labor market polarization the decline of routine work and technological change a quantitative analysis abstract a common hypothesis for labor market polarization is that technological progress has decreased the price of machines which are substitutable with middle skilled jobs and complementary to higher and lower skilled jobs i quantitatively evaluate this hypothesis in a dynamic general equilibrium model i find that the near constant elasticities of labor demand in the standard technology hypothesis and the observed dynamics of the price of machines are inconsistent with rapid polarization pre 2000 and its slower dynamics thereafter extending the model to allow for a separate investment sector requiring only high skilled workers generates a much closer fit to data

cooperative and noncooperative r d in duopoly with spillovers contrary to the usual assumption made in most oligopoly models relations among firms are seldom of a wholly cooperative or noncooperative type in many situations they compete in some fields while they cooperate in others an important example is the case of cooperative research efforts bringing fierce competitors together two types of agreement are observed first r d cooperation can take place at the so called precompetitive stage companies share basic information and efforts in the r d stage but remain rivals in the market place 1 a second type of agreement involves an extended collusion between partners creating common policies at the product level the usual justifications of this extension are the difficulties of protecting intellectual property the idea is then to allow partners who have achieved inventions together to also control together the processes and products which embody the results of their collaboration in order to recuperate jointly their r d investments 2 what could be expected from these types of agreement is a reduction in r d expenditures because of less wasteful duplication and a reduction of total production because of more reprinted from the american economic review 78 5 1133 1137 1988 center for operations research econometrics 1348 louvain la neuve belgium we are grateful to jean

the great reversal in the demand for skill and cognitive tasks this paper argues that several of the poor labor market outcomes observed in the great recession can be traced back to a change in the demand pattern for skilled workers that started with the tech bust of 2000 in particular we show that around the year 2000 the demand for cognitive tasks underwent a reversal in response high skilled workers moved down the occupational ladder and increasingly displaced lower educated workers in less skill intensive jobs while these effects were present before the financial crisis of 2008 they became more obvious after jobs associated with the housing bubble disappeared

on the existence of pure strategy monotone equilibria in asymmetric first price auctions we establish the existence of pure strategy equilibria in monotone bidding functions in first price auctions with asymmetric bidders interdependent values and affiliated one dimensional signals by extending a monotonicity result due to milgrom and weber 1982 we show that single crossing can fail only when ties occur at winning bids or when bids are individually irrational we avoid these problems by considering limits of ever finer finite bid sets such that no two bidders have a common serious bid and by recalling that single crossing is needed only at individually rational bids two examples suggest that our results cannot be extended to multidimensional signals or to second price auctions

computerizing industries and routinizing jobs explaining trends in aggregate productivity abstract complementarity across occupations and industries implies that the relative size of those with high productivity growth shrinks reducing their contributions toward aggregate productivity growth and thereby resulting in its slowdown this force especially the shrinkage of occupations with above average productivity growth through routinization was present since the 1980s through the end of the 1990s it was countervailed by the extraordinary productivity growth in the computer industry of which output became an increasingly more important input in all industries computerization it was only when the computer industry s productivity growth slowed that the negative effect of routinization on aggregate productivity became apparent

concubinage or marriage informal and formal cooperations for innovation based on a sample of german inno innovating firms that contains information on formal and informal innovation cooperation between customers and suppliers we state that firms perceive informal cooperation as being more important than formal cooperation modes we then investigate the determinants of firms decisions to engage into the respective cooperation modes in line with previous empirical work we do not find much empirical evidence for the relevance of incoming spillovers in addition our results suggest that this finding holds as well for informal cooperations a firms ability to protect its proprietary innovations however seems to be a key determinant of formal as well as informal cooperations furthermore absorptive capacity and the organizational structure of in house r d play an important role another relevant driver of vertical cooperations are the innovation dynamics at the he industry level firms who operate an r d department and firms who are involved in costly r d projects tend to cooperate formally rather than informally

inter industry r d spillovers what difference do they make the analytical framework of d aspremont and jacquemin the american economic review 1988 78 1133 1137 is extended to a two industry two firm perindustry model allowing for r d spillovers to occur within industries as well as between industries in the first part of the paper we analyze the impact of intra and inter industry r d spillovers on the level of strategic r d investments output profits and total welfare when firms compete in both the r d and output stage in the second part we compare the equilibrium outcomes that result from r d cooperation which includes both intra and inter industry r d agreements inter industry r d spillovers have a very important effect on a firm s incentives to invest in r d both directly and indirectly because of their influence on the likely impact of intra industry r d spillovers also r d agreements that cut across industries may be more socially beneficial than cooperatives whose membership comes from a single industry

