research development and firm growth empirical evidence from european top r d spending firms abstract following recent literature we present a model of endogenous firm growth with r d investment as one of the main mechanisms of growth our study evidences a positive effect of r d intensity on the sales growth by using ols quantile regressions and gmm system estimators for a sample of 754 european firms for the 2003 2007 period we also find this association is more intense in high growth firms and is especially significant when referring to high technology sectors this paper gives empirical support to those recommendations from policy makers and business leaders for maintaining the r d expenditures especially in high technology sectors even when facing a recession

firm growth size age and behavior in japanese manufacturing this paper investigates the relationship between firm growth and firm size firm age and firm behavior such as r d activity and subcontracting based on the data of nearly 14 000 japanese manufacturing firms the stylized facts that firm size and age have a negative effect on firm growth are confirmed in the case of japanese manufacturing firms also a firm s survivability rises with its size and age r d expenditure per employee has a significant positive effect on firm growth which justifies the argument made by hall 1987 although subcontracting to only one company has no significant effect on firm growth it has a significant positive effect on a firm s survivability in addition subcon tracting firms depending on only one company as a customer are subject to no significant age effects this possibly suggests that the age effect itself has some relation to the extent of the trade network

on the indeterminacy of capital accumulation paths abstract in neoclassical optimal growth models the stability of the accumulation paths depends on the discount parameter we prove that for discount factors small enough the policy function which describes an optimal path can be of any type the result is achieved using the notion of concavity we adopt a constructive approach given any twice differentiable map we show how to construct an optimal growth problem which produces that map as the optimal policy function a consequence is that chaos can appear in these models we also provide bounds on the values of the discount parameter for which indeterminacy is possible

sustainability in electrical and electronic equipment closed loop supply chains a system dynamics approach abstract in this paper we examine the impact of ecological motivation and technological innovations on the long term behavior of a closed loop supply chain with recycling activities ecological motivation manifests through legislation and green image factor whereas technological innovations manifest through design for environment we adopt system dynamics methodology applied to many environmental systems seeking long term gains the developed model is implemented to a real world supply chain of electrical equipment in greece numerical analysis illustrates the factors concerned like the delay of the legislation enforcement to achieve a sustainable future through non renewable resources and landfill preservation

technological innovation and the distribution of employment growth a firm level analysis this work studies the firm level relationship between different types of innovative activities and employment growth rates improving on previous investigations on the topic it combines a detailed analysis of the effects of product and process innovation on average employment growth with a broader outlook on the whole conditional employment growth distribution results show that product innovation especially in terms of good new to the entire market has a positive effect on employment growth this role is likely to be particularly relevant for both fast growing and shrinking firms process innovation appears instead to have less clear cut dynamics consistently with existing evidence among different types of process innovation the introduction of novel auxiliary processes appears to be more positively linked with employment growth

modeling the virtuous circle of innovation a test on italian firms this article investigates the virtuous circle between innovative inputs outputs and economic performance with a three equation model highlighting feedback loops and simultaneous relations an empirical test is conducted of innovative expenditure innovative sales and economic results in a sample of italian manufacturing firms comparing occasional and serial innovators the data for 1998 2007 are drawn from a rich panel of italian firms with 20 or more employees compiled by the italian national institute of statistics including three waves of community innovation surveys the model extends that developed at the industry level by bogliacino and pianta industrial and corporate change 2013a 22 3 649 678 innovation and demand in industry dynamics r d new products and profits in a pyka and e s andersen eds long term economic development economic complexity and evolution springer verlag berlin 2013b and confirms those earlier findings for the core of persistent innovators there are complex links at play in different phases of the innovation process and in the feedback between economic success and sustained innovation expenditure

a new approach for controlling a hybrid stochastic manufacturing remanufacturing system with inventories and different leadtimes this paper addresses the control problem of a stochastic recovery system with two stocking points and different leadtimes for production and remanufacturing for such systems the optimal control policy for a linear cost model is not known therefore in the literature several heuristic policies are investigated and analyzed in this paper a new approach is provided which differs substantially from the existing ones instead of using one inventory position for the production and remanufacturing decisions we base the decisions on two aggregate variables which are defined different for different leadtime relations by means of numerical examples we illustrate that system performance measured in average costs per time unit can be improved substantially by our new approach especially for large leadtime differences

are there diminishing returns to r d abstract semi endogenous models and to some extent also schumpeterian models are based on the assumption of diminishing returns to r d this paper shows that the null hypothesis of constant returns to r d cannot be rejected for the oecd countries

the energy efficiency paradox revisited through a partial observability approach the present paper examines the energy efficiency paradox demonstrated in greek manufacturing firms through a partial observability approach the data set used has resulted from a survey carried out among 161 energy saving technology firm adopters maximum likelihood estimates that arise from an incidental truncation model reveal that the adoption of the energy saving technologies is indeed strongly correlated to the returns of assets that are required in order to undertake the corresponding investments the source of the energy efficiency paradox lies within a wide range of factors policy schemes that aim to increase the adoption rate of energy saving technologies within the field of manufacturing are significantly affected by differences in the size of firms finally mixed policies seem to be more effective than policies that are only capital subsidy or regulation oriented

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

stationary sunspot equilibria in a finance constrained economy abstract stationary sunspot equilibria are shown to exist in a production economy with infinite lived agents when it is not possible to borrow against future wage income equilibrium fluctuations exhibit persistence over time scales of the same order of magnitude as observed business cycles an active fiscal policy that stabilizes aggregate money expenditures can prevent such fluctuations

the influence of age on smes growth determinants empirical evidence this paper seeks to investigate whether age is a fundamental characteristic of the relationships between determinants and growth the empirical evidence obtained allows us to conclude that 1 age and size are restrictive factors of the growth of young smes but they are not important for the growth of old smes 2 cash flow and debt are of greater relative importance for growth in young smes than for growth in old smes 3 rd 4 interest on debt is of greater relative importance for diminished growth in young smes than for diminished growth in old smes and 5 r d intensity in situations of financial deficit is of greater relative importance for diminished growth in young smes than for diminished growth in old smes but only in context of high tech smes

generalising gibrat using chinese evidence founded on fieldwork this paper reports on determinants of small firm growth and survival using fieldwork evidence collected by face to face and telephone interviews it extends the basic size age model to a comprehensive growth model with two types of additional explanatory variables firm specific and business environmental estimation is by log linear regression on chinese cross section data with corrections for sample selection bias and heteroskedasticity our results from the comprehensive model highlight the importance of location choice and customer orientation for the growth of chinese private firms

on the relationship between firm size and export intensity export marketing literature supports the view that firm size is positively related to export intensity although the empirical findings have been mixed a number of theoretical arguments are used to support this proposition i e international marketing economies of scale limited managerial and financial resources of small firms decisionmaker s risk perception based on a large survey of the italian manufacturing industry the article falsifies the proposition and challenges some widely held assumptions in export marketing literature

a unified theory of the dynamics of closed loop supply chains we investigate the dynamics of a closed loop supply chain with first order auto regressive ar 1 demand and return processes we assume these two processes are cross correlated the remanufacturing process is subject to a random triage yield remanufactured products are considered as goodas new and used to partially satisfy market demand newly manufactured products make up the remainder we derive the optimal linear policy in our closed loop supply chain setting to minimise the manufacturer s inventory costs we show that the lead time paradox can emerge in many cases in particular the auto and cross correlation parameters and variances of the error terms in the demand and the returns as well as the remanufacturing lead time all influence the existence of the lead time paradox finally we propose managerial recommendations for manufacturers

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

towards green growth how does green innovation affect employment abstract we examine the relationship between green innovation and employment from data taken from the spanish technological innovation panel pitec for period 2007 2011 the increasing relevance of environmental issues for the spanish economy its unemployment problem and the uniqueness in its innovation structure make it a proper and interesting context to investigate green innovation dynamics we find a positive relationship between green innovation and employment and the relationship is stronger for firms in the so called dirty industries in addition we show that the relationship is positive for firms that introduce green innovation voluntarily as compared to firms that introduce green innovation merely to comply with regulations a positive and significant relationship is also found between employment and firms that report an increase in the degree of importance paid to green innovation

are there non linearities between sme growth and its determinants a quantile approach this article uses quantile regressions to study the relationship between the growth of portuguese small and medium enterprises smes and its determinants to control a sample selection bias we use a two step estimation in the first stage we verified that past growth size age rd ii debt and rd iii age is a restrictive factor of portuguese sme growth only when there is an increase in size and iv cash flow although a determinant promoting portuguese sme growth regardless of the level of growth takes on greater importance when there is a reduction in size copyright 2010 the author 2010 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

indeterminacy and sunspots with constant returns recently there has been a renewed interest in the possibility of indeterminacy and sunspots or alternatively put in the existence of a continuum of equilibria that arises in dynamic economies with some market imperfections much of the research in this area has been concerned with the empirical plausibility of indeterminacy in markets with external effects or with monopolistic competition and which exhibit some degree of increasing returns while the early results on indeterminacy relied on relatively large increasing returns and high markups more recently benhabib and farmer 1996a showed that indeterminacy can also occur in two sector models with small sector specific external effects and very mild increasing returns

customer discrimination and employment outcomes for minority workers this paper investigates the effects of customer discrimination on the employment and earnings of minorities particularly blacks data are used from a new survey of employers in four large metropolitan areas in the united states our results show that the racial composition of an establishment s customers has sizable effects on the race of who gets hired particularly in jobs that involve direct contact with customers and in sales or service occupations race of customers also affects wages with employees in establishments that have mostly black customers earning less than those in establishments with mostly white customers

policy functions for capital accumulation paths abstract it has recently been shown that in neoclassical optimal growth models the set of policy function contains all twice differentiable functions the question has been raised as to whether this restriction to twice differentiable functions is essential in this paper we show that all c 1 functions with derivative satisfying a lipschitz condition can serve as policy functions and we also show by examples that differentiability is not a required property of a policy function

life cycle inventory policy characterizations for a single product recoverable system abstract this paper investigates the optimal inventory policies over the life cycle of a remanufacturable product the product is produced through manufacturing or remanufacturing benefiting from the long run optimal policies found through markov decision analysis the optimal or near optimal policy characterizations with practical structure are determined for every life cycle stage under several setup cost configurations the effects of changes in the demand and return rates on the optimal inventory policies are investigated through these policies further a performance comparison with a pull strategy is provided the performance of these long run policies is evaluated as well in a finite horizon setting and the importance of frequent policy revision over the product life cycle is illustrated numerically

a complete characterization of optimal growth paths in an aggregated model with a non concave production function the convexity of technology has played a crucial role in economic analyses of optimal one sector growth problems for example two of the key results on the traditional model of ramsey 1928 that have relied on the convexity of the technology are that optimal intertemporal growth involves moving monotonically towards a unique steady state as in cass 1965 koopmans 1965 and that the value function is a concave differentiable function of the initial capital stock as in benveniste and scheinkman 1979

age size growth and survival uk companies in the 1980s this paper examines growth and survival amongst quoted and unquoted u k companies in the period 1975 85 and compares the results with earlier u k and u s studies an examination of death rates shows that smaller companies had higher death rates but the largest and smallest companies were least vulnerable to takeover careful attention is therefore paid to problems of sample selection bias it is shown that smaller companies grew faster than larger companies that gibrat s law does not hold amongst smaller firms that age is negatively related to growth and that these results are not an artifact of sample selection bias copyright 1994 by blackwell publishing ltd

an investigation of lead time effects in manufacturing remanufacturing systems under simple push and pull control strategies in this paper we extend the push and pull control strategies defined by van der laan et al e a van der laan m salomon r dekker production planning and inventory control for remanufacturable durable products working paper 9531 a econometric institute erasmus university rotterdam the netherlands 1995 to evaluate numerically the effects of lead time duration and lead time variability on total expected costs in production inventory systems with remanufacturing although both strategies are non optimal they are relatively easy to analyse numerically and more importantly they are actually used in practice the most important outcomes of the study are that for both control strategies i manufacturing lead times have a larger influence on system costs than remanufacturing lead times ii a larger remanufacturing lead time may sometimes result in a cost decrease and iii a larger variability in the manufacturing lead time may sometimes result in a cost decrease

the relationship between firm growth size and age estimates for 100 manufacturing industries this study uses a sample of all firms operating in 100 manufacturing industries to examine some aspects of firm dynamics it finds that firm growth the variability of firm growth and the probability that a firm will fail decrease with firm age it also finds that firm growth decreases at a diminishing rate with firm size even after controlling for the exit of slow growing firms from the sample gibrat s law therefore fails although the severity of the failure decreases with firm size copyright 1987 by blackwell publishing ltd

coexistence of money and interest bearing securities abstract a random matching model with money is used to study the nominal yield on small denomination bearer safe discount securities issued by the government there is always one steady state with matured securities circulating at par and for some parameters another with them circulating at a discount in the former a necessary and sufficient condition for a positive nominal yield on not yet matured securities is exogenous discriminatory treatment of them by the government in the latter the post maturity discount on securities induces a deeper pre maturity discount even without such discriminatory treatment

decomposition of new venture growth into firm age survey period and vintage effects firm data are accumulated on a yearly basis in view of the linear relationship of firm age foundation year survey year the fluctuations of firm data classified by age and period cannot be decomposed into age period and cohort foundation year effects three decomposition methods are briefly reviewed and applied to japanese data on new ventures founded since 1995 regarding sales and employment growth the age effect is the largest with a downward trend and the cohort effect is negligible regarding labour productivity the age effect indicates upward movements and the cohort effect is negligible the reason of the negligible cohort effect is discussed

the role of capital depreciation in multi sectoral models abstract this study investigates the role of capital depreciation in economic fluctuations that may appear in multi sectoral models of optimal growth in the standard literature on non linear optimal dynamics it has been assumed that capital depreciates completely within a period this study in contrast deals with the case in which capital depreciates slowly more precisely only by a certain percentage we adopt the standard two sector model with cobb douglas production functions and characterize the dynamics around the stationary state we derive explicit conditions on parameter values under which cyclical optimal paths appear these conditions reveal the complexity that slow depreciation adds to multi sectoral optimal dynamics the economic interpretation of slow depreciation in multi sectoral models is also discussed

