new human resource management practices complementarities and the impact on innovation performance in this paper we take our theoretical point of departure in recent work in organisational economics on systems of human resource management hrm practices we develop the argument that just as complementarities between new hrm practices influence financial performance positively there are theoretical reasons for expecting them also to influence innovation performance positively we examine this overall hypothesis by estimating an empirical model of innovation performance using data from a danish survey of 1 900 business firms using principal component analysis we identify two hrm systems which are conducive to innovation in the first one seven of our nine hrm variables matter almost equally for the ability to innovate the second system is dominated by firm internal and firm external training of the total of nine sectors that we consider we find that the four manufacturing sectors correlate with the first system firms belonging to wholesale trade and to the ict intensive service sectors tend to be associated with the second system

meta paradigm change and the theory of the firm many seemingly unrelated debates on the theory of the firm are in fact part of a single deeper transformation of the social sciences as the foundational assumptions of 20th century social science have slowly been shown by science to be false new sub paradigms have emerged which cumulatively drop i theoretical assumptions about markets to explain firms ii epistemological assumptions about knowledge to explain diversity and iii metaphysical assumptions about causality to explain technical change debates occur across each of these levels

sectors and the additionality effects of r d tax credits a cross country microeconometric analysis abstract do the additionality effects of r d tax credits vary across sectors the paper presents a micro econometric analysis of this question for three countries norway italy and france we use a panel of firm level data from three waves of the innovation surveys carried out in these countries for 2004 2006 and 2008 the study estimates input and output additionality effects of r d tax credits in each of these economies and it investigates how these effects differ across sectors characterized by different r d orientation and competition conditions the results point out that firms in industries with high r d orientation have on average higher propensity to apply to r d fiscal incentives schemes and stronger input and output additionality effects output additionality is found to differ among the three examined countries

the transatlantic productivity gap is r d the main culprit the literature has pointed to different causes to explain the productivity gap between europe and united states in the last decades this paper tests the hypothesis that the lower european productivity performance in comparison with the us can be explained not only by a lower level of corporate rd however using different estimation techniques the r d coefficients for the us firms always turn out to be significantly higher to see to what extent these transatlantic differences may be related to the different sectoral structures in the us and the eu we differentiated the analysis by sectors the result is that both in manufacturing services and high tech sectors us firms are more efficient in translating their r d investments into productivity increases

innovation and employment a reinvestigation using revised pavitt classes the relationship between innovation and employment is addressed in this article through a model and empirical test at industry level for eight european countries in 1994 2004 we investigate this relationship for manufacturing and services and propose a revised pavitt taxonomy covering both of them in order to identify specific patterns of technological change and job creation and loss the contrasting effects of strategies of technological or cost competitiveness are investigated using innovation variables from cis2 and cis3 together with demand wages and industry dynamics they account for changes in employees and hours worked the diversity in these relations across industries is also explored when the model is applied to each revised pavitt class different mechanisms of technological change and effects on jobs emerge

the dynamics of technological innovation the sector of antibacterial medicines abstract this is an empirical and historical study of the dynamics of technological innovation in antibacterial medicines a key sector of the pharmaceutical industry it is based on an analysis of all the innovations that were introduced over the period 1935 1987 from prontosil the first sulphonamide through penicillin and the semisynthetic antibiotics to the monobactams and the quinolones of the mid 1980s in the historical section we describe the influence that antibacterial medicines have had on the structure and research intensity of the innovating companies and through them on the pharmaceutical industry and its geography we also describe the catalytic role played by government agencies and universities in the empirical section the innovations are evaluated in terms of originality and market performance and are classified into four technological trajectories their distribution over time and among technological trajectories companies and countries the relation between originality and market performance of individual innovations the interplay between social needs market demand and technological innovation the role of market successful radical innovations in the launching of technological trajectories the orientation of subsequent academic and industrial research and the establishment of corporate technology traditions provide insights in both innovation theory and the dynamics of technological innovation

characterizing the technology firm an exploratory study abstract technology firms occupy a central position in modern economies they drive economic growth productivity gains and have created new industries and innovative products many will agree that technology firms are distinguished from others in their emphasis on technological activities since this observation is too general researchers suggested a variety of specific criteria and definitions a number of definitions of technology firms appear in the literature but many are arbitrary and simplistic and none gained wide acceptance similarly the number of characteristics suggested is large reflecting a variety of perspectives and interests in this case too no agreement exists as to which are the important ones also many seem to be interrelated capturing different aspects of the same underlying concepts this paper is concerned with the issue of definition and classification of technology firms we demonstrate the usefulness of a different approach to the definition and classification problem we rely on executives evaluations of their firms technology profile and level an analysis of these evaluations reveals the underlying dimensions the executives used in making their judgments we regard the dimensions we uncover as capturing the essence of technology firms and use them to classify the firms we study the specific characteristics the executives used to evaluate their firms were derived from a systematic scan of the literature thus the list represents the set of characteristics early researchers viewed as describing and defining technology firms the connection to early work enhances our findings validity and lends some credence to our belief that the three dimensions we uncover r d activities which are closely associated with a set of organizational elements and market conditions product strategy and corporate culture can be used by others to define technology firms and classify firms according to their technology level in our study we use these three dimensions to classify the firms studied we show that the commonly used practice of classifying firms as high and low technology according to the industry to which they belong is flawed our goal in this study is not to offer a new or better definition and characterization of technology firms or to offer the best approach to the generation of the classification criteria rather we demonstrate here the usefulness of a different approach to the problem while our approach does suffer from limitations it has important advantages we hope future studies will confirm not only the usefulness of our approach but also the general applicability of the specific criteria we identify in this study

an evolutionary approach to technological innovation in agriculture some preliminary remarks abstract this article proposes an interpretation of the process of technological innovation in agriculture we begin with a criticism to the idea of agriculture as a particular environment in economic analysis we argue that some dynamic concepts from economics of innovation especially as seen by the evolutionary literature can be used as an adequate theoretical reference to study innovation in agriculture we then suggest an interpretation in terms of technological trajectories in order to explain the complexity of the technological regime in agriculture finally we discuss the present stage of transformation in this technological regime and the perspectives of the arising new trajectories

corporate structure ownership and the likelihood of innovation an examination is conducted into the effect which external ownership and other aspects of corporate ownership structure have on the likelihood of innovation for a sample of manufacturing plants located in scotland econometric estimation indicates that plant size the presence of in plant r d and non uk ownership have a positive effect on the likelihood of innovation multiplant operation market power and variations in industrial structure have no discernible effect on innovation the finding that foreign ownership is positively associated with innovation contrasts with previous research conducted on manufacturing plants in northern ireland

gradual catch up and enduring leadership in the global wine industry the wine industry is an extremely interesting sector from a catch up point of view because the latecomers in the international market have changed how wine is produced sold and consumed and in doing so they have challenged the positions of incumbents until the end of the 1980s the european countries and particularly france and italy dominated the international market for wine subsequently significant changes in the market namely decreases in consumption by traditional consuming countries the entry of new inexperienced consumers and the increasing importance of large distribution have threatened this supremacy initially the usa and australia and later emerging countries such as chile and south africa gained increasing market shares in both exported volumes and value at the expense of incumbents however some of these newcomers e g australia have shown slower growth opening opportunities for newer entrants such as argentina and new zealand at the same time some of the incumbents especially italy have innovated challenging the leadership of france in key markets such as the usa in this article we investigate the different catch up cycles in the global wine sector that occurred between the 1960s and 2010 through a detailed analysis of export volumes values and unit prices we address issues related to the increasing share in the global market of latecomer countries and the relative decline of the incumbents as well as possible changes in the market leadership within these two groups

the size distribution of innovating firms in the uk 1945 1983 a survey of 4 378 significant innovations shows that firms with fewer than 1 000 employees commercialized a much larger share than is indicated by their share of r and d expenditures innovations per employee have been consistently above average in firms with more than 10 000 employees and have become so in firms with fewer than 1 000 intersectoral variation in the size distribution of innovating firms can be explained as a function of r and d based technological opportunities and of technological ease of entry by user firms with principal activities outside the sector copyright 1987 by blackwell publishing ltd

inter industry technology flows in the united states abstract this paper presents for the u s economy a technology flows matrix tracing 1974 industrial r d expenditures from their industries of origin to industries in which the use of resulting products and processes was anticipated the distinction between origin and using industries is crucial to understanding the links between r d and productivity growth a regression analysis reveals high social rates of return and substantial productivity impacts from r d attributed to industries of use

demand structure and technological change the case of the european semiconductor industry abstract this article proposes that the structure of demand is one of the major factors that affect the rate and direction of technological change and the evolution of high technology industries both over time and across countries this article presents an analysis of the semiconductor industry in europe the united states and japan although particular emphasis is placed on the european case the decline of the european industry 1960s from a position equal to that of the american industry 1950s can to a large extent be explained by the dominance of electronics consumer goods demand rather than public procurement or computer demand in the structure of demand in these countries the later technological convergence of electronics final markets 1970s played a major role in the commitment of the european semiconductor industry to lsi technology this commitment however came too late to allow the european industry to catch up with its american and japanese counterparts

exploring the dynamics of water innovation foundations for water innovation studies the urgent need for innovation to address multifaceted and intertwined water related challenges is becoming increasingly clear acknowledged and responded to with cumulating sources and amounts of funding nevertheless the water sector has been claimed to be less innovative than other sectors this special volume on the dynamics of water innovation is based on the realization that in general there is a striking absence of academic studies on the dynamics of water innovation this sv is therefore designed to lay the foundations for the field of water innovation studies in an effort to integrate the emerging insights together the contributions in this sv capture the current understanding of the dynamics of water innovation and provide insights into how the water innovation process can be fostered the purpose of this introductory article is threefold namely to frame the discussion on water innovation dynamics in order to contextualise the contributions of this sv to provide systematic guidance for studying water innovation dynamics and to suggest the way forward for water innovation studies it captures the extent of the field of water innovation studies with a review of the literature of the last three decades and frames water innovations based on five decades of innovation research and drawing on three areas management strategy and policy we provide an innovation studies taxonomy that consists of four organising dimensions type of innovation stage of innovation level of analysis and measurement this taxonomy enables researchers to study the dynamics of water innovation from different combinations of conceptual and thematic angles drawing on the field of innovation studies in a systematic fashion finally we reflect on the way forward for water innovation studies with suggestions for future research 2017 the authors

labor market regulation the diversity of knowledge and skill and national innovation performance abstract the diversity of knowledge and skill is an important element of a national system of innovation we propose a theory of how certain labor market institutions affect diversity and through that route affect levels of innovation specifically unemployment protection up encourages diversity by reducing the risk burden of a broad range of learning or human capital investment for that reason up fosters innovation employment protection ep reduces the risk burden of a much narrower range of learning for this reason it will not enhance diversity to the extent up does and it may actually depress overall diversity and innovation our approach differs from previous research on labor market insurance and skill formation much of which has dealt with a distinction between general and specific skills and which has treated the effects of up and ep as similar estimating the effects of up and ep on patenting for 25 oecd countries over 24 years we find a positive effect from up a negative effect from ep and evidence that the up effect is mediated by diversity of skill

bottom up estimation of industrial and public r d investment by technology in support of policy making the case of selected low carbon energy technologies abstract this paper discusses a bottom up approach to estimate the level of r d investment by technology in areas where data are scarce it develops a four step methodology for the estimation of corporate r d investments at technology level this approach can overcome gaps in existing data by combining publicly available information in a novel way even though it introduces some uncertainty this is illustrated for a set of low carbon energy technologies that were identified as key for meeting europe s long term energy and climate objectives by the european strategic energy technology plan the paper finds that the aggregated r d investments dedicated to these technologies amounted to 3 3 billion in the eu in 2007 including public funding from european union member states and at eu level and industrial research activities from companies with headquarters registered in the eu the results allow conclusions on the european energy research policy to be drawn such as the dominance of industrial funds and have provided significant input to the european policy making in this field the paper ends with suggestions on how to further enhance the accuracy of the approach and how to widen its application to other sectors

sectoral patterns of technical change towards a taxonomy and a theory abstract the purpose of the paper is to describe and explain sectoral patterns of technical change as revealed by data on about 2000 significant innovations in britain since 1945 most technological knowledge turns out not to be information that is generally applicable and easily reproducible but specific to firms and applications cumulative in development and varied amongst sectors in source and direction innovating firms principally in electronics and chemicals are relatively big and they develop innovations over a wide range of specific product groups within their principal sector but relatively few outside firms principally in mechanical and instrument engineering are relatively small and specialised and they exist in symbiosis with large firms in scale intensive sectors like metal manufacture and vehicles who make a significant contribution to their own process technology in textile firms on the other hand most process innovations come from suppliers these characteristics and variations can be classified in a three part taxonomy based on firms 1 supplier dominated 2 production intensive 3 science based they can be explained by sources of technology requirements of users and possibilities for appropriation this explanation has implications for our understanding of the sources and directions of technical change firms diversification behaviour the dynamic relationship between technology and industrial structure and the formation of technological skills and advantages at the level of the firm the region and the country