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

a comparison of the dynamics of industrial clustering in computing and biotechnology abstract this paper compares the dynamics of the process by which industrial clusters emerged in the us computing and biotechnology industries it examines whether new companies are attracted by industry strength in particular sectors or by the strength of the science base at particular locations in biotechnology it also compares the growth of incumbent firms in the two industries and asks whether growth is boosted by being within a cluster the paper finds that within computing there are some important cross sectoral effects on entry while in biotechnology these cross sectoral effects are more limited in biotechnology the science base plays an important role in promoting entry the growth of incumbent firms in both industries is promoted by strength in the company s own sector and cross sectoral effects and the role of the science base are negligible

public policies for local networks of innovators abstract a rich and heterogeneous literature has recently clarified the nature of agglomerations of small and medium sized companies industrial districts flexible manufacturing networks interacting in a territory and acting in the open market as efficient competitors against other forms of production organization such as the traditional vertically integrated firm their ability to adjust to uncertain external conditions depends on fthe common culture and diffuse knowledge of the area which is a sunk cost for those companies in a policy perspective the main question concerns the possibility of intervening in a specific context to stimulate the creation and growth of an agglomeration of companies i e to establish a clan of agents having a common interest in innovation technological knowledge will have to be provided as club good for the network there are three elements to be considered in designing such a policy 1 entry into admission and exit from exclusion the network 2 promotion of a positive selection process of innovators within the network 3 increasing the common knowledge and the specific learning characterizing the network the aim of public interventions undertaken in the various regions of europe but also in several experiments in the us can be seen as the constitution of collective agents or service centers sponsored by the local public authorities and enterpreneurial associations to manage collectively the cost of coordination of the entrepreneurial activities necessary for the formation and development of a local network of innovators the new industrial policy approach of the european community is explicitly oriented to supporting the local aggregation of new businesses through the promotion of integrated plans of local intervention

vertical research joint ventures abstract we examine the incentives of firms to form vertical research joint ventures rjvs which enable an upstream supplier to internalize the positive externality of its innovation on a downstream market while giving the downstream members a cost advantage over their non member rivals under the cost sharing rules considered the upstream member desires a larger rjv compared to the downstream members r d subsidies may be detrimental to social welfare the optimal rjv size for the upstream downstream member decreases increases with r d cost and increases decreases with the gains from innovation and the size of market an increase in upstream competition has the effect of enlarging the optimal rjv

efficiency in auctions with private and common values an experimental study this discussion has resulted in a publication in the american economic review 2002 92 3 625 43 auctions are generally not efficient when the object s expected value depends on private and common value information we report a series of first price auction experiments to measure the degree of inefficiency that occurs with financially motivated bidders while some subjects fall prey to the winner s curse they weigh their private and common value information in roughly the same manner as rational bidders with observed efficiencies close to predicted levels increased competition and reduced uncertainty about the common value positively affect revenues and efficiency the public release of information about the common value also raises efficiency although less than predicted

r d cooperation and failures in innovation projects empirical evidence from french cis data the second french community innovation survey cis indicates that 14 of rd collaborating firms had to abandon or delay their innovation projects due to difficulties in their partnerships an outcome which we term cooperation failures controlling for sample selection on the cooperation decision our estimates show that firms collaborating with competitors and public research organizations pros especially when they are foreign are more likely to delay or stop an innovation project because of difficulties encountered in their rd partnerships more surprisingly firms collaborating with their suppliers also face a higher risk of cooperation failures at least for pros firms can reduce the risk of cooperation failures through previous experiences in partnerships larger firms and group subsidiaries are less likely to face cooperation failures and so do firms in industries with a strong appropriability regime

deciphering the causes for the post 1990 slow output recoveries abstract this paper explores the causes for the slow output recoveries in the u s since 1990 via estimating a time varying parameter vector autoregressive model with stochastic volatilities the model incorporates routine employment as a share of total employment and two financial variables to simultaneously evaluate the roles of labor market related and credit related factors in determining output dynamics based on the estimated model the counterfactual experiments highlight the crucial roles of routine biased technological changes and structural changes that shift investment dynamics in explaining post 1990 slow output recoveries

