Capabilities and investment in R&amp;D: An analysis on European data

Bogliacino, Francesco; Cardona, Sebastián Gómez

doi:10.1016/j.strueco.2014.09.001

Cited by 18 publications

(8 citation statements)

References 47 publications

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“…The successful economic performance-expressed in our model by exports market shares-represents a crucial source of resources for sustaining industries' R&D activities. 3 This is in line with the large literature on the role of financing constrains on R&D activities (Hall 2002;Griliches 1995;Cincera and Ravet 2010;Bogliacino and Gómez 2014). Such constraints are mainly due the intangible nature of R&D, which is difficult to collateralize, also due to informational problems (Stiglitz and Weiss 1981).…”

Section: Explaining Randd Effortssupporting

confidence: 54%

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Business cycles, technology and exports

et al. 2015

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This article shows-on both conceptual and empirical grounds-the importance of business cycles in affecting key relationships between innovation and international performance. While periods of upswing are characterised by a well documented "virtuous circle" between innovation inputs, new products and export success, during downswings most of the positive relationships and feedbacks tend to break down. The findings of Guarascio et al. (2014) on the long-term relationships between R&D, new products and exports are confirmed and qualified with major novelties. But when the period of analysis is split between periods of upswing and downswing-following Lucchese and Pianta (2012)-significantly different relationships emerge. These results are obtained through an approach that combines several complementary perspectives. A Schumpeterian view on the diversity of technological change allows to disentangle the specificities and effects of innovation inputs and outputs, and of new products and new processes. A structural change perspective on the role of demand as a driver of innovation and on the importance of open economies allows to link industries" dynamics with international competitiveness. A business cycle perspective crossing the two previous appraoches sheds new light on the fragility of key economic relationships and on the long term damage that recessions may cause to the "virtuous circle" of innovation and performance. The model we propose links exports, R&D and innovation success in a system of three simultaneous equations allowing for the presence of feedbacks loops among key variables. The empirical test is carried out for the period 1995-2010 at the industry level, on 21 manufacturing and 17 service sectors; country coverage includes Germany, France, Italy, Spain, the Netherlands and the United Kingdom, representing a very large part of the European economy.

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Section: Explaining Randd Effortssupporting

confidence: 54%

“…The opposite occurs when the distance from the frontier is higher (Bogliacino and Gómez 2014). Taking first differences of (1) in order to eliminate time invariant effects, we obtain:…”

Section: Explaining Randd Effortsmentioning

confidence: 99%

Business cycles, technology and exports

et al. 2015

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“…The latter indicates that some multicollinearity is present, yet max VIF and CN are below the rule-of-thumb levels of 10 (e.g. Bogliacino and Cardona, 2014) Ostbring et al, 2018) and (b) URV and RV with R&D only in the estimation of PRODUCT (reflecting the literature on 'absorptive capacity'; see Cohen and Levinthal (1990)) did not detect any significant effects.…”

Section: Multicollinearity Diagnostics and Robustness Testsmentioning

confidence: 88%

“…The latter indicates that some multicollinearity is present, yet max VIF and CN are below the rule-of-thumb levels of 10 (e.g. Bogliacino and Cardona, 2014) and 30 (e.g. Salmerón et al, 2018) respectively that indicate serious concerns.…”

Section: Multicollinearity Diagnostics and Robustness Testsmentioning

confidence: 95%

Learning through urban labour pools: Collected worker experiences and innovation in services

2019

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Knowledge-intensive services firms (KIS) depend on the skills and networks of employees, and tend to cluster in large-city regions. This raises the fundamental question of whether KIS 'learn through urban labour pools' in manners that have implications for innovation. To address it, a distinction is in this paper made between 'related variety' (RV) and 'unrelated variety' (URV) of work-life experiences collected by employees and combined in firms. The empirical analysis uses innovation survey and register data to demonstrate that higher levels of URV among staff in urban KIS inspire innovation activity, and increase the probability of innovation success. Outside cities, where KIS on average have more specialised knowledge bases, innovation responds negatively to URV and positively to RV. As a result, the sign, size and significance of urban-rural dividing lines in innovation propensities depend on whether firms have cultivated the skill profiles that are most conducive to innovation in their locations. Constraints faced specifically by KIS outside cities in this respect are identified and implications for policy drawn. Work with this paper has benefitted from discussions with Ron Boschma and Ingvild Jøranli. It utilizes the methodology originally developed by Tore Sandven of NIFU with funding from the Research Council of Norway (DEMOSREG program, contract number 209769). The usual disclaimers apply.

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“…Further importance of the relationship between capabilities and R&D intensity has been highlighted by Bogliacino and Cardona (2014) with arguably low capability low and medium technology industries found to have low R&D intensity. Yet new products are frequently observed in such industries, the services sector and amongst SMEs despite the relatively low incidence of R&D (OECD 2005).…”

Section: The Shortcomings Of Randdmentioning

confidence: 99%

The productivity of knowledge mobilisation, knowledge capitalisation and product-related firm transmutation: exploring the case of small-scale garment-makers in Nairobi, Kenya

Mwaura¹

2016

Industry and Innovation

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Highlighting the limitations of R&D, this paper champions design activity as the phenomenon that captures knowledge mobilisation at the firm level, especially amongst small firms in developing countries. Still, knowledge becomes a capital (factor input) proper when employed in production. Volumes of new products sold could suggest the market value of utilised knowledge capital the same way the resale value of plant and equipment often approximates the stock of physical capital. Conversely, shares of sales of new products arguably capture an altogether different phenomenon: product-related firm transmutation. Findings suggest that the deeper utilisation of knowledge has significant productivity effects and supersedes mere mobilisation of knowledge. Further, undergoing transmutation towards the production of more of new products relative to incumbent products has no significant relationship with labour productivity. Firms should therefore prioritise the deeper exploitation of given new knowledge rather than potentially prodigal shifts in production towards new products as such.

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Capabilities and investment in R&D: An analysis on European data

Cited by 18 publications

References 47 publications

Business cycles, technology and exports

Business cycles, technology and exports

Learning through urban labour pools: Collected worker experiences and innovation in services

The productivity of knowledge mobilisation, knowledge capitalisation and product-related firm transmutation: exploring the case of small-scale garment-makers in Nairobi, Kenya

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