persistent heterogeneity of r d intensities within sectors evidence and policy implications abstract do firms in the same sector converge towards the same r d intensities previous research has often assumed this to be true a closer examination using microdata from the eu industrial r d investment scoreboard for the years 2000 2015 shows considerable heterogeneity in r d intensities among firms in the same sector and that this heterogeneity persists over time statistical tests of convergence show that the variation in r d intensities does not decrease over time i e no convergence although firms with an r d intensity below the industry average do seem to catch up with the leaders i e evidence of convergence overall firms in the same industry do not converge to a common r d intensity policy implications are discussed

the influence of market demand upon innovation a critical review of some recent empirical studies abstract a number of recent empirical studies of technical change at the level of the individual firm have concluded that market demand is the dominant influence upon the innovation process calling forth innovations in market economies the pace of innovation in the private sector heavily influences the growth of national output and productivity and these studies and their conclusions have therefore received much attention having been extensively quoted in discussions of appropriate government policy for the encouragement of innovation this paper reviews a number of these studies and concludes that their findings and the interpretations of their findings in the secondary literature are seriously flawed and in many cases invalid the proposition that market demand governs the innovation process is by no means conclusively demonstrated in these studies and they are therefore inadequate and inappropriate guides for the formulation of policy most of the studies examined employ a working definition of demand factors which is so broad as to embrace a range of possible influences upon innovation which should more properly be classified elsewhere the concept of demand utilized in these studies bears little resemblance to the more restrictive and precise definition of market demand found in economics in addition the phenomena analyzed in these studies are a very heterogeneous lot the studies do not address identical empirical questions and their findings are as a result neither uniform nor unambiguous both demand and supply side influences are crucial to understanding the innovation process and it is the exclusive preoccupation with only one set of these forces which is criticized in this paper some implications of the criticism for government policy toward innovation are discussed in the conclusion

impact on firms of the use of knowledge external sources a systematic review of the literature this study summarizes the main conclusions from a systematic review of the empirical literature regarding the impact on firms of the use of knowledge external sources universities research institutes and knowledge intensive business services with the aim to organize the literature we classify the different works according to the research question addressed i which firms use knowledge external sources ii do firms using knowledge external sources achieve better results and iii which firms benefit the most from using knowledge external sources stylized facts are that larger more r d intensive and high tech firms are more likely to use knowledge external sources and that use of knowledge external sources is associated to firms higher technical results less attention has been paid to the third question and evidence is not conclusive several recommendations for future research emerge first to take in greater consideration methodological issues so that potential biases in the results caused by sample selection and endogeneity are handled properly second to pay more attention to heterogeneous outcomes third to use continuous indicators of depth and breadth of links allowing for non linear relationships and fourth to extend evidence for developing countries and service industries

a theory of the early growth of the firm economic enterprise consists in the matching of resources and opportunities to create value growth processes of the new enterprise are here explored in a systems model inspired by penrose a sequence of phases in the early life of the firm reflects growth processes and problems solutions giving rise to new problems firms must access mobilize and deploy resources before they can generate resources for growth subsequent phases in which growth reinforcement and growth reversal forces content are not universal but are set in motion in an important minority of firms the major job creators beyond the early phases critical problems facing the firm are more diverse the growth of the firm is related to the building of the competence needed to respond to changing industrial opportunities copyright 1998 by oxford university press

in defence of the linear model an essay this essay discusses the strength and weaknesses of the so called linear model lm of innovation it is a reaction to the habit of criticising it as over simplistic mechanistic or simply blatantly wrong we argue that while some criticisms are of course well grounded many others are instead based on loose interpretations and unwarranted assumptions in order to separate the wheat from the chaff this essay first presents a comprehensive description of the linear model and differentiates it from the caricature many refer to second we discuss the main criticisms put forward and argue that many of them are not at all destructive but can be easily accepted within a refined version of the lm third we discuss the policy implications often derived or said to derive from the lm to argue that the lm itself is distinctively policy neutral other assumptions have to be added to justify alternative policy implications

ownership and firm innovation in a transition economy evidence from china we examine innovation performance of firms in a transition economy from an ownership perspective we focus specifically on the relationship between ownership structures and firm innovation performance drawing on data from 548 chinese firms we find volume of patent registration to be most strongly influenced by foreign ownership in the firm along with firm affiliation within a business group the influence of state and institutional ownership on innovation performance is positive but lagged contrary to expectations insider ownership leads to lower innovation performance and concentrated ownership has no significant impact our study has two principal contributions firstly we utilize a comprehensive treatment of ownership characteristics overcoming weakness in previous studies that have used a more narrow focus on ownership type secondly we contribute to understanding of how firms in transition economies build indigenous capabilities for innovation by drawing attention to the interplay of foreign and domestic control of agents innovation

the role of technology in market shares dynamics the paper presents the estimation of an empirical model of market share dynamics for five industrialized countries and 18 industries the emphasis is put on the importance of non price factors of competitiveness whereas most traditional explanations rest on the influence of relative prices among the former type of factor the role of variables reflecting technological advantage is privileged in particular the role of innovations has received considerable attention in the literature on international trade as well as the literature on endogenous growth in this spirit the paper introduces patent counts and investment as explanatory variables for the export market share the results show that non price variables have an important impact on the determinations of long run competitiveness

technology strategies of large enterprises in indian industry some explorations abstract a firm s technology strategy is influenced by the technology regime in which it operates the regime is broadly defined by a combination of variables capturing industrial structure nature of technical knowledge and the policy environment together these variables determine the opportunity and appropriability conditions faced by a firm in a well defined industry given these broad relationships a heuristic framework is developed to analyze firms technology strategies across industry groups four firm level strategies are identified 1 a undertake research and development 2 b purchase disembodied foreign technology 3 c combine a and b 4 d remain technologically inactive i e do neither a nor b the framework is translated into a multinomial logit model to explore empirically the determinants of technology choices made by indian firms in two different industries non electrical machinery and chemicals the impact of the following determinants is explored firm size capital and material imports foreign equity participation and foreign domestic technology spillovers

