nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2024‒05‒20
ten papers chosen by
Fulvio Castellacci, Universitetet i Oslo


  1. The importance of science for the development of new PV technologies in European regions By Maria Tsouri; Ron Boschma; ;
  2. Robots and firms’ labour search: The role of temporary work agencies By Pilar Beneito; Maria Garcia-Vega; Oscar Vicente-Chirivella; Guillaume Wilemme
  3. Tracking Firm Use of AI in Real Time: A Snapshot from the Business Trends and Outlook Survey By Kathryn Bonney; Cory Breaux; Cathy Buffington; Emin Dinlersoz; Lucia S. Foster; Nathan Goldschlag; John C. Haltiwanger; Zachary Kroff; Keith Savage
  4. How regions diversify into new jobs: From related industries or related occupations? By Jason Deegan; Tom Broekel; Silje Haus-Reve; Rune Dahl Fitjar
  5. Robots on Sale: The effect of tax policy on robot adoption and employment By ADACHI Daisuke; KAWAGUCHI Daiji; SAITO Yukiko
  6. Electricity use of automation or how to tax robots? By Gasteiger, Emanuel; Kuhn, Michael; Mistlbacher, Matthias; Prettner, Klaus
  7. Industrial relations and firm-level innovation. A comparative analysis of establishment data in Germany and Italy By Guendalina Anzolin; Chiara Benassi; Armanda Cetrulo
  8. Disappearing Stepping Stones: Technological Change and Career Paths By Daniil Kashkarov; Valentin Artemev
  9. Global influence of inventions and technology sovereignty By Mueller, Elisabeth; Boeing, Philipp
  10. Digital Technologies and Firms’ Employment and Training By Mauro Caselli; Edwin Fourrier-Nicolai; Andrea Fracasso; Sergio Scicchitano

  1. By: Maria Tsouri; Ron Boschma; ;
    Abstract: Studies show that local capabilities contribute to the green transition, yet little attention has been devoted to the role of scientific capabilities. The paper assesses the importance of local scientific capabilities and the inflow of scientific knowledge from elsewhere for the ability of regions in Europe to diversify into photovoltaic (PV) segments during the period 1998 to 2015, employing a combined dataset on patents and scientific publications. We find that local scientific capabilities matter, but not so much the inflow of relevant scientific knowledge from other regions, as proxied by scientific citations of patents in PV segments. Regions are also likely to diversify into a PV segment when they have technological capabilities related to other PV segments. Finally, we found that European regions are less likely to lose an existing PV segment specialization when they have intra-regional and extra-regional scientific capabilities in this PV segment.
    Keywords: relatedness, photovoltaic technologies, green diversification, regional diversification, scientific capabilities, related scientific capabilities, inter-regional linkages, Europe
    JEL: O25 O38 R11
    Date: 2024–04
    URL: http://d.repec.org/n?u=RePEc:egu:wpaper:2410&r=tid
  2. By: Pilar Beneito; Maria Garcia-Vega; Oscar Vicente-Chirivella; Guillaume Wilemme
    Abstract: We study the impact of industrial robots on the use of labor intermediaries or temporary work agencies (TWAs) and firm productivity. We develop a theoretical framework where new technologies increase the need for quality match workers. TWAs help firms to search for workers who better match their technologies. The model predicts that using robots increases TWA use, which increases robots’ productivity. We test the model implications with panel data of Spanish firms from 1997 to 2016 with information on robot adoption and TWA use. Using staggered difference-in-difference (DiD) estimations, we estimate the causal effects of robot adoption on TWAs. We find robot adopters increase the probability of TWA use compared to non-adopters. We also find that firms that combine robots with TWAs achieve higher productivity than those who adopt robots without TWAs.
    Keywords: Robots, job-worker matching, temporary work agencies, firm productivity.
