a history friendly model of the successive changes in industrial leadership and the catch up by latecomers abstract successive changes in industrial leadership between both firms and countries described here as catch up cycles have been common in several sectors this article develops a history friendly model to explore the role played by technological conditions in the emergence of such leadership changes the model is inspired by two cases where the emergence of disruptively novel technology played an important role mobile phones and semiconductors in the baseline setting the model is able to generate the benchmark case of three cycles with two leadership changes in particular the simulation analysis reveals that a the more disruptive the new technology and the lower the incumbents capabilities the greater the shake up of market shares between incumbents and latecomers b leadership change is more likely to occur when it coincides with certain responses by the actors to the technological disruption such as a high lock in behaviour on the part of incumbents and c a technology driven change of industrial leadership is more likely to occur in the presence of increasing returns to technological investments the counterfactual experiments show that different catch up dynamics can emerge depending on the magnitude of technological disruption the degree of lock ins the shape of technological landscape and incumbents initial capabilities in particular four other types of catch up cycle are generated the aborted cycle persistent leadership return of the old leadership and coexistence in leadership between latecomers and incumbents each of these cycles is identified with a specific historical case of catch up

cost reduction competition and industry performance in many markets firms compete over time by expending resources with the purpose of reducing their costs sometimes the cost reducing investments operate directly on costs in many instances they take the form of developing new products that deliver what customers need more cheaply therefore product development can have the same ultimate effect as direct cost reduction in fact if one thinks of the product as the services it delivers to the customer in the way that lancaster pioneered then product development often is just cost reduction

sickness and death economic consequences and coping strategies of the urban poor in bangladesh summary we investigate the economic consequences of sickness and death and the manner in which poor urban households in bangladesh respond to such events based on panel data we assess the effects of morbidity and mortality episodes on household income medical spending labor supply and consumption we find that despite maintaining household labor supply serious illness exerts a negative effect on income for the poor however the estimates do not reject consumption smoothing the most prominent responses to finance current needs are increasing household debt through borrowing and depleting productive assets both of which have detrimental effects on future consumption

estimating households vulnerability to idiosyncratic and covariate shocks a novel method applied in madagascar households in developing countries are frequently hit by severe idiosyncratic and covariate shocks leading to high consumption volatility a household s currently observed poverty status might therefore not be a good indicator of the household s general vulnerability to poverty in the recent years there has been an emerging literature on the concept and empirical analysis of vulnerability but because of strong data requirements for vulnerability analysis and limited availability of panel and shock data for developing countries static poverty analysis still dominates empirical vulnerability studies in this paper we propose a simple method to empirically assess the impact of idiosyncratic and covariate shocks on households vulnerability which can be applied in a wide context as it relies on more commonly available cross sectional or short panel data we empirically illustrate our approach for madagascar we show that covariate shocks have a relatively higher impact on rural households whereas idiosyncratic shocks have a relatively higher impact on urban households vulnerability

environment technology and the social articulation of risk in west african agriculture two preoccupations are not mutually exclusive superficially they share the common concern that liberalization is insufficient to resolve the subsaharan food crisis at a deeper level the two preoccupations are more intimately interrelated via the correspondence that links initial wealth to risk exposure and to behavior in both production and asset accumulation a number of recent empirical studies of risk in low income countries find that households are able to employ their accumulated assets to smooth consumption in the face of adverse agricultural production shocks 3 missing from these studies is explicit attention to the fact that the effective risk from which households insulate consumption is not that of production shocks directly but of those shocks as socially articulated by institutions and property rights this article explores the creation and distribution of effective risk estimating how environment technology and social factors interact to construct it endogenously 4 put differently this article develops the notion that the risk from which households ex post try to insulate consumption is not an immutable natural or technical feature of the landscape as michael watt s contrast between precolonial and colonial nigeria forcefully demonstrates the effective risk presented by an unchanged set of environmental and technical circumstances can

peer effects in consumption in india an instrumental variables approach using negative idiosyncratic shocks abstract this paper examines peer effects in consumption in context of a less developed country specifically the question that i seek to answer is whether consumption expenditure of a household is influenced by that of its peers in a less developed country to examine this question i use newly available household level data from india i define a household s peer group as other households living in its village neighborhood in assessing the influences of peers in this context there are two key empirical challenges including shared group level unobservables and simultaneity of peer influences i address these issues by using an instrumental variables fixed effects approach that compares households in the same district but different villages neighborhoods who are thus exposed to different sets of peers in particular i use plausibly exogenous variation in idiosyncratic expenditure shocks which are accidental and negative in nature faced by peers as instruments for peers consumption expenditure preferred specification suggests that a one standard deviation increase in average consumption expenditure of a household s peers causes the household s own consumption expenditure to increase by 0 42 standard deviations falsification tests and robustness checks support the validity of my results my findings suggest that policies that influence a household s consumption will also affect the consumption of the household s peers through social interactions this implies traditional analyses of consumption intervention programs that do not take into account such spillover effects will understate the total social impact of the programs and hence lead to inaccurate evaluation of cost effectiveness of such programs

the limits of capital transcending the public financer private producer split in industrial r d abstract a near consensus has emerged supporting the public funding of industrial r d as a solution to a host of market failures however the common policy prescription urges government to go no further than minimal market enhancing intervention largely keeping the state to the role of financer of privately conducted r d by focusing on three general issues in the context of industrial r d trust coordination and motivation this article develops an argument for a more expansive government role two models of state intervention are at the center of the analysis public production of r d and state sponsorship of inter firm and inter organizational networks it is argued that both these models have distinct advantages as well as weaknesses in addressing common challenges to industrial r d production informed by the positive experiences of different states that have moved in recent years from high technology industries periphery to the center this article explains how the two models of state intervention address the various problems associated with pure private production it is concluded that while even advanced countries with well developed markets might find it advantageous to actively intervene in industrial r d the two models should especially be considered in cases of economies that suffer from weak market signals low retention of value added functions limited professional capacities and limited institutional thickness and networks