designed to fail the medicare auction for durable medical equipment we examine the theoretical properties of the auction for medicare durable medical equipment two unique features of the medicare auction are 1 winners are paid the median winning bid and 2 bids are nonbinding we show that median pricing results in allocation inefficiencies as some high cost firms potentially displace low cost firms as winners further the auction may leave demand unfulfilled as some winners refuse to supply because the price is set below their cost we also introduce a model of nonbinding bids that establishes the rationality of a lowball bid strategy employed by many bidders in the actual medicare auctions and recently replicated in caltech experiments we contrast the median price auction with the standard clearing price auction where each firm bids true costs as a dominant strategy resulting in competitive equilibrium prices and full efficiency jel d44 i11 h57

globalisation of knowledge production and regional innovation policy supporting specialized hubs in the bangalore software industry abstract this paper is concerned with the changing role of regional innovation systems and regional policies in supporting the transition of indigenous firms in developing countries from competing on low costs towards becoming knowledge providers in global value chains special attention is paid to policies supporting the emergence and development of the regional innovation system in this transition process regional innovation systems in developing countries have very recently started to be conceptualised as specialized hubs in global innovation and production networks asheim b coenen l vang lauridsen j 2007 face to face buzz and knowledge bases socio spatial implications for learning innovation and innovation policy environment and planning c government and policy 25 5 655 670 chaminade c vang j 2006a innovation policy for small and medium size smes in asia an innovation systems perspective in yeung h ed handbook of research on asian business edward elgar cheltenham maggi c 2007 the salmon farming and processing cluster in southern chile in pietrobello c rabellotti r eds upgrading and governance in clusters and value chains in latin america harvard university press a specialized hub refers to a node in a global value chain that mainly undertakes one or a few of the activities required for the production and development of a given good or service or serves a particular segment of the global market in global value chains firms in developing countries have traditionally been responsible for the lowest added value activities however a few emerging regional innovation systems in developing countries are beginning to challenge this scenario by rapidly upgrading in the value chain there is however still only a poorly developed understanding of how the system of innovation emerges and evolves to support this transition process and what the role of regional innovation policy is in building the regional conditions that support indigenous small and medium size enterprises smes in this transition process this paper aims at reducing this omission by analyzing the co evolution of the strategies of indigenous smes and the regional innovation system of bangalore india

firm behaviour and innovative performance an empirical exploration of the selection adaptation debate innovation is a complex trade off between routinisation and change between reliability and accountability of firms and timely adaptation this innovator s dilemma confronts innovation theory with the question how to align routinisation with innovation induced organisational change and consistent performance obviously it is a complex issue dominant innovation theory neglects this subject due to its pro innovation bias while evolutionary organisation and innovation theory give opposite perspectives on this problem the adaptation perspective considers pro active behaviour as the best condition for innovative performance whereas the selection perspective advances inert firm behaviour as the best alternative to achieve successful innovations our research question focuses on the explanatory value of either the selection or the adaptation perspective for the innovative performance of industrial firms our empirical findings confirm the adaptation perspective and reject the selection perspective comparatively firm behaviour involving the highest risks and uncertainties e g high environmental dynamics and high levels of adaptive activity contributes most significant to the explanation of innovative performance inert risk averse behaviour conversely does not improve or even impedes innovative performance compared with other types of firm behaviour

the voyage of the beagle into innovation explorations on heterogeneity selection and sectors the aim of the paper is to assess heterogeneity of the innovation process using exploratory factor analysis on micro data from the third community innovation survey in 13 countries we identify four patterns that can be interpreted as research user external and production ingredients of innovation all too often it is assumed that how firm innovate can be represented by differences across sectors and or countries to put this proposition under scrutiny we partition variability of the factors scores into components identified by these higher levels sectors and countries matter to a certain extent but far more of the variance is given by heterogeneity among firms within both of them however groups of firms produced by cluster analysis account for much higher share of the variance which indicates that the most relevant stratification of the data cuts across the established sectoral and national boundaries we discuss implications of these findings for understanding of selection in evolutionary economics and for the literature on innovation systems

the brazilian exports of labor intensive goods in the 2000s an analysis using the constant market share method abstract this paper aims at analyzing international trade in labor intensive sectors in the 2000s with a special reference to the brazilian case therefore we use the constant market share analysis to compare several countries export performance it was observed that asian countries emerged strengthened from this period brazil had a mediocre performance losing market share in global markets moreover competition from asian economies and even from the small central american countries such as guatemala and el salvador has undermined the penetration of brazilian exports in its major trade partners which are north america and south america

firm technological trajectory as a driver of eco innovation in young small and medium sized enterprises abstract few studies have focused on green innovation in young small and medium sized enterprises instead research tends to focus on large companies with formal research and development departments studying the influence of the firm s current technological strategy as well as the regulatory framework as a key driver of eco innovation this paper proposes that the combination of a firm s technological trajectory and its current research and development strategy are key determinants of eco innovation the authors investigate these relationships with panel data on 212 young firms in spain analysing their innovation strategy and behaviour during their first 10 years of activity the results show that the firms cluster into four technological trajectories but only market oriented innovators engage significantly more in eco innovation these firms are characterized by a high use of formal appropriability mechanisms market opportunity recognition arising from cooperation and high knowledge cumulativeness this paper sheds light on whether and the extent to which a firm s technological trajectory is a driver of eco innovation it confirms that firms that search for opportunities and have a continuous collaboration with market players are more prone to develop eco innovations additionally it shows that path dependence occurs in the development of eco innovations in that a highly developed innovation capacity leads to additional green innovation in the future the findings indicate that young small firms need to develop innovation capabilities that also enable them to adopt advanced technology before striving to become greener the paper concludes that policies designed to stimulate cooperative networking with other market players an upgrading of technological capabilities and the adoption of new technologies are all desirable because they contribute to improving the environmental impact of firms innovations

measuring innovation in tourism from the schumpeterian and the dynamic capabilities perspectives this paper offers a diagnosis of the state of the issue regarding the measurement of innovation in the tourism industry at the company level and some recommendations for overcoming identified problems the study addresses two central issues how existing secondary databases of innovative activity define the boundaries of the tourism industry and the degree to which these databases reflect the particular characteristics of this economic activity it is concluded that these analyses present serious biases and anomalies hindering the understanding of the situation at the micro level and complicating the issue of international comparability and the analyses do not capture the internal heterogeneity of innovative behavior of tourism companies from specific intra sectoral activities the problems concern inappropriate indicators and the need for survey methods to complement the development of innovation scoreboards in secondary sources the study concludes by detailing a set of proposals that should be considered in the context of a scoreboard to provide a comprehensive view of a tourism firm s technological and organizational innovations as well as its innovative capabilities combining schumpeterian theory and the dynamic capabilities based approach and also making cross national comparisons feasible

