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on Technology and Industrial Dynamics |
| By: | Ali-Yrkkö, Jyrki; Pajarinen, Mika; Ylhäinen, Ilkka |
| Abstract: | Abstract This study examines the outcomes of firms’ innovation cooperation activities. Using data from the Community Innovation Survey (CIS), we analyze Finnish-owned and foreign-owned firms operating in Finland. Our findings suggest a positive relationship between in-house R&D and innovation outcomes. However, the relationship between innovation cooperation and innovation outcomes appears more complex and varies by the type of cooperation. Specifically, for product innovation, the link between innovation cooperation and innovation outcomes seems to be limited for both domestic and foreign firms. |
| Keywords: | Innovation, R&D, Research, Development, Foreign, Domestic, Ownership |
| JEL: | F23 O3 |
| Date: | 2024–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:rif:report:153 |
| By: | Gustavo de Souza; Jacob S. Herbstman; Jack Mannion |
| Abstract: | We study how the demand for programming skills has impacted inequality. We create a new dataset with information on wages, employment, and software of Brazilian programmers, covering the period from the birth of information technology (IT) to the rise of artificial intelligence (AI). High-ability, high-wage, and highly educated individuals in key technology hubs are more likely to become programmers. Creating software boosts both wages and career prospects of programmers, especially for those with specialized skills in AI and cybersecurity. These wage gains are concentrated among top programmers, increasing inequality within the profession. Therefore, increased demand for specialized skills in programming has contributed to wage inequality both within the programming field and between programmers and other occupations. |
| Keywords: | technological progress; AI; software |
| JEL: | J23 J24 O33 |
| Date: | 2024–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedhwp:99304 |
| By: | Leogrande, Angelo; Drago, Carlo; Mallardi, Giulio; Costantiello, Alberto; Magaletti, Nicola |
| Abstract: | This article focuses on the propensity to patent across Italian regions, considering data from ISTAT-BES between 2004 and 2019 to contribute to analyzing regional gaps and determinants of innovative performances. Results show how the North-South gap in innovative performance has persisted over time, confirming the relevance of research intensity, digital infrastructure, and cultural employment on patenting activity. These relations have been analyzed using the panel data econometric model. It allows singling out crucial positive drivers like R&D investment or strongly negative factors, such as limited mobility of graduates. More precisely, given the novelty of approaches applied in the used model, the following contributions are represented: first, the fine grain of regional differentiation, from which the sub-national innovation system will be observed. It also puts forward a set of actionable policy recommendations that would contribute to more substantial inclusive innovation, particularly emphasizing less-performing regions. By focusing on such dynamics, this study will indirectly address how regional characteristics and policies shape innovation and technological competitiveness in Italy. Therefore, it contributes to the debate on regional systems of innovation and their possible role in economic development in Europe since the economic, institutional, and technological conditions are differentiated between various areas in Italy. |
| Date: | 2024–12–27 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nftv3 |
| By: | Moreno, Neil Irwin S. |
| Abstract: | The emergence of global value chains (GVCs) in recent years has highlighted the increasing reliance of manufacturing industries on services. Manufacturing firms have intensively used service inputs, performed in-house service activities, and sold services embedded in or bundled with goods. Considered a services economy, the Philippines could leverage services to develop a competitive manufacturing sector and strengthen GVC integration. This study assessed the servicification of the Philippine manufacturing sector in the context of trade and GVCs. Using trade in value added data, evidence shows that the contribution of services to Philippine manufacturing exports has been on par with that of regional neighbors; however, Philippine manufacturing has had weak linkages with modern services, such as ICT and business services. Based on establishment surveys and censuses, Philippine manufacturing firms extensively use service inputs, but R&D activities and the sale of services have been less common. The relationship between servicification and export participation was estimated, revealing that the sale of industrial services, utilization of transport services, and employing R&D personnel were associated with a higher probability of exporting. Drawing from the empirical findings, there is a need to develop the country’s modern services sectors and strengthen their linkages with manufacturing industries. Promoting R&D and innovation among firms could also enhance capabilities, making them competitive in entering export markets. Moreover, firms looking to export could benefit from potential reductions in transport and logistics costs brought about by the streamlining of transport regulations and procedures. Comments on this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | servicification;trade in value added;manufacturing;GVCs;global value chains |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2024-39 |