estimation of vulnerability to poverty using a multilevel longitudinal model evidence from the philippines using the panel data for the philippines in 2003 2009 we estimate a three level random coefficient model to measure household vulnerability and to decompose it into idiosyncratic and covariate com

innovation procurement as capability building evaluating innovation policies in eight central and eastern european countries abstract after decades of impressive growth the new member states of the european union are once again in transition but this time from imitation to innovation driven competitiveness this paper evaluates the relationship between both public funding and public procurement for innovation ppi and firm level innovation output and outcome additionality in eight central and eastern european countries matching estimates on a sample of 41 623 firms suggest that ppi has a large effect on innovation and output and the highest additionality is sometimes achieved when firms receive both financial support and innovation oriented public procurement we argue that policy makers aiming to strengthen indigenous innovation capabilities should place stronger emphasis on ppi

are some groups more vulnerable to macroeconomic shocks than others hypothesis tests based on panel data from peru abstract which socio economic groups are most vulnerable to welfare declines during a macroeconomic shock after clarifying the difference between poverty and vulnerability this paper presents an analytical framework and applies it to panel data from peru major findings are 1 households with better educated heads are less vulnerable 2 female headed households are no more vulnerable than male headed households 3 households with more children are more vulnerable 4 transfer networks that assist the poor in relatively stable periods do not protect them during a major shock unless they originate from outside peru and 5 peru s social security program is targeted neither to vulnerable nor to poor households but other transfer programs are better targeted

firm size and r d intensity a re examination using data from the federal trade commission s line of business program and survey measures of technological opportunity and appropriability conditions this paper finds that overall firm size has a very small statistically insignificant effect on business unit r d intensity when either fixed industry effects or measured industry characteristics are taken into account business unit size has no effect on the r d intensity of business units that perform r d but it affects the probability of conducting r d business unit and firm size jointly explain less than one per cent of the variance in r d industry effects explain nearly half the variance two sets of well known hypotheses are associated with the later work of joseph schumpeter the first concerns the effects of market concentration on research and development investment and on innovative performance the second bears on the effects of firm size on r d and innovation in a recent paper levin cohen and mowery 1985 we re examined the first set of hypotheses simple regressions at the line of business level replicated the established findings that both r d intensity and innovative performance first increase and then decrease as industrial concentration rises the effect of concentration however was sharply attenuated when we controlled for interindustry differences in technological opportunity and in the appropriability of returns from new technology our results suggested that it is probably unwarranted to conclude that market concentration favors r d investment and innovation in this paper we investigate the schumpeterian hypothesis that large size is conducive to r d investment this relationship has been studied at least as intensively as the link between concentration and r d but our approach is novel in two respects first using data collected by the federal trade

r d support programs in developing countries the turkish experience in this study the determinants of private r d investment are examined at the level of firms in the turkish manufacturing industry we focus our attention on the effect of public r d support programs our findings indicate that public r d support significantly and positively affects private r d investment there seems to be even an acceleration effect on firm financed r d expenditures smaller r d performers benefit more from r d support and perform more r d in addition technology transfer from abroad and domestic r d activity show up as complementary processes given the scarcity of studies on r d support in technologically weaker economies our hope is that the less developed countries can exploit these findings in constructing socially beneficial technology policies

do social protection transfers reduce poverty and vulnerability to poverty in pakistan household level evidence from punjab empirical studies in different developing countries have investigated the impact of social protection sp on ex post poverty however few studies analysed the impact of sp on ex ante vulnerability to poverty vtp this paper contributes to the literature by evaluating the impact of sp on vulnerability to poverty vtp and poverty rates among households in the punjab province of pakistan a hierarchical modelling approach is used to analyse the multiple indicator cluster survey mics 2011 data of about 90 000 households matching methods and simultaneous endogenous switching regression are used to control for potential selection bias and estimate average treatment effects our results show that sp has a positive impact in reducing household poverty and vtp but this impact is mainly driven by a short term flood relief cash transfer programme pension of government employees and households regular purchase from utility store network

public sector organizations and agricultural catch up dilemma in emerging markets the orchestrating role of embrapa in brazil abstract how can an emerging economy beset by political economic and resource challenges jump start the technology catch up process in the agricultural sector and then forge an ecosystem to facilitate the continual generation and dissemination of innovations equally important how can it maintain the viability and salience of its catch up initiatives subsequent to the entry and inevitable dominance of multinational companies we answer these questions by studying catch up in brazil s soy seeds sector over four decades 1973 2015 in an environment of political and economic uncertainty embrapa a public sector organization forged partnerships to first develop absorptive capacity and innovation capabilities and then build an ecosystem of diverse organizations to generate and disseminate catch up outcomes to farmers and other end users embrapa also developed critical tacit knowledge and complementary assets that along with its emphasis on environmental sustainability and protecting national interests helped maintain its salience even after the entry and market dominance by multinational agribusinesses in addition to demonstrating critical roles for public sector organizations and public private networks in technological catch up in an emerging economy s agricultural sector our study calls into question the prevalent notion of technological catch up as a rush to reach the technological frontier at any cost

unpaid work and conformity why care we study the supply of unpaid eldercare in particular caring for parents in the uk focusing on both the division of care and caring tasks by gender and the effect of conformity to social norms in relation to caring we then investigate the effect of the amount of care on the well being of caregivers and whether agreeing with the care norm enhances their well being our results suggest that the eldercare reform neglects important aspects underlying the distribution of care hours and care tasks between caregivers and may potentially worsen intrahousehold inequality in earnings and well being in particular between men and women