is demand pulled innovation equally important in different groups of firms previous empirical literature has tested the demand pull hypothesis and found that innovation may be driven by output using a balanced panel of 216 italian manufacturing firms 1995 2000 and checking for the path dependent nature of r d we find a role of sales in inducing r d however the demand pull effect plays a varying role for different sub samples of firms exporting firms liquidity constrained firms not subsidised firms and those not heading a group seem to be sensitive to sales in deciding r d these results have been obtained using a least squares dummy variable corrected estimator a recent panel data technique suitable for small samples

a matter of location the role of regional social capital in overcoming the liability of newness in r d acquisition activities laursen k masciarelli f and reichstein t a matter of location the role of regional social capital in overcoming the liability of newness in r d acquisition activities regional studies external knowledge acquisition is a precondition for firms competitive advantage however young firms exhibit a lower propensity to acquire external research and development r d than their older counterparts the paper explores the role of regional social capital in moderating this aspect of the liability of newness the results show that young firms operating in regions with low levels of social capital are less likely to acquire r d externally however this is not the case in regions with high levels of social capital suggesting that the liability of newness in terms of acquisition of external r d does not play a role in these regions

a disaggregated analysis of eu imports the implications for the study of patterns of trade and technology this paper examines trends in the unit prices of manufactured imports into the european union eu in the period 1988 2002 this is undertaken at a high level of disaggregation and it is this decomposition which we believe has important implications both for a range of bodies of economic analysis and for policy the analyses undertaken in this paper confirm that disaggregation matters in helping to identify unit price trends we have also shown that unit price trends vary with the type of economy exporting into europe and the type of product being exported and that these results are robust at high levels of disaggregation

technological regimes and innovation in services the case of the italian banking industry abstract in this paper we propose a conceptual model to analyse innovations originating from the diffusion of information technologies in the banking sector we argue that technical change in this industry exhibits a revolutionary character a distinction is made between the mass automation regime focusing mainly on the mechanization of back office procedures in the 1960s and 1970s and the smart automation regime originating from the introduction of distributed data processing and network technologies and centered around the supply of electronic banking services a theoretical model is developed which emphasizes the crucial role played by demand pull variables in stimulating innovative behaviour under the smart automation regime in contrast limited importance is attributed to cumulative and learning by doing effects relating to back office automation at least for banks endowed with sufficient absorptive capacity the theoretical hypotheses are tested through an econometric analysis of the determinants of the innovative behaviour in electronic payment systems of a sample of italian commercial banks

developing science technology and innovation indicators what we can learn from the past the science technology innovation system is one that is continuously and rapidly evolving the dramatic growth over the last twenty years in the use of science technology and innovation sti indicators appears first and foremost the result of a combination between on the one hand the easiness of computerized access to an increasing number of measures of sti and on the other hand the interest in a growing number of public policy and private business circles in such indicators as might be expected in societies which increasingly use organised science and technology to achieve a wide variety of social and economic objectives and in which business competition is increasingly based on innovation as highlighted on the basis of 40 years of indicators work frontiers and characteristics that were important last century may well no longer be so relevant today and indeed may even be positively misleading

industrial policy changes and firm level technological capability development evidence from northern brazil summary much has been written about the impacts of the policy changes of the 1990s on industrial performance particularly in latin america most of the studies are based on aggregated analyses that argue for or against such reforms in the policy regime this study offers an alternative view to this debate based on a longitudinal empirical scrutiny of technological capability development in 46 local and foreign firms from three sectors in northern brazil there were inter sector and inter firm variations in terms of the manner and rate of capability development for specific technical functions overall the patterns of firm level capability development exhibited a positive response to the structural reforms but such responses were not a mere consequence of trade openness a combination of government policy foreign competition and intra firm capability building efforts proved essential for speeding up capability development in some of the sampled firms thus policies for accelerating industrial technological capability development in a developing area such as the one examined here would involve not only macro level incentives and competition but very importantly measures that facilitate intra firm capability building efforts

information and intellectual property the global challenges the paper analyses the contribution of golden papers seminal works whose ideas remain as fresh and relevant today as when they were first published decades ago and which continue to dominate academic discourse among successive generations of scholars the authors analyse why two works written within an industrial development context the simple economics of basic scientific research by richard nelson 1959 and kenneth arrows economic welfare and the allocation of resources for invention 1962 are so relevant in today s knowledge driven economic paradigm focusing on the papers application to current global policy debates on information knowledge and intellectual property they argue that while the context has changed the essential nature of innovation driven by widespread access to the ability to replicate and improve remains the same hence a focus on endogenous innovation policy is as relevant today as it was 50 years ago

host country corruption and the organization of hq subsidiary relationships multinational enterprises mnes operating in more corrupt host than home countries face actual costs related to processing information for decision making and lack of local legitimacy and potential reputation and legal costs in case of corruption scandals drawing on the organizational perspective of corruption we argue that greater subsidiary autonomy helps minimize these costs however headquarter hq subsidiary communication weakens the autonomy based advantages for minimizing legitimacy costs and mnes experience in relatively corrupt countries weakens the advantages for minimizing information processing costs our analysis of 261 italian foreign subsidiaries in 25 host countries confirms most of our arguments except the moderating effect of mne experience our findings contribute to research on corruption and fdi weak institutional contexts and mne strategies as well as the literature on hq subsidiary relationship

the benefits of r d and breadth in innovation strategies a comparison of finnish service and manufacturing firms this empirical study compares the determinants of innovation in manufacturing and services through descriptive and regression analyses of sales from innovative products and services a particular focus is on the effects of r d investments and breadth in knowledge sourcing and innovation objectives the results suggest that contrary to earlier research r d investments play a statistically and economically significant role in service innovation we suggest that this results from the growing engagement of service firms in regular r d activity both service and manufacturing firms also benefit from breadth in external knowledge sourcing strategies in contrast breadth in terms of pursuing parallel innovation objectives appears to have detrimental effects on innovation in service industries we interpret the latter results through reference to service firms r d management capabilities managing multiple innovation projects is challenging and some service firms may not have accumulated the requisite managerial processes and capabilities to benefit from these strategies the available data provide support for this conjecture the detrimental effects of breadth in innovation objectives are significantly mitigated by regular r d activities copyright 2012 the author 2012 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

