technological regimes schumpeterian patterns of innovation and firm level productivity growth the paper investigates the relationships between technological regimes and firm level productivity performance and it explores how such a relationship differs in different schumpeterian patterns of innovation the analysis makes use of a rich dataset containing data on innovation and other economic characteristics of a large representative sample of norwegian firms in manufacturing and service industries for the period 1998 2004 first we decompose tfp growth into technical progress and efficiency changes by means of data envelopment analysis we then estimate an empirical model that relates these two productivity components to the characteristics of technological regimes and a set of other firm specific factors the results indicate that 1 tfp growth has mainly been achieved through technical progress while technical efficiency has on average decreased 2 the characteristics of technological regimes are important determinants of firm level productivity growth but their impacts on technical progress are different from the effects on efficiency change 3 the estimated model works differently in the two schumpeterian regimes technical progress has been more dynamic in schumpeter mark ii industries while efficiency change has been more important in schumpeter mark i markets

technological activity and survival of firms abstract the paper presents new evidence on the effect of technological activity on the post entry performance of firms by comparing firm survival across technical and non technical products and over stages of differing technological activity it attempts to resolve two seemingly contradictory hypotheses that uncertainty inherent in high technological activity reduces the probability of survival and that technological activity increases the probability of entrant survival the empirical results in the context of the product life cycle framework show that entering firms enjoy a higher probability of survival in stages of high technological activity and in products that are more technical in nature however the hazard function the probability of failure conditional on age is higher for technical products reflecting the adverse effects of technical uncertainty and obsolescence of incumbent knowledge

political aspects of innovation abstract political aspects that enhance but also undermine the positive transformational power of public innovation policies are examined as such this paper follows michal kalecki in his 1943 paper that identifies the political aspects which enhance and undermine the positive transformational power of keynesian full employment policies similarly this paper provides a policy framework that identifies what government and business support as innovation policies the role of innovation stems from schumpeter s long run perspective but incorporates the more dynamic cyclical short term and trend perspectives of kalecki this paper critiques the strategy of public innovation policy in general and derives policy implications

labour market deregulation flexibility and innovation labour flexibility is often portrayed as important to competitive success using evidence from an original survey of uk firms this paper investigates the relationships between firms use of on the one hand various flexible work practices human resource management techniques and industrial relations systems and on the other hand the innovative activities of those firms our results suggest that the sort of low road labour flexibility practices encouraged by labour market deregulation short term and temporary contracts a lack of employer commitment to job security low levels of training and so on are negatively correlated with innovation

business segmentation and location revisited innovation and the terra incognita of large firms hayter r patchell j and rees k 1999 business segmentation and location revisited innovation and the terra incognita of large firms reg studies 33 425 442 this paper revisits ideas about the relationships between business segmentation and location by articulating the characteristics and roles of large firms lfs the well known dual model of business segmentation with its emphasis on the polar cases of small firms and giant multinationals portrays a static exploitative picture of these relationships and does not relate well to the complexity of industrial organization or the size distribution of firms explicit recognition of lfs however draws attention to the processes generating segmentation and to the permeability of segment boundaries in which bargaining and learning are interdependent relationships a triad model of business segmentation based on porter s ideas of competitive strategy is outlined which reveals the vital role of lfs as innovators the model is illustrated heuristical

persistence of innovative activities sectoral patterns of innovation and international technological specialization abstract in this paper we focus on the role of persistence and heterogeneity of innovative activities at the level of the firm in determining the patterns of technological change in different industries and countries we ask are persistence and heterogeneity associated with higher degrees of concentration in innovative activities stability in the ranking of innovators and lower degrees of entry and exit in the population of innovators or do the patterns of innovation depend on other variables like firm size and industrial concentration moreover what are the relationships between the patterns of innovative activities their determinants and the technological specialization of countries we compute indicators of persistence and heterogeneity using the otaf spru patent database at the firm level for five european countries over the period 1969 1986 for 33 technological classes then we estimate the relationships between our indicators of the sectoral patterns of innovative activities and international technological specialization on the one hand and our indicators of persistence heterogeneity and market structure on the other results show that persistence and asymmetries are important and strongly related phenomena that affect the patterns of innovative activities across countries and sectors while the role of market structure variables is less clear finally international technological specialization is associated to a competitive core of persistent innovators

sources procedures and microeconomic effects of innovation fabio arcangeli paul david frank engelman christopher freeman massimo moggi richard nelson luigi orsenigo nathan rosenberg michele salvati g n von tunzelman two anonymous referees and the participants at the meeting of the committee on distribution growth and technical progress of the italian national research council cnr rome november 16 1985 have helped with various redraftings a particularly grateful acknowledgment is for the insightful and patient help of moses abramovitz this work has been undertaken at the science policy research unit spru university of sussex as part of the research program of the designated research centre sponsored by the economic and social research council esrc earlier support to the research that led to this paper by the italian national research council cnr is also gratefully acknowledged the statistical research has been undertaken with the assistance of stephano brioschi ilaria fornari and giovannu prennushi

