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on Technology and Industrial Dynamics |
| By: | X. Yu; G. Dosi; M. Grazzi; J. Lei |
| Abstract: | This article explores the dynamics of market selection by investigating of the relationships linking productivity, profitability, investment and growth, based on China's manufacturing firm-level dataset over the period 1998-2007. First, we find that productivity variations, rather than relative levels, are the dominant productivity-related determinant of firm growth, and account for 15%-20% of the variance in firms' growth rates. The direct relation between profitability and firm growth is much weaker as it contributes for less than 5% to explain the different patterns of firm growth. On the other hand, the profitability-growth relationship is mediated via investment. Firm's contemporaneous and lagged profitabilities display positive and significant effect on the probability to report an investment spike, and, in turn, investment activity is related to higher firm growth. |
| JEL: | D22 L10 L20 L60 O30 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp1006&r=tid |
| By: | Ugur, Mehmet; Solomon, Edna; Guidi, Francesco; Trushin, Eshref |
| Abstract: | Effects of R&D investment on frim/industry productivity have been investigated widely thanks to pioneering contributions by Zvi Griliches and others in late 1970s and early 1980s. We aim to establish where the balance of the evidence lies and what factors may explain the variation in the research findings. Using 1,258 estimates from 65 primary studies and hierarchical meta-regression models, we report that the average elasticity and rate-of-return estimates are both positive, but smaller than those reported in prior narrative reviews and meta-analysis studies. We discuss the likely sources of upward bias in prior reviews, investigate the sources of heterogeneity in the evidence base, and discuss the implications for future research. Overall, this study contributes to existing knowledge by placing the elasticity and rate-of-return estimates under a critical spot light and providing empirically-verifiable explanations for the variation in the evidence base. |
| Keywords: | R&D,knowledge capital,productivity,meta-analysis |
| JEL: | D24 O30 O32 C49 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:109962&r=tid |
| By: | The Consortium consisting of CPB, CAPP, CASE, CEPII, ETLA, IFO, IFS, IHS |
| Abstract: | Investment in research and innovation plays a critical role in kick-starting smart growth and upgrading the competitiveness of European companies. In the post-crisis world, Europe needs innovation more than ever before to keep up with the rapid technology advances and growing global competition. R&D tax incentives are an important innovation policy tool widely used in Europe. In some countries, during the crisis, tax instruments have become increasingly important for stimulating private R&D than direct funding. The recent study conducted jointly by DG TAXUD and DG GROW finds fiscal incentives for R&D expenses to be effective in stimulating investment in R&D. The size of the effect varies across countries which can be linked to country specific features, but, crucially, also to differences in the design and organisational practices of the fiscal schemes. The study identifies what are good designs for R&D tax incentives and which features are to be avoided. To answer this question, the study benchmarks the 80 existing R&D tax incentives in 33 countries (including all EU Member States) based on a number of identified good practices in design and administration. |
| Keywords: | European Union, taxation, R&D tax incentives |
| JEL: | H20 H29 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:tax:taxpap:0052&r=tid |
| By: | Chia-Lin Chang (National Chung Hsing University, Taiwan); Michael McAleer (National Tsing Hua University, Taiwan; Erasmus University Rotterdam, the Netherlands; Complutense University of Madrid, Spain); Ju-Ting Tang (National Chung Hsing University, Taiwan) |
| Abstract: | With the advent of globalization, economic and financial interactions among countries have become widespread. Given technological advancements, the factors of production can no longer be considered to be just labor and capital. In the pursuit of economic growth, every country has sensibly invested in international cooperation, learning, innovation, technology diffusion and knowledge. In this paper, we use a panel data set of 40 countries from 1981 to 2008 and a negative binomial model, using a novel set of cross-border patents and joint patents as proxy variables for technology diffusion, in order to investigate such diffusion. The empirical results suggest that, if it is desired to shift from foreign to domestic technology, it is necessary to increase expenditure on R&D for business enterprises and higher education, exports and technology. If the focus is on increasing bilateral technology diffusion, it is necessary to increase expenditure on R&D for higher education and technology. |
| Keywords: | International Technology Diffusion; Exports; Imports; Joint Patent; Cross-border Patent; R&D; Negative Binomial Panel Data |
| JEL: | F14 F21 O30 O57 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20150053&r=tid |
| By: | Hyunbae CHUN; MIYAGAWA Tsutomu; Hak Kil PYO; TONOGI Konomi |
| Abstract: | Using the Japan Industrial Productivity (JIP) and the Korea Industrial Productivity (KIP) databases and other primary statistics in Japan and Korea, we estimate intangible investment in Japan and Korea at the industry-level. Comparing our estimates from two-country data, we find that the growth in intangible investment in Korea has exceeded that in Japan in the past 30 years. Intangible investment/gross value added (GVA) ratios in the machinery industries in Japan are higher than in Korea, because Japanese machinery industries are research and development (R&D) intensive. On the other hand, ratios in some service industries in Korea are higher than in Japan, because Korean service industries are information and communications technology (ICT)-intensive. When we conduct growth accounting analysis with intangibles, we find that the contribution of intangible investment to economic growth after 1995 in Japan decreased significantly. In addition, the contribution of intangibles to productivity growth in Japan after 1995 is lower than not only Korea but also the European Union (EU) countries and the United States. The lack of synergy effects between ICT and intangibles in Japan may be the cause of low productivity growth in the 2000s. |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:15055&r=tid |
| By: | Lopez-Garcia, P. ; di Mauro, F. ; the CompNet Task Force (Research Department, NBB) |
| Abstract: | Drawing from confidential firm-level balance sheets for 17 European countries (13 Euro-Area), the paper documents the newly expanded database of cross-country comparable competitivenessrelated indicators built by the Competitiveness Research Network (CompNet). The new database provides information on the distribution of labour productivity, TFP, ULC or size of firms in detailed 2-digit industries but also within broad macro-sectors or considering the full economy. Most importantly, the expanded database includes detailed information on critical determinants of competitiveness such as the financial position of the firm, its exporting intensity, employment creation or price-cost margins. Both the distribution of all those variables, within each industry, but also their joint analysis with the productivity of the firm provides critical insights to both policymakers and researchers regarding aggregate trends dynamics. The current database comprises 17 EU countries, with information for 56 industries, including both manufacturing and services, over the period 1995-2012. The paper aims at analysing the structure and characteristics of this novel database, pointing out a number of results that are relevant to study productivity developments and its drivers. For instance, by using covariances between productivity and employment the paper shows that the drop in employment which occurred during the recent crisis appears to have had “cleansing effects” on EU economies, as it seems to have accelerated resource reallocation towards the most productive firms, particularly in economies under stress. Lastly, this paper will be complemented by four forthcoming papers, each providing an in-depth description and methodological overview of each of the main groups of CompNet indicators (financial, trade-related, product and labour market). |
| Keywords: | cross country analysis, firm-level data, competitiveness, productivity and size distribution, total factor productivity, allocative efficiency. |
| JEL: | L11 L25 D24 O4 O57 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:201504-279&r=tid |
| By: | Landesmann, Michael; Leitner, Sandra; Stehrer, Robert |
| Abstract: | This paper examines developments in market share, export structure and revealed comparative advantage within the EU and in comparison with other regions of the world. It pays special attention to shifts in specialisation and export structure with regard to manufacturing and services, lower and higher technology industries and business services. Data are taken from the World Input-Output Database (WIOD), which provides information on international production process linkages and allows calculation of measures of "trade in value added". |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eibwps:201501&r=tid |