invention and innovation in the chemical industry demand pull or discovery push abstract this paper describes a study of the determinants of the rate direction and scale of inventive and innovative activity in the chemical industry over the period 1830 1980 statistical data are interpreted in the light of case study material in three major sectors dyestuffs plastics and pharmaceuticals theories of technical change and economic growth particularly those of schmookler and schmpeter are examined in relation to this material on the chemical industry the findings suggest that the importance of demand pull and discovery push factors and the validity of schmookler s and schumpeter s theories vary over an industry s life cycle

the rise of clusters of innovative industries in belgium during the industrial epoch abstract this article presents the notion of cluster of innovative industries in order to analyse long term techno industrial change in belgium this notion accounts for strong and dynamic techno economic linkages interdependencies and complementarities that may occur between a set of industries for a particular period of time each cluster has its roots in a set of closely related major innovations that link particular industries to each other through a dynamic process of transfer and feedback of technology via various mechanisms we identified a number of 12 clusters of innovative industries that have emerged in the leading industrial countries since the first industrial revolution we also present empirical outcomes concerning the extent to which belgium participated in these clusters during the industrial epoch the belgian case shows that lagging countries are incapable of developing fully these clusters major components of the clusters were either missing or underdeveloped or they emerged with a considerable delay due to first mover advantages among other reasons

sectoral patterns of production and use of innovations in the uk 1945 1983 abstract based on information on more than 4000 innovations commercialised in the uk between 1945 and 1983 we analyse sectoral patterns and trends in the production and use of innovations a few core sectors chemical mechanical instruments and electronic are of major importance in the production of technology that gets used over a much wider range of sectors including those outside manufacturing similar sectoral patterns of production and use exist in the uk and usa the trend over time in the uk has been toward greater sectoral interdependence in technology and a higher share of uses outside manufacturing reflecting the growth and spread of the electronic based technological cluster any understanding of the nature determinants and dynamics of intersectoral differences in patterns of production and use of technology will require an integration into empirical and theoretical analysis of the characteristics of innovating firms

innovation and inter firm linkages new implications for policy abstract this article discusses the implications for competition innovation and learning of different forms of inter firm linkage ways to govern them different generic systems of innovation and government policy it employs a transformed theory of transactions that can deal with innovation and learning and brings in trust next to opportunism nooteboom b 1996a trust opportunism and governance a process and control model organization studies 17 6 985 1010 nooteboom b 1996b towards a learning based model of transactions in groenewegen j ed tce and beyond kluwer deventer pp 327 349 nooteboom b 1999a inter firm alliances analysis and design routledge london while trust has its limits and should not be blind it can lower transaction costs for learning and innovation it takes the resource competence perspective supported by a theory of knowledge developed in earlier publications according to this theory people perceive interpret and evaluate the world according to cognitive categories that have developed in interaction with the physical and social environment as a result people will perceive understand and evaluate differently to the extent that they have developed in different environments without interaction nooteboom b 1992 towards a dynamic theory of transactions journal of evolutionary economics 2 281 299 nooteboom 1999a this theory yields the notion of external economy of cognitive scope people and firms need outside sources of cognition and competence to complement their own that is the fundamental reason why inter firm linkages are important especially for innovation in order to produce high added value and novelty by utilizing the opportunities of complementary competencies firms need to make relation specific investments which creates risks of hold up and spill over building on earlier work the article identifies different instruments for the control of those risks nooteboom 1996a nooteboom 1996b nooteboom et al 1997 effects of trust and governance on relational risk academy of management journal 40 2 308 338 nooteboom 1999a it identifies two generic kinds of innovation systems in terms of the mix of instruments for relational governance and discusses their merits and flaws with respect to quality of products diffusion incremental and radical innovation one is close to practices in continental europe and japan another is close to anglo american practice there is a certain tendency for the first to gravitate to the second the article warns about the dangers involved and explores a possible third way

determinants of environmental innovation new evidence from german panel data sources abstract in most cases empirical analyses of environmental innovations based on firm level data relied on surveys for one point in time these surveys allow for the inclusion of many explanatory variables such as different policy instruments or the influence of pressure groups but it is not possible to address the dynamic character of environmental innovations this paper uses two german panel databases the establishment panel of the institute for employment research iab and the mannheim innovation panel mip of the centre for european economic research zew to explore the determinants of environmental innovations the econometric estimations show that the improvement of the technological capabilities knowledge capital by r d triggers environmental innovations environmental regulation environmental management tools and general organizational changes also encourage environmental innovation a result that has also been postulated by the famous porter hypothesis

capitalism as an engine of progress economists from marx to schumpeter have touted capitalism as an engine of technical progress but what kind of an engine is it what are its key components how does it work

exploring the processes of firm growth evidence from a vector auto regression this article offers many new insights into the processes of firm growth by applying a vector autoregression model to longitudinal panel data on french manufacturing firms we observe the coevolution of key variables such as growth of employment sales gross operating surplus and labor productivity growth preliminary results suggest that employment growth is succeeded by the growth of sales which in turn is followed by growth of profits generally speaking however growth of profits is not followed by much employment growth or sales growth quantile regressions highlight some asymmetries between negative growth and fast growth firms

patterns of innovation and organizational demography in emerging sustainable fields an analysis of the chemical sector this paper examines the patterns of environmental innovation in the chemical sector and focuses in particular on detecting whether the rise of sustainable chemistry technologies sct has stimulated the emergence of new organizations this question is important to assess the extent to which sct are sustaining the technological advantage of industry incumbents or are creating opportunities for new firms aspiring to develop radically new environmental innovations we found that sct still represent a relatively low proportion of chemical technologies and that they have not stimulated in a significant way the emergence of new firms however the importance of new firms has grown in the last 20 years and their technologies seem to have a higher potential of radicalness than incumbents technologies this indicates that although incumbents advantage remains strong a small group of young firms has started to weaken such advantage moreover the important role played by research organizations in generating sct may signal that technological opportunities are expanding and that some governments in particular the us government are committed to develop sct these results suggest that if supported by effective policies technological ferment in the field which at the present appears still limited has a potential of growth

sectoral systems of innovation and production the concept sectoral system of innovation and production provides a multidimensional integrated and dynamic view of sectors it is proposed that a sectoral system is a set of products and the set of agents carrying out market and non market interactions for the creation production and sale of those products a sectoral systems has a specific knowledge base technologies inputs and demand agents are individuals and organizations at various levels of aggregation they interact through processes of communication exchange co operation competition and command and these interactions are shaped by institutions a sectoral system undergoes change and transformation through the co evolution of its various elements 2002 elsevier science b v all rights reserved