| By: | Claudia Amadei (Department of Economics and Management, University of Padova and Interuniversity Research Centre on Public Economics – CRIEP); Cesare Dosi (Department of Economics and Management, University of Padova and Interuniversity Research Centre on Public Economics – CRIEP); Francesco Jacopo Pintus (Department of Economics, Ca’ Foscari University of Venice and Interuniversity Research Centre on Public Economics – CRIEP) |
| Abstract: | The decoupling of energy-related carbon emissions from economic growth has been mostly driven by reductions of the energy intensity of GDP, which can be attributed either to changes in countries’ economic structure or within-sector energy-efficiency improvements. One question is whether observed reductions in energy intensity may stem from shifts to less energy-intensive sectors without equivalent changes in consumption patterns, raising uncertainty on their true impact on global decarbonization. This paper aims to empirically investigate this mechanism in a panel of 15 OECD countries. First, using an Index Decomposition Analysis (IDA) including an offshoring factor, we show that structural changes in the production side have generally been unmatched with similar changes in consumption patterns. We then proxy a “demand-invariant structural change” in a Bayesian Structural Panel VAR model, by exploiting a novel measure given by the divergence between consumption-based and production-based carbon emissions. We find that shocks in this divergence measure are efficiently associated with demand-invariant structural changes and persistently and significantly reduce national energy intensity. Taken together, our results support the thought that caution should be taken when using production-based indicators to assess a country’s contribution to global carbon mitigation. |
| Keywords: | Energy intensity, Emissions accounting, Offshoring, IDA analysis, Structural VAR, Panel data |
| JEL: | C22 C33 F18 Q43 Q56 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2024.26 |
| By: | Youngsoon Kwon (Bank of Korea); Myungkyu Shim (Yonsei University); Hee-Seung Yang (Yonsei University) |
| Abstract: | Does the COVID-19 crisis accelerate automation? We investigate this question by analyzing employment trends based on occupational COVID-19 exposure and automation potential, key factors influencing post-pandemic automation. Using micro-level data from South Korea (2016–2022), we find a persistent decline in employment for occupations with high exposure and high automatability since the pandemic outbreak. In contrast, other occupations have largely recovered to pre-pandemic employment levels after an initial decline. These findings suggest that the pandemic has incentivized firms to adopt labor-replacing technologies to mitigate the business risks associated with viral transmission. |
| Keywords: | Automation, COVID-19, Employment, Technology adoption, South Korea |
| JEL: | E24 I15 J21 O33 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:yon:wpaper:2024rwp-236 |
| By: | Jaedo Choi; Younghun Shim |
| Abstract: | We study how one-time subsidies for adoption of modern technology drove Korea's industrialization in the 1970s. Leveraging unique historical data, we provide causal evidence consistent with coordination failures: adoption improved adopters' performance and generated local spillovers, with firms more likely to adopt when other local firms had already adopted. We incorporate these findings into a quantitative model, where the potential for multiple steady states depends on parameters mapped to the causal estimates. In our calibrated model, Korea's one-time subsidies shifted its economy to a more industrialized steady state, increasing heavy manufacturing's GDP share by 8.6% and export intensity by 16.2%. Larger market access amplifies the effects of these subsidies, as the gains from adoption increase with firms' scale. |
| Keywords: | Big push; Industrialization; Coordination failure; Complementarity; Local spillover; Market access |
| Date: | 2024–12–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/259 |
| By: | Ludovic Dibiaggio (SKEMA Business School); Lionel Nesta (Université Côte d'Azur, CNRS, GREDEG, France; SKEMA Business School; Sciences Po Paris, OFCE, France); Simone Vannuccini (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | We present a first-of-its-kind empirical study of technological sovereignty in artificial intelligence, adopting a competence-based perspective. We use patents and publication data to map competencies across AI techniques, functions and applications, and develop a novel measure of integration based on relative specializations and complementarities. We argue that our measure approximates technological sovereignty by capturing local capabilities to innovate in AI. We use our novel measure to explain AI innovation, and unpack integration determinants. Our focus is on the European Union, given its lagging position yet key role in a global landscape increasingly characterized by growing rivalries and fragmentation. |
| Keywords: | Greening value chains, Firm internal markets failures, Transfer pricing, Fiscal compliance and the environment, environmental governance |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2024-34 |
| By: | Aaron Flaaen; Fariha Kamal; Eunhee Lee; Kei-Mu Yi |
| Abstract: | Global value chains (GVC) are a pervasive feature of modern production, but they are hard to measure. Using U.S. Census microdata, we develop novel measures of the linkages between U.S. manufacturing establishments’ imports and exports. We document three new GVC patterns. First, for every dollar of exports, imported inputs represent 13 cents in 2002 and 20 cents by 2017, substantially higher than what aggregate data suggests. Second, we find strong complementarities between input and output markets reflected in “round-trip” trade linkages where an establishment sources inputs from and exports output to the same country. Third, we find a strong positive association between regional trade agreements and GVC trade flows. The aggregate data used to build global input-output tables requires proportionality assumptions that we find mute these relationships. Finally, with a global firms model, we show that the roundtrip results are consistent with a notion of country-specific fixed costs that are at least partially common between sourcing (imports) and foreign sales (exports). |
