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Annual growth rate of labor productivity per hours worked (gLP) and total factor productivity per hours worked (gTFP): observed and smoothed values, USA
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Innovation scholars have highlighted that technological revolutions generate long-run fluctuations in innovative and economic activity. This paper aims at examining whether such fluctuations are endogenous or exogenous. This question is particularly important with respect to the current debate on the productivity slowdown and a potential new techno...
Citations
... Archibugi et al. (2013b) and Archibugi et al. (2013a) also study the impact of the 2008-2009 crisis on innovation among European firms to document the changes in the innovation landscape brought about by the crisis. In this line, Epicoco (2021) argues that there is a co-evolution of technological development and demand conditions. ...
This paper addresses the question of the impact of demand reductions on firms’ concentration of innovation investments. Evidence is drawn from the PITEC database, which includes a stable panel of firms yearly surveyed in the 2006–2013 period. Controlling for selection, firms in the sample are found, following a demand decrease, to reduce the number of innovation investment categories. The effect of demand decreases is stronger for small firms. No evidence is found of exporting being a moderator of the relationship between demand fluctuations and the concentration of innovation investments. These findings suggest that downturns reduce the diversity in the innovation of firms, which could potentially have long-lasting effects on their innovation activities, and, ultimately, on their competitiveness.
... Such as firms' internal R&D funds and personnel, and external search and absorptive capacity [62]. However, the impact of scenario factors, such as environmental changes, is usually regarded as an uncontrollable exogenous variable [63]. This study argues that these scenario factors can be systematically classified and internalized as the specific goals of firms' technological innovation. ...
The mechanism of the impact of inter-firm social networks on innovation capabilities has attracted much research from both theoretical and empirical perspectives. However, as a special emerged and developing complex production system, how the scenario factors affect the relationship between these variables has not yet been analyzed. This study identified several scenario factors which can affect the firm’s technological innovation capabilities. Take the manufacturing scenario in China as an example, combined with the need for firms’ ambidexterity innovation and green innovation capability, a multi-objective simulation model is constructed. Past empirical analysis results on the relationship between inter-firm social network factors and innovation capabilities are used in the model. In addition, a numerical analysis was conducted using data from the Chinese auto manufacturing industry. The results of the simulation model led to several optimization strategies for firms that are in a dilemma of development in the manufacturing scenario.
... Accordingly, these projects also led to a new knowledge economy, equalized with various types of expanding intangible economies, primarily those based on service and creative industries (Švarc & Dabić, 2017), whose formation and development is an important characterization of the modern global world (Sukharev, 2021). While, the current productivity slowdown may be a signal that the economic system needs to change its leading technologies (Epicoco, 2021). So the military expenditures, sponsoring many military projects, have made lots of contributions to the leading technologies, leading industries, knowledge economy, and economic growth. ...
The relationship between military spending and economic growth has been a hot issue in defense economics for decades, but the empirical results have not been consistent. Considering the “learning by doing” effect of military spending and knowledge creation of R&D department, this paper takes the endogenous growth model as the framework, and, through the dynamic analysis of the growth rate of knowledge and capital, finds that the spillover effect of military spending will diverge the path of economic growth. The relationship between m and gY of the USA is further investigated, which shows the results of this model have a good explanatory power. On this basis, the enlightenment of the model results is analyzed.
... This digital development leads to a data revolution and a permanent change in customer needs that leads to a change in the entire economy and society (Diamandis, 2015;Raskino & Waller, 2016). Technological revolutions cause structural change and associated long-run fluctuations of production (Epicoco, 2020). ...
Digital transformation is a collection of actions taken by organizations or a country to adopt new digital technologies to capture their interests and change the performance of an organization tremendously with a focus on disruptive technologies. Organizations need a clear strategy, proper organizational structure, digital capabilities, supportive organizational culture, and a balanced governance system to make the digital change. Stepping into the digital world and presenting innovative models (social media, mobile, big data, cloud computing, internet of things, artificial intelligence, fin-tech, blockchain, virtual reality, and augmented reality) give banks great opportunities to present new valuable offers, especially by combining their existing services with new digital capabilities. This study describes how to implement the digital transformation and respond to the disruption in an Iranian specialized bank (Bank Maskan), the steps, and how to go through these steps. Due to the complexity of the issues in the field of digital technologies, the Delphi method has been used to gather opinions and reach consensus among banking industry experts. In this research, we have sought to establish a clear process for the development and exploitation of innovations through new technologies and digital approaches in the bank by implementing digital transformation. In order to prepare the conditions, facilitate, and accelerate the passage of the digital transformation stages and to achieve the desired situation, a set of projects and measures have been determined. These projects are mainly about information technology and classified into three categories: infrastructure, development, and business based on the nature and level of their impact on business.
... If some radical technologies are negatively endogenous, i.e., they rise during periods of decreasing productivity, then also the process of long-run economic development should be partly endogenous: during recession periods, some new radical technologies can rise and eventually positively contribute to start a new technological revolution and a new phase of economic development. And, if the process of long-run economic development is partly endogenous, then also technological revolutions, structural change and long-run economic fluctuations should be partly endogenous: the economic system tends to generate itself, and therefore recurrently, the forces that transform it and that determine its long-run development (Epicoco 2021). It is important to highlight that this conclusion has nothing deterministic and in no way reduces the important role that exogenous factors can play on the process of long-run development. ...
Using inventions with a high degree of recombinant novelty as proxy for radical technologies, this work provides a long-run quantitative analysis of the relationship between radical technologies and productivity growth. The empirical analysis is based on a cliometric approach and relies on Granger’s causality to test the sign and direction of causality between the flow of radical technologies and productivity levels, in the USA between 1920 and 2000. At the aggregate level, results show that radical technologies cause a temporary acceleration of productivity growth and explain a considerable part of productivity variations. At technology-field level, the analysis indicates that productivity growth is driven by a few technological fields, mainly concentrated in science based sectors and in the sectors of specialized suppliers of capital equipment. Finally, with respect to the controversial issue of the endogeneity of radical technologies, at the aggregate level we find no causal relationship running from productivity to radical technologies, suggesting that these are exogenous. However, at technology-field level, we find a few endogenous technologies. Most of these are “demand-driven” as their flow increases when productivity grows, but they have no impact on productivity. Only in one technological field, the flow of radical technologies increases when productivity decreases and, at the same time, has a positive impact on productivity. This latter case may explain why technological revolutions and the whole process of long-run economic development are partly endogenous.
... This research design is distinguished from other studies published in recent years. There are various studies in the literature on eco-innovation that have focused on environmental-related patents [21,23,46,49,[51][52][53], however, they often focus on only one country or a different research perspective. ...
... Despite the fact that there is already some evidence of a knowledge base for ecoinnovation focused on environmental patents [21,23,46,49,[51][52][53], there is still no comprehensive review of the knowledge base of patents regarding different environmental technologies. Patent indicators can provide knowledge about which countries are investing in specific technologies and identify potential eco-innovation trends. ...
The concept of eco-innovation addresses a reduction in negative environmental impacts and the more efficient use of resources. As an integral part of eco-innovation, green technologies are receiving increasing attention due to growing environmental concerns. Patent data are one of the measures of the output of technological eco-innovation. However, understanding the patenting of eco-innovation comes with challenges. The aim of this study is to measure the output of eco-innovation and to analyse the trends in green technologies based on environment-related patents in the world’s leading countries from 2000 to 2017. For this research, a range of data collection techniques based on patent data from leading countries such as China, Korea, Japan, United States and Germany were employed. The study provides a comprehensive overview of changes and trends in the development of environmental technologies using different domains. In particular, significant progress has been made in the areas of environmental technologies and climate change mitigation technologies related to energy generation, transmission or distribution. These technologies are closely linked to international environmental policies such as climate change mitigation and green industry transformation. The study also contributes to the literature on measuring the output of eco-innovation.
The effect of university-industry collaboration is extensively studied at the firm and regional levels. Although collaboration is considered a source of competitive advantage for universities and industry, no studies are conducted internationally. However, many studies recommended that university-industry collaboration can affect economic growth, but the effect of university-industry R&D collaboration still needs to be tested in the international context. The triple helix concept suggests collaboration impacts economic growth, but its mechanism has yet to be explained extensively. This study aimed to investigate the causal effect of the university-industry R&D collaboration on economic growth through capital formation and human capital, which are variables of the endogenous growth model. Baron and Kenny's approach with fixed effect regression is applied. The result suggests that the university-industry R&D collaboration significantly and positively affects economic growth through capital formation. There is no such indirect effect in high and upper-middle-income countries separately. For 124 country panel data, we found a significant indirect impact of the university-industry R&D collaboration on log of real GDP per capita.
Objective: An understanding of when one or more external factors may influence the evolution of innovation tracking indices (such as US patent and trademark applications (PTA)) is an important aspect of examining economic progress/regress. Using exploratory statistics, the analysis uses a novel tool to leverage the long-range dependency (LRD) intrinsic to PTA to resolve when such factor(s) may have caused significant disruptions in the evolution of the indices, and thus give insight into substantive economic growth dynamics.
Approach: This paper explores the use of the Chronological Hurst Exponent (CHE) to explore the LRD using overlapping time windows to quantify long-memory dynamics in the monthly PTA time-series spanning 1977 to 2016.
Results/Discussion: The CHE is found to increase in a clear S-curve pattern, achieving persistence (H~1) from non-persistence (H~0.5). For patents, the inflection occurred over a span of 10 years (1980-1990), while it was much sharper (3 years) for trademarks (1977-1980).
Conclusions/Originality/Value: This analysis suggests (in part) that the rapid augmentation in R&D expenditure and the introduction of the various patent directed policy acts (e.g., Bayh-Dole, Stevenson-Wydler) are the key impetuses behind persistency, latent in PTA. The post-1990’s exogenic factors seem to be simply maintaining the high degree and consistency of the persistency metric. These findings suggest investigators should consider latent persistency when using these data and the CHE may be an important tool to investigate the impact of substantive exogenous variables on growth dynamics.