determinants of income mobility and household poverty dynamics in south africa this article analyses household income mobility among africans in south africa s most populous province kwazulu natal between 1993 and 1998 compared to industrialised and most developing countries mobility has been quite high as might have been expected after the transition in south africa this finding is robust when measurement error is controlled for when disaggregating the sources of mobility it is found that demographic changes and employment changes account for most of the mobility observed which is related to rapidly shifting household boundaries and a very volatile labour market in an environment of high unemployment using a multivariate analysis it can be seen that transitory incomes play a large role four types of poverty traps are found associated with large initial household size poor initial education poor initial asset endowment and poor initial employment access that dominate the otherwise observed regression towards the mean

public policy and catching up by developing countries in global industries a simulation model this paper examines the effects of different public policies strengthening capability building favouring firms learning protectionism and support of entry of new domestic firms on the catch up of a latecomer with respect to an incumbent country in changing and uncertain technological environments the effects of these policies are analysed with a simulation model first separately and then jointly to assess possible complementarities we reach several results first we confirm that capability building and firms learning are important drivers of catch up second we find that when a large technological discontinuity takes place entry support favours catch up while protectionism has the opposite effect protectionism favours catch up only when no technological discontinuity opens up third we find that depending on the technological conditions different policy complementarities exist therefore different policy mixes should be at the base of a country catch up strategy these results add to the previous literature on public policy and catching up by developing countries in an industry by distinguishing the different effects of various types of public policy and relating them to the technological conditions that are present in an industry

spillover effect of japanese long term care insurance as an employment promotion policy for family caregivers we evaluate a spillover effect of the japanese public long term care insurance ltci as a policy to stimulate family caregivers labor force participation using nationally representative data from 1995 to 2013 we apply difference in difference propensity score matching to investigate the spillover effect in two periods before and after the introduction of the ltci in 2000 and before and after its major amendment in 2006 our results show that the ltci introduction has significant and positive spillover effects on family caregivers labor force participation and the effects vary by gender and age in contrast the ltci amendment is found to have generally negative spillover effects on their labor force participation we draw attention to these spillover effects as expanding labor market supply to sustain the economy would be a priority for japan and other rapidly aging countries in the coming decades

patterns of technological competence accumulation a proposition for empirical measurement this article develops a typology that describes and measures different types of technological competence accumulation the notion of accumulation comprises not only the state but also the change in competence and hence it complies with the criticism of the static approaches to competence management the typology of competence accumulation enables a comparison of firm profiles that lead to identification of four groups of firm behavior across the telecommunications industry the relationship between the firm and the industry level is established on the condition that each firm s competence level depends on the firms mutual relationships with other firms in the same industry known as red queen evolution the four groups of firm behaviour are therefore not considered as groups of independent firms that are similar by coincidence but as patterns of behavior within the telecommunications industry which allows for a discussion of more general implications for management of technology copyright 2005 oxford university press

intergenerational household formation female labor supply and informal caregiving a bargaining approach children s provision of in kind services to their elderly parents informal caregiving represents an important form of economic transfers to the elderly in this paper we develop and estimate a joint model of informal caregiving and labor force participation decisions of adult daughters who have a frail elderly parent in a broader framework of intergenerational household formation parent and daughter agree to a nash bargaining rule as the solution to the household formation and intrahousehold decision making process however rather than severed relationships the threat point is given by a noncooperative equilibrium defined in terms of voluntary contributions toward a public good the parental well being maximum likelihood parameter estimates derived from the simultaneous multiequation endogenous switching model are generally consistent with expectations our results indicate that competing demands on daughters time reduce both coresidence and informal caregiving we also find that intergenerational coresidence is an important mode of assistance to elderly persons a simulation based on the estimated parameters suggests that public programs designed to meet the long term care needs of elderly persons by subsidizing formal home care services may have substantial effects on intergenerational living and care arrangement decisions

the effect of informal care on work and wages cross sectional evidence in the united states finds that informal caregivers have less attachment to the labor force the causal mechanism is unclear do children who work less become informal caregivers or are children who become caregivers working less using longitudinal data from the health and retirement study we identify the relationship between informal care and work in the united states both on the intensive and extensive margins and examine wage effects we control for time invariant individual heterogeneity rule out or control for endogeneity examine effects for men and women separately and analyze heterogeneous effects by task and intensity we find modest decreases 2 4 percentage points in the likelihood of working for male caregivers providing personal care female chore caregivers meanwhile are more likely to be retired for female care providers who remain working we find evidence that they decrease work by 3 10hours per week and face a 3 percent lower wage than non caregivers we find little effect of caregiving on working men s hours or wages these estimates suggest that the opportunity costs to informal care providers are important to consider when making policy recommendations about the design and funding of public long term care programs

public research institutions and economic catch up abstract public research institutions often but not always connected with universities have been in the past important elements of the structures supporting economic catch up recent changes in the international economic environment and the growing scientific basis for contemporary technologies will make those institutions even more important in the future universities and public labs have contributed to the development of technological capabilities in different forms across countries and economic sectors in contrast with current emphasis on university based embryonic inventions and fundamental research effective research programs have predominantly occurred in the application oriented sciences and engineering and have been oriented towards problem solving and the advancement of technologies of interest to a well defined user community

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

the chicken or the egg endogeneity in labour market participation of informal carers in england around 14 of the uk labour force has informal care responsibilities and almost everyone in society will be an informal carer in their lifetime a well known fact in the small economic literature on informal care is the apparent negative relation between care responsibilities and labour market participation yet caring and labour market participation may be endogenous using an instrumental variable approach and panel data techniques and employing data from the british household panel study from 1991 to 2002 this paper shows that not accommodating for endogeneity in the labour market participation equation may significantly overestimate the impact care exhibits on the employment decision of informal carers moreover it is shown that a negative impact on employment only applies to some care types policy implications are derived