job polarization in europe the structure of employment is always changing and economists are always trying to understand those changes in the 1990s the idea of skill biased technological change sbtc was used to understand the shift in employment toward more educated workers see david h autor and lawrence f katz 1999 for a survey however in recent years it has become appar ent that a more nuanced approach is needed the idea of sbtc might lead one to predict a uni form shift in employment away from low skilled and toward high skilled occupations but studies for the united states autor katz and melissa s kearney 2006 and the united kingdom goos and manning 2007 have shown that there is growth in employment in both the high est skilled professional and managerial and lowest skilled personal services occupations with declining employment in the middle of the distribution manufacturing and routine office jobs this is what goos and manning 2007 term job polarization although see the introduc tion to goos and manning 2007 for antecedents of these ideas there are several hypotheses about the rea sons for job polarization first the routiniza tion hypothesis first put forward by autor frank levy and richard murnane 2003 sug gests that the effect of technological progress is to replace routine labor which tends to be clerical and craft jobs in the middle of the wage distribution second there is the view that globalization in general and offshoring in par ticular is an important source of change in the job structure in the richest countries see for example alan s blinder 2007 third there may be a link between job polarization and

an empirical evaluation of the determinants of research joint venture formation this paper empirically analyses the determinants of rm participation in research joint ventures rjvs a review of the theoretical literature highlights the di culty of identifying testable hypotheses using a large database of european rjvs we estimate a participation equation at the rm level using the logit procedure we nd that sectorial r d intensity industry concentration rm size technological spillovers and past rjv participation positively in uence the probability of forming rjvs by contrast patents eiectiveness reduce the likelihood of rjv formation last country xed eiects suggest that rms from larger countries are less likely to participate in cross border rjvs i introduction research joint ventures rjvs are agreements whereby rms decide to share technological knowledge while in principle continuing to compete against each other in the product market the aim of this paper is empirically to identify the rm and industry characteristics that determine rjv formation recent theoretical contributions have highlighted the complex mechanisms that underlie rjv participation first rjvs involve the internalisation of technological spillovers and r d cost sharing as well as the assimilation of knowledge that may be of strategic importance

cooperation between rivals informal know how trading it has long been recognized that it is difficult for an innovating firm to fully appropriate the benefits arising from its innovations and that desired research might therefore not be performed nelson 1959 pp 297 306 one sometimes possible solution to this dilemma is cooperative r d conducted by firms who share the costs and benefits of particular r d projects johnson 1973

development of national innovation policy in small developing countries the case of cyprus abstract this paper analyses the concept of national innovation policy nip and puts forward arguments supporting the need for a nip for small developing economies like cyprus a brief outline is given of the science technology infrastructure and current innovation related policies in cyprus while the attitudes of owners managers of private manufacturing firms towards these policies based on a research survey are examined the survey reveals an ambivalent attitude towards nip which is probably due to unrealistic expectations as well as inefficiency in design and implementation of innovation policy measures case research confirms these conclusions and highlights the importance of nip for private firms despite the rhetoric of their managers against it the formulation of a specific nip for cyprus is then considered from which lessons for other developing countries are drawn

public policy and r d when research joint ventures are costly in this paper we examine the role of policy when forming a r d joint venture is costly contrary to previous studies we document an active role for public policy since the interests of firms are not necessarily aligned with societal interests the nature of policy however depends on the joint venture cost if it is relatively low then policy may call for subsidizing the joint venture to encourage collaboration if forming a joint venture is very costly however then there are cases where social welfare is improved if policy encourages r d competition with no joint venture jel classification d43 l13 politique publique et r d quand les alliances strategiques en recherche sont couteuses ce memoire examine le role de la politique publique quand la mise en place d une alliance strategique en recherche est couteuse contrairement a ce qu ont suggere des etudes anterieures les auteurs montrent qu il y a un role positif pour la politique publique a proportion que les interets des entreprises ne sont pas necessairement alignes sur les interets de la societe la nature de la politique depend cependant du cout de l alliance strategique si le cout est faible alors une politique de subvention pour encourager la collaboration peut s imposer si le cout est eleve alors il existe des cas ou une politique de concurrence dans le r d sans alliance strategique peut mieux servir le mieux etre collectif

