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on Technology and Industrial Dynamics |
| By: | Engberg, Erik (Örebro University School of Business); Görg, Holger (University of Kiel); Lodefalk, Magnus (Örebro University School of Business); Javed, Farrukh (Lund University); Längkvist, Martin (Örebro University); Monteiro, Natália (University of Minho); Kyvik Nordås, Hildegunn (Örebro University School of Business); Pulito, Giuseppe (Humboldt University); Schroeder, Sarah (Aarhus University); Tang, Aili (Örebro University School of Business) |
| Abstract: | We unbox developments in artificial intelligence (AI) to estimate how exposure to these developments affect firm-level labour demand, using detailed register data from Denmark, Portugal and Sweden over two decades. Based on data on AI capabilities and occupational work content, We develop and validate a time-variant measure for occupational exposure to AI across subdomains of AI, including language modelling. According to our model, white collar occupations are most exposed to AI, and especially white collar work that entails relatively little social interaction. We illustrate its usefulness by applying it to near-universal data on firms and individuals from Sweden, Denmark, and Portugal, and estimating firm labour demand regressions. We find a positive (negative) association between AI exposure and labour demand for highskilled white (blue) collar work. Overall, there is an up-skilling effect, with the share of white-collar to blue collar workers increasing with AI exposure. Exposure to AI within the subdomains of image and language are positively (negatively) linked to demand for high-skilled white collar (blue collar) work, whereas other AI-areas are heterogeneously linked to groups of workers. |
| Keywords: | Artificial intelligence; Labour demand; Multi-country firm-level evidence |
| JEL: | E24 J23 J24 N34 O33 |
| Date: | 2023–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2023_013&r=tid |
| By: | Engberg, Erik (Örebro University School of Business); Koch, Michael (Aarhus University); Lodefalk, Magnus (Örebro University School of Business); Schroeder, Sarah (Aarhus University) |
| Abstract: | This paper documents novel facts on within-occupation task and skill changes over the past two decades in Germany. In a second step, it reveals a distinct relationship between occupational work content and exposure to artificial intelligence (AI) and automation (robots). Workers in occupations with high AI exposure, perform different activities and face different skill requirements, compared to workers in occupations exposed to robots. In a third step, the study uses individual labour market biographies to investigate the impact on wages between 2010 and 2017. Results indicate a wage growth premium in occupations more exposed to AI, contrasting with a wage growth discount in occupations exposed to robots. Finally, the study further explores the dynamic influence of AI exposure on individual wages over time, uncovering positive associations with wages, with nuanced variations across occupational groups. |
| Keywords: | Artificial intelligence technologies; Task content; Skills; Wages |
| JEL: | J23 J24 J44 N34 O33 |
| Date: | 2023–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2023_012&r=tid |
| By: | NINDL Elisabeth (European Commission - JRC); CONFRARIA Hugo (European Commission - JRC); RENTOCCHINI Francesco (European Commission - JRC); NAPOLITANO Lorenzo (European Commission - JRC); GEORGAKAKI Aliki (European Commission - JRC); INCE Ela (European Commission - JRC); FAKO Peter (European Commission - JRC); TUEBKE Alexander (European Commission - JRC); GAVIGAN James (European Commission - JRC); HERNANDEZ GUEVARA Hector (European Commission - JRC); PINERO MIRA Pablo (European Commission - JRC); RUEDA CANTUCHE Jose (European Commission - JRC); BANACLOCHE SANCHEZ Santacruz (European Commission - JRC); DE PRATO Giuditta (European Commission - JRC); CALZA Elisa (European Commission - JRC) |
| Abstract: | This is the 20th edition of ‘The EU Industrial Research & Development (R&D) Investment Scoreboard’. The European Commission issued the first edition of the Scoreboard in 2004 to monitor and analyse industrial R&D investment trends in the context of the EU’s 3% of GDP R&D investment policy target, which remains a key performance indicator of the EU’s long-term competitiveness. This report is structured in two parts. Part I provides an overview of the world's top 2 500 R&D investors, responsible for over three quarters of R&D performed by the business sector globally, based on the financial information in the firms’ latest published audited accounts. It analyses the main trends and benchmarks the EU’s top R&D investing companies against global competitors, and gives details on the EU’s top 1 000 R&D investing firms. For the first time, a panel of Scoreboard firms allows insights into structural R&D trends over the past 10 and 20 years. This sheds light on the strategic role played by R&D through the global financial crisis and the COVID-19 pandemic. Part II combines the Scoreboard data with other datasets to gain novel insights into the technological advancement of the companies. For example, as Scoreboard firms own two-thirds of the patents filed in the five largest patent offices. Characterising the patent portfolios of Scoreboard firms in automotive, advanced materials and artificial intelligence provides additional insights into the technological positioning of EU firms. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc135576&r=tid |
