Schumpeterian Perspectives on Innovation, Competition and Growth (eBook)

Contents 5
Schumpeterian perspectives on innovation,competition and growth 8
Innovation, competition, and growth: Schumpeterian ideas within a Hicksian framework 12
Abstract 12
Introduction 13
Schumpeter's basic ideas 13
Which analytical framework? 14
Hicks's framework 15
An extension of the Hicks framework 16
The role of competition 17
Productivity, volatility and growth 18
A Solow type scenario 19
An active monetary policy for innovation and growth 20
More on the nature and role of fluctuations 21
Competition and innovation 22
Stabilizing the market structure in order to capture the gains from innovation 22
More on the role of competition 25
Policy issues 25
References 27
The technology evolving culture: character and consequence 29
Abstract 29
Introduction 29
Character and preconditions 30
Micro, meso, and macro aspects or technological transformation 32
Consequences for families and firms 33
Global consequences 34
Conclusions 36
Postscript 37
Motivation, innovation and co-ordination 39
1 Preface 39
2 Context 40
3 Evolution through imagination 44
4 Social relationships 49
5 Conclusion 54
A micro-meso-macro perspective on the methodology of evolutionary economics: Integrating history, