nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2023‒02‒06
eight papers chosen by
Fulvio Castellacci
Universitetet i Oslo

  1. The Role of Firm Dynamics in the Green Transition: Carbon Productivity Decomposition in Finnish Manufacturing By Kuosmanen, Natalia; Maczulskij, Terhi
  2. A new dataset to study a century of innovation in Europe and in the US By Bergeaud, Antonin; Verluise, Cyril
  3. Continuing Patent Applications at the USPTO By Cesare Righi; Davide Cannito; Theodor Vladasel
  4. How are global value chains altering policy narratives? By Pietrobelli, Carlo; Rabellotti, Roberta; Van Assche, Ari
  5. R&D Lags in Economic Models By Wang, Shanchao; Alston, Julian M.; Pardey, Philip G.
  6. Gender Diversity in Ownership and Firm Innovativeness in Emerging Markets. The Mediating Roles of R&D Investments and External Capital By Vartuhi Tonoyan; Christopher Boudreaux
  7. The Australian labour market and IT-enabled technological change By Jeff Borland; Michael Coelli
  8. Mobilizing innovation policy in the pursuit of net zero emissions: An evolutionary perspective By Jan Fagerberg

  1. By: Kuosmanen, Natalia (ETLA - The Research Institute of the Finnish Economy); Maczulskij, Terhi (ETLA - The Research Institute of the Finnish Economy)
    Abstract: This paper explores the importance of firm dynamics, including entry and exit and the allocation of carbon emissions across firms, on the green transition. Using the 2000–2019 firm-level register data on greenhouse gas emissions matched with the Financial Statement data in the Finnish manufacturing sector, we examine the sources of carbon-productivity growth and assess the relative contributions of structural change and firm dynamics. We find that continuing firms were the main drivers of carbon productivity growth whereas the contribution of entering and exiting firms was negative. In addition, the allocation of emissions across firms appeared to be inefficient, with a negative impact on carbon productivity growth over the study period. Our analysis also revealed a positive relationship between labor-intensive firms and carbon productivity, but firms with a larger market share tended to be less productive in terms of carbon use.
    Keywords: carbon productivity, decomposition analysis, firm dynamics, firm-level data, manufacturing sector
    JEL: D24 L60 Q54
    Date: 2023–01
  2. By: Bergeaud, Antonin; Verluise, Cyril
    Abstract: Innovation is an important driver of potential growth but quantitative evidence on the dynamics of innovative activities in the long-run are hardly documented due to the lack of data, especially in Europe. In this paper, we introduce PatentCity, a novel dataset on the location and nature of patentees from the 19th century using information derived from an automated extraction of relevant information from patent documents published by the German, French, British and US Intellectual Property offices. This dataset has been constructed with the view of facilitating the exploration of the geography of innovation and includes additional information on citizenship and occupation of inventors.
    Keywords: history of innovation; patent; text as data
    JEL: R14 J01 J1
    Date: 2022–04–28
  3. By: Cesare Righi; Davide Cannito; Theodor Vladasel
    Abstract: Despite their growing importance for rm innovation strategy and frequent appearance in U.S. patent policy debates, how continuing patent applications are used remains unclear. Turn-of-the-century reforms strongly limited opportunities to extend patent term and surprise competitors, but continuing applications have steadily risen since. We argue that they retain a subtle use, as applicants can file continuations to keep prosecution open and change patent scope after locking in gains with the initial patent. We document a sharp drop in parent abandonment and rise in continuations per original patent after the reforms. Continuing applications are more privately valuable than original patents, are led in more uncertain contexts, for higher value technologies, by more strategic applicants, and react strongly to the notice of allowance. The evidence supports a current strategic use of continuing applications to craft claims over time.
    Keywords: intellectual property, patent scope, continuation, divisional, innovation
    JEL: O31 O34 O38
    Date: 2023–01
  4. By: Pietrobelli, Carlo; Rabellotti, Roberta; Van Assche, Ari
    Abstract: Global value chains (GVCs) have taken the policy world by storm, with many policymakers viewing them as potent tools to boost economic development through industrial upgrading. In this Perspective, the authors argue that zooming in on the roles of tasks, linkages and firms helps clarify the novelty of GVC-oriented policies.
    Date: 2022
  5. By: Wang, Shanchao; Alston, Julian M.; Pardey, Philip G.
    Abstract: Quite different R&D lag structures predominate in studies of agricultural R&D compared with studies of R&D in other industries, and compared with studies of economic growth more broadly. Here we compare the main models and their implications using long-run data for U.S. agriculture. We reject the models predominantly used in studies of economic growth and industrial R&D both on prior grounds and using various statistical tests. The preferred model is a 50-year gamma lag distribution model. The estimated elasticity of MFP with respect to the knowledge stock is 0.28 and the implied marginal benefit-cost ratio is 23:1.
    Keywords: Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods
    Date: 2023–01–21
  6. By: Vartuhi Tonoyan; Christopher Boudreaux
    Abstract: Despite recent evidence linking gender diversity in the firm with firm innovativeness, we know little about the underlying mechanisms. Building on and extending the Upper Echelon and entrepreneurship literature, we address two lingering questions: why and how does gender diversity in firm ownership affect firm innovativeness? We use survey data collected from 7, 848 owner-managers of SMEs across 29 emerging markets to test our hypotheses. Our findings demonstrate that firms with higher gender diversity in ownership are more likely to invest in R&D and rely upon a breadth of external capital, with such differentials explaining sizeable proportions of the higher likelihood of overall firm innovativeness, product and process, as well as organizational and marketing innovations exhibited by their firms. Our findings are robust to corrections for alternative measurement of focal variables, sensitivity to outliers and subsamples, and endogenous self-selection concerns.
    Date: 2023–01
  7. By: Jeff Borland (Department of Economics, The University of Melbourne); Michael Coelli (Department of Economics, The University of Melbourne)
    Abstract: We review the impact of IT-enabled technological change on the Australian labour market. The main ways in which these new technologies can affect labour market outcomes are catalogued; and evidence on their impacts in Australia is assessed, with reference to four main labour market outcomes: (i) the total amount of work; (ii) the type of work and skills demanded; (iii) inequality; and (iv) the gig economy. We conclude with discussions of policy implications and lessons.
    Keywords: technology, IT, employment, skills, inequality, gig economy
    JEL: J21 J23 J24 O33
    Date: 2023–01
  8. By: Jan Fagerberg (Centre for Technology, Innovation and Culture, University of Oslo)
    Abstract: Transforming the economy to a state consistent with net-zero emissions is a very demanding task. Extensive change, i.e., innovation, in the way energy is provided, distributed, and used across all parts of society will be required. An important question, discussed in this paper, is how policy – and particularly innovation policy - can contribute to mobilize innovation for this purpose. It is pointed out that while innovation solves problems (in response to challenges), it also creates novel opportunities that policymakers may exploit to further their aims. The analysis presented in the paper shows that a global green shift, centred on production and use of renewable energy, is - greatly helped by past policies in a few countries - already well underway, and it is argued that this may create very important opportunities for policy makers in their attempts to support (and speed up) the transition. It is concluded that for policy to succeed in its aims, two elements are essential, (1) a broadly supported vision or strategy for change, exploiting the opportunities offered by the global green shift, and (2) a set of projects – or missions – aimed at addressing specific challenges of relevance for the countries in question. However, for such projects or missions to be successful, relevant stakeholders – also outside national boarders – may need to be included, challenging received innovation policy governance.
    Date: 2023–01

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