| By: | Valeria Cirillo; Francesco Massimo; Matteo Rinaldini; Jacopo Staccioli; Maria Enrica Virgillito |
| Abstract: | This paper aims to investigate the impact of monopoly power on the world of work within the logistics sector, particularly in the context of automation processes. We conduct a fieldwork analysis of three workplaces situated in Italy, each owned by distinct types of monopolies: a conventional monopoly, Phillip Morris, the global leader in tobacco and cigarette production; a state-owned monopoly, Poste Italiane, the exclusive public provider of mail services within the national borders; and a novel form of digital monopoly that holds control over intangibles and exhibits monopsonistic control over labour - Amazon. Through a comparative examination of these three diverse forms of monopolies, utilising corporate-level metrics and patent data, we scrutinise the impact on the labour process of individuals employed in the logistics sector and affected by the implementation of automation technology, such as Automated Guided Vehicles. Employing a qualitative analysis that includes semi-structured interviews with HR professionals, IT specialists, and workers, we underscore that powerful monopolies play a crucial role in shaping the trajectory of technological development, adoption, and utilisation. Despite notable distinctions observed among the three cases, we underscore a common trend of standardisation and codification of human activities when interfacing with automated machines. |
| Keywords: | automation; intangibles; monopoly power; labour process; case studies; tasks; organization of work |
| Date: | 2023–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2023/44&r=tid |
| By: | Enrique Ide; Eduard Talamas |
| Abstract: | How does Artificial Intelligence (AI) affect the organization of work and the structure of wages? We study this question in a model where heterogeneous agents in terms of knowledge--humans and machines--endogenously sort into hierarchical teams: Less knowledgeable agents become "workers" (i.e., execute routine tasks), while more knowledgeable agents become "managers" (i.e., specialize in problem solving). When AI's knowledge is equivalent to that of a pre-AI worker, AI displaces humans from routine work into managerial work compared to the pre-AI outcome. In contrast, when AI's knowledge is that of a pre-AI manager, it shifts humans from managerial work to routine work. AI increases total human labor income, but it necessarily creates winners and losers: When AI's knowledge is low, only the most knowledgeable humans experience income gains. In contrast, when AI's knowledge is high, both extremes of the knowledge distribution benefit. In any case, the introduction of AI harms the middle class. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.05481&r=tid |
| By: | Addis Gedefaw Birhanu (EM - emlyon business school); Alfonso Gambardella (Bocconi University [Milan, Italy]) |
| Abstract: | Research Summary This article examines the relationship between family ownership and patent use strategy using primary data from a patent survey, as well as patent and firm-level data from secondary sources. The findings reveal that family firms are less likely than non-family firms to license their patents and more likely to internally commercialize them. We show that the decision of family firms to license less does not depend on lower patent quality or inefficient patent use. Instead, it arises from their preference for patent uses that allow them to exert greater control over the value they can derive from their innovations. We also show that family firms commercialize more patents because they leverage their managerial discretion to explore and seize emerging internal patent commercialization opportunities. Managerial Summary Whether the desire of families in family firms to maintain control over the company and strategic resources negatively impacts their economic performance has important governance implications. Within the context of patent commercialization, in line with this desire for control, our study highlights the preference of family firms to prioritize internal commercialization over licensing. To offset their underlicensing tendency, family firms internally commercialize more patents by being nimble to identify and capitalize on emerging commercialization opportunities. This enables them to align their control ambitions with patent commercialization efficiency, akin to nonfamily firms. |
| Keywords: | family firms, family ownership, innovation, patent commercialization, patent licensing |
| Date: | 2023–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04343877&r=tid |
| By: | Dominic Smith; G. Jacob Blackwood; Michael D. Giandrea; Cheryl Grim; Jay Stewart; Zoltan Wolf |
| Abstract: | Official Bureau of Labor Statistics (BLS) estimates of productivity growth in the retail trade sector indicate that productivity has grown at a moderate rate of 2.8 percent per year between 1987 and 2017, and that there is considerable variation in growth rates across 4-digit industries. But the official data, which can be thought of as weighted averages of establishment-level productivity, tell us nothing about what goes on within industries. Given the transformation of retail trade over the past three decades, this information could provide more insight. In this paper, we present productivity dispersion statistics for industries in the retail trade sector. These statistics are similar to the BLS-Census Bureau Dispersion Statistics on Productivity (DiSP) for manufacturing industries and complement the official BLS industry-level productivity statistics. We find that from 1987 through 2017, productivity dispersion increased slightly on average. Surprisingly, the tails of the retail productivity distribution have similar dispersion as we find in the middle. Firm dispersion has increased more than establishment dispersion. |
| Keywords: | retail, reallocation, business cycles, productivity dispersion |
| JEL: | D24 E24 L81 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:23-60&r=tid |
| By: | Alexander Ahammer; Analisa Packham; Jonathan Smith |
| Abstract: | We estimate the role of firms in worker health care utilization. Using linked administrative data on Austrian workers from 1998-2018, we exploit mobility between firms to estimate how much a firm contributes to worker-level differences in utilization in a setting with non-employer provided universal health care. We find that firms are responsible for nearly 30 percent of the variation in across-worker health care expenditures. Effects are not driven by changes in geography or industry. We then estimate a measure of relative firm-specific utilization and explore existing correlates to help explain these effects. |
| JEL: | H51 I1 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32011&r=tid |
| By: | Pierre Pelletier; Kevin Wirtz |
| Abstract: | This paper investigates the relationship between scientists' cognitive profile and their ability to generate innovative ideas and gain scientific recognition. We propose a novel author-level metric based on the semantic representation of researchers' past publications to measure cognitive diversity both at individual and team levels. Using PubMed Knowledge Graph (PKG), we analyze the impact of cognitive diversity on novelty, as measured by combinatorial novelty indicators and peer labels on Faculty Opinion. We assessed scientific impact through citations and disruption indicators. We show that the presence of exploratory individuals (i.e., cognitively diverse) is beneficial in generating distant knowledge combinations, but only when balanced by a significant proportion of exploitative individuals (i.e., cognitively specialized). Furthermore, teams with a high proportion of exploitative profiles tend to consolidate science, whereas those with a significant share of both profiles tend to disrupt it. Cognitive diversity between team members appears to be always beneficial to combining more distant knowledge. However, to maximize the relevance of these distant combinations of knowledge, maintaining a limited number of exploratory individuals is essential, as exploitative individuals must question and debate their novel perspectives. These specialized individuals are the most qualified to extract the full potential of novel ideas and integrate them within the existing scientific paradigm. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.10476&r=tid |
| By: | J. Andrés; J.E. Boscá; R. Doménech; J. Ferri |
| Abstract: | We assess the macroeconomic and welfare implications of carbon mitigation strategies using an environmental Dynamic General Equilibrium model. The economy uses energy from both green renewable technologies and fossil fuels. We set an emission reduction target in line with the Paris Agreement and analyze the welfare and macroeconomic impacts of various strategies, including (1) raising the domestic price of fossil fuels, (2) implementing a subsidy on green investment funded through lump-sum taxes, (3) imposing taxes on emissions with rebates to households, and (4) utilizing emission taxes to support green investment. Our model provides a framework for evaluating the welfare consequences of various carbon mitigation strategies, emphasizing the need to balance the short and long-term effects of incentives for investment and innovation in green technologies, as well as taxes and other policies designed to reduce carbon emissions. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaeee:eee2024-01&r=tid |
| By: | Michela Giorcelli |
| Abstract: | The Second World War II (WWII) was arguably one of the largest shocks to the U.S. economic and production system in history. Historians, business historians, and economists have largely discussed the stimulus that WWII had on U.S. technological advancements. However, its effect on U.S. ‘‘managerial technology’’ innovations has been largely ignored, except for very few qualitative works. In this paper, I argue that ‘‘managerial technology’’ played a key role in shaping U.S. WWII production and its capacity to defeat some of the most advanced economies in the world. The large-scale diffusion of innovative management practices to US firms involved in war production acted as a technology that put them on a higher growth path for decades. Moreover, it made U.S. managerial practices internationally distinctive and helped create the so-called “American Way” of business, which was exported to war-torn European and Japanese economies in the war aftermath. |
| JEL: | N0 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31980&r=tid |
| By: | Marouane Nakhcha (laboratoire de recherche en sciences de gestion des organisations - ENCG Kenitra); Mamdouh Tlaty (laboratoire de recherche en sciences de gestion des organisations - ENCG Kenitra) |
| Abstract: | This article explores the complex interconnection between digitization, green finance, and economic sustainability, highlighting the transformative potential of digitization for a greener economy. Adopting a rigorous research methodology, we examine the foundations of digitization and green finance, identifying the challenges and opportunities inherent in their convergence. The principles and objectives of green finance, inspired by thinkers such as Zadek and Elkington, are confronted with the advances of digitization. Our theoretical analysis reveals complex synergies between digitization and green finance, highlighting their implications for transparency, market efficiency, impact measurement, investment diversification, and innovation. However, these synergies pose challenges such as data security and regulation, requiring a responsible approach. In examining the challenges of digitizing green finance, we highlight the contributions of renowned researchers such as Rob Bauer, Andreas G. F. Hoepner, and Ioannis Oikonomou. Data privacy and regulatory challenges emerge as significant obstacles to a successful transition to greener, more sustainable finance. Our four-step methodology offers a balanced analysis of technological and regulatory challenges, exploring theoretical perspectives and potential solutions. Experts such as Rob Bauer, Andreas G. F. Hoepner, Ioannis Oikonomou, and Carolyn M. Wilkins offer innovative strategies for overcoming these obstacles, emphasizing the importance of collaboration and proactive regulation. Our article contributes to understanding the relationship between digitization, green finance, and economic sustainability. Although the transition to green digital finance presents challenges, the theoretical recommendations offer promising avenues for a more responsible and innovative economy. Our analysis encourages ongoing reflection and determined action to build a more sustainable future. |
| Keywords: | Innovation, Green Finance, Economic Sustainability, Technological Challenges, Catalyst, Sustainable development |
| Date: | 2023–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04333883&r=tid |
| By: | Andrea Coveri; Claudio Cozza; Dario Guarascio |
| Abstract: | This work analyzes the mutual dependence linking digital platforms, i.e., 'Big Tech', and the military apparatus. Three main elements are at the roots of such dependence: an 'originary linkage' binding the development of digital platforms with governments' R&D military efforts, the critical nature of infrastructures and technologies controlled by platforms, and their role as their government's 'eyes and ears' (both at home and abroad). Focusing on the US, we first document the growing relevance of these corporations as Department of Defence contractors. Second, we explore a selection of multi-year contracts entrusting platforms to develop and manage critical technologies and infrastructures for military purposes. Finally, we document the direct involvement of major US-based platforms in war scenarios. |
| Keywords: | Monopoly capital; imperialism; war; nation-states; digital platforms; military industry |
| Date: | 2023–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2023/47&r=tid |
| By: | Christian Ochsner |
| Abstract: | Does a short episode of conflict or exposure to hostile troops cause regional economic backwardness, and if so, why and how does it persist? I answer these questions by exploiting economic differences across the idiosyncratic and short-lived line of contact between the Red Army and the Western Allies in South Austria at the end of WWII. Spatial regression discontinuity estimates show that hostile presence of the Red Army for 74 days caused an immediate relative population decline of around 12%, amplified to 25% by today. Age-specific migration patterns and subsequent fertility differences explain the multiplying effects. Sector development and measures of local labor productivity in 2011 also lag behind in regions briefly seized by the Red Army, likely driven by skill-specific migration and hampered investment patterns after WWII. The findings provide novel insights into the long-run effects of wars and conflicts, and point to the isolated role of the Red Army’s hostile actions after WWII to understand the European economic East-West divide. |
| Keywords: | Conflict, Hostility, Population shock, Regional development, Red Army |
| JEL: | D74 J13 N44 O14 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp768&r=tid |