r d and the growth of firms empirical analysis of a panel of italian firms abstract this paper deals with the growth of firms and with their innovative activities the main hypothesis of the paper maintains that firms with a strong commitment to r d have a higher rate of growth because they succeed in the product market after a review of the related literature the paper presents an econometric analysis of the r d growth of firms relation based on a database of italian firms data on a sample of 500 firms with time series in the range 1989 1997 were drawn from the mediocredito survey of italian manufacturing descriptive analysis shows that the sales growth rate of firms with r d is higher than that of firms without r d econometric analysis is performed in two steps first we apply a panel unit root test im k pesaran h shin y 1997 testing for unit roots in heterogeneous panels dae university of cambridge mimeo to verify whether the firm size significantly affects firm growth the test confirms gibrat s law that firm size has a stochastic trend second we explore whether there are variables with stochastic trends that could account for firm size according to our estimates the growth rate of firms is positively correlated with research intensity in these estimates a further interesting result is that investment in ict is not significant or shows a parameter with negative sign

subcontracting in italian industry labour division firm growth and the north south divide giunta a nifo a et scalera d subcontracting in italian industry labour division firm growth and the north south divide regional studies the aim of this paper is to investigate the impact of subcontracting on italian manufacturing firms growth in the second half of the 1990s the main results are 1 producing as subcontractors does not penalize firms but can be a positive determinant of growth especially when coupled with the propensity to innovate 2 since a non linear relationship between growth and subcontracting emerges an organizational mode not fully specialized in either subcontracting activity or direct sales may be optimal and 3 the deep dualism of the italian industrial structure is confirmed as southern subcontractors show poorer performances and slower growth giunta a nifo a and scalera d 90 1 2 3

impact of global economic crisis on firm growth the global economic crisis has had an adverse effect on and may continue to affect the entrepreneurial sector all over the world however even in a recessionary period there will always be some firms growing faster than others it is therefore imperative to understand the variables and processes that make some firms grow faster or more resilient to crisis than others in this paper we focus on firm size and its contributions to growth we examine whether growth rates of manufacturing and service industries are independent of firm size during the period of economic crisis based on a large sample of surviving firms in the manufacturing and hospitality industries the results of two step dynamic panel suggest that turnover growth is positively associated with companies size during the observed period of economic recession 2008 2013 in both industries large and medium sized firms exhibit higher growth than do small firms

quantile estimates of the impact of r d intensity on firm performance this paper investigates the relationship between initial research and development r d intensity and firm growth using a unique data set for firms with r d activities in austria during the period 1995 2006 results based on the least absolute deviation lad estimator show that initial r d intensity has a positive and significant impact on both employment and sales growth in the subsequent 2 years quantile regressions for each cross section reveal that the impact of r d intensity is significant from 0 3 to the highest quantile of the conditional distribution of employment growth furthermore the elasticity of employment growth with respect to r d intensity is highest for firms at or slightly below the median of the distribution of firm growth finally we find that the impact of r d decreases significantly over time

high growth entrepreneurial firms in africa a quantile regression approach this article analyses the growth performance of a large set of entrepreneurial firms in ten manufacturing sectors of 11 sub saharan african countries the focus of the article is on identifying those entrepreneurs attributes and firm characteristics that tend to generate a significant number of high growth firms in these countries to this end we use a quantile regression which provides a more complete estimation of the growth distribution of firms conditional on different attributes the results indicate that firms that engage in product innovation have their own transport means and are connected to the internet through their own website are especially characterized by higher growth rates and also display a distribution of growth rates skewed to the right hosting a higher number of high growth firms the effect of the last two variables which relate to distance bridging modes of infrastructure points to the self reinforcing growth effects they generate in creating wider input and output markets education raises growth opportunities by affecting the lower quantiles but it does not appear to influence the upper quantiles the estimated conditional growth distributions for the technology intensive machinery and electronics sectors show more extreme tails and a lower mean in comparison to the traditional industries indicating the more risky nature of doing business in these industries

r d and employment an application of the lsdvc estimator using european microdata abstract the job creation effect of business r d is tested applying the dynamic lsdvc estimator to a longitudinal database covering 677 european companies over the period 1990 2008 job creation is detected in services and high tech manufacturing but not in traditional sectors

innovation and firm growth does firm age play a role this paper explores the relationship between innovation and firm growth for firms of different ages we hypothesize that young firms undertake riskier innovation activities which may have greater performance benefits if successful or greater losses if unsuccessful using an extensive spanish community innovation survey sample for the period 2004 2012 we apply panel quantile regressions to study the effect of r d activities on firm growth i e sales growth productivity growth and employment growth our results show that young firms face larger performance benefits from r d at the upper quantiles of the growth rate distribution but face larger decline at the lower quantiles r d investment by young firms therefore appears to significantly riskier than r d investment by more mature firms which suggests some policy implications

the impact of technological and organizational innovations on employment in european firms by using firm level data provided by the fourth community innovation survey cis4 for a selected number of eu countries this article explores the employment impact of innovation extending the analysis to organizational change the empirical evidence presented shows that both technological and organizational innovation exert a positive impact on employment mainly indirectly that is by improving growth performances in firms the strength of these indirect effects have been found to vary across different types of innovations despite the limits imposed by data at our disposal the evidence presented seems to somewhat diminish the relevance of the labor displacing effects of the process innovation the latter being strong and clearly visible only within the manufacturing industry and only when process innovations are combined with organizational changes copyright 2012 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