technological regimes and schumpeterian patterns of innovation this paper proposes that the specific pattern of innovative activities in an industry can be explained as the outcome of different technological learning regimes a technological regime is defined by the particular combination of technological opportunities appropriability of innovations cumulativeness of technical advances and properties of the knowledge base building upon the distinction between schumpeter mark i and schumpeter mark ii industries this paper provides empirical estimates of the relationships between indicators of the schumpeterian patterns of innovation concentration of innovative activities stability in the hierarchy of innovators and importance of new innovators and indicators of the variables defining technological regimes

tangible and intangible sunk costs and the entry and exit of firms in a small open economy the case of austria the paper provides evidence on the role of sunk costs as mobility barriers an empirical study of the austrian manufacturing industry explicitly considers sunk costs related to investment in dedicated intangible assets the results confirm the relevance of sunk costs as mobility barriers their symmetry with respect to entry and exit and show that the influence of sunk costs is robust to aggregation

competitive dynamics and economic learning an extended resource based view in this paper a conceptual framework for the analysis of economic learning is developed economic learning by analogy with organizational learning results in the development of economic competences or capabilities shared between firms which rest on a foundation of economic resources from which value is generated and economic routines through which resources are utilized it is the mobility of resources and their exchange and production dynamics along evolutionary pathways which underpins the plausibility of a notion of economic learning the paper elaborates this framework as a resource based view rbv of the economy as a whole as an extension of the rbv of the firm such a framework captures the dynamics of exchange and circulation of technologies know how and intangible assets as well as of tangible assets and capital goods it is concerned with investment behavior by entrepreneurs rather than with the behavior of producers and consumers in goods and services markets within this resource economy framework it is possible to generate an account of the resource dynamics that underpin production of goods and services including resource propagation diffusion imitation replication and recombination these processes encompass evolutionary pressures experienced through resource variation selection and retention entrepreneurial initiatives take the form of resource recombinations while resource innovation captures the creation of new economic resources such as technological standards such a perspective brings into focus the resource specialization and configurations that drive real economies within firms and between firms that translates into enhanced or diminished performance of the economy as a whole copyright 2003 oxford university press

private sector involvement in the resolution of financial crises how do markets react abstract to correct the disincentives of liquidity assistance during financial crises the official sector attempts to involve the private sector in the resolution of debt crises this paper empirically tests the reaction of investors to announcements of private sector involvement psi for this purpose we disentangle shifts in risk premia incorporated in excess returns on emerging market bonds into changes in risk and shifts in the price of risk a regime switching arch m model is employed to separate two regimes with respect to the market price of risk while psi has no effect on risk it is shown that the likelihood of switching to a state with a high price of risk rises in response to psi announcements thus the results indicate that burden sharing was credible and hence effective

the subcontracting behavior of single vs multiplant enterprises in us manufacturing implications for economic development abstract in this paper we explore the factors shaping the production subcontracting make buy decisions of managers in the plants of both small and large firms in 21 industries that constitute the us metalworking and machinery manufacturing sector descriptive and multivariate statistical analyses of original survey data collected in 1986 1987 lead us to infer that a regional economic development strategy that promotes those manufacturing firms with a single relatively large plant making a diverse range of products and having close ties to customers but limited internal machining capacity has the greatest potential for generating local backward linkages in this respect we find empirical if nuanced support for certain normative aspects of the industrial district or networking approach to economic development policy

technological regimes catching up and leapfrogging findings from the korean industries abstract this paper examines the experiences of selected industries in korea to identify the stylized facts in the process of technological capability building and thereby to sort out the conditions for the catching up to occur to explain the process we have built a model of technological and market catching up a special attention has been given to the question of whether there has been a case of leapfrogging in any industry in korea and if so what are the conditions for its incidence in our framework we first measure the degree of catching up in terms of market shares in the world then we focus on catching up in technological capabilities in explaining the different record and prospects of korean industries in market catching up in the model technological capability is determined as a function of both technological effort and the existing knowledge base as determinants of technological effort we look at the technological regimes of the industries such as cumulativeness of technical advances fluidity predictability of technological trajectory and the properties of knowledge base using this model we explain the different technological evolution of the selected industries in korea including the d ram automobile mobile phone consumer electronics personal computer and machine tool industries we find three different patterns of catching ups path creating catching up cdma mobile phone path skipping catching up d ram and automobile and path following catching up consumer electronics personal computers and machine tools we interpret the first two case of catching up as leapfrogging unlike the argument by perez and soete perez c soete l 1988 catching up in technology entry barriers and windows of opportunity in dosi et al eds technical change and economic theory pinter publishers london we find that important r d projects except automobiles where only private r d was involved involved both private and public capacities and that entry was not driven by endogenous generation of knowledge and skills but by collaboration with foreign companies

