Do ‘liberal market economies’ really innovate more radically than ‘coordinated market economies’?

Akkermans, Dirk; Castaldi, Carolina; Los, Bart

doi:10.1016/j.respol.2008.10.002

Cited by 107 publications

(92 citation statements)

References 29 publications

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“…Acharya et al (2009) find that strong labor laws encourage innovation. Akkermans et al (2005) support the view that liberal market economies specialize in radical innovation.…”

supporting

confidence: 56%

Employment Protection Legislation, Multinational Firms, and Innovation

Griffith

Macartney

2014

The Review of Economics and Statistics

113

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The theoretical effects of labour regulations such as employment protection legislation (EPL) on innovation is ambiguous, and empirical evidence has thus far been inconclusive. EPL increases job security and the greater enforceability of job contracts may increase worker investment in innovative activity. On the other hand EPL increases adjustment costs faced by firms, and this may lead to under-investment in activities that are likely to require adjustment, including technologically advanced innovation. In this paper we find empirical evidence that both effects are at work -multinational enterprises locate more innovative activity in countries with high EPL, however they locate more technologically advanced innovation in countries with low EPL. JEL codes: D21, F23, O31, J24

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“…Acharya et al (2009) find that strong labor laws encourage innovation. Akkermans et al (2005) support the view that liberal market economies specialize in radical innovation.…”

supporting

confidence: 56%

Employment Protection Legislation, Multinational Firms, and Innovation

Griffith

Macartney

2014

The Review of Economics and Statistics

113

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“…For all three measures, the innovation literature has interpreted higher numbers to indicate higher levels of radicality (Akkermans et al, 2009). We believe that of the three measures, the number of citations received is likely to be closest to a valid indicator of radicality.…”

Section: Causal Conditions: Indicators Of Radicality and Institutionamentioning

confidence: 85%

“…Originality expresses the idea that truly radical innovations are likely to cite patents from different areas of technology. Further explanations of these measures are contained in the works of Hall, Jaffe, & Trajtenberg (2001) and Akkermans et al (2009).…”

Section: Causal Conditions: Indicators Of Radicality and Institutionamentioning

confidence: 99%

“…Similar to Akkermans et al (2009), we define a patent to be radically innovative if it scores higher than the 95th percentile for a given measure. For instance, if the 95th percentile for citations received in the pharmaceuticals industry was 15, we would count as radical all patents with more than 15 citations received.…”

Section: Causal Conditions: Indicators Of Radicality and Institutionamentioning

confidence: 99%

“…Taylor (2004) and Akkermans, Castaldi, & Los (2009) examined innovation patterns as visible in patent data. While Taylor found no support of the hypothesis, Akkermans and colleagues claimed qualified support.…”

Section: Introductionmentioning

confidence: 99%

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Varieties of Capitalism and institutional comparative advantage: A test and reinterpretation

2016

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How do national-level institutions relate to national comparative advantages? We seek to shed light on this question by exploring two different sets of hypotheses based on the Varieties of Capitalism and other branches of comparative capitalisms literature. Applying fuzzy-set qualitative comparative analysis to data from 14 industries in 22 countries across 9 years, we find that comparative advantages in industries with radical innovation emerge in specific configurations mixing coordinated and liberal institutional features. Institutional comparative advantage in industries with radical innovation may thus be based on the ''beneficial constraints'' of opposing institutional logics rather than on the self-reinforcing institutional coherence envisioned in much of the Varieties of Capitalism literature. By contrast, we find that coordinated market economies may have comparative advantages in industries with incremental innovation, as envisioned in the Varieties of Capitalism literature. Our article contributes to our understanding of the ''so what?'' related to capitalist diversity and its implications for location decisions of multinational enterprises. We further present a coordination index going beyond Hall and Gingerich (Br J Polit Sci 39:449-482, 2009) with annual values for 22 OECD

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Varieties of Capitalism

Hall

2015

Emerging Trends in the Social and Behavioral Sciences

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Scholarship on varieties of capitalism (VofC) explores the ways in which the institutions structuring the political economy affect patterns of economic performance or policy making and the distribution of well‐being. Contesting the claim that there is one best route to superior economic performance, a number of schemas have been proposed to explain why countries have often been able to secure substantial rates of growth in different ways, often with relatively egalitarian distributions of income. Prominent among them is a VofC analysis focused on the developed democracies that distinguishes liberal and coordinated market economies according to the ways in which firms coordinate their endeavors. On the basis of institutional complementarities among subspheres of the political economy, it suggests that the institutional structure of the political economy confers comparative institutional advantages, notably for radical and incremental innovation, which explains why economies have not converged in the context of globalization. Although this framework is contested, it has inspired new research on many subjects, including the basis for innovation, the determinants of social policy, the grounds for international negotiation, and the character of institutional change. In this issue area, there is promising terrain for further research into the origins of varieties of capitalism, the factors that drive institutional change in the political economy, how institutional arrangements in the subspheres of the political economy interact with one another, the normative underlay for capitalism, and the effects of varieties of capitalism on multiple dimensions of well‐being.

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Do ‘liberal market economies’ really innovate more radically than ‘coordinated market economies’?

Cited by 107 publications

References 29 publications

Employment Protection Legislation, Multinational Firms, and Innovation

Employment Protection Legislation, Multinational Firms, and Innovation

Varieties of Capitalism and institutional comparative advantage: A test and reinterpretation

Varieties of Capitalism

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