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on Technology and Industrial Dynamics |
| By: | Georgios TSIACHTSIRAS; Deyun YIN; Ernest MIGUELEZ; Rosina MORENO |
| Abstract: | This paper explores the effect of the High Speed Rail (HSR) network expansion on local innovation in China during the period 2008-2016. Using exogenous variation arising from a novel instrument - courier’s stations during the Ming dynasty, we find solid evidence that the opening of a HSR station increases cities’ innovation activity. We also explore the role of inter-city technology diffusion as being behind the surge of local innovation. To do it, we compute least-cost paths between city-pairs, over time, based on the opening and speed of each HSR line, and obtain that an increase in a city’s connectivity to other cities specialized in a specific technological field, through the HSR network, increases the probability for the city to specialize in that same technological field. We interpret it as evidence of knowledge diffusion. |
| Keywords: | high speed rail, innovation, technology diffusion, patents, specialization |
| JEL: | R40 O18 O30 O33 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:grt:bdxewp:2022-24&r=tid |
| By: | Haus-Reve, Silje; Fitjar, Rune Dahl; Rodríguez-Pose, Andrés |
| Abstract: | Implicitly or explicitly, much innovation policy treats investments in research and development (R&D) as the main input to innovation. A large body of literature in innovation studies has challenged this, highlighting the role of external sources of innovation and of innovation based on learning by doing, using and interacting (DUI). Nonetheless, there has been limited empirical research on how firm-internal activities to promote DUI affect innovation, and on how important such activities are relative to internal R&D and to external sources of knowledge. We also know little about how internal DUI activities interact with internal R&D and with external knowledge sourcing. We address these gaps using Norwegian Community Innovation Survey data from 2010. We find that internal DUI is an important driver of new-to-market product innovation. Further, the results show partial substitution effects between internal DUI and internal R&D, as well as between internal DUI and external DUI. |
| Keywords: | DUI; experience-based knowledge; firms; innovation; STI |
| JEL: | J50 |
| Date: | 2022–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117424&r=tid |
| By: | Salomé Baslandze |
| Abstract: | Firm-level productivity differences are big and largely ascribed to ex-ante heterogeneity in the entrepreneurs’ growth potential at birth. Where do these ex-ante differences come from, and what can the policy do to encourage the entry of high-growth entrepreneurs? I study empirically and by means of a quantitative growth model the spinout firms: the firms founded by former employees of the incumbent firms. By focusing on innovating spinouts identified through the inventor mobility in the patent data, I document that spinout entrants significantly outperform regular entrants throughout their life. Firms with a bigger technological lead spawn more successful spinouts. Building on these observations, I build a structural model of innovation and firm dynamics, where firm heterogeneity arises from endogenous decisions of innovation workers to become entrepreneurs and create spinouts. The spinout dynamics affect productivity growth through four main channels: direct entry, incumbents’ disincentive effect, knowledge diffusion, and the firm composition channel. Growth decompositions show that accounting for spinout dynamics is quantitatively important for our understanding of the growth process. I analyze the role of noncompete laws affecting employee entrepreneurship for aggregate innovation and growth. |
| Keywords: | innovation; spinouts; entrepreneurship; noncompete laws; firm dynamics |
| JEL: | O30 O43 |
| Date: | 2022–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:95062&r=tid |
| By: | Matsuzaki, Taisuke; Shigeno, Hidenori; Taher, Sheikh Abu; Tsuji, Masatsugu |
| Abstract: | The innovation theory tends to focus on innovation capabilities and estimate how these promote innovation. However, the final aim of innovation is not innovation itself but enhancing profits or sales. To complete the innovation theory, it is required to show whether innovation achieved contributes to improve in business performances. A further focus of this paper is on the role of ICT and R&D in the innovation process. ICT plays a vital role in absorbing information from outside the firm, while R&D is essential for assimilating obtained information with existing resources to create something novel. This paper focus on the joint effect of these two factors. The estimation is based on the twostage provit IV panel model and authors' own data of 2012 and 2017. The dependent variables are innovation in the first equation and sales in the second. The results obtained show that (i) Innovation enhances sales; (ii) R&D is significant for innovation; (iii) ICT is not significant for neither of equations; and (iv) the cross term of R&D and ICT is significant for innovation, implying ICT is an enabler of innovation. This is a novel result of the paper. |
| Keywords: | Open innovation,instrumental variable,mediation,cross term,enabler |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse22:265659&r=tid |
| By: | Antonin Bergeaud; Julia Schmidt; Riccardo Zago |
| Abstract: | When a technology becomes the new standard, the firms that are leaders in producing this technology have a competitive advantage. Matching the semantic content of patents to standards and exploiting the exogenous timing of standardization, we show that firms closer to the new technological frontier increase their market share and sales. In addition, if they operate in a very competitive market, these firms also increase their R&D expenses and investment. Yet, these effects are temporary since standardization creates a common technological basis for everyone, which allows followers to catch up and the economy to grow. |
| Keywords: | standardization, patents, competition, innovation, text mining |
| Date: | 2022–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1881&r=tid |