some determinants of cost distributions in the process of technological innovation abstract industrial research and development r d is a set of activities within the broader set of decisions and activities the process of technological innovation ti it is technology transfer commercialization of the innovation that leads to technology diffusion that permits production and employment expansion and hence economic growth an important goal of industrial policy firms managements and government policy makers should recognize the close relationships among the phases of ti and direct their policy planning budgeting and control decisions to the complete process many policies currently focus their attention to only one or a few points such as r d in this study we conducted a detailed cost analysis of a limited number of innovation projects and studied the distributions of ti cost over the process phases we find that almost half of ti costs are devoted to r d which implies that government support of this phase is important different cost patterns emerge when we classify innovations by industrial sectors firms sizes and project complexity complex innovations require larger and more variable risky r d budgets smaller firms need more assistance in technology transfer these are only a few important policy implications this study emphasizes the importance of post r d phases and concludes that differential industrial policy may be required for technological innovations

the economic dynamics of technologies development abstract there is little doubt about the fact that specific major technologies shape the long waves in economic activity the trouble is that we don t understand very well what exactly is meant economically by the term specific technologies synthetic materials microelectronics and alike the purpose of this paper is to set up a conceptual framework to fit this requirement and thus to understand the economic dynamics of the development process involved schumpeter did study the innovation s economics dynamics still he did not elaborate a consistent story and the internal forces of a given technology as for ourselves following schmookler by theorizing the behaviour of the small innovation instead of the major one and rosenberg by taking into consideration the technical heuristic as such we suggest a framework for the dynamics of technologies development we use an evolutionary approach a la nelson and winter and gradually define the different components of this special dynamics a specific technology would appear to be a theoretical unit which gives structure to elementary small innovations according to a particular cumulative path

the pes conceit revisiting the relationship between payments for environmental services and neoliberal conservation payments for environmental services pes has become a popular means to neoliberalize biodiversity conservation throughout the world yet research on pes is increasingly focused on debating exactly how neoliberal programmes really are documenting complexities in pes implementation and concluding that few programmes are very market based in practice while we agree that ideal neoliberal implementation of pes does not and cannot exist we argue that focusing only on micro politics misunderstands the importance of analysing pes as a form of neoliberal conservation the question is not just whether pes is innately neoliberal but how it functions within a broader neoliberal political economy by focusing on the overarching governance and power structures that gave rise to pes in the first place we more clearly see what we call the pes conceit namely that the approach implicitly accepts neoliberal capitalism as both the problem and the solution to the ecological crisis this strategy is not only contradictory but also commonly fails to achieve intended outcomes falling far short of conservation objectives while also often exacerbating socioeconomic inequality this problematic conceit we conclude cannot be addressed through only micro oriented studies it demands connecting micro and macro political economic analyses to confront broader neoliberal power structures

the roles of science in technological innovation abstract one of the central issues in science policy during the past decade has been the extent to which the national levels of expenditure on scientific education and research influence the standard of living this paper provides empirical evidence to show that the pay off from this investment in science is more complex and indirect than previously supposed

organizational change skill formation human capital measurement evidence from italian manufacturing firms basing on a job competition approach in this paper we provide a labour demand oriented measure of human capital as defined by the amount of specific skills a firm generates through work based training wbt activities by merging three rich firm level datasets we estimate the impact of a set of variables that are supposed to affect both the propensity to invest in wbt and the intensity of training within the italian manufacturing industry over the period 2001 2005 the estimates show that the effects of innovation on wbt is higher when the introduction of new technologies is supported by organizational innovations when looking at the nature of wbt we investigate the different determinants of the firms propensity to provide both in house and outside training finally we estimate training intensity in terms respectively of the number of training activities provided private and total training costs and the share of trainees

firm innovation the influence of r d cooperation and the geography of human capital inputs abstract this paper investigates the role played by the geography of labor inputs in the promotion of innovation knowledge can be transferred between firms by inter firm interactions and inter firm cooperation in addition knowledge can also be transferred between firms by human capital mobility in order to examine these issues we employ a unique innovation dataset from finland this dataset provides information about a firm s innovation performance along with information regarding the origins of a firm s recent labor acquisitions the origins of the labor are defined according to both the industry and the region analyzing these data allows us to identify the different roles which the geography of knowledge exchanges and the geography of labor markets play in the innovation process

asset profiles for technological innovation abstract this paper proposes a conceptual distinction between four generic categories of assets for technological innovation 1 scientific research assets 2 process innovative assets 3 product innovative application assets and 4 aesthetic design assets technological innovation may sometimes require the activation of only one asset type but more often a specific constellation of more asset types has to be mobilized the asset categories differ profoundly with respect not only to their respective competence bases but also with respect to their functional contribution to industrial innovation and mostly also to their organizational attachment this way of conceiving technological innovation is opposed to the one dimensional r d conception that tends to view r d as one functional asset along with others like manufacturing or marketing it is argued that the different innovative assets are often located in different organizational settings within the corporation the coupling between assets is discussed in terms of inter asset specificity we illustrate the great variation of innovative asset profiles across a wide spectrum of product categories the concept of technological trajectories is reinterpreted in terms of asset profile oscillations and regroupings finally the framework is related to recent efforts to formulate a resource based theory of the firm and the implications for innovation strategy is discussed

does location matter for firms r d behaviour empirical evidence for danish firms in this paper we analyse whether regional location matters for danish firms r d performance in accordance with kleinknecht and poot s 1992 survey we test the urban hierarchy hypothesis stating that firms in urban agglomerations are more likely to perform r d than firms elsewhere using a micro dataset for danish firms obtained by merging danish r d statistics with account data the evidence of the influence of location on both the probability for undertaking r d and r d intensity is mixed but basically not in favour of any urban hierarchy in danish r d other non regional factors such as size of firm sectoral dummies classified according to pavitt s taxonomy and the dummy controlling for ict service industries are also estimated to have significant influence on firms r d behaviour furthermore the age of a firm only affects its r d intensity significantly cet article cherche a analyser si oui ou non la localisation regionale est importante pour le comportement des entreprises danoises quant

analyzing literature based innovation output indicators the italian experience abstract this paper presents the results of a study on the product innovations introduced in the italian market in 1989 and reported in a selected number of trade journals the analysis of data collected by means of this literature based counting procedure confirms that r d oriented industries and large firms do not in italy have a marked competitive advantage in innovation the country appears to be instead characterized by a significant presence of consumer goods industries and small firms in innovation our data indicate a statistically significant association between trade competitiveness and strength in product innovation and show the comparatively higher capacity for product innovation of some of the industries in which italy achieves a positive performance in international trade moreover the presence of spillovers at the regional level from both private and public r d expenditures proves to be positively correlated with the development of product innovations finally small firms with fewer than 50 employees appear to be more innovative than is usually believed to be the case

