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on Technology and Industrial Dynamics |
| By: | Paolo Carioli; Dirk Czarnitzki; Christian Rammer |
| Abstract: | We investigate the effects of different channels of industry-science collaboration on new product sales at the firm-level and whether government subsidies for collaboration make a difference. We distinguish four collaboration channels: joint R&D, consulting/contract research, IP licensing, human resource transfer. Employing firm-level panel data from the German Community Innovation Survey and a conditional difference-in-differences methodology, we find a positive effect of industry-science collaboration on product innovation success only for joint R&D, but not for the other three channels. The positive effect is limited to subsidized collaboration. Our results suggest that government subsidies are required to bring firms and public science into forms of collaboration that are effective in producing higher innovation output. |
| Keywords: | Industry-science collaboration, transfer channels, product innovation, treatment effects analysis |
| Date: | 2024–10–23 |
| URL: | https://d.repec.org/n?u=RePEc:ete:ecoomp:751257 |
| By: | Hunt, Jennifer (Rutgers University); Cockburn, Iain (Boston University); Bessen, James (Boston University) |
| Abstract: | Using our own data on Artificial Intelligence publications merged with Burning Glass vacancy data for 2007-2019, we investigate whether online vacancies for jobs requiring AI skills grow more slowly in U.S. locations farther from pre-2007 AI innovation hotspots. We find that a commuting zone which is an additional 200km (125 miles) from the closest AI hotspot has 17% lower growth in AI jobs' share of vacancies. This is driven by distance from AI papers rather than AI patents. Distance reduces growth in AI research jobs as well as in jobs adapting AI to new industries, as evidenced by strong effects for computer and mathematical researchers, developers of software applications, and the finance and insurance industry. 20% of the effect is explained by the presence of state borders between some commuting zones and their closest hotspot. This could reflect state borders impeding migration and thus flows of tacit knowledge. Distance does not capture difficulty of in-person or remote collaboration nor knowledge and personnel flows within multi-establishment firms hiring in computer occupations. |
| Keywords: | Artificial Intelligence, technology adoption and diffusion |
| JEL: | O33 R12 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17325 |
| By: | Abeliansky, Ana Lucia; Prettner, Klaus; Rodriguez-Crespo, Ernesto |
| Abstract: | What are the environmental impacts of the increasing use of automation technologies? To answer this question, we propose a model of production in the age of automation that incorporates emission externalities. We derive a threshold condition subject to which the use of industrial robots affects emissions. This model leads to three testable predictions, i) the use of industrial robots causes higher emissions on average, ii) with increasing efficiency of industrial robots, the effect becomes weaker and could turn negative, and iii) in countries in which electricity is predominantly produced using (clean) renewable energy, industrial robot use has the potential of decreasing emissions. Empirically, we find support for the theoretical hypotheses implying that the effect of automation on emissions is non-linear or moderated by other variables. |
| Keywords: | Automation; Robots; Emissions; Climate Change |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:wiw:wus005:68239986 |
| By: | Antonio Minniti (Department of Economics, University of Bologna); Klaus Prettner (Department of Economics, Vienna University of Economics and Business); Francesco Venturini (Department of Economics, University of Urbino) |
| Abstract: | We study how the development of Artificial Intelligence (AI) influences the distribution of income between capital and labor and how this, in turn, exacerbates geographic income inequality. To investigate this issue, we first build a theoretical framework and then analyze data from European regions dating back to 2000. We find that for every doubling of regional AI innovation, there is a 0.7% to 1.6% decline in the labor share, which may have decreased by between 0.20 and 0.46 percentage points from a mean of 52% due solely to AI. This new technology is particularly detrimental to high-skill and medium-skill labor. The impact on income distribution is driven by worsening wage and employment conditions for high-skill labor, and by wage compression for medium- and low-skill labor. The effect of AI is not driven by other factors affecting regional development in Europe, nor by the concentration process in the AI market. |