non linear dynamics in the infinite time horizon model there are two important reasons why economic growth theory became again a popular field during the last 15 years the first one is that recently developed growth theoretic models capture more aspects of economic growth than the models used in the fifties and sixties nowadays models of economic growth try to explain technological progress and innovations whereas the purpose of traditional models was mainly to describe the process of capital accumulation

comparative statics and perfect foresight in infinite horizon economies does a pure exchange economy with an infinite time horizon have determinate perfect foresight equilibria when there is a finite number of infinitely lived agents equilibria are generically determinate this is not true with overlapping generations of finitely lived agents we ask whether the initial conditions together with the requirement of convergence to a steady state locally determine an equilibrium price path in this framework there are many economies with isolated equilibria many with continua of equilibria and many with no equilibria at all with two or more goods in every period not only can the price level be indeterminate but relative prices as well furthermore such indeterminacy can occur whether or not there is fiat money and whether or not the equilibria are pareto efficient this paper considers whether infinite horizon economies have determinate perfect foresight equilibria this question is of crucial importance if instead equilibria are locally indeterminate not only are we unable to make comparative static predictions but the agents in the model are unable to determine the consequences of unanticipated shocks the idea underlying perfect foresight is that agents expectations should be the actual future sequence predicted by the model if the model does not make determinate predictions the concept of perfect foresight is meaningless we consider two extreme cases the first with a finite number of infinitely lived consumers and the second with an infinite number of finitely lived consumers an overlapping generations model both are models of stationary pure exchange economies no production including the storage of goods between periods can occur these models are unrealistic but are the easiest to study extensions of the results of this paper to models with production infinitely lived assets and mixtures of the two types of consumers are presented by muller and woodford 29 when there is a finite number of infinitely lived consumers we argue that equilibria are generically determinate this is because the effective number of equations determining equilibria is not infinite but equal to the number of agents minus one and must determine the marginal utility of income for all but one agent generically near an equilibrium these equations are independent and exactly determine the unknowns when there are infinitely many overlapping generations this reasoning breaks down an infinite number of equations is not necessarily sufficient to determine

empirical research on the different innovation engine between china and us manufacturing using an improved method abstractmost studies arrive at controversial conclusions about the relationship between firm size and technological innovation industrial differences and subjective model design are generally considered the primary cause in static comparisons across industries dynamic industrial changes are ignored but this might lead to differing results when attempting to identify the driving forces of evolutionary change in an industrial environment this study applies nonparametric regression methods with an expansive industry grouping to overcome the industry difference interference and empirical model error typifying traditional studies first a comparative analysis of the forces driving us and chinese manufacturing is performed results indicate that us and chinese manufacturing are in different industrial growth stages chinese manufacturing takes the traditional elements and r d input as its main driving factors which require objectively expansive scale of enterprise therefore showing characteristic schu

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

is there a risk of growing fast the relationship between organic employment growth and firm exit growing firms are the drivers of economic dynamics while the existing literature often focuses on the average effect of growth on firm survival we investigate how survival rates vary across the growth distribution using dutch longitudinal firm level data 1999 2012 we theorize and find a u shaped relationship between organic employment growth and subsequent exit due to firm death in various model specifications low positive growth increases survival too much growth could be harmful for some subgroups of firms and the steepness of the u shape depends on firm age size and industry

on the minimum rate of impatience for complicated optimal growth paths the occurrence of complex dynamics in economic models has received wide attention by the economic profession during the last decade see boldrin and woodford 1990 for a recent survey one of the most interesting and surprising results obtained so far is the indeterminacy theorem of boldrin and montrucchio 1986b which implies that virtually every dynamical behavior is fully compatible with the standard assumptions of decreasing returns competitive markets and perfect foresight deneckere and pelikan 1986 have used a related approach to derive similar results for the special case of one dimensional dynamics whereas the analysis in boldrin and montrucchio 1986b and deneckere and pelikan 1986 is restricted to optimal growth models formulated in discrete time an analogous result holds also for the continuous time case see montrucchio 1988 and sorger 1990 all of these indeterminacy theorems have been proved by a constructive approach which requires a sufficiently high rate of impatience on the side of the decision maker in particular to construct optimal growth models exhibiting some well known chaotic maps like the logistic map or the henon map as optimal policy functions one needs time preference rates of more than 400

innovation and employment a firm level analysis with european r d scoreboard data abstract this article analyzes the microeconomic relation between innovation and employment using company data from r d scoreboard for europe covering 2000 2008 a reduced form equation in which r d can account for both product and process innovation is estimated the existence of non constant elasticities is assessed due to the combination of efficient scale and decreasing return to r d in our empirical estimates the scale effect tends to prevail for a given r d intensity generating an increasing relation between total turnover and employment these results have important implications for policymakers innovation supporting policies should be correctly tailored and monitored since the results depend on the characteristics of the benefiting firms moreover r d intensity on gdp should be managed with care if taken as a policy target given that the denominator is endogenous and non linearly dependent on research expenditure