weaker jobs weaker innovation exploring the effects of temporary employment on new products this work explores the relationship between temporary employment and product innovation focusing on five major european economies france germany italy spain and the netherlands observed betwee

bail out or work out theoretical considerations this paper assesses various crisis resolution proposals using a theoretical model of liquidity and solvency crisis the model suggests that payments standstills and last resort lending are an equally efficient means of dealing with liquidity crises while coordinated lending through creditor committees is second best debt write downs are preferred to subsidised imf financing when dealing with solvency crises because of the negative moral hazard implications of the latter tool finally the model suggests that international bankruptcy court proposals may be superior to existing contractual approaches in securing such write downs on many measures the incidence of international financial crises increased in the last part of the twentieth century bordo et al 2001 but it is not just the incidence of financial crises that has altered in recent years so too has their nature the recent crises in mexico across south east asia russia brazil turkey and argentina were clearly rooted in the capital rather than current account of the balance of payments we appear to have entered an era of capital account crises imf 2002 theoretical models of financial crisis have developed in lockstep with crisis experience a third generation of models of financial crisis has emerged chang and velasco 1998 krugman 1999 these models combine imperfections in fundamentals as suggested by so called first generation models and fragility in expectations as suggested by second generation models to explain crises under the third generation approach capital account crises can originate in either fundamentals or expectations we have solvency as well as liquidity capital account crises

the corporation competition and the invisible hand few would disagree that adam smith s invisible hand theorem is the heart of the economist s weltanschauung ask whether trade barriers should be lowered the spread of multinational corporations restrained oil prices deregulated cartels dissolved or more fundamentally whether a market based capitalist system is economically superior to a state run socialist system and economists almost certainly will begin to answer the question by trying to apply the theorem every student knows that the theorem depends on the assumption of atomistic competition which in turn assumes that the system is decentralized and that no competitor is large relatively to others there is another crucial assumption however that is often ignored and usually underemphasized namely that all competition is price competition in reality one of the most distinctive features of capitalism one that is most often raised in lay discussions of its merits and demerits is the prevalence of other forms of competition such as competition in research development and advertising competition to obtain and hold monopoly and competition for corporate growth these various forms of non price competition we shall aim to show are not clearly analogous with the theory of price competition more non price competition rather than less is not necessarily pareto optimal self evidently the production side of a market economy is decentralized only to a limited degree i e to the level of a decision making unit composed of more than one human such a unit playing neuron to the invisible hand is typically called a firm it is in fact a team rather than remaining small firms are in practice composed of any number of individuals from a handful on to half a million some

there are two sides to every story innovation and collaboration within networks of large and small firms abstract inter firm collaboration for innovation increasingly appears as a industrial response to changing economic and technological conditions both in the uk and internationally this paper examines such responses particularly at an informal level between small and large firms in the light of recent arguments about economic and technological imperatives disorganised capitalism control versus cooperation and the growing debate over the significance of networks using a case study approach the motives and problems of firms in such relationships are explored with special reference to the uk context

us high technology multinationals and silicon glen haug p 1986 us high technology multinationals and silicon glen reg studies 20 103 116 future growth and investment by high technology industries have generated increasing interest in the agglomeration tendencies of high technology firms governments throughout the world are seeking to develop high technology firm concentrations similar to silicon valley in california an area that represents one of the largest high technology industry clusters outside the united states is scotland s silicon glen this article is based on interviews conducted at fourteen us owned manufacturing plants in silicon glen and sets out to 1 define the terms high technology industry and silicon glen 2 summarize research on the origins of silicon valley boston s route 128 silicon fen or the cambridge phenomenon and the m4 corridor near london and 3 present evidence on the location and investment activities of us multinational enterprises in silicon glen the results indicate that the attributes attracting high te

r d appropriability opportunity and market structure new evidence on some schumpeterian hypotheses one of the largest bodies of literature in the field of industrial organization is devoted to the interpretation and testing of several hypotheses advanced by joseph schumpeter 1950 concerning innovation and industrial market structure one set of hypotheses focuses on the role of firm size as a determinant of r d spending and the rate of technological advance another set focuses on the effect of market concentration on r d and technological advance in this paper we reexamine the latter set of hypotheses at the industry level using new data on r d appropriability and technological opportunity collected by levin et al 1984 in a survey of r d executives in 130 industries

technological regimes and firm survival evidence across sectors and over time in addition to the usual variables representing firm and industry specific features that impact the firm s survival this paper uses three r d related variables to reflect two schumpeterian technological regimes creative destruction the entrepreneurial regime and creative accumulation the routinized regime after controlling for age size entry barriers capital intensity the profit margin the concentration ratio the profit cost ratio and entry rates the empirical results confirm the theoretical relationship between technological regimes and the survival rate of new firms new firms are more likely to survive under the entrepreneurial regime moreover this effect is larger within the younger cohorts of firms than within the older ones