| By: | Choi, Jaedo; Shim, Younghun |
| Abstract: | We study how the adoption of foreign technology and local spillovers from such adoption contributed to late industrialization in a developing country during the postwar period. Using novel historical firm-level data for South Korea, we provide three empirical findings: direct productivity gains to adopters, local productivity spillovers of the adoption, and complementarity in firms' adoption decisions. Based on these findings, we develop a dynamic spatial model with firms' technology adoption decisions and local spillovers. The spillovers induce dynamic complementarity in firms' technology adoption decisions. Because of this complementarity, the model potentially features multiple steady states. Temporary adoption subsidies can have permanent effects by moving an economy to a new transition path that converges to a higher-productivity steady state. We calibrate our model to the microdata and econometric estimates. We evaluate the effects of the South Korean government policy that temporarily provided adoption subsidies to heavy manufacturing firms in the 1970s. Had no adoption subsidies been provided, South Korea would have converged to a less industrialized steady state in which the heavy manufacturing sector’s share of GDP would have been 15 percentage points lower and aggregate welfare would have been 10% lower compared to the steady state with successful industrialization. Thus, temporary subsidies for technology adoption had permanent effects. |
| Keywords: | Technology adoption, industrialization, knowledge spillover, path dependence, big push |
| JEL: | O14 O33 O53 R12 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115438&r=tid |
| By: | Anna Maria Mayda; Gianluca Orefice; Gianluca Santoni |
| Abstract: | This paper analyses the impact of skilled migrants on the innovation (patenting) activity of French firms between 1995 and 2010, and investigates the underlying mechanism. We present district-level and firm-level estimates and address endogeneity using a modified version of the shift-share instrument. Skilled migrants increase the number of patents at both the district and firm level. Large, high-productivity and capital-intensive firms benefit the most, in terms of innovation activity, from skilled immigrant workers. Importantly, we provide evidence that one channel through which the effect works is task specialization (as in Peri and Sparber, 2009). The arrival of skilled immigrants drives French skilled workers towards language-intensive, managerial tasks while foreign skilled workers specialize in technical, research-oriented tasks. This mechanism manifests itself in the estimated increase in the share of foreign inventors in patenting teams as a consequence of skilled migration. Through this channel, greater innovation is the result of productivity gains from specialization. |
| Keywords: | Skilled Immigration;Innovation;Patents |
| JEL: | F22 J61 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2022-11&r=tid |
| By: | Zheng Tian; Timothy R. Wojan; Stephan J. Goetz |
| Abstract: | Self-reported innovation measures provide an alternative means for examining the economic performance of firms or regions. While European researchers have been exploiting the data from the Community Innovation Survey for over two decades, uptake of US innovation data has been much slower. This paper uses a restricted innovation survey designed to differentiate incremental innovators from more far-ranging innovators and compares it to responses in the Annual Survey of Entrepreneurs (ASE) and the Business R&D and Innovation Survey (BRDIS) to examine the informational value of these positive innovation measures. The analysis begins by examining the association between the incremental innovation measure in the Rural Establishment Innovation Survey (REIS) and a measure of the inter-industry buying and selling complexity. A parallel analysis using BRDIS and ASE reveals such an association may vary among surveys, providing additional insight on the informational value of various innovation profiles available in self-reported innovation surveys. |
| Keywords: | Self-reported innovation, substantive and incremental innovation, latent innovation measure, logistic regression |
| JEL: | O00 O30 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:22-46&r=tid |
| By: | Patricia Laurens (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel); Pierluigi Toma (University of Salento [Lecce]); Antoine Schoen (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel); Cinzia Daraio (Sapienza University of Rome - Department of Informatics and System Sciences - UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome]); Philippe Larédo (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel, University of Manchester [Manchester]) |
| Abstract: | This work explores the relationship between multinational R&D and innovation productivity among top corporate knowledge and R&D producers by adopting a twofold concept of internationalisation: (1) the firm's degree of R&D internationalisation, and (2) the firm's geographic diversification. We model the patent production process with an appropriate and robust conditional Data Envelopment Analysis (DEA) estimator, using a unique database of firms that matches financial indicators and patent information. Our results reinforce the fundamental role of internationalisation in the knowledge production process when the internationalisation process is properly and strategically managed. We interpret our empirical evidence through the theoretical lens of the learning theory of internationalisation, and we postulate that a high R&D intensity is a key driver to overcoming the challenges of internationalisation. |
| Keywords: | R&D productivity,Multinationality,Conditional efficiency,Patents,DEA modelling,multinationality,conditional efficiency,patents,DEA modelling JEL classification O32,F23,L25,C44 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03840316&r=tid |
| By: | Teruel, Mercedes; Amaral-Garcia, Sofia; Bauer, Péter; Coad, Alexander; Domnick, Clemens; Harasztosi, Péter; Pál, Rozália |