| Keywords: | global value chains; manufacturing; exports; imports; establishments; microdata |
| JEL: | F1 F14 O51 |
| Date: | 2024–12–27 |
| URL: | https://d.repec.org/n?u=RePEc:fip:feddwp:99325 |
| By: | Cortes, Guido Matias; Dabed, Diego; Oliveira, Ana; Salomons, Anna |
| Abstract: | We consider how firms' organization of production relates to workers' wages. Using matched employer-employee data from Portugal, we document that firms differ starkly in their occupational employment concentration, even within detailed industries, with some firms employing workers across a broad range of occupations and others being much more specialized. These differences are robustly predictive of wages: a worker employed in a specialized, i.e. "fissured" firm, earns less than that same worker employed in a less specialized firm. This wage penalty for working in a fissured firm is observed across occupations of all skill levels. Firm specialization helps account for the role of firms in inequality, as specialization is strongly negatively related to estimated AKM firm fixed effects. Around two-thirds of the wage penalty from fissuring is explained by differences in firm productivity. Fissured firms also engage in lower rates of rent-sharing conditional on productivity, accounting for around one-quarter of the difference in wage premia between high- and low-specialization firms. Finally, we show that being employed in a specialized firm is also associated with worse longer-term career outcomes for workers. |
| Keywords: | Occupational Segregation, Between-Firm Wage Inequality, Firm Productivity, Rent-Sharing |
| JEL: | J24 J31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:clefwp:307595 |
| By: | Christos A. Makridis; Jason Schloetzer |
| Abstract: | We use a survey of nearly 360, 000 workers conducted from May 2020 through December 2023 to characterize shifts in remote work across time, industry, occupation, and geography, and examine the evolving relationship between remote work and employee engagement. We find remarkable stability in the incidence of remote work since mid-2021 with roughly one-half of workers reporting always working remotely or in a hybrid arrangement. While remote work arrangements across industries remain broad-based, at the occupation level, they are conspicuously concentrated in certain job classifications. Remote work continues to evolve across the U.S., with 13 (14) states experiencing reported increases (decreases) in remote work rates since 2022 with the most populous states experiencing remote working rates exceeding 40% of workers. Empirical evidence shows that while working remotely correlates with higher job satisfaction and lower intentions to quit, these correlations disappear when other workplace characteristics such as pay practices, human resources policies, and managerial relationships are considered. If remote work remains the norm, our results suggest it may not directly influence employee engagement—the workplace still matters. |
| JEL: | J2 J28 M12 M54 O33 R23 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33315 |
| By: | Pettena, Mattia (CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy); Raberto, Marco (University of Genoa - Department of Mechanical, Energy, Management and Transportation Engineering) |
| Abstract: | The energy transition involves substantial structural changes in the economy. Green utilities increase their production and investments, while brown utilities and fossil fuel producers decline. These developments impact supply chains in expansionary and contractionary ways, respectively, with the net effect feeding back into the economy by a↵ecting aggregate consumption and investment. We have developed a Stock-Flow Consistent Input-Output macroeconomic model of the world economy to analyse these dynamics. It includes a production network comprising 27 industries, differentiating between key mining, manufacturing, service, and both green and brown electricity sectors. It is the first model of its kind to have each industry invest in distinct capital goods based on sector- and asset-specific requirements. All parameters related to production technologies capture physical relationships and are derived from real-world data. We have simulated three energy transition pathways envisioned by the International Energy Agency (IEA) by modeling two parallel processes: (i) the increasing share of total electricity generated by green utilities and (ii) the electrification of production techniques and household consumption. The resulting dynamics yield several key insights. In the short-to-medium term, the net effect of the above-mentioned expansionary and contractionary forces is to boost GDP growth. The relative importance of industries supplying machinery and metals increases. The electrification of transportation services raises their cost, which, in turn, a↵ects other prices and generates inflation. Finally, we find that electricity production significantly exceeds IEA’s projections, which may underestimate demand due to their framework’s absence of an input-output production structure. |
| Keywords: | Energy transition; Renewable energy investment; Structural change; Input-Output modeling; Stock-Flow Consistent model; Electrification; Net Zero |
| JEL: | C63 C67 E12 L16 Q43 |
| Date: | 2024–12–27 |
| URL: | https://d.repec.org/n?u=RePEc:sal:celpdp:0171 |