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 clusters with a knowledge based principle evidence from a delphi investigation in the french case of the life sciences abstract recent works in the theory of technical change show the effect of irreversibility and lock in on the diffusion and creation of innovation processes which are able to stop the development of a generic technology therefore industrial policies play a major role in selecting and supporting the innovative process the purpose of this paper is to prove the possibility to derive a typology of future innovations in terms of generic technology from a delphi type technology survey thus it is possible to get a better understanding of the industrial dynamics and to design an interesting tool for industrial policies or for firm strategies as far as they aim at developing stable technological trajectories this is applied to the french case of the life sciences the paper suggests interesting explanatory trajectories in order to fight against diseases such as cancer alzheimer or schizophrenia

transient poverty poverty dynamics and vulnerability to poverty an empirical analysis using a balanced panel from rural china china s economic reforms starting in the late 1970s have resulted in rapid economic growth with annual growth in gross domestic product averaging greater than 10 percent per year for more than thirty years accompanying this rapid growth in national accounts have been rapid and widespread reductions in poverty with these reductions in poverty however there has often been observed an increase in income inequality both between as well as within rural and urban sectors this rising income gap challenges the notion that economic reforms in china have been as successful as the poverty statistics would suggest in this paper we suggest that an alternative view would be to consider the effects of these reforms on changing the chronic nature of poverty and reducing household vulnerability to poverty using a balanced panel from rural china from 1991 through 2006 we find that most poverty among our sample has shifted from being chronic in nature to being transient with households either shifting into a state of being non poor moving in and out of poverty among our sample vulnerability to poverty has been declining over time but the declines are not uniform over time or space we decompose household vulnerability status into two proximate causes low expected income and high income variability finding vulnerability increasingly due to income variability additionally we demonstrate that vulnerable households have very different characteristics than non vulnerable households

consumption insurance an evaluation of risk bearing systems in low income economies the hypothesis of full risk sharing can be taken to data from low income countries and evaluate formal and informal financial systems in many contexts idiosyncratic risks are high so credit insurance arrangements could be beneficial statistical tests reveal that households in southern india take advantage of these possibilities villages in cote d ivoire and countries in thailand do not do as well the paper includes an empirical description of the devices used to smooth consumption and a theoretical discussion of private information and incentives on ideal operating systems the full information and mechanism design frameworks provide benchmarks for policy analysis

who will care employment participation and willingness to supply informal care the impact of informal care responsibilities on the willingness and ability of caregivers to undertake paid employment has been the subject of a number of studies in contrast the effect of employment status on willingness to undertake informal care has been less well explored this paper concentrates on this less studied direction of causality using the data provided by 15 waves of the british household panel survey we find that employment participation and earnings both impact negatively on willingness to supply informal care this evidence has implications for health and social care policy since informal care has been shown to be a significant substitute for formal long term care

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

wealth weather risk and the composition and profitability of agricultural investments despite the growing evidence that farmers in low income environments are risk averse there has been little empirical evidence on the importance of risk in shaping the actual allocation of production resources among farmers differentiated by wealth the authors use panel data on investments in rural india to examine how the composition of productive and nonproductive asset holdings varies across farmers with different levels of total wealth and across farmers facing different degrees of weather risk income variability is a prominent feature of the experience of rural agents in low income countries the authors report evidence based on measures of rainfall variability that the agricultural investment portfolio behavior of farmers in such settings reflects risk aversion due evidently to limitations on consumption soothing mechanisms such as crop insurance or credit markets the authors results suggest that uninsured weather risk is a significant cause of lower efficiency and lower average incomes a one standard deviation decrease in weather risk measured by the standard deviation of the timing of the rainy season would raise average profits by up to 35 percent among farmers in the lowest wealth quartile moreover rainfall variability induces a more unequal distribution of average incomes for a given distribution of wealth wealthier farmers are willing to absorb significant risk without giving up profits to reduce production risk smaller farmers have to invest their limited wealth in ways that reduce their exposure to risk at the cost of lower profit rates the authors found that at high levels of rainfall variability differences in rates of profit per unit of agricultural assets were similar across classes of wealth but over the sample range of rainfall variability these rates of profit were always higher for the poorer farmers than for the wealthier ones suggesting that the disadvantages of small farmers in risk diffusion are more than offset by their labor cost advantage

on the sources and significance of interindustry differences in technological opportunities abstract the set of technological opportunities in a given industry is one of the fundamental determinants of technical advance in that line of business we examine the concept of technological opportunity and discuss three categories of sources of those opportunities advances in scientific understanding and technique technological advances originating in other industries and in other private and governmental institutions and feedbacks from an industry s own technological advances data from the yale survey on industrial research and development are used to measure the strength of various sources of technological opportunity and to discern interindustry differences in the importance of these sources we find that interindustry differences in the strength and sources of technological opportunities contribute importantly to explanations of cross industry variation in r d intensity and technological advance

the labour market costs of community care this paper reports an empirical investigation into the influence of informal care responsibilities on the labour supply of women the objective is to examine the argument that the uk policy of caring for the chronic sick in the community involves a nontrivial opportunity cost in the form of the forgone labour supply of the informal carers upon which it relies we find that informal carers who care for less than 20 h per week are in fact more likely to participate in the labour market but tend to work for fewer hours per week than otherwise similar noncarers informal carers who care for 20 h or more a week are less likely to participate but only slightly however when they do undertake formal employment they tend to earn less per hour and work for fewer hours per week

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

the effect of immigration on innovation in italy abstractthis paper investigates the effect of immigration on innovation in italy a country characterized by prevalently unskilled immigration after addressing the potential endogeneity of the share of immigrants in the population using immigrant enclaves no evidence is found of either positive or negative effects of migrants on innovation this result is robust to allowing for different effects of low and medium high skilled migrants to using linear and non linear models and to considering both province level data on patent applications and firm level self reported measures also capturing innovation adoption

vulnerability to multi dimensional poverty an empirical comparison of alternative measurement approaches this paper investigates whether different measures of ex post poverty and ex ante vulnerability to poverty provide consistent estimates of poverty and vulnerability to poverty across households mo

the opportunity costs of informal care does gender matter in this paper we investigate the costs borne by both male and female carers in terms of their forgone formal employment opportunities traditionally informal care was supplied by women but nowadays women are not only more likely to work but also likely to be significant contributors to family finances for women this implies that the size of any forgone earnings cost of informal care is increasing at the same time population ageing is making for increasing numbers requiring care from a policy perspective it is therefore helpful to consider a less traditional but nevertheless important source of informal care men we find that both male and female carers bear indirect costs in that they are less likely to be in paid work than otherwise similar non carers and when they are in paid work they earn significantly less however we find that the motivation for lower employment participation is not the same for men as it is for women

livestock s contribution to poverty alleviation how to measure it summary the difficulty of valuation of livestock outputs has strong political and economic implications for farmers because policies require metrics based on a case study in mali this paper gives different estimations of the contribution of livestock to reducing poverty using different methods from the most common measure based approaches that is a financial approach to an asset based approach the results show that the asset based approach reflects the roles of livestock in terms of security money cash and vulnerability but only a dynamic approach to indicators can account for the complex role of livestock in reducing poverty

what are the most promising conduits for foreign knowledge inflows innovation networks in the chinese pharmaceutical industry we study innovation networks in emerging markets where foreign actors have been identified as key sources of knowledge spillovers as well as progenitors of industry clusters focusing on connectivity as a channel for international knowledge sourcing we widen our lens beyond mnes to include critical innovative actors such as research institutions i e universities and research centers we examine the geographic dispersion of co inventor networks generated by us patents associated with the chinese pharmaceutical industry previous research has highlighted the role of organizationally driven mne networks as enablers of foreign knowledge inflows to less developed countries however our results emphasize the critical role of individually motivated networks arising from advanced economy research institutions in connecting china to global knowledge networks

assessing the effect of microfinance on vulnerability and poverty among low income households we empirically investigate whether participation in the indian self help group shg microfinance programme has helped reduced poverty and household vulnerability using cross sectional shg rural household survey data the potential selection bias is eliminated by propensity score matching to estimate the average treatment on treated effect using nearest neighbour matching and a local linear regression algorithm we find that vulnerability in shg members is not significantly higher than in non shg members even though the shg members have a high incidence of poverty however vulnerability declines significantly for those that have been shg members for more than one year these results are found to be robust using sensitivity analysis and the rosenbaum bounds method

universities in emerging economies bridging local industry with international science evidence from chile and south africa emerging economies are now becoming more central in global competition to achieve this many countries have invested to develop into knowledge economies universities have a role to play in this transformation both as generators of new knowledge as well as actors that can interact with the local industry and contribute to its innovativeness this paper explores using two case studies in the chilean and south african wine industry how universities connect international science to domestic industry it finds that this connection occurs through a few bridging researchers who display particular characteristics compared with their colleagues bridging researchers are more talented than average researchers both because they publish more in international journals and or because they have received awards for their academic work this finding may have significant policy implications as policies aimed at strengthening the skills of these researchers should be welcomed in catching up industries copyright the author 2012 published by oxford university press on behalf of the cambridge political economy society all rights reserved oxford university press

measuring vulnerability to asset poverty in sub saharan africa summary this paper presents a methodology to measure vulnerability to asset poverty using repeated cross section data age cohort decomposition techniques focusing on second order moments can be used to identify and estimate the variance of shocks on assets and therefore the probability of being poor in the future estimates from the ghana living standard surveys show that expected asset poverty is a reliable proxy for expected consumption poverty applying the methodology to eight demographic health surveys countries households in rural areas are found to be unambiguously more vulnerable to poverty than those in urban areas

rural electrification and energy poverty empirical evidences from brazil the aim of this article is to evaluate the impact of rural electrification on the reduction of energy poverty in brazil through the analysis of 23 000 rural domiciles or rural properties between the years 2000 and 2004 the results indicate a fast change in the profile of energy consumption and a reduction of energy poverty this new approach works as a complement among other variables to analyze and quantify the real economic social and energy impacts in rural electrification programs generally applied in developing countries

making sense of institutions as a factor shaping economic performance abstract there has recently been a resurgence of interest in how institutions affect economic performance a review of this literature reveals that the concept of an institution means different things to different scholars both within economics and across the social sciences we discuss what factors unify the different definitions of institutions and develop a concept of institutions useful for the analysis of economic performance and economic growth in particular specifically we develop the notion of institutions as standard social technologies economic growth results from the co evolution of physical and social technologies

imitation costs and patents an empirical study it has long been recognised that the costs of imitating new products have an important effect on the incentives for innovation in a market economy as arrow i962 and others have pointed out if firms can imitate an innovation at a cost that is substantially below the cost to the innovator of developing the innovation there may be little or no incentive for the innovator to carry out the innovation in their discussions of the innovation process economists frequently have called attention to the major role played by the costs of imitation but there has been little or no attempt to measure these costs to test various hypotheses concerning the factors influencing them or to estimate their effects in this paper we report some findings of what seems to be the first study of this topic in addition we present data regarding the effects of patents on imitation costs and on the rate of innovation

growth and risk methodology and micro evidence how exposure to risk affects economic growth is a key issue in development this article quantifies both the ex ante and ex post effects of risk using long running panel data for rural households in zimbabwe it proposes a simulation based econometric methodology to estimate the structural form of a micro model of household investment decisions under risk the key finding is that risk substantially reduces growth in this particular setting the mean capital stock in the sample is in expectation 46 percent lower than in the absence of risk about two thirds of the impact of risk is due to the ex ante effect that is the behavioral response to risk which is usually not taken into account in policy design these results suggest that policy interventions that reduce exposure to shocks or that help households manage risk could be much more effective than is commonly thought

thirty years of agricultural growth in brazil crop performance regional profile and recent policy review the postwar economic growth of brazil has received much attention in specialized and general literature on development structural change associated with rapid and sustained industrialization with strong backward linkages into intermediate capital goods sectors has been the focus of much of this work the costs benefits and distortions growing out of this secular process of economic growth have been documented highlighting the unusual performance of the brazilian economy among the middle income developing countries finally the important shift in policy regimes from import substitution in the 1950s to export substitution beginning in the late 1960s has been analyzed adding a rich base of data and results with which to evaluate the brazilian performance and test various hypotheses concerning the impact of selected policy parameters on efficiency growth and distribution 2 however until recently less attention has been devoted to a review of the performance of the agricultural sector within this scenario of rapid change and growth 3 this becomes important in interpreting trends in income distribution in the 1970s this article is directed toward filling this gap in part through reviewing the empirical record on the aggregate and regional performances of output area and yield of the cropproducing sector of brazilian agriculture over the 30 year period 195080 this is possible through the extensive time series on crop output in metric tons area in hectares and physical yields generated by the annual crop reporting series of the brazilian institute of geography and statistics fibge a series that accounts for 98 of all crop output in brazil during this period

do they care too much to work the influence of caregiving intensity on the labour force participation of unpaid caregivers in canada the recent growth of the home care sector combined with societal and demographic changes have given rise to concerns about the adequacy of the supply of family and friend caregivers potential caregivers face competing time pressures that pull them in the direction of the labour market on one hand and towards unpaid caregiving duties on the other this paper examines the influence of unpaid caregiving on the labour supply of a cohort of working aged caregivers in canada with particular emphasis on caregiving intensity results suggest that caregivers are heterogeneous in both their caregiving inputs and associated labour market responses thereby underscoring the importance of controlling for caregiving intensity when measuring labour supply the negative influence of primary caregiving on labour supply appears to be at the level of labour force participation rather than on hours of work or wages

using weather variability to estimate the response of savings to transitory income in thailand this paper measures the extent to which farmers are able to use savings and dissavings to smooth consumption in response to unexpected shocks to income time series information on regional rainfall is used to construct estimates of transitory income due to rainfall shocks the relationship between these measures of transitory income and savings indicates that farm households save a significantly higher fraction of transitory income than nontransitory income jel d91 016 the incomes of farm households in developing countries are notorious for being both low and uncertain policies that increase the incomes of farmers may well be different

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

dynamic wage and employment effects of elder parent care this article formulates and estimates a dynamic discrete choice model of elder parent care and work to analyze how caregiving affects a woman s current and future labor force participation and wages the model incorporates parental health changes human capital accumulation and job offer availability the estimates indicate that women face low probabilities of returning to work or increasing work hours after a caregiving spell i use the estimated model to simulate the caregiving employment and welfare effects of a longer unpaid work leave than currently available under the family and medical leave act a paid leave and a caregiver allowance

liberalization outward orientation and in house r d activity of multinational and local firms a quantitative exploration for indian manufacturing abstract in an increasingly globalizing and knowledge based world economy the declining importance of r d activity in india is a matter of concern this paper analyzes the determinants of r d behaviour of indian enterprises over the 1990s in the context of the reforms of 1991 and their impact on the r d behaviour of mne affiliates and local enterprises the analysis suggests that although average levels of spending have fallen increased competition due to liberalization seems to have pushed local firms to rationalize their r d activity and make it more efficient also r d spending seems to rise more than proportionally with firm size after a certain threshold level has been reached the analysis brings out differences in the nature of r d activity of mne affiliates and local firms local firms direct their r d activity primarily towards the assimilation of imported technology and to providing a backup to their outward expansion via exports and fdi mne affiliates on the other hand focus on exploiting the advantages of india as an r d platform for their parents the paper is concluded with some policy implications of the findings

the national system of innovation in historical perspective contrary to some recent work on so called globalisation this paper argues that national and regional systems of innovation remain an essential domain of economic analysis their importance derives from the networks of relationships which are necessary for any firm to innovate whilst external international connections are certainly of growing importance the influence of the national education system industrial relations technical and scientific institutions government policies cul tural traditions and many other national institutions is fundamental the historical examples of germany japan and the former ussr illustrate this point as well as the more recent contrast between east asian and latin american countries introduction the national system of friedrich list according to this author s recollections the first person to use the expression national system of innovation was bengt ake lundvall and he is also the editor of a highly original and thought provoking book 1992 on this subject however as he and his colleagues would be the first to agree and as lundvall himself points out the idea actually goes back at least to friedrich list s conception of the national system of political economy 1841 which might just as well have been called the national system of innovation the main concern of list was with the problem of germany overtaking england and for underdeveloped countries as germany then was in relation to england he advocated not only protection of infant industries but a broad range of policies designed to accelerate or to make possible industrialisation and economic growth most of these policies were concerned with learning about new technology and applying it the racialist and colonialist overtones of the book were in strong contrast to the inter nationalist cosmopolitan approach of the classical free trade economists and list s belief that holland and denmark should join the german bund and acquire german nationality because of their descent and whole character reads somewhat strangely in the european community of today nevertheless despite these unattractive features of his outlook he clearly anticipated many contemporary theories after reviewing the changing ideas of economists about development in the years since the second world war the world bank 1991 concludes that it is intangible investment in knowledge accumulation which is decisive rather than physical capital investment as was at one time believed pages 33 35 the report cites the new growth theory

group formation in risk sharing arrangements we study informal insurance within communities explicitly recognizing the possibility that subgroups of individuals may destabilize insurance arrangements among the larger group we therefore consider self enforcing risk sharing agreements that are robust not only to single person deviations but also to potential deviations by subgroups however such deviations must be credible in the sense that the subgroup must pass exactly the same test that we apply to the entire group it must itself employ some self enforcing risk sharing agreement we observe that the stability of subgroups is inimical to the stability of the group as a whole two surprising consequences of this analysis are that stable groups have uniformly bounded size a result in sharp contrast to the individual deviation problem and that the degree of risk sharing in a community is generally non monotonic in the level of uncertainty or need for insurance in the community

