Audra Bowlus; Youngmin Park; Chris Robinson
    Abstract: This paper quantifies the contribution of human capital accumulation to the growth of real gross domestic product (GDP) in Canada. GDP growth is decomposed into contributions from physical capital, hours worked, human capital supplied per hour and total factor productivity. Using a “flat spot” identification strategy, we separately estimate the price and quantity of human capital using wage data from the Labour Force Survey. We find that growth in human capital supplied per hour explains around one-fifth of GDP growth and two-thirds of the Solow residual over the period from 1997 to 2018. While growth in hours worked is expected to slow down in the near future, human capital supplied per hour is expected to continue to be an important driver of GDP growth.
    Keywords: Econometric and statistical methods; Labour markets; Potential output; Productivity
    JEL: D24 E24 J24 J31 O47
    Date: 2022–03
  12. By: Grant, Allan; Figus, Gioele; Schubert, Torben
    Abstract: Estimating the economic returns to public science investments has been a key topic in economics. However, while in particular microeconomic approaches have been proposed, only a few studies have tried estimating the macroeconomic effects of public science investments. In this paper, we propose a micro-rooted macro-modelling framework, which combines the strength of an econo-metric causal identification of key effects with the power of a Computable General Equilibrium (CGE) framework, and provides additional economic structure of the estimates allowing us a fine-grained sectoral differentiation of all effects. Applying our approach to the German Fraunhofer-Gesellschaft, the world's largest publicly funded organization for applied research, we show that macroeconomic returns are - irrespective of econometric specification - a high multitude of the original investment costs. In specific, the activities by the Fraunhofer-Gesellschaft increase German GDP by 1.6% and employment by 437,000 jobs. Our CGE analysis further shows that the effects concentrate in chem-icals, pharmaceuticals, motor vehicles and machinery sectors. The substantial size of our estimated effects corroborate recent macroeconomic evidence on the social returns to innovation.
    Keywords: macroeconomic Effects of public Research,Fraunhofer-Gesellschaft,Regression-microfounded CGE-model
    Date: 2022

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