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on Technology and Industrial Dynamics |
| By: | Franco Malerba (Cespri - Bocconi University, Milano, Italy.); Richard Nelson (Columbia University, New York, USA.); Luigi Orsenigo (University of Brescia, Brescia and CESPRI - Bocconi University, Milan, Italy.); Sidney Winter (The Wharton School, University of Pennsylvania, Philadelphia, USA.) |
| Abstract: | In this paper, we explore the effects of alternative policies, ranging from antitrust to public procurement, open standards, information diffusion and basic research support on the dynamics of two vertically related industries in changing and uncertain technological and market environments. The two industries are a system industry and a component industry, and the evolution of these industries is characterized by periods of technological revolutions punctuating periods of relative technological stability and smooth technical progress. We have been inspired by the co-evolution of the computer and component industries from their inceptions to the 1980s. On the basis of that evolution, we have developed a history friendly-model this co-evolution. In sum, this paper has stressed that various types of policies may sometimes have contrasting effects on the industry, mainly on concentration and technical change and innovation. It has also shown that the consequences of policies may spillover from one industry to another, and from one type of firms to another. Policies that aim at a specific industry may provoke major changes in a related industry through the product market, the changing boundaries of firms or knowledge and technological interdependencies. The policy maker has to be aware of that. Finally, a major point of the paper regards the unintended consequences of policies. |
| Keywords: | Industrial dynamics, Public Policy, Technology, Innovation. |
| JEL: | O30 L10 L60 |
| Date: | 2007–06 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:wp201&r=tid |
| By: | Petr Hanel (CIRST, GREDI, Faculte d'administration, Université de Sherbrooke) |
| Abstract: | To introduce the subject, the paper compares the Canadian performance on principal indicators of productivity and innovation with the U.S. and other countries. Follows an overview of principal sources of economic welfare, economic growth and increasing productivity with a special attention given to the relationship between productivity growth and innovation. Before addressing the relationship between innovation and productivity, the paper introduces the concepts and their operational measures or indicators, the sources of innovation and their effects as well as financing and public policies in support of innovation. In the section on the link between innovation and productivity the paper surveys the representative empirical studies of this relationship on industry and enterprise level, including the evidence on private and social returns on investment in R&D and innovation in Canada and abroad. Follows a description of the current econometric modelling of micro-data on innovation and its effect on firm performance. These innovation surveys-based micro econometric studies are inspired by the four-stage CDM model that predicts (1) the probability that a firm innovates, (2) the resources it invests in the activity, (3) the commercial results of innovation and (4) the effect of innovation on firms’ performance indicators such as sales per employee, labour productivity and its growth etc. This model provides the standardized methodology for an ongoing international research project analyzing the data from innovation surveys of majority of OECD countries. |
| Keywords: | Innovation, R&D, productivity, econometric modelling, Canada |
| JEL: | D24 L6 O47 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:07-22&r=tid |
| By: | Alexander Coad; Rekha Rao |
| Abstract: | We apply a panel vector autoregression model to a firm-level longitudinal database to observe the co-evolution of sales growth, employment growth, profits growth and growth of R&D expenditure. Contrary to expectations, profit growth seems to have little detectable effect on R&D investment. Instead, firms appear to increase their total R&D expenditure following growth in sales and growth of employment. In a sense, firms behave ‘as if’ they aim for a roughly constant ratio of R&D to employment (or sales). We observe heterogeneous effects for growing or shrinking firms however, suggesting that firms are less willing to reduce their R&D levels following a negative growth shock than they are willing to increase R&D after a positive shock. |
| Keywords: | Firm Growth, Panel VAR, R&D expenditure, Industrial Dynamics Length 32 pages |
| JEL: | L10 L20 O32 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:esi:evopap:2007-10&r=tid |