identifying vulnerability to poverty a critical survey in the economic literature on poverty various methods have been proposed for measuring a phenomenon known as vulnerability however after more than a quarter century of research no consensus has been reached on how to identify such vulnerable individuals within a given population some misunderstandings have also arisen from the overlapping of other closely related concepts such as the expectation of being poor expected poverty multi period poverty and risk exposure this paper offers a detailed conceptual discussion on vulnerability to poverty and its related elements reviewing a wide range of identifying criteria provided in the literature it is found that according to the state of the art in this field of research two key elements stand out in identifying vulnerable individuals an expected well being below the poverty line and a relevant risk of falling into poverty due to downside deviation from a reference level of well being the traditional classification of vulnerability approaches has been updated into four groups i those that stress the element of exposure to risk ii those that emphasize the element of expected poverty iii those that define vulnerability through a utility gap and iv those that are supported by a mean risk dominance criterion

vulnerability seasonality and poverty in ethiopia most studies examining the dynamics of welfare have found large fluctuations in consumption over relatively short periods suggesting substantial short run movements in and out of poverty the consequence is that cross section poverty research may not be able to identify the poor in this study we explore this short run variability further we use a data set on a panel of 1450 households in different communities in rural ethiopia surveyed thrice over 18 months on average year to year poverty is very similar however we find high variability in consumption and poverty over the seasons and year by year econometric analysis suggests that consumption is affected by idiosyncratic and common shocks including rainfall and household specific crop failure while households respond to seasonal incentives related to changing labour demand and prices the results imply that a larger number of households are vulnerable to shocks than implied by the standard poverty statistics while some of the non poor in the

are the poor less well insured evidence on vulnerability to income risk in rural china the authors test how well consumption is insured against income risk in a panel of sampled households in rural china they estimate the risk insurance models by generalized method of moments treating income and household size as endogenous insurance exists for all wealth groups although the hypothesis of perfect insurance is universally rejected those in the poorest wealth decile are the least well insured with 40 percent of an income shock being passed on to current consumption by contrast consumption by the richest third of households is protected from almost 90 percent of an income shock the extent of insurance in a given wealth stratum varies little between poor and nonpoor areas

insuring consumption against illness one of the most sizable and least predictable shocks to economic opportunities in developing countries is major illness we investigate the extent to which families are able to insure consumption against major illness using a unique panel data set from indonesia that combines excellent measures of health status with consumption information we find that there are significant economic costs associated with major illness and that there is very imperfect insurance of consumption over illness episodes these estimates suggest that public disability insurance or subsidies for medical care may improve welfare by providing consumption insurance

what do household surveys really tell us about risk shocks and risk management in the developing world the authors report on a project to explore empirical patterns in risk shocks and risk management using recent household surveys with risk modules from 16 different developing countries natural disasters health shocks economic shocks and asset loss are the most commonly reported types of shocks and especially for the poor often result in bad coping responses that may perpetuate vulnerability the information culled from these survey modules falls short of expectations in several ways

when faced with income and asset shocks do poor rural households in vietnam smooth food consumption or assets abstractvietnamese rural households are exposed to severe covariate and idiosyncratic shocks however these households are remarkably resilient and have steadily increased real income and consumption over the survey period 2006 to 2012 to explain household strategies to cope with shocks we test three theoretical models the permanent income hypothesis pih complete market hypothesis cmh and asset smoothing theory ast there is support for ast as households smooth productive assets rather than consumption and for cmh as households smooth consumption against idiosyncratic but not covariate shocks there is no support for pih

households vulnerability from trade in vietnam abstract this paper assesses vulnerability from trade in vietnam by presenting an extended version of ligon and schechter s 2003 vulnerability as low expected utility veu measure it uses the vietnam household living standard surveys vhlss panel data covering the period 2002 06 the empirical results show that risk induced vulnerability and heterogeneity in trade exposure matter in determining household overall vulnerability and that this is not linked to the actual manifestation of shocks although it does not represent by any means an argument against free trade this work is relevant for policymaking since it contributes to deepen our knowledge on the subtle links between trade openness and vulnerability and informs us about suitable instruments to accompany it

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

innovation catch up and leadership in science based industries in this paper we seek to shed new light on the sources of industrial leadership and catch up in science based industries we propose an evolutionary model which incorporates scientists training and migration endogenous r d decisions and the possibility of funding capital accumulation through debt the analysis of the model allows us to characterize a robust pattern of industrial catch up likewise the sensitivity analysis shows which parameters act as pro catch up factors or slow down the process the identification of stationary state conditions of the model helps us to interpret the simulations and highlights crucial interactions between technology supporting institutions and market demand at the basis of industrial catch up finally the robustness analysis reveals further interdependencies among

contract farming and vulnerability to poverty among oil palm smallholders in indonesia abstractthis article addresses smallholder oil palm farming in indonesia and the risk of falling into poverty by comparing contract and non contract smallholders we use an asset based approach to define vulnerability and apply propensity score matching analysis to assess the impact of contract farming data were collected from a cross sectional survey conducted in 2010 of 245 oil palm smallholder households 126 of which were contract smallholders the study finds that approximately 40 per cent of oil palm smallholders can be classified as stochastic transient poor we also show that while contract participation reduces the negative impact of oil palm price shocks this is not the case for production shocks the study concludes that despite positive income effects contract smallholders also remain vulnerable to poverty