| Keywords: | Artificial Intelligence, patenting, labor share, European regions |
| JEL: | O31 O32 O34 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp369 |
| By: | Grillitsch, Markus (CIRCLE, Lund University); Asheim, Björn (University of Stavanger) |
| Abstract: | The chapter discusses the theoretical reorientation in economic geography over the last twenty years from a focus on structures, represented by regional innovation systems, to addressing the role of human agency in regional economic development, and reflects on what the two approaches can contribute to achieving sustainable regional restructuring. We are doing this by focusing on two articles – published in 2002 and 2022 - representing the two approaches. The 2002 article discusses the role of place-specific, local resources and external knowledge in strengthening the competitiveness and innovativeness of firms and regions. This perspective is still relevant in analyses and designs of regional innovation policies. However, a realisation of the shortcomings of a structural approach to explaining the variations of regional development outcomes in different types of regions, has led to a more explicit focus on the importance of change agency in regional change processes, as articulated in the 2022 article. |
| Keywords: | Regional innovation systems; human change agency; regional restructuring; sustainability challenges; local and global; innovation policy |
| JEL: | O30 R10 |
| Date: | 2024–10–30 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:lucirc:2024_013 |
| By: | Ozge Demirci; Jonas Hannane; Xinrong Zhu |
| Abstract: | This paper studies the impact of Generative AI technologies on the demand for online freelancers using a large dataset from a leading global freelancing platform. We identify the types of jobs that are more affected by Generative AI and quantify the magnitude of the heterogeneous impact. Our findings indicate a 21% decrease in the number of job posts for automation-prone jobs related to writing and coding, compared to jobs requiring manual-intensive skills, within eight months after the introduction of ChatGPT. We show that the reduction in the number of job posts increases competition among freelancers while the remaining automation-prone jobs are of greater complexity and offer higher pay. We also find that the introduction of Image-generating AI technologies led to a 17% decrease in the number of job posts related to image creation. We use Google Trends to show that the more pronounced decline in the demand for freelancers within automation-prone jobs correlates with their higher public awareness of ChatGPT’s substitutability. |
| Keywords: | generative AI, large language models, ChatGPT, digital freelancing platforms |
| JEL: | O33 E24 J21 J24 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11276 |
| By: | Eeckhout, Jan (University of Pompeu Fabra); Kircher, Philipp (Université catholique de Louvain, LIDAM/CORE, Belgium); Lafuente, Cristina (University of Bath) |
| Abstract: | Skill-biased technological change has long been linked to rising wage inequality. New technologies also allow firms to expand their scope of their operation. We formalize such quantity-biased technological change and calibrate the model to German matched employeremployee data. The calibration attributes substantial changes in the firm size distribution and in wages to this channel. Quantity-biased technological change spreads out the firm size distribution with a moderating influence on wage inequality within blue and white collar occupations, yet it increases inequality between these occupations. The quantity-bias component in the blue collar occupations alone moderates inequality within and between occupations. |
| Keywords: | Quantity-bias ; scale-bias ; technological change ; skill-bias ; firm size distribution ; wage inequality |
| JEL: | J23 J32 O33 |
| Date: | 2024–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2024017 |
| By: | Kapetaniou, Chrystalla; Pissarides, Christopher |
| Abstract: | In a model with robots, automatable and nonautomatable production, we study robot-labor substitutions and show how they are influenced by a country's “innovation system.” Substitution depends on demand and production elasticities, the country's innovation capabilities, and openness. Making use of World Economic Forum data, we estimate the relationship for 13 countries and find that countries with poor innovation capabilities substitute robots for workers much more than countries with richer innovation capabilities, which might complement them. Innovation capabilities play a bigger role in the high-tech electronics sector than in other manufacturing and play a limited role in nonmanufacturing. |
| JEL: | J23 L60 O33 O52 |
| Date: | 2024–10–17 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125682 |
| By: | Otis, Nicholas G.; Cranney, Katelyn; Delecourt, Solene; Koning, Rembrand (Harvard Business School) |