modelling imperfectly appropriable r d via spillovers abstract we provide an extensive comparison of the well known r d models of d aspremont jacquemin and kamien muller zang exposing full or partial conflict in key conclusions and policy prescriptions using a mix of formal and or intuitive criteria we argue that the first model is of questionable validity for large spillover values the latter being characterized by jointly increasing returns to scale in the r d process an argument leading to equivalence between the two r d processes but not to agreement on some key conclusions is exposited in conclusion the models emerge as fundamentally different although a unilateral shift in the cost function of the first leads to agreement in all equilibrium outcomes

rational expectations information acquisition and competitive bidding most rational expectations market equilibrium models are not models of price formation and naive mechanisms leading to such equilibria can be severely manipulable in this paper a bidding model is developed which has the market like features that bidders act as price takers and that prices convey information higher equilibrium prices convey more favorable information about the quality of the objects being sold than do lower prices bidders can benefit from trading only if they have a transactions motive or if they have access to inside information apart from exceptional cases prices are not fully revealing a two stage model is developed in which bidders may acquire information at a cost before bidding and for which the equilibrium price is fully revealing resolving a well known paradox

this job is getting old measuring changes in job opportunities using occupational age structure high and low wage occupations are expanding rapidly relative to middle wage occupations in both the u s and the e u we study the reallocation of workers from middle skill occupations towards the tails of the occupational skill distribution by analyzing changes in age structure within and across occupations because occupations typically expand by hiring young workers and contract by curtailing such hiring we posit that growing occupations will get younger while shrinking occupations will get old after verifying this proposition we apply this observation to local labor markets in the u s to test whether markets that were specialized in middle skilled occupations in 1980 saw a differential movement of both older and younger workers into occupations at the tails of the skill distribution over the subsequent 25 years consistent with aggregate trends employment in initially middle skill intensive labor markets hollowed out between 1980 and 2005 employment losses among non college workers in the middle of the occupational skill distribution were almost entirely countered by employment growth in lower tail occupations for college workers employment losses at the middle were offset in roughly equal measures by gains in the upper and lower tails of the occupational skill distribution but gains at the upper tail were almost entirely limited to young college workers consequently older college workers are increasingly found in lower skill lower paying occupations this abstract was borrowed from another version of this item

the own wage elasticity of labor demand a meta regression analysis firms labor demand responses to wage changes are of key interest in empirical research and policy analysis however despite extensive research estimates of labor demand elasticities remain subject to considerable heterogeneity in this paper we conduct a comprehensive meta regression analysis to re assess the empirical literature on labor demand elasticities building on 942 elasticity estimates from 105 different studies we identify sources of variation in the absolute value of this elasticity heterogeneity due to the theoretical and empirical specification of the labor demand model different datasets used or sectors and countries considered explains more than 80 of the variation in the estimates we further find substantial evidence for the presence of publication selection bias as estimates of the own wage elasticity of labor demand are upwardly inflated

strategic spillovers and incentives for research and development this paper develops a model in which a monopolist supplier can contribute to downstream product improvements by creating knowledge spillovers which downstream firms use as a substitute for their own r d efforts although a market for r d information does not exist the supplier may appropriate an indirect return on r d for two reasons sufficiently high levels of spillover information lead to greater downstream product quality and spillover information reduces the equilibrium sunk cost of r d for downstream firms and thus facilitates entry both effects cause an expansion of downstream output and enhance the demand for the supplier s intermediate good given sufficiently strong incentives for supplier r d the locus of r d shifts partially from the downstream to the upstream industry r d expenditures technological opportunities and downstream industry structure are determined endogenously weak appropriability conditions in the downstream industry enhance innovation incentives in the supply sector