informal care and long term labor market outcomes in this paper we estimate long run effects of informal care provision on female caregivers labor market outcomes up to eight years after care provision we compare a static version where average effects of care provision in a certain year on later labor market outcomes are estimated to a partly dynamic version where the effects of up to three consecutive years of care provision are analyzed our results suggest that there are significant initial negative effects of informal care provision on the probability to work full time the reduction in the probability to work full time by 4 percentage points or 2 4 5 0 if we move from point to partial identification is persistent over time short run effects on hourly wages are zero but we find considerable long run wage penalties

goodwin cycles and the bopc growth paradigm a macrodynamic model of growth and fluctuations abstract the paper builds a non linear macrodynamic model to study the relation between the functional distribution of income technological progress and economic growth in the short term the interaction between the productivity regime the demand regime and the distributive conflict generates cyclical paths a la goodwin in the long term output growth rate is constrained by the balance of payments a la thirlwall in which the elasticities of foreign trade are modeled as a function of the complex relation between the wage share and the innovation capabilities of theeconomy

encouraging university entrepreneurship the effect of the bayh dole act on university patenting in the united states abstract universities are seen as a source of technology development that is useful to entrepreneurial activity as a result policy makers often consider mechanisms to stimulate technology commercialization at research universities as a way to encourage entrepreneurial activity in a region however the transfer of technology from universities to the private sector requires the exploitation of markets for knowledge which are fraught with difficulty arrow k 1962 economic welfare and the allocation of resources for inventions in nelson r ed the rate and direction of inventive activity princeton nj princeton univ press this article examines the effect of one u s public policy initiative the bayh dole act in the united states on one aspect of technology commercialization university patenting specifically the article explores the university share of patents from 1969 through 1996 across 117 lines of business and shows that the effectiveness of licensing in a line of business is significantly correlated with university share of patents in the post bayh dole period but not in the pre bayh dole period these results suggest that the bayh dole act provided incentives for universities to increase patenting in those fields in which licensing is an effective mechanism for acquiring new technical knowledge the paper discusses the implications of this shift in patenting for research and public policy

r d determinants accounting for the differences between research and development the determinants of r d are an important topic of innovation studies the classical schumpeterian hypotheses about the influence of size and market power have been complemented with the role played by industry determinants such as demand pull technological opportunity and appropriability in determining r d investments however r d has always been considered as a whole even though research and development activities differ in many aspects we take advantage of a new panel database of innovative spanish firms pitec to distinguish between research and development efforts of firms we analyze the differentiated role played by traditional r d determinants in driving research and development results show that demand pull and appropriability have a higher effect on development while technological opportunity is more influential for research differences are statistically significant important in magnitude and robust to the use of different indicators for demand pull technological opportunity and appropriability and to several robustness checks

resilience mobility in uganda a dynamic analysis abstract household resilience to food insecurity can be considered as the capacity that ensures stressors and shocks do not have long lasting adverse development consequences it is nowadays one of the key words in the policy debate on development measuring resilience capacity and how it varies over time is extremely significant for policy makers and people living in risk prone environments more specifically there is a gap of empirical evidence about what drives changes in resilience capacity status i e moving from a low resilience profile to a high one and viceversa this paper applies econometric techniques for estimating household resilience and adopts transition matrices to estimate how it changes over time finally multinomial logit and bivariate probit models are estimated to identify the main drivers of change our study finds that female headed households are less likely to become the most resilient also this paper demonstrates that education and participation to household enterprises are positively associated with increased resilience capacity this paper innovates the resilience literature by providing an evidence based analysis of the main drivers of resilience it brings this evidence in the uganda s context focusing the attention of the policy makers on sub sample of population which are worse off more generally our study suggests that resilience enhancing policies can bridge humanitarian and development interventions by demonstrating how long term perspectives i e those investing in education can lead to an immediate increase of resilience

temporal stability of risk attitudes and the impact of adverse shocks a panel data analysis from thailand and vietnam summary exogenous negative shocks and intrinsic risk attitudes are two important elements characterizing the vicious cycle of poverty associated with rural households in developing countries recent empirical studies suggest that adverse shocks a key driver of poverty can trigger substantial changes in the risk attitudes of poor people leading to decisions that perpetuate their lives in poverty although the temporal variability of risk attitudes is a controversial topic the literature advocating the temporal variability of risk attitudes suggests that covariate shocks such as natural disasters alter risk attitudes over time whereas idiosyncratic shocks show no such significant impact this paper aims to test the temporal stability of risk attitudes in rural households in thailand and vietnam to determine whether this pattern covariate shocks that affect risk attitudes and idiosyncratic shocks that do not can be confirmed for these households i use an exogenous measure of shocks to explain temporal variation in risk attitudes thus i estimate variation in consumption using a multilevel model in which variation in consumption at the individual level serves as a proxy for idiosyncratic shocks while variation in consumption at the aggregate level is used to measure covariate shocks my study finds temporal variability in risk attitudes that is driven by covariate shocks in vietnam and in contrast to past research by idiosyncratic shocks in thailand the results suggest that vietnamese respondents may be better in insuring idiosyncratic risks for example through safety nets while mutual insurance across individuals does not seem to work well in thailand in addition results indicate that the mutual insurance problem in thailand seems to increase in wealth the differences that i find between thailand and vietnam and across poverty types correspond to the difference in political systems and consequently the focus of socio political measures thailand s recent political volatility and the growing lack of social cohesion in thai society support these findings

cost reducing and demand creating r d with spillovers this article analyzes r d policies when the returns to cost reducing and demand creating r d are imperfectly appropriable and market structure is endogenous we generalize previous characterizations of appropriability to permit the possibility that own and rival r d are imperfect substitutes we also describe how equilibrium expenditures on process and product r d as well as equilibrium market structure depend on technological opportunities and spillovers in contrast to previous work diminished appropriability does not necessarily reduce r d expenditures for example under some conditions an increase in the extent of process product spillovers will lead to an increase in product process r d we estimate several variants of the model by using manufacturing line of business data and data from a survey of r d executives