nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2022‒05‒30
six papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. Quantifying knowledge spillovers from advances in negative emissions technologies By Giorgio Tripodi; Francesco Lamperti; Roberto Mavilia; Andrea Mina; Francesca Chiaromonte; Fabrizio Lillo
  2. What COVID-19 May Leave Behind: Technology-Related Job Postings in Canada By Bellatin, Alejandra; Galassi, Gabriela
  3. Research on the accumulation effect model of technological innovation in textile industry based on chaos theory By Xiangtai Zuo
  4. Stylized facts on the evolution of profit rates in the US: Evidence from firm-level data By Leila Davis; Joao de Souza
  5. Facing technological change: addressing competence shift in a routines and identity perspective By Lisa Balzarin; Francesco Zirpoli
  6. How Middle-Skilled Workers Adjust to Immigration: The Role of Occupational Skill Specificity By Damiano Pregaldini; Uschi Backes-Gellner

  1. By: Giorgio Tripodi; Francesco Lamperti; Roberto Mavilia; Andrea Mina; Francesca Chiaromonte; Fabrizio Lillo
    Abstract: Negative emissions technologies (NETs) feature prominently in most scenarios that halt climate change and deliver on the Paris Agreement's temperature goal. As of today, however, their maturity and desirability are highly debated. Since the social value of new technologies depends on how novel knowledge fuels practical solutions, we take an innovation network perspective to quantify the multidimensional nature of knowledge spillovers generated by twenty years of research in NETs. In particular, we evaluate the likelihood that scientific advances across eight NET domains stimulate (i) further production of knowledge, (ii) technological innovation, and (iii) policy discussion. Taking as counterfactual scientific advances not related to NETs, we show that NETs-related research generates overall significant, positive knowledge spillovers within science and from science to technology and policy. At the same time, stark differences exist across carbon removal solutions. For example, the ability to turn scientific advances in NETs into technological developments is a nearly exclusively feature of Direct Air Capture (DAC), while Bio-energy with Carbon Capture and Storage (BECCS) lags behind. Conversely, BECCS and Blue Carbon (BC) have gained relative momentum in the policy and public debate, vis-Ã -vis limited spillovers from advances in DAC to policy. Moreover, both scientific advances and collaborations cluster geographically by type of NET, which might affect large-scale diffusion. Finally, our results suggest the existence of coordination gaps between NET-related science, technology, and policy.
    Keywords: Climate change mitigation; Negative emissions technologies; Carbon dioxide removal; Innovation; Knowledge spillovers; Data mining; Networks.
    Date: 2022–05–27
  2. By: Bellatin, Alejandra (University of Toronto); Galassi, Gabriela (Bank of Canada)
    Abstract: We use data from online job postings listed on a job board to study how the demand for jobs linked to new technologies during the COVID-19 crisis responded to pandemic mitigation policies. We classify job postings into a standard occupation classification, using text analytics, and we group occupations according to their involvement in the production and use of digital technologies. We leverage the variation in the stringency of containment policies over time and across provinces. We find that when policies become more stringent, job postings in occupations that are related to digital infrastructure or that allow for remote work fare relatively better than postings in more traditional occupations. Job postings for positions in occupations with low risk of automation recover faster during reopenings than postings for more traditional occupations. Occupations typically populated by disadvantaged groups (e.g., women and low-wage workers) gather relatively few job postings if they are not linked to new technologies. We also find that cities with scarce pre-pandemic job postings related to digital technologies post fewer job ads overall when policies become more stringent.
    Keywords: COVID-19, job vacancies, technology adoption
    JEL: J23 J24 O14
    Date: 2022–04
  3. By: Xiangtai Zuo
    Abstract: Technological innovation is one of the most important variables in the evolution of the textile industry system. As the innovation process changes, so does the degree of technological diffusion and the state of competitive equilibrium in the textile industry system, and this leads to fluctuations in the economic growth of the industry system. The fluctuations resulting from the role of innovation are complex, irregular and imperfectly cyclical. The study of the chaos model of the accumulation of innovation in the evolution of the textile industry can help to provide theoretical guidance for technological innovation in the textile industry, and can help to provide suggestions for the interaction between the government and the textile enterprises themselves. It is found that reasonable government regulation parameters contribute to the accelerated accumulation of innovation in the textile industry.
    Date: 2022–04
  4. By: Leila Davis; Joao de Souza
    Abstract: This paper builds on the literature analyzing the aggregate profit rate to describe profitability across the distribution of firms in the post-1970 U.S. economy. While median profitability mirrors well-established aggregate patterns, including a falling rate of profit through the mid- 1980s and a recovery thereafter, it also masks a striking post-1980 widening of the distribution. In this paper, we document this widening of the profitability distribution, and identify factors driving changes in profit rates at each end of the distribution. At the top, we show that, while top-end operational profit rates (operational returns on tangible capital) soar after 1980, this rise disappears when accounting for financial and intangible assets. We show that firms with high operational profit rates hold large stocks of financial and intangible assets, relative to those with high total profitability, but that larger shares of these assets fail to translate into higher returns on all assets. Thus, once accounting for post-1980 changes in asset composition, growth in top profit rates disappears. At the bottom, profit rates of the least profitable quintile of U.S. nonfinancial corporations become systematically and increasingly negative after the early 1980s. We show that this decline reflects persistently negative average profitability in new post-1970 cohorts, rather than falling profitability within continuing firms.
    Keywords: Profit rates; intangible assets; cash; entry dynamics
    JEL: B5 L1
    Date: 2022–05
  5. By: Lisa Balzarin (Dept. of Management, Università Ca' Foscari Venice); Francesco Zirpoli (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: The profound transition that the automotive industry is facing affects all the actors that operate in it, from carmakers to suppliers. The research explores the case of two plants of a multinational company that operates in the automotive supply chain. These two plants are specialized in the internal combustion powertrain. However, after the headquarters decision to turn exclusively to electric solutions, the plants have embarked in a journey of technological change that requires a massive competence conversion. The paper investigates the organizational effects provoked by a technological change that significantly affects the competence base of an organization. Assuming a dual lens through which investigating such a change, the paper discusses the impacts that the introduction of a new technology has on the organizational identity and routines.
    Keywords: technological change, competence change, organizational identity, organizational routines, automotive industry
    JEL: M10 L20 L62 L91
    Date: 2022–05
  6. By: Damiano Pregaldini; Uschi Backes-Gellner
    Abstract: We investigate how the adjustment of middle-skilled workers to immigration depends on the specificity of their occupational skill bundles. We combine the 2002 opening of the Swiss labor market to EU workers with register data on the location and occupation of these workers. In comparison to previous studies, we find counterintuitive results: the sudden inflow of EU workers increased the employment of native middle-skilled workers with specific occupational skills and, at the same time, reduced their occupational mobility. These results can be explained by the inflow of EU workers reducing existing skill gaps and alleviating firms' capacity restrictions, thereby improving job-worker matches and reducing the need for occupational changes of native workers.
    Keywords: migration, cross-border workers, occupational skill specificity
    JEL: J15 J24 J62
    Date: 2021–12

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