    Date: 2024
    URL: http://d.repec.org/n?u=RePEc:not:notgep:2024-02&r=tid
  3. By: Kathryn Bonney; Cory Breaux; Cathy Buffington; Emin Dinlersoz; Lucia S. Foster; Nathan Goldschlag; John C. Haltiwanger; Zachary Kroff; Keith Savage
    Abstract: Timely and accurate measurement of AI use by firms is both challenging and crucial for understanding the impacts of AI on the U.S. economy. We provide new, real-time estimates of current and expected future use of AI for business purposes based on the Business Trends and Outlook Survey for September 2023 to February 2024. During this period, bi-weekly estimates of AI use rate rose from 3.7% to 5.4%, with an expected rate of about 6.6% by early Fall 2024. The fraction of workers at businesses that use AI is higher, especially for large businesses and in the Information sector. AI use is higher in large firms but the relationship between AI use and firm size is non-monotonic. In contrast, AI use is higher in young firms although, on an employment-weighted basis, is U-shaped in firm age. Common uses of AI include marketing automation, virtual agents, and data/text analytics. AI users often utilize AI to substitute for worker tasks and equipment/software, but few report reductions in employment due to AI use. Many firms undergo organizational changes to accommodate AI, particularly by training staff, developing new workflows, and purchasing cloud services/storage. AI users also exhibit better overall performance and higher incidence of employment expansion compared to other businesses. The most common reason for non-adoption is the inapplicability of AI to the business.
    JEL: L23 O31 O33
    Date: 2024–04
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:32319&r=tid
  4. By: Jason Deegan; Tom Broekel; Silje Haus-Reve; Rune Dahl Fitjar
    Abstract: This paper adds a multidimensional perspective to the study of related diversification. We examine how regions diversify into new jobs – defined as unique industry-occupation combinations – asking whether they do so from related industries or related occupations. We use linked employer-employee data for all labour market regions in Norway, covering the time period 2009 –2014. Diversification into new jobs is more likely in the presence of related occupations and industries in a region. Furthermore, occupational and industrial relatedness have complementary effects on diversification. Occupational relatedness and its interaction with industrial relatedness are particularly important for diversification into more complex activities.
    Keywords: Regional capabilities, jobs, occupations, relatedness, diversification
    JEL: O18 R11 J62 R12
    Date: 2024–04
    URL: http://d.repec.org/n?u=RePEc:egu:wpaper:2409&r=tid
  5. By: ADACHI Daisuke; KAWAGUCHI Daiji; SAITO Yukiko
    Abstract: We study the effect of a tax policy on adopting industrial robots and firm performance, notably in terms of employment. Combining the policy variation in the Tax Credit for Promoting Productivity-Enhancing Equipment Investment (TC-PPEI) in Japan and newly collected Japanese firm-level longitudinal data on robot adoption, we find that the firms eligible for the TC-PPEI increased the adoption of robots. Our event-study analysis reveals that when firms adopt robots, they do not decrease the total number of workers but significantly increase employment after 1-3 years of adoption events and sales. Our results suggest that adopting robots can create employment instead of destroying it at the firm level.
    Date: 2024–04
    URL: http://d.repec.org/n?u=RePEc:eti:dpaper:24047&r=tid
  6. By: Gasteiger, Emanuel; Kuhn, Michael; Mistlbacher, Matthias; Prettner, Klaus
    Abstract: While automation technologies replace workers in ever more tasks, robots, 3D printers, and AI-based applications require substantial amounts of electricity. This raises concerns regarding the feasibility of the energy transition towards mitigating climate change. How does automation interact with conventional capital in driving energy demand and how do taxes on robots and taxes on electricity affect the adoption of robots and AI? To answer these questions, we generalize a standard economic growth model with automation and electricity use. In addition, we augment the model with electricity taxes and robot taxes and show the mechanisms by which these taxes affect automation. We find that an electricity tax serves a similar purpose as a robot tax. However, a robot tax is much more difficult to implement from a practical perspective.