| Abstract: | Generative AI has the potential to transform productivity and reduce inequality, but only if used broadly. In this paper, we show that recently identified gender gaps in AI use are nearly universal. Synthesizing evidence from 16 studies that surveyed 100, 000 individuals across 26 countries, along with new data on the gender of AI platform users, we show that the AI gender gap is present in nearly all regions, sectors, and occupations. Using data from two studies that offered participants the chance to use AI tools, we then show that even when the opportunity for men and women to access AI is equalized, women are still less likely to use AI. Our findings underscore the critical need for targeted interventions that go beyond access to address the structural and behavioral barriers that have resulted in a global gender gap in AI use. |
| Date: | 2024–10–14 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:h6a7c |
| By: | Marius Berger; Antoine Dechezleprêtre; Milenko Fadic |
| Abstract: | Government Venture Capital (GovVC) has emerged as a policy tool to complement private venture capital (Private VC) by funding innovation-driven firms that might not attract traditional VC investment. This study analyses GovVC's role in OECD Member countries using comprehensive data on entrepreneurial firms, investors, and patents, with GovVC entities identified through surveys of ministry experts. The analysis shows that GovVC-funded firms are typically riskier than Private VC funded ones and generally demonstrate lower performance in securing follow-on funding and innovation output. However, when GovVCs partner with Private VC investors, these performance gaps diminish significantly. In co-investment scenarios, firms show comparable innovation and exit performance to those funded solely by Private VC. The findings indicate that GovVC can effectively direct capital to overlooked firms, particularly when working in partnership with private investors. |
| Keywords: | Entrepreneurship, Government Policy, Innovation, Venture Capital |
| JEL: | G24 O38 O31 |
| Date: | 2024–11–12 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaaa:2024/10-en |
| By: | Andres, Pia |
| Abstract: | Low cost solar energy is key to enabling the transition away from fossil fuels. Despite this, the European Union followed the United States’ example in imposing anti-dumping tariffs on solar panel imports from China in 2013, arguing that Chinese panels were unfairly subsidised and harmed its domestic industry. This paper examines the effects of Chinese import competition on firm-level innovation in solar photovoltaic technology by European firms using a sample of 10, 137 firms in 15 EU countries over the period 1999–2020. I show that firms which were exposed to higher import competition innovated more if they had a relatively small existing stock of innovation, but less if their historical knowledge stock fell within the top 10th percentile of firms in the sample. This suggests that newer firms were more able to respond to increased competition by innovating, while firms with a large historical stock of innovation may have been locked into old technological paradigms. As firms with a smaller knowledge stock tended to innovate more overall, trade with China appears to have been beneficial in encouraging innovation among the most innovative firms. However, I also find evidence that import competition increased the probability of exit among firms in the sample. |
| JEL: | R14 J01 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125249 |
| By: | Nathan Lane |
| Abstract: | I study the impact of industrial policy on industrial development by considering an important episode during the East Asian miracle: South Korea’s heavy and chemical industry (HCI) drive, 1973–1979. Based on newly assembled data, I use the introduction and termination of industrial policies to study their impacts during and after the intervention period. (1) I reveal that the heavy-chemical industrial policies promoted the expansion and dynamic comparative advantage of directly targeted industries. (2) Using variation in exposure to policies through the input-output network, I demonstrate that policy indirectly benefited down-stream users of targeted intermediates. (3) The benefits of HCI persisted even after it ended, some of which took time to manifest. These findings suggest that the temporary drive shifted Korean manufacturing into more advanced markets and supported durable change. This study helps clarify the lessons drawn from the East Asian growth miracle. |
| Keywords: | industrial policy, East Asian miracle, economic history, industrial development, Heavy-Chemical Industry Drive, Heavy and Chemical Industry Drive |
| JEL: | L50 O14 O25 N60 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11388 |