the effect of network structure in industrial diffusion processes abstract the development and diffusion of innovations involves groups of organizations with many different roles who interact with each other suppliers adopters third parties etc this paper examines the nature of the communication networks that exist between adopting organizations and from third parties and suppliers to adopters quantitative models of diffusion often assume that information about innovations flows along pre existing links that this information flows from adopters to non adopters directly and that there is perfect mixing in the population i e every actor has an equal chance of communicating with every other actor these are strong assumptions which should be subject to testing we investigate the impact of differing network topologies of communications and alternative models of social contagion on observed adoption patterns network topologies are also extended beyond the focal industry to include suppliers consultants and other customers we use a simulation model to test the effect of departures from traditional assumptions on the diffusion pattern and undertake an empirical field study to examine the prevalence of those departures in one specific industry our simulation findings suggest that network structure can have a substantial effect on the manner in which innovations diffuse while innovation specific communication links and communication through third parties does not change the shape of the penetration trajectory as much as it alters the places in the process where salesforce effort can offer the most leverage the empirical study shows strong evidence of imperfect mixing that both pre existing and innovation specific communication links are used and that communication through third parties may be as important to the diffusion process as direct links from adopters to potential adopters

employment inequality why do the low skilled work less now abstract low skilled prime age men are less likely to be employed than high skilled prime age men and the differential has increased since the 1970s i build a search model encompassing three explanations 1 automation and trade reduced the demand for low skilled workers 2 health welfare and recreational gaming computer technology reduced the supply of low skilled workers and 3 factors affecting job search such as online job boards reduced frictions for high skilled workers i find a shift in demand away from low skilled workers was the leading cause a shift in supply had little effect and search frictions actually reduced employment inequality

asymmetric auctions with resale we study first and second price auctions with resale in a model with indepen dent private values with asymmetric bidders the resulting inefficiencies create a motive for post auction trade which in our model takes place via monopoly pricing the winner makes a take it or leave it offer to the loser we show a a first price auction with resale has a unique monotonic equilibrium and b with resale the expected revenue from a first price auction exceeds that from a second price auction the inclusion of resale possibilities thus permits a gen eral revenue ranking of the two auctions that is not available when these are excluded jel d44

who co operates for innovation and why an empirical analysis abstract in recent years there has been growing interest in co operative arrangements for innovation with some commentators arguing innovation is no longer the province of individual firms but depends increasingly on collective action this paper examines the response to the uk s version of the second european community innovation survey cis 2 to investigate the patterns of co operation between innovating firms and external partners the analysis shows the relationship between innovation and co operation is not straightforward from a subjective i e firm based perspective it is clear that most firms still develop their new products processes and services without forming formal co operative arrangements for innovation with other organisations however firms that engage in r d and that are attempting to introduce higher level innovations i e new to the market rather than new to the firm innovations are much more likely to engage in co operative arrangements for innovation consequently if an objective i e innovation based perspective is taken which weighs innovations by their significance then it is likely that a significant proportion of high level innovations are developed through co operative arrangements although unfortunately the cis 2 does not indicate the direct significance of these arrangements to the development of the innovations in summary the extent of co operative arrangements for innovation appears to depend on the type of firms being considered and on what is meant by innovation

co operative r d why and with whom an integrated framework of analysis abstract firms use r d partnerships to access knowledge and build global r d networks this article develops an integrated framework to examine the determinants of the choice of partners with which firms co operate on r d this resource based perspective underscores the interactions between three major questions why co operate who does and with whom it argues in particular that the choice of partners is dictated by the complementary resources which the latter command the framework is then expanded to predict the relative efficiency of r d co operation with different partners including suppliers clients rivals academic institutions and foreign firms the empirical analysis which is based on responses to france s version of the second european community innovation survey cis 2 strongly supports the overall framework of analysis

models of technology diffusion abstract the literature on new technology diffusion is vast and it spills over many conventional disciplinary boundaries this paper surveys the literature by focusing on alternative explanations of the dominant stylized fact that the usage of new technologies over time typically follows an s curve the most commonly found model which is used to account for this model is the so called epidemic model which builds on the premise that what limits the speed of usage is the lack of information available about the new technology how to use it and what it does the leading alternate model is often called the probit model which follows from the premise that different firms with different goals and abilities are likely to want to adopt the new technology at different times in this model diffusion occurs as firms of different types gradually adopt it there are actually many ways to generate an s curve and the third class of models which we examine are models of density dependence popularized by population ecologists in these models the twin forces of legitimation and competition help to establish new technologies and then ultimately limit their take up finally we look at models in which the initial choice between different variants of the new technology affect the subsequent diffusion speed of the chosen technology such models often rely on information cascades which drive herd like adoption behaviour when a particular variant is finally selected