the effect of technological imitation on corporate innovation evidence from us patent data abstract technological imitation may play a crucial role in motivating firms to innovate however theoretical predictions and empirical findings on the role of imitation have not yet reached a consensus one major gap in the previous studies is that the empirical tests are based on samples consisting of only one industry over a short period of time this study uses a novel measure of industry level technological imitation proxied by quick citations by competitors to examine the relationship between imitation and innovation using us patent data for the period 1977 2005 we find that there are inverted u shaped relationships between the degree of industry level technological imitation and industry level innovation activities and between the degree of industry level technological imitation and the value of firm level innovation our results suggest that positive externalities from the interactions among firms during the innovation process outweigh the negative effects of free riding concerns on firms innovation activities and incentives to innovate up to a high degree of technological imitation while free riding concerns outweigh the positive externalities when the level of technological imitation is extremely high the sector by sector analyses show that the relationship between technological imitation and the quantity and market value of innovation are not very different across pavitt sectors a comparative analysis on the role of imitation between agglomerated and non agglomerated industries suggests that the positive effect of a moderate level of imitation and the negative effect of an excessive level of imitation are more pronounced for agglomerated industries the results suggest that creating innovation clusters such as silicon valley in the united states and shenzhen city in china and allowing different innovators to cooperate imitate and compete with each other would be very effective in promoting corporate innovation however an excessively high level of technological imitation is more detrimental for firms in innovation clusters because it lowers those firms incentives to innovate more radically

the role of knowledge in r d efficiency past research has recognized that both demand and capability influence the allocation of r d resources scholars have had an easier time getting a grip on demand than on capability while it has been recognized that knowledge is an important part of capability to date formalization of knowledge and its role in r d activity has been unsatisfactory this paper models the role of knowledge in r d various sources of such knowledge are considered the model throws a different light on analyses that employ a knowledge capital stock and also illuminates the dual private and public nature of technological knowledge

learning and the sources of corporate growth this paper explores the link between learning and corporate growth by developing different models of learning and showing that they produce observably different models of corporate growth using data on the growth of a number of firms in the us automobile industry during the 20th century we compare these different models of growth in an effort to identify the major sources of learning which these firms seem to have relied on although there are interesting differences between growth processes before and after the second world war the basic conclusion that we are drawn to is that learning in this sector is largely unsystematic and opportunistic

biosecurity bioterrorism and the governance of science the increasing convergence of science and security policy science and security policy are increasingly overlapping because of concerns that legitimate research might be misapplied to develop biological weapons this has led to an expansion of security policy to cover broad areas of research and scientific practice including funding publishing peer review employment materials transfer post graduate teaching and academics ability to design and perform experiments and disseminate research such changes raise policy concerns because many of the technologies used to produce biological weapons are dual use and have legitimate peaceful applications as a result attempts to control their generation diffusion or application can have unintended impacts on socially beneficial applications this paper explores recent changes in the governance of science and technology and contributes to future policy making by assessing the relative merits of understanding the development of dual use policy in terms of either technology transfer or technology convergence 2007 elsevier b v all rights reserved

financial constraints and firm dynamics this study analyzes the effect of financial constraints fcs on firm dynamics we measure fcs with an official credit rating which captures availability and cost of external resources we find that fcs undermine average firm growth induce anti correlation in growth patterns and reduce the dependence of growth volatility on size fcs are also associated with higher volatility and asymmetries in growth shock distributions preventing young fast growing firms especially from seizing attractive growth opportunities and further deteriorating the growth prospects of already slow growing firms particularly if old the sub diffusive nature of the growth process of constrained firms is compatible with the distinctive properties of their size distribution

technological cooperative agreements and firm s r d intensity a note on causality relations abstract in this paper we apply a recently proposed model of vector autoregression for panel data to analyse the granger causality relationship between a firm s intramural r d intensity and technological cooperative agreements the analysis relies on a sample composed of 95 major us european and japanese firms in the semiconductor data processing and telecommunications industries observed during the period 1980 1986 decisions on interfirm technological collaborations are shown to cause a la granger decisions on internal r d investments and vice versa we thus suggest that in contrast with the methodological approaches followed by previous empirical works firms decisions concerning both intramural innovative effort and technological cooperation are endogenous and have to be jointly studied through a simultaneous two equation structural model

crossing the innovation threshold through mergers and acquisitions firms are resorting more and more to mergers and acquisitions m a to bridge the gap between where they are and where they would like to be in relation to innovation and performance this paper investigates whether involvement in m a triggers distinct patterns of innovative behaviour across firms and whether this effect is conditional on firm size the analysis combines data from four waves of the community innovation survey cis and the business register of dutch manufacturing firms we observe that m as influence the probability that firms will begin innovation activities or persist with them and these effects vary at different points in the firm size distribution in particular by using m a firms are able to persist with the innovation efforts and output over time and this effect is especially strong for large firms for small firms m a help them to cross the innovation threshold increasing the probability of the transition from a non innovator to an active innovator however the m a effect does not mitigate the tendency of small firms to be occasional innovators

investment cash flow sensitivities credit rationing and financing constraints in small and medium sized firms the controversy on whether investment cash flow sensitivity is a good indicator of financing constraints is still unsolved we apply a comprehensive approach by cross validating our analysis with both balance sheet and qualitative data on self declared credit rationing and financing constraints on a sample of mainly small and medium sized firms our qualitative information shows that self declared credit rationing is weakly related to both traditional a priori factors such as firm size age and location and lenders rational decisions taken on the basis of their credit risk models we use the qualitative information on firms which were denied additional credit to provide evidence relevant to the investment cash flow sensitivity debate the evidence shows that self declared credit rationing significantly discriminates between firms which possess or not such sensitivity while a priori criteria do not the same result does not apply when we consider the wider group of financially constrained firms which do not seem to have a higher investment cash flow sensitivity supporting the more recent empirical evidence in this direction

technical change growth and trade new departures in institutional economics this article analyses the main theoretical and policy issues emerging from the literature on the evolutionary institutional economics of technical change the four distinguishing characteristics of which are that technology is often proprietary in nature only a part of knowledge is codifiable in handbooks blueprints patents and so on there are fundamental variations in the above two points across different technological fields and the evolution of knowledge is highly path dependent