managing innovation the pursuit of competitive advantage and the design of innovation intense environments abstract since the 1970s the field of innovation management has become the dominant policy discourse on the management of technological change specifically servicing the needs of government and business despite its rapid expansion in the 1980s discussion in this discourse has actually narrowed and key implicit assumptions about the nature of innovation and its appropriate management have remained relatively unquestioned in recent years attempts have been made to once again widen discussion this paper contributes to this widening of discussion through an examination of the way in which the pursuit of competitive advantage has shaped the discourse and policy instruments various policy instruments have been presented as bolstering national performance in global economic and technological positioning one of the newest is the innovation intense environment innovation intense environments iies are defined here as special spaces which purportedly increase the rate of innovation and proliferation of new high technology industries iies are referred to in the literature in a variety of ways including science or technology parks science cities or technopolises while there is substantial variation in iie design globally most examples are implicitly shaped by the overall drive for competitive advantage and rely on a very limited definition of innovation this shaping is clearly revealed when two very different kinds of iie designs are examined this paper examines fundamental assumptions made about the nature of innovation and its appropriate management as expressed in contemporary iie design the drive for competitive advantage has come to dominate public sector management of technological change and it is time that other issues were reintroduced into the dominant discourse on innovation management and iie design

is firm renewal stimulated by negative shocks the status of negative driving forces in schumpeterian and darwinian economics the idea that firms are more innovative under difficult external condition has no prominent place in evolutionary economics the neo schumpeterians agree with schumpeter that innovation is stimulat

r d in smes a paradox this paper has three objectives 1 to survey the relevant literature addressing the apparent paradox of research development investments carried out within small and medium enterprises 2 to provide focused summaries of the articles in this special issue 3 to draw some general conclusions in terms of policy implications

economic segmentation worker power and income inequality how economic segmentation generates income inequality constitutes a central question for theories of economic and social organization and of socioeconomic achievement previous research emphasizes two sources of the structural variation in income 1 employers with large amounts of resources for a variety of reasons may find it in their interests to pay workers higher wages and 2 some workers are able to acquire power against their employers as well as against other workers and can therefore extract higher earnings in this paper we investigate several issues involved in the links among economic segmentation worker power and income inequality we argue that the structure of economic segmentation is multidimensional and reflects such distinct concepts as concentration economic scale state intervention in the market capital intensity and organization size worker power also is derived from diverse sources such as union membership occupational skill and licensing class position and tenure wi

stock market volatility and the crash of 1987 evidence from six emerging markets abstract this paper studies volatility risk premia and the persistence of volatility in six emerging stock markets before and after the 1987 stock market crash the empirical investigation is conducted by means of the garch in the mean model garch m and monthly data from argentina greece india mexico thailand and zimbabwe between january of 1976 and august of 1994 results indicate changes in the arch parameter risk premia and persistence of volatility before and after the 1987 crash but these noted changes are not uniform and depend upon the individual markets factors other than the 1987 crash may also be responsible for the changes

schumpeterian patterns of innovation using patent data for four countries germany france united kingdom and italy for the period 1968 1986 the authors find that the patterns of innovative activities differ systematically across technological classes while remarkable similarities emerge across countries in the patterns of innovative activities for each technological class this result strongly suggests that technological imperatives and technology specific factors closely linked to technological regimes play a major role in determining the patterns of innovative activities across countries schumpeter proposed two major patterns of innovative activities the first one labelled by nelson and winter 1982 and kamien and schwartz 1982 as schumpeter mark i is proposed in the theory of economic development 1934 in this work schumpeter examined the typical european industrial structure of the late nineteenth century characterised by many small firms according to this view the pattern of innovative activity is characterised by technological ease of entry in an industry and by a major role played by new firms in innovative activities new entrepreneurs come in an industry with new ideas new products or new processes launch new enterprises which challenge established firms and thus continuously disrupt the current ways of production organisation and distribution and wipe out the quasi rents associated with previous innovations the second one labelled schumpeter mark ii is proposed in capitalism socialism and democracy 1942 in this work inspired by the features of the american industry of the first half of the twentieth century schumpeter discussed the relevance of the industrial r d laboratory for technological innovation and the key role of large firms according to this view the pattern of innovative activities is characterised by the prevalence of large established firms and by relevant barriers to entry for new innovators large firms have institutionalised the innovation process with the creation of r d laboratories filled with researchers technicians and engineers with their accumulated stock of knowledge in specific technological areas their advanced competence in large scale r d projects production and distribution and their relevant financial resources they create barriers to entry to new entrepreneurs and small firms

blade runner economics will innovation lead the economic recovery according to schumpeterian theories economic expansions are associated with the introduction of successful new products processes and services while depressions are linked to stagnant periods with few innovations can the economic crisis set in motion in 2008 be explained by the inability to innovate and upgrade production and conversely will an economic recovery require a new stream of innovations drawing on the debate which emerged after the 1970s economic crisis this discussion paper tries to assess whether it is likely that the next long term expansion will be linked to a new stream of innovations while most evidence suggests that icts continue to provide the back bone of economic activities there is the prospect that biotechnology will eventually start to fulfil the promise envisaged over 30 years ago in the film blade runner