auctions with both common value and private value bidders abstract this paper shows the existence of monotone pure strategy equilibrium in auctions with both common value bidders and private value ones in equilibrium the common value bidders bid less aggressively when there are more private value bidders further resale is discussed as an application

first price auctions in the asymmetric n bidder case i consider the first price auction when the bidders valuations may be differently distributed i show that every bayesian equilibrium is an essentially pure equilibrium formed by bid functions whose inverses are solutions of a system of differential equations with boundary conditions i then prove the existence of an equilibrium i prove its uniqueness when the valuation distributions have a mass point at the lower extremity of the support i give sufficient conditions for uniqueness when every valuation distribution is one of two atomless distributions i establish inequalities between equilibrium strategies when relations of stochastic dominance exist between valuation distributions

network structure and the diffusion of knowledge this paper models knowledge diffusion as a barter process in which agents exchange different types of knowledge this is intended to capture the observed practice of informal knowledge trading agents are located on a network and are directly connected with a small number of other agents agents repeatedly meet those with whom direct connections exist and trade if mutually profitable trades exist in this way knowledge diffuses throughout the economy we examine the relationship between network architecture and diffusion performance we consider the space of structures that fall between at one extreme a network in which every agent is connected to n nearest neighbours and at the other extreme a network with each agent being connected to on average n randomly chosen agents we find that the performance of the system exhibits clear small world properties in that the steady state level of average knowledge is maximal when the structure is a small world that is when most connections are local but roughly 10 percent of them are long distance the variance of knowledge levels among agents is maximal in the small world region whereas the coefficient of variation is minimal we explain these results as reflecting the dynamics of knowledge transmission as affected by the architecture of connections among agents

long run implications of investment specific technological change an attempt is made to disentangle its effects from the more traditional hicksneutral form of technological progress the balanced growth path for the model is characterized and calibrated to u s national income and product account nipa data the quantitative analysis suggests that investment specific technological change accounts for the major part of growth jel e13 030 041 047

structural cycles and industrial policy alignment the private public nexus in the emilian packaging valley the article investigates changes in the interaction between business organisations local governments and public technology intermediaries resulting from business organisations shifts towards higher value product segment opportunities specifically we analyse how local governments can or not align their industrial policies to the industrial transformations both technological and organisational underpinning firms value creation capture dynamics the concept of structural cycle is introduced here to study the two interdependent processes of technology transition and organisational reconfiguration characterising those firms shifting towards higher value product segments this private public nexus is investigated in the emilian packaging valley context the mixed method study focuses on the case of ima spa its shifts from the food to the pharmaceutical value product segment of the packaging machine industry and its changing relationships with regional public policies and institutions a number of industrial policy implications for sustainable value creation dynamics in local production systems are finally derived

disappearing routine jobs who how and why abstract we study the deterioration of employment in middle wage routine occupations in the united states in the last 35 years the decline is primarily driven by changes in the propensity to work in routine jobs for individuals from a small set of demographic groups these same groups account for a substantial fraction of both the increase in non employment and employment in low wage non routine manual occupations observed during the same period we analyze a general neoclassical model of the labor market featuring endogenous participation and occupation choice in response to an increase in automation technology the framework embodies a tradeoff between reallocating employment across occupations and reallocation of workers towards non employment quantitatively we find that this standard model accounts for a relatively small portion of the joint decline in routine employment and associated rise in non routine manual employment and non employment

the transition to flexible specialisation in the us film industry external economice the division of labour and the crossing of industrial divides there is increasing evidence that mass production methods are losing their dominance in the advanced industrial economies and that various forms of flexible production organization are on the rise the transition from mass production organization to flexible specialization is analyzed in detail through a case study of the film industry where it is shown that a system of production once based on product standardization high levels of vertical integration and stable oligopolistic market structures has after a period of vertical disintegration given way to a production system based on a deep division of labor between firms and high levels of flexibility in both product design and output levels the transition may be the result of increasing external economies of scale stemming from the development of the industry s social division of labor copyright 1989 by oxford university press

r d spillovers and information exchange abstract we show that the spillover of r d can be endogenised in a sense that even without spillovers firms have an incentive to exchange the r d information after the investment costs are sunk

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