competitive equilibrium cycles recently there has been a surge of interest in endogenous business cycles that arise in competitive laissez faire economies in the context of standard overlapping generations economies conditions for the existence of equilibrium cycles have been given by grandmont 1983 and by benhabib and day 1982 models of the economy with extrinsic uncertainty or sunspots that have been developed by shell 1977 and by cass and shell 1983 see also balasko 1983 can also lead to equilibrium cycles

effects of innovation on employment a dynamic panel analysis abstract this paper estimates the effect of innovation on employment at the firm level our uniquely long innovation panel data set of german manufacturing firms covers more than 20 years and allows us to use various innovation measures we can distinguish between product and process innovations as well as between innovation input and innovation output measures using dynamic panel gmm system estimation we find positive effects of innovation on employment this is true for innovation input as well as for innovation output variables innovations show their positive effect on employment with a time lag and process innovations have higher effects than product innovations

some evidence of regional variations in the introduction and diffusion of industrial products and processes within british manufacturing industry thwaites a t 1982 some evidence of regional variations in the introduction and diffusion of industrial products and processes within british manufacturing industry reg studies 16 371 81 in the present economic circumstances the traditional instruments of regional aid public expenditure job transfer and mobile industry are greatly constrained which thrusts greater responsibility upon industry indigenous to each area to preserve and to create employment self sustained economic growth any concept of the mobilization of this regional potential must incorporate a technological dimension if any region lags in the production or adoption of new technology within its manufacturing industries then in the longer term it must face industrial decline evidence of regional performance in the production and adoption of new products and processes together with research and development effort is provided from two establishment based surveys of manufacturing industry in great britain the conclusion is reached

high growth firms in changing competitive environments the us pharmaceutical industry 1963 to 2002 firms across sectors and regions are highly skewed in their ability to engage with innovation and even more skewed in their ability to translate investments in innovation into higher growth recent attention has been placed on the importance of high growth firms hgf for innovation policy our paper explores under what conditions hgf matter for translating r d investments into economic growth and how this depends on firm specific and industry specific factors we use quantile regression techniques to study the r d growth relationship in hgf compared to low growth firms unlike previous studies we pay particular attention to whether this relationship depends on the particular period in the industry s life cycle we focus on the us pharmaceutical industry from 1963 to 2002 and find that the r d growth relationship is sensitive to the changing competitive environment over the industry s history which suggests that innovation policy must focus not only on firm attributes but also competitive structures

employment innovation and productivity evidence from italian microdata italian manufacturing firms have been losing ground with respect to many of their european competitors this paper presents some empirical evidence on the effects of innovation on employment growth and therefore on firms productivity with the goal of understanding the roots of such poor performance we use firm level data from the last three surveys on italian manufacturing firms conducted by mediocredito capitalia which cover the period 1995 2003 using a modified version of the model proposed by harrison jaumandreu mairesse and peters 2005 which separates employment growth rates into those associated with old and new products we provide robust evidence that there is no employment displacement effect stemming from process innovation the sources of employment growth during the period are split equally between the net contribution of product innovation and the net contribution from sales growth of old products however the contribution of product innovation is somewhat lower than that for the four comparison european countries considered by harrison et al

allocation of human capital and innovation at the frontier firm level evidence on germany and the netherlands this paper examines how productivity eects of human capital and innovation vary at dierent points of the conditional productivity distribution our analysis draws upon two large unbalanced panels of 6 634 enterprises in germany and 14 586 enterprises in the netherlands over the period 2000 2008 considering 5 manufacturing and services industries that dier in the level of technological intensity industries in the netherlands are characterized by a larger average proportion of high skilled employees and indus tries in germany by a more unequal distribution of human capital intensity except for low technology manufacturing average innovation performance is higher in all industries in germany and the innova tion performance distributions are more dispersed in the netherlands in both countries we observe non linearities in the productivity eects of investing in product innovation in the majority of indus tries frontier rms enjoy the highest returns to product innovation whereas the most negative returns to process innovation are observed in the best performing enterprises of most industries in both countries we nd that the returns to human capital increase with proximity to the technological frontier in industries with a low level of technological intensity strikingly a negative complementarity eect between human capital and proximity to the technological frontier is observed in knowledge intensive services which is most pronounced for the netherlands suggestive evidence for the latter points to a winner takes all interpretation of this nding

sunspot equilibria rational bubbles in a model of money in the utility function abstract sunspot equilibria are constructed in brock s 1975 model of money in the utility function serial correlations of real balances and the nominal interest rate in these equilibria can be either positive or negative the example here suggests that local sunspots are more likely to exist when the agent s discount rate is small and that serial correlations in local sunspots when they exist are inversely related to the rate of money growth it is also shown that stationary sunspots may exist even when equilibrium cycles do not

growth externalities and sunspots abstract in this paper we consider a simple model of neo classical capital accumulation with production externalities in which a continuum of identical infinitely lived agents produce output from a standard stationary neo classical production technology and choose their actions to maximize a discounted sum of single period utilities because of the presence of the externality in production the model exhibits sunspot equilibria