| Abstract: | We analyse how the COVID-19 crisis impacted firms' employment levels and digitalisation efforts differently depending on their pre-crisis productivity, digitalisation and growth performance. We match the EIB Investment Survey with firm-level financial statements from the ORBIS database for 27 EU Member States and the United Kingdom. Following the sales decline during the crisis, we show that: (1) Higher productivity firms are less prone to reduce the number of employees both in the short and in the long term; (2) High-growth enterprises are also less prone to reduce the number of employees in the long term; (3) Firms in highly digitalised sectors are less likely to reduce the number of employees; (4) Firms are more likely to increase their use of digital technologies, especially those that were already more digitalised before the crisis. |
| Keywords: | HGE,labour productivity,digitalisation,COVID-19,Mercedes Teruel,Sofia Amaral-Garcia,Peter Bauer,Alex Coad,Clemens Domnick,Péter Harasztosi,Rozália Pál |
| JEL: | L22 O47 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eibwps:202213&r=tid |
| By: | Fei Yu (School of Economics and Management & Research Center for Technological Innovation, Tsinghua University); Yanrui Wu (Business School, The University of Western Australia); Jin Chen (School of Economics and Management & Research Center for Technological Innovation, Tsinghua University) |
| Abstract: | In this paper, the term “strategic patent policy” refers to the case where examination of foreign firms’ patent applications may be deliberately manipulated by national patent offices so that domestic firms are protected and can leapfrog their foreign counterparts in technology in strategic sectors. However, it is not easy to distinguish the impacts of discriminatory patent policy from those due to liabilities of foreignness. Therefore, international intervention to eliminate discriminatory treatment becomes difficult. In this paper, we try to solve this conundrum by proposing a game-theory model to simulate the effect of strategic patent policy. The simulation results suggest that strategic patent policy measures are more likely to impede foreign patents that are (1) associated with R&D-intensive industries, (2) related to sectors where local firms’ absorptive capability is weak, and (3) registered in more countries. These hypotheses are then tested empirically by using patent databases of six major economies in the world. The empirical analysis provides evidence of possible existence of strategic patent policy against foreign companies in Japan and China, especially in high-technology and medium-high-technology industries. |
| Keywords: | Technological Leapfrogging and Strategic Patent Policy |
| JEL: | L16 O31 O34 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:22-17&r=tid |
| By: | Antonin Bergeaud; Arthur Guillouzouic; Emeric Henry; Clement Malgouyres |
| Abstract: | Introducing a new measure of scientific proximity between private firms and public research groups and exploiting a multi-billion euro financing program of academic clusters in France, we provide causal evidence of spillovers from academic research to private sector firms. Firms in the top quartile of exposure to the funding shock increase their R&D effort by 20% compared to the bottom quartile. We exploit reports produced by funded clusters, complemented by data on labor mobility and R&D public-private partnerships, to provide evidence on the channels for these spillovers. We show that spillovers are driven by outsourcing of R&D activities by the private to the public sectors and, to a lesser extent, by labor mobility from one to the other and by informal contacts. We discuss the policy implications of these findings. |
| Keywords: | knowledge spillovers, policy instruments, technological distance |
| Date: | 2022–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1882&r=tid |
| By: | Davide Consoli (INGENIO CSIC-UPV); Giovanni Marin (Department of Economics, Society and Politics, University of Urbino Carlo Bo and SEEDS); Francesco Rentocchini (European Commission, Joint Research Centre and Department of Economics, Management and Quantitative Methods, University of Milan); Francesco Vona (University of Milan, Fondazione Eni Enrico Mattei and OFCE, Sciences Po Abstract: The present study adds to the literature on routinization and employment by capturing within-occupation task changes over the period 1980-2010. The main contributions are the measurement of such changes and the combination of two data sources on occupational task content for the United States: the Dictionary of Occupational Titles and the Occupational Information Network. We show that within-occupation reorientation away from routine tasks: i) accounts for 1/3 of the decline in routine-task use; ii) accelerates in the 1990s, decelerates in the 2000s but with significant convergence across occupations; iii) allows workers to escape the employment and wage decline, conditional on the initial level of routine-task intensity. The latter finding suggests that task reorientation is a key channel through which labour markets adapt to various forms of labour-saving technological change.) |
| Keywords: | Tasks, Routinization, Technological Change, Employment Dynamics, Race between Technology and Education |
| JEL: | J23 J24 O33 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2022.33&r=tid |
| By: | Urata, Shujiro (Asian Development Bank Institute); Baek, Youngmin (Asian Development Bank Institute) |
| Abstract: | We examine the foreign direct investment (FDI) spillover effects in developing countries and investigate the importance of the absorptive capacity of a firm and a country in realizing and facilitating FDI spillover. We use data obtained from the World Bank’s Enterprise Surveys for 107 countries from 2007 to 2020. We find that firms in developing countries do not benefit from horizontal FDI but benefit from forward and backward vertical FDI. We also find that firms can benefit from horizontal, forward, and backward FDI by improving the absorptive capacity of firms and host countries. Based on these findings, we present several recommendations to help firms benefit from FDI spillover. |
| Keywords: | foreign direct investment; technology transfer; absorptive capacity |
| JEL: | D22 F21 O30 R10 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1323&r=tid |