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

on kaldor and pensions in this paper the kaldorian saving function on differential propensities between household and corporate income is restated and extended to account for saving through occupational pension funds the extended hypothesis is then tested and compared to nicholas kaldor s own using recent u k data solid support is found for the kaldorian hypothesis and the extended corporate capitalism saving function the author s findings cast doubt on the life cycle and related hypotheses on savings they also raise interesting questions about neoclassical and post keynesian theories of growth and distribution copyright 1997 by oxford university press

learning innovation increasing returns and resource creation luigi pasinetti s original sin of and call for a post classical economics we draw on the seminal contribution to economics by luigi pasinetti respond to his call to reverse what he saw as the original sin of classical economists exacerbated by neoclassical economists namely the assumption of non increasing returns to scale and move towards building a post classical economics we outline the contours of a post classical framework that draws on key themes and contributions from pasinetti on learning technical progress increasing returns resource creation trade and catching up and contributions from within and without economics that are in line with lend support to and challenge it we advocate the pressing need and opportune timing for a concerted effort to revitalise ideas from the once vibrant cambridge school of economics and help develop a fresh more pluralist and inclusive post classical economics that cuts across divides and opens up opportunities for a less dismal science

the globalisation of technology a new taxonomy book synopsis international management of research and development brings together the most influential contributions to managing organising and coordinating r d and innovation on a global scale in addition to papers on the fundamental principles trends and drivers of international r d it covers strategies and operations of global r d it also provides an introduction to modern concepts such as knowledge networks open innovation and virtual innovation it is a key reference collection for professors researchers and practitioners

labour market regulation industrial relations and technological regimes a tale of comparative advantage in this paper we present comparative evidence from oecd countries concerning the impact of labour market institutions and regulations on technological specialization the interplay between the degree of labour market flexibility the system of industrial relations and the knowledge base of different industries determines the viability of different human resource strategies thereby shaping the patterns of comparative advantage our empirical results show that countries with coordinated industrial relations systems and strict employment protection tend to specialize in industries with a cumulative knowledge base we argue that two mechanisms explain these patterns the larger the scope for resorting to internal labour markets the lower the adjustment costs imposed by labour market regulation furthermore employment protection and coordinated industrial relations regimes by aligning workers and firms bjectives encourage firm sponsored training as well as the accumulation of firm specific competencies allowing firms to fully exploit the potential of the internal labour market copyright 2002 oxford university press

a review of literature and hypotheses on new technology based firms abstract this paper examines the existing literature on new technology based firms in an attempt to understand how such companies contribute to the vitality of an economy and to see which variables are critical in enabling them to do so from recent research efforts we have drawn together a set of hypotheses and organized them around four central questions 1 what do new firms contribute to the economy 2 what factors contribute to the success of such enterprises 3 in what cultural contexts do new businesses succeed and 4 which government policies are effective in stimulating and supporting new companies we found that existing studies suggest 1 that new technology based firms contribute significantly to an economy in terms of exports employment taxes paid research and development and innovations 2 that the founders of these new businesses tend to have a strong entrepreneurial heritage a development rather research oriented background and a high need to achieve and are young and highly educated 3 that sector differences may be a more important influence on company location than are regional policies and 4 that no one government program has proven itself to be more than marginally successful in stimulating industrial innovation

crisis costs and debtor discipline the efficacy of public policy in sovereign debt crises abstract recent debate on the reform of the international financial architecture has highlighted the potentially important role of the official sector in crisis management we examine how such public intervention in sovereign debt crises affects efficiency ex ante and ex post our results shed light on the scale of capital inflows and the implications for debtor country output of such a regime the efficacy of measures such as officially sanctioned stays on creditor litigation depend critically on the quality of public sector surveillance and the size of the costs of sovereign debt crises

understanding the competitive process a guide to effective intervention in the small firms sector abstract the paper describes a project undertaken within the economic and social research council s competitiveness of british industry research programme the aim of the project was to assist agencies who intervene in a local economy to try to help individual small firms guidance currently available to such agencies was considered to lack an adequate theoretical basis in relation to either the choice of firms who should be granted assistance or the form of assistance which might be given in particular there is a lack of recognition that there is scope for management strategy among smaller firms affecting the way they compete in the market place and having a clear bearing on their revealed performance from a study of 100 small firms located in telford new town criteria were derived for classifying the competitive stance of small firms this was identified as the key to the potential performance of the small firm the extent to which it reveals a potential for future growth can determine whether a firm is or not a suitable candidate for assistance and the strengths and weakness in an individual firm s stance can determine the most suitable form of assistance to give the survey and analysis exercise leading to the identification of components of competitive stance are described and the classification of firms into a range of stance types then the usefulness of the competitive stance classification as a guide to selection of firms and choice of form of assistance is considered