employment and technological innovation evidence from u k manufacturing firms this article uses british firm level panel data on actual innovative activity drawn from different statistical sources to identify the effect of technical change on jobs previous work tends to find positive associations of proxies for technical change and employment but such studies suffer from various statistical drawbacks in this study even when one controls for fixed effects dynamics and endogeneity innovations have a positive and significant effect on employment which persists over several years there seems to be little direct role for spillover effects from industry innovations or any role for industry wages or union power

employment determination in british industry investigations using micro data this paper derives and then estimates a model of employment where unions and firms bargain over wages and possibly employment and efficiency wage considerations may be important it illustrates the difficulties associated in interpreting many existing attempts to discriminate between alternative models the results based on over 200 u k firms suggest that employment is negatively related to the firm s own wage and the change in the own wage relative to outside opportunities the latter may be an efficiency wage effect various financial factors are also seen to have a significant effect on employment

the greener the better job creation effects of environmentally friendly technological change this article investigates the link between environment related innovation and job creation at firm level employing italian data on 4507 manufacturing firms matched with patent records for the period 2001 2008 we test whether green innovation measured by the number of environment related patents has a positive effect on long run employment growth that is specific with respect to non environmental innovation results show a strong positive impact of green innovation on long run job creation substantially bigger than the effect of other innovations our findings are robust to a number of additional tests including controls for patents quality and cost differential between generic and green innovation and endogeneity

how larger demand variability may lead to lower costs in the newsvendor problem in this paper we consider the newsvendor problem intuition may lead to the hypothesis that in this stochastic inventory problem a higher demand variability results in larger variances and in higher costs in a recent paper song 1994a has proved that the intuition is correct for many demand distributions that are commonly used in practice such as for the normal distribution function however this paper shows that there exist demand distributions for which the intuition is misleading i e for which larger variances occur in combination with lower costs to characterize these demand distributions we use stochastic dominance relations

an exact discount factor restriction for period three cycles in dynamic optimization models consider a standard aggregative dynamic optimization framework u where is the transition possibility technology set u is a reduced form utility function defined on this set and 0 1 a discount factor can an optimal program in this framework exhibit a period three cycle

spatial agglomeration and firm exit a spatial dynamic analysis for italian provinces the paper investigates the effect of spatial agglomeration on firm exit in a dynamic framework using a large dataset at the industry province level for italy 1998 2007 we estimate a spatial dynamic panel model via a gmm estimator and analyze the short run impact of specialization and variety on firm exit specialization negatively affects firm exit rates in the short run the effect is particularly significant for low tech firms the impact of variety on firm mortality rates at the industry level is instead less clear although still negative and significant for low tech firms

the effect of leadtime uncertainty in a simple stochastic inventory model we study a basic continuous time single item inventory model where demands form a compound poisson process and leadtimes are stochastic the performance measure of interest is the long run average cost order costs are linear so a base stock policy is optimal we focus on the behavior of the optimal base stock level in response to stochastically larger or more variable leadtimes we also investigate the behavior of the corresponding long run average costs we show that a stochastically larger leadtime requires a higher optimal base stock level however a stochastically larger leadtime may not necessarily result in a higher optimal average cost because sometimes the variability effects may dominate on the other hand a more variable leadtime always leads to a higher optimal average cost the effect of leadtime variability on optimal policies depends on the inventory cost structure a more variable leadtime requires a higher optimal base stock level if and only if the unit penalty holding cost rate is high low similar results regarding the effect of leadtime demand are also discussed in this latter case the compound poisson assumption is not necessary

is there a linear relationship between r d intensity and growth empirical evidence of non high tech vs high tech smes abstract to investigate whether there is a similar relationship between rd and ii financing restrictions are especially important in financing the growth of high tech smes compared with non high tech smes

impact of government financial intervention on competition among green supply chains abstract this work analyzes the effects of governmental financial intervention on green supply chain competition using a three stage game theoretic model nash equilibrium solutions for governmental and chain member decisions are derived analytical results suggest that the government should adopt green taxation and subsidization to ensure that green profit attributed to green product production is non negative strategically low wholesale price strategies are suggested to recycled component suppliers under green subsidization to stimulate manufacturers intention of green product production under green taxation numerical results reveal that under equilibrium conditions social welfare and chain based profits improve by 27 8 and 306 6 respectively compared with the case without financial intervention

sources of complex dynamics in two sector growth models this paper develops a tractable multisectoral dynamic equilibrium model and provides a fairly complete analysis of the dynamics that may arise along the intertemporal competitive equilibrium path despite the fact that the environment displays neither random nor deterministic variability the model may produce oscillations in aggregate variables such as output consumption and investment we show that these oscillations can be exactly periodic of any finite period i and even totally aperiodic chaotic we characterize the parameter values for which each of these cases occur but also provide some strong global asymptotic stability results