    Keywords: Automation; Robots; Growth; Electricity Use; Energy Taxes; Robot Taxes
    Date: 2024–04
    URL: http://d.repec.org/n?u=RePEc:wiw:wus005:62095883&r=tid
  7. By: Guendalina Anzolin; Chiara Benassi; Armanda Cetrulo
    Abstract: A large body of research has investigated the impact of industrial relations on workplace innovation. Econometric research based on U.S. data suggests that unions are detrimental to innovation, while evidence from Europe is more mixed. This points to the importance of "contextualized" theorizing about the effects of industrial relations on firm-level innovation. Such an approach is common in qualitative research but is infrequently seen in quantitative studies. To address this gap, our article investigates the link between industrial relations and innovation at the firm level using establishment-level surveys from Germany (IAB establishment data) and Italy (INAPP-RIL establishment data). Our findings point to significant cross-country differences in how industrial relations institutions, including workplace representation and firm/sectoral agreements, can influence firm-level innovation. This cross-country variation underscores that similar institutions may serve different functions depending on the specificities of the national context.
    Keywords: Germany, Italy, collective bargaining, unions, innovation
    Date: 2024–04–22
    URL: http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/12&r=tid
  8. By: Daniil Kashkarov; Valentin Artemev
    Abstract: Which career paths lead workers towards high-skilled non-routine cognitive occupations? Using PSID data, we show that, for a significant share of workers, a career path towards non-routine cognitive occupations goes through middle-skilled routine occupations, with the majority going through a subset of routine cognitive occupations. We then argue that the decline in employment in routine cognitive occupations due to routine-biased technological change can negatively affect the chances of younger cohorts joining high-skilled occupations. To test this hypothesis, we develop a structural occupational choice model that endogenously generates realistic career paths and estimate it using PSID data and job ad data from three major US outlets covering the period from 1940 to 2000. Our estimations suggest that, on average, 6% of workers ending up in non-routine cognitive occupations use routine cognitive occupations as stepping stones that allow them to maintain and accumulate human capital and experience relevant for later employment in high-skilled occupations. A fall in employment opportunities in routine cognitive occupations over the period of the most intensive routine-biased technological change led to at least 1.37 million lost high-skilled workers who got stuck in less skilled occupations.
    Keywords: routine-biased tech. change, occupational choice, human capital, career paths
    JEL: J24 O33 E24
    Date: 2024–03
    URL: http://d.repec.org/n?u=RePEc:cer:papers:wp776&r=tid
  9. By: Mueller, Elisabeth; Boeing, Philipp
    Abstract: We analyze the technology sovereignty of Europe, the US, China, Japan, and Korea, representing the world's leading innovators. By examining citations from the universe of PCT patent applications between 2000 and 2020, we determine the strength and direction of inventions' influence at global and bilateral levels to assess each geographic area's technology sovereignty. The US shows superior technology sovereignty through its leadership in global and bilateral influence. While the US and Europe are highly integrated, their global positions differ as Europe depends on all geographic areas except China. Although China has filed the most patent applications in recent years, bilaterally it remains dependent on all other geographic areas. Moreover, only Japan and Korea show a recent decline in their global influence, despite previously holding a leading position.
    Keywords: technology sovereignty, global influence of inventions, geographic areas, bilateral influence, patent citations
    JEL: O33 O34
    Date: 2024
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:290400&r=tid
  10. By: Mauro Caselli; Edwin Fourrier-Nicolai; Andrea Fracasso; Sergio Scicchitano
    Abstract: This study examines the causal influence of digital technologies, specifically operational (ODT) and information digital technologies (IDT), on firms’ employment structure using Italian firm-level data. It employs a unique empirical approach, constructing instrumental variables based on predetermined employment composition and global technological progress, proxied by patents. Findings indicate that IDT investment positively affects employment, favoring a skilled, IT-competent workforce, as supported by firms’ training and recruitment plans. Conversely, ODT investment does not significantly alter total employment but skews the workforce towards temporary contracts. The study contributes methodologically by distinguishing between ODT and IDT and highlighting nuanced employment dynamics within firms.
    Keywords: digital technologies, labour demand, training, firms
    JEL: D22 J23 J24 M51 M53 O33
    Date: 2024
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_11056&r=tid

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