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on Technology and Industrial Dynamics |
| By: | Li, Kun (Cardiff Business School); Azacis, Helmuts (Cardiff Business School); Luintel, Kul B (Cardiff Business School) |
| Abstract: | We study resource misallocation by explicitly modelling R&D input and knowledge spillovers. The effects of R&D and spillovers on firm-level productivity are extensively studied in applied work, but not in the context of resource misallocation. We establish that, in the presence of spillovers, efficient resource allocation requires that more productive firms face higher R&D input prices. Analysing UK firm-level data, we find that the output gains from correcting misallocation are greatly overestimated when spillovers are ignored. Output losses due to capital distortions dominate those from labour and R&D inputs. Adopting a wrong R&D policy could lead to significant output losses. |
| Keywords: | resource misallocation, productivity, R&D spillover, the UK manufacturing firms |
| JEL: | D24 D61 O30 O47 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:cdf:wpaper:2023/24&r=tid |
| By: | Biondi, Filippo; Inferrera, Sergio; Mertens, Matthias; Miranda, Javier |
| Abstract: | We study the changing patterns of business dynamism in Europe after 2000 using novel micro-aggregated data that we collect for 19 European countries. In all of them, we document a decline in job reallocation rates that concerns most economic sectors. This is mainly driven by dynamics within sectors, size classes, and age classes rather than by compositional changes. Large and mature firms show the strongest decline in job reallocation rates. Simultaneously, the shares of employment and sales of young firms decline. Consistent with US evidence, firms' employment changes have become less responsive to productivity. However, the dispersion of firms' productivity shocks has decreased too. To enhance our understanding of these patterns, we derive a firm-level framework that relates changes in firms' productivity, market power, and technology to job reallocation and firms' responsiveness. |
| Keywords: | business dynamism, European cross-country data, market power, productivity, responsiveness of labor demand |
| JEL: | D24 J21 J23 J42 L11 L25 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:192023&r=tid |
| By: | Sarah C. Armitage; Noël Bakhtian; Adam B. Jaffe |
| Abstract: | Moving beyond the combination of adoption subsidies, standards, and (albeit limited) attempts at carbon pricing that largely characterized U.S. climate policy over the last decade, recent climate-related legislation has transformed not only the scale of U.S. climate activities but also the policy mechanisms adopted. Newly scaled policy instruments — including demonstration projects, loan guarantees, green banks, and regional technology hubs — are motivated not only by un-priced carbon externalities but also by innovation market failures. This paper maps the economics literature on innovation market failures and other frictions to the stated goals of these policy instruments, with the goal of focusing discussions about how to implement these policies as effectively as possible. The paper also discusses how program evaluation can help to illuminate which market failures are most relevant in a particular context and which policy instruments are most targeted to them. |
| JEL: | O32 O38 Q54 Q55 Q58 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31622&r=tid |
| By: | Steven Poelhekke (Vrije Universiteit Amsterdam); Benjamin Wache (CPB Netherlands) |
| Abstract: | Does venture capital (VC) investment yield economic growth? A large literature studies the effect of VC investments on firm-level activity, but its effects on economic growth are less well understood. We identify the effect of VC investment flows on destination county employment, wages, and establishment creation, using a novel instrument that captures the ‘social connectedness’ of counties to major sources of VC investment. Using detailed data on VC flows from investors to companies, we find a large positive impact of VC investment, suggesting that strong social connections to large venture capital hubs are an important contributor to regional economic growth. |
| Keywords: | Growth, venture capital, social connectedness |
| JEL: | R11 G24 G41 |
| Date: | 2023–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20230050&r=tid |
| By: | Van-Thien Nguyen; René Carraz |
| Abstract: | This paper proposes a new method for matching patents with academic publications to create patent-paper pairs (PPP). These pairs can identify instances where a research result is both applied in a patent and published in a paper. The study focuses on a sample of top research-intensive universities and laboratories in Japan, utilizing a new dataset that contains patent-to-article citations and a machine learning model as part of the matching process. Expert consultations were conducted to enhance the robustness of the methodology. Focusing on a set of 14 Japanese universities and 3 national research laboratories, using patent (USPTO) and publication data (OpenAlex) between 1998 and 2018, we built a dataset of 3, 177 PPPs out of 7, 766 granted patents and 91, 213 publications. The results demonstrate that this phenomenon is widespread in academia and our data show the diversity of the academic disciplines and technical field involved, highlighting the intricate connections between scientific and technical concepts and communities. On the methodological side, we documented in-depth complementary validation techniques to enhance the precision and reliability of our matching algorithm. Using open-source data, our methodology is adaptable to diverse national contexts and can be readily adopted by other research teams investigating similar topics. |
| Keywords: | Patent Paper Pair; Methodology; Matching algorithm; Academic patent; Japan. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2023-29&r=tid |