environmental innovation and employment dynamics in different technology fields an analysis based on the german community innovation survey 2009 the employment effects of environmental technologies are in the focus of politicians but studies analyzing these effects for different environmental innovation fields are rare we use the 2009 wave of the community innovation survey cis allowing for such an analysis at the firm level our econometric analysis shows that innovative firms in general are characterized by a significantly more dynamic employment development especially the introduction of cleaner technologies as process innovations leads to a higher employment within the firm the theoretical background of this finding is that cost savings induced by this type of process innovation improve the competitiveness of firms this has positive effects on demand and thus also increases employment especially material and energy savings are positively correlated to employment because they help to increase the profitability and competitiveness of the firm on the other side air and water process innovations that are still dominated by end of pipe technologies have a negative impact on employment

patents as options some estimates of the value of holding european patent stocks in many countries holders of patents must pay an annual renewal fee in order to keep their patents in force this paper uses data on the proportion of patents renewed and the renewal fees faced by post world war ii cohorts of patents in france the united kingdom and germany in conjunction with a model of patent holders renewal decisions to estimate the returns earned from holding patents in these countries since patents are often applied for at a nearly stage in the innovation process the model allows agents to be uncertain about the sequence of returns that will be earned if the patent is kept inforce formally then the paper presents and solves a discrete choice optimal stochastic control model derives the implications of the model on aggregate behaviour and then estimates the parameters of the model from aggregate data the estimates enable a detailed description of the evolution of the distribution of returns earned from holding patents over their life spans and calculations of both the annual returns earned from holding the patents still in force or the patent stocks in the alternative countries and the distribution of the discounted value of returns earned from holding the patents in a cohort this abstract was borrowed from another version of this item

r d innovations and total factor productivity growth in british manufacturing 1989 r d innovations and total factor productivity growth in british manufacturing applied economics vol 21 no 11 pp 1549 1562

r d innovation and productivity new evidence from italian manufacturing microdata italian manufacturing firms have been losing ground with respect to many of their european competitors this article presents some empirical evidence on the effects of innovation on employment growth and therefore on firms productivity with the goal of understanding the roots of such poor performance we use firm level data from the last three surveys on italian manufacturing firms conducted by mediocredito capitalia which cover the period 1995 2003 using a slightly modified version of the model proposed by harrison jaumandreu mairesse and peters harrison et al 2005 which separates employment growth rates into those associated with old and new products we find no evidence of significant employment displacement effects stemming from process innovation the sources of employment growth during the period are split equally between the net contribution of product innovation and the net contribution from sales growth of old products however the contribution of product innovation to employment growth is somewhat lower than in the four european countries considered in harrison et al 2005 and the contribution of innovation in general to productivity growth is almost nil in italy during this period

defending gibrat s law as a long run regularity according to gibrat s law of proportionate effect the growth rate of a given firm is independent of its size at the beginning of the period examined while earlier studies tended to confirm the law more recent research generally rejects it this article reconciles these two streams of literature taking into account the role of market selection and learning in reshaping a given population of firms through time consistently with previous studies we find that gibrat s law has to be rejected ex ante since smaller firms tend to grow faster than their larger counterparts however a significant convergence toward gibrat like behavior can be detected ex post this finding is an indication that market selection cleans the original population of firms so that the resulting industrial core does not depart from a gibrat like pattern of growth from a theoretical point of view this result is consistent with those models based on passive and active learning and can be seen as a defense of the validity of the law in the long run

does europe perform too little corporate r d a comparison of eu and non eu corporate r d performance this paper examines whether there are differences in private r d investment performance between the eu and the us and if so why the study is based on data from the 2008 eu industrial r d investment scoreboard the investigation assesses the effects of several very distinct factors that can determine the relative size of the overall r d intensities of the two economies these are the influence of sector composition structural effect vis a vis the intensity of r d in each sector intrinsic effect and the company demographics the paper finds that the lower overall corporate r d intensity for the eu is the result of sector specialisation structural effect the us has a stronger sectoral specialisation in the high r d intensity especially ict related sectors than does the eu and also has a much larger population of r d investing firms within these sectors since aggregate r d indicators are so closely dependent on industrial structures many of the debates and claims about differences in comparative r d performance are in effect about industrial structure rather than sector r d performance these have complex policy implications that are discussed in the closing section

an investigation of the determinants of manufacturing employment in the united kingdom in this paper we present and estimate an adjustment cost model of industry employment which takes explicit account of both expectations and aggregation over different labour types the resulting model is subject to a large number of tests and is a highly robust representation of the data finally forecasts are produced for manufacturing employment up to 1990

private sector employment growth 1998 2004 a panel analysis of british workplaces using nationally representative panel data for british private sector workplaces this paper points to the importance of distinguishing between workplace and firm size when analysing employment growth and finds that the factors associated with growth differ markedly between single independent establishments and those belonging to multi site firms results also differ according to whether one adjusts for sample selection arising from workplace survival and according to whether one distinguishes between growth per se and internal organic employment growth we find evidence at the plant level that is consistent with creative job destruction