mobility and innovation a cross country comparison in the video games industry open labour markets are often seen as a precondition for innovation particularly for new industries however this view ignores two core findings of the economic systems literature first that mobility patterns are institutional microsystems that need to be complementary to other institutions in the labour market and second that new industries may be characterised by incremental and complex innovation based on these considerations we ask how mobility affects innovation in the video games industry in the us and japan we find that inter firm mobility is beneficial for innovation in the us but has negative effects in japan we further find that inter functional mobility is beneficial for innovation in both countries our analysis is based on career histories from the video games industry in the us and japan we present an empirical study based on the game development of 815 video games and the careers of 28 426 video game developers who were involved in the development of games released between 1999 and 2009

distribution and growth reconsidered empirical results for six oecd countries we analyse the relationship between functional income distribution and economic growth in austria france germany the netherlands the uk and the usa from 1960 until 2005 the analysis is based on a demand driven distribution and growth model for an open economy inspired by bhaduri and marglin which allows for either profit or wage led growth we find that growth in france germany the uk and the usa has been wage led whereas austria and the netherlands have been profit led in the case of austria a domestically wage led economy changes to profit led when including the effect of distribution on external trade the netherlands however are already profit led without external trade our results so far only partially confirm bhaduri and marglin s theoretical conclusion that wage led growth becomes less feasible when the effects of distribution on foreign trade are taken into account

rational expectations econometric analysis of changes in regime an investigation of the term structure of interest rates abstract this paper is of interest both for its methodological contribution of new tools for analyzing rational expectations models and for its substantive conclusions concerning the term structure of interest rates during the monetary experiment of october 1979 the paper studies systems subject to changes in regime interpreted here as occasional discrete shifts in the parameters governing the time series behavior of exogenous economic variables the specification is shown to be quite tractable both theoretically and empirically the technique is used to analyze yields on three month treasury bills and ten year treasury bonds during 1962 to 1987 a constant parameter linear model for short term rates is shown to be inconsistent both with the univariate time series properties of short rates and with the observed bivariate relation between long and short rates under the expectations hypothesis of the term structure an alternative nonlinear model that admits the possibility of changes in regime affords a much better description of the univariate process for short rates moreover the cross equation restrictions implied by the expectations hypothesis of the term structure are consistent with the nonlinear specification indeed the residuals of the restricted relation have a standard error of only 0 8 basis points this is a third less than that of a completely unrestricted linear regression of long rates on short rates and compares with an unconditional standard deviation of long rates of 142 basis points i conclude that once the recognition by bond traders of changes in regime is taken into account the expectations hypothesis of the term structure of interest rates holds up fairly well for these data

innovation in firms as the firm is the central mechanism for converting innovation into economic action this paper argues that economists and economic policy makers need to understand how and why firms innovate this is challenging because innovation manifests itself in a wide range of forms and results from diverse organizational processes the paper discusses a number of the practices supporting innovation in firms including positioning connecting protecting organizing and measuring a number of theories explaining innovation in firms are discussed the paper concludes that the determination of the most effective policy levers for encouraging innovation requires staying abreast of current and emerging innovation practices in firms

sovereign liquidity crises the strategic case for a payments standstill is sovereign borrowing so different from corporate debt that there is no need for bankruptcy style procedures to protect debtors with the waiver of immunity sovereign debtors who already face severe disruption from short term creditors grabbing their currency reserves are also exposed to litigious creditors trying to seize what assets they can in a race of the vultures shielding sovereign debtors from inter creditor conflict by authorised standstills on payments doubt less runs some risk of debtor s moral hazard but the lack of an orderly procedure for resolving sovereign liquidity crises means that the imf is de facto forced to bail out countries in trouble this leads to both debtor and creditor moral hazard as investors lend without monitoring knowing that their investments are essentially guaranteed the strategic case for legalising standstills is to rescue the international financial system from this time consistent trap

testing a model of exploration and exploitation as innovation strategies we suggest a structural model that specifies firm growth as a function of firm specific parameters market specific parameters and competition for purchasing power the model distinguishes between two firm innovation strategies exploration and exploitation on the basis of a set of simulations of this model we derive a number of empirically testable hypotheses a subset of these have already found support in the empirical literature we take these as evidence in favor of the explanatory power of the model in addition we are able to derive further testable propositions on the interaction of firm demographic processes innovative behavior and market structure that go beyond the existing literature and that we suggest for further research we conclude that the approach chosen here provides a fruitful pathway for further research

technological diversity of persistent innovators in japan two case studies of large japanese firms we have investigated two large japanese firms with their patent data technological histories and product sales data of over 30 years especially in terms of intra firm technology diversification and interactions between multiple technological trajectories patent data showed the process of emergencies of technological trajectories and interactions cross fertilization between them quantitatively both persistence and diversity of technology have contributed to product diversification and sales growth based on our findings we have demonstrated that taking advantage of economies of scope in technology through persistence and diversification is necessary for a technology based firm if it is to survive and to grow for a prolonged period of time 2003 elsevier b v all rights reserved

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

business organization segmentation and location taylor m and thrift n 1983 business organization segmentation and location reg studies 17 445 465 this paper is intended to provide a coherent theoretical framework for industrial geography industrial economics and organization theory based on the notion of the segmentation of business organizations the literature on dualism and segmentation of business organizations is reviewed and found wanting an alternative process oriented account of segmentation of the business organization is presented which can account for the structural variations in present day developed economies the geographical implications of the framework are brought out

labour market segmentation and workers careers the case of the italian knitwear industry this paper reports on empirical research into the labour market in the knitwear and ready to wear industry in the province of jvjodena emilia in particular it looks at the careers of three categories of workers homeworkers those employed on the production lines of larger firms and artisans 1 italy in common with many other industrialised capitalist countries has witnessed a growing decentralisation of production this tendency has been differently interpreted but a consensus is emerging that such developments are not evidence of economic backward ness 2 on the contrary an industrial structure consisting of firms of different size but with a large number of small and even microscopic enterprises is increasingly being recog nised as one possible avenue of economic development taking this for granted the aim of these notes is to investigate the structure of the labour market in a prosperous area typified by economic growth which has the small firm as its base element

why do emerging economies borrow short term the authors argue that emerging economies borrow short term due to the high risk premium charged by international capital markets on long term debt they first present a model where the debt maturity structure is the outcome of a risk sharing problem between the government and bondholders by issuing long term debt the government lowers the probability of a liquidity crisis transferring risk to bondholders in equilibrium this risk is reflected in a higher risk premium and borrowing cost therefore the government faces a tradeoff between safer long term borrowing and cheaper short term debt second the authors construct a new database of sovereign bond prices and issuance they show that emerging economies pay a positive term premium a higher risk premium on long term bonds than on short term bonds during crises the term premium increases with issuance shifting toward shorter maturities this suggests that changes in bondholders risk aversion are important to understand emerging market crises

a markov model of switching regime arch in this article i present a new approach to model more realistically the variability of financial time series i develop a markov arch model that incorporates the features of both hamilton s switching regime model and engle s autoregressive conditional heteroscedasticity arch model to examine the issue of volatility persistence in the monthly excess returns of the three month treasury bill the issue can be resolved by taking into account occasional shifts in the asymptotic variance of the markov arch process that cause the spurious persistence of the volatility process i identify two periods during which there is a regime shift the 1974 2 1974 8 period associated with the oil shock and the 1979 9 1982 8 period associated with the federal reserve s policy change the variance approached asymptotically in these two episodes is more than 10 times as high as the asymptotic variance for the remainder of the sample i conclude that regime shifts have a greater impact on the properties of the data and i ca

schumpeter meeting keynes a policy friendly model of endogenous growth and business cycles this paper studies an agent based model that bridges keynesian theories of demandgeneration and schumpeterian theories of technology fueled economic growth we employ the model to investigate the properties of macroeconomic dynamics and the impact of public polices on supply demand and the fundamentals of the economy we find profound complementarities between factors influencing aggregate demand and drivers of technological change that affect both short run fluctuations and longterm growth patterns from a normative point of view simulations show a corresponding complementarity between keynesian and schumpeterian policies in sustaining long run growth paths characterized by milder fluctuations and relatively lower unemployment levels the matching or mismatching between innovative exploration of new technologies and the conditions of demand generation appear to suggest the presence of two distinct regimes of growth or absence thereof characterized by different short run fluctuations and unemployment levels

schumpeterian patterns of innovation are technology specific this paper examines the patterns of innovative activities at the technological and country levels using patent data for 49 technological classes in six countries usa japan germany france united kingdom and italy it is shown that the patterns of innovative activities differ systematically across technological classes but are remarkably similar across countries for each technological class in particular two groups of technological classes are identified schumpeter mark i and schumpeter mark ii in these two groups innovative activities are structured and organized in different ways the first represents a widening pattern concentration of innovative activities is low innovators are of small economic size stability in the ranking of innovators is low and entry of new innovators is high the second represents a deepening pattern concentration of innovative activities is higher than in the first group innovators are of larger economic size stability in the ranking of innovators is greater and entry is lower the former group comprises mechanical technologies and traditional sectors while the latter includes chemicals and electronics this result suggests that technology related factors such as technological regimes defined in terms of conditions of opportunity appropriability cumulativeness and properties of the knowledge base play a major role in determining the specific pattern of innovative activities of a technological class across countries within these constraints country specific factors introduce differences across countries in the pattern of innovative activities for a specific technological class finally the relationships between the specific features of the patterns of innovative activities and international technological specialization are examined technological advantages appear in general to be linked to higher degrees of asymmetries among innovators higher stability of the ranking of innovators smaller economic size of the innovating firms and lower entry rates of new innovators these relationships however are different in the two groups of technological classes in schumpeter mark i widening technological classes international technological specialization is associated with relatively higher degrees of asymmetries among innovators and entry of new innovators as well as smaller firm size while in schumpeter ii deepening technological classes international technological specialization is linked to the existence of a stable but competitive core of persistent innovators

sectoral patterns of technological activity and export market share dynamics this paper focuses on a selected number of oecd countries and manufacturing sectors and shows the importance of sectoral diversity in the innovative process and in the relation between technology and world market share dynamics the econometric exercise confirms the importance of technological variables in the relation with world market shares in two ways first they are in general statistically significant second the taxonomy of technological classes in terms of r d intensity seems to be meaningful in disentangling the role played by sectoral diversity in the relation between embodied and disembodied investment and competitiveness sectoral diversity emerges in the statistical significance of the coefficients and in the time lag structure moreover the values of estimated r d parameters are correlated with the sectoral r d intensity

changing risk premia evidence from a small open economy little is known about the differences in the relation between risk and return in large economies such as the u s compared with smaller less studied markets in this paper sweden serves as a representative for small open economies the price of risk on the swedish stock market is estimated using a conditional asset pricing model that allows for time variation in the risk four different garch m models are used in the econometric specification the estimates of the price of risk are invariably positive and significant and we conclude that there exists a time varying risk premium in the swedish stock market our results show that there are small differences in the preferences towards risk of representative investors in small and large economies

the persistence of innovative activities abstract this paper examines the persistence of innovative activities at the firm level in a comparative perspective a new data set is used composed of six panel data one for each of the following countries france germany italy uk japan and the usa for each country we use data on patent applications to the european patent office in the period 1978 1993 by 1200 1400 manufacturing firms using a transition probability matrix tpm approach we find evidence for the existence of persistence in innovative activities although it is not very high in the aggregate and it declines as time goes by however both great innovators and non innovators have a high probability to remain in their state and persistent innovators originate a disproportionate share of innovative activities in this sense persistence in innovative activities is quite strong these tendencies apply to all countries considered here although clear country specific properties are observed moreover there is heterogeneity also across industrial and size classification intersectoral differences are invariant across countries suggesting that persistence is at least partly a technology specific variable persistence tends to increase with firm size but the relationship between firms size and persistence is strongly country specific and it is not a simple one

technological regimes and sectoral patterns of innovative activities this paper focuses on the relationships between observed patterns of innovative activities within a sector and the related context and underlying microeconomic processes that might account for them it claims that there are some invariant features with respect to relative prices and incentives mechanisms of learning and knowledge accumulation that greatly affect the rate and structure of innovative activity these features are different across sectors the paper proposes that the specific pattern of innovative activity of a sector can be explained as the outcome of different technological regimes that are implied by the nature of technology and knowledge the notion of technological regime provides a synthetic representation of some of the most important economic properties of technologies and of the characteristics of the learning processes that are involved in innovative activities copyright 1997 by oxford university press

different trajectories in the social divisions of labour the cutlery industry in sheffield england and tsubame japan to contribute to the growing debate on the social division of labour and its implications for local development this paper comparatively analyses recent trends in the industrial organisation of the cutlery industry in sheffield and tsubame both industries evolved as flexibly specialised export oriented production systems based on a highly interdependent network of small firms in the past 20 years however the social division of labour underlying sheffield s cutlery industry has been much reduced in size and complexity while tsubame has retained and used its social division of labour to adjust towards more value added production the different trajectories of the two systems reflect different approaches to competitiveness in tsubame the emphasis is on innovation while in sheffield the industry has been extremely conservative placing emphasis on minimising costs

factors governing the development of high tech industry agglomerations a tale of three cities glasmeier a 1988 factors governing the development of high tech industry agglomerations a tale of three cities reg studies 22 287 301 high tech industries are thought to precipitate structural change in local economies through the creation of backward and forward linkages and new firm spinoffs case studies of high tech firms and products indicate interindustry linkage development is closely associated with product type and organizational structure of firms three product configurations one of a kind customized and standardized generate differing levels of linkage and spinoff potential firms producing customized products with highly variable input structures and established subcontracting relationships are more amenable to linkage and spinoff creation than firms producing one of a kind or standardized products the potential for linked industry development is further diluted because the spatial expansion path of high tech firms has been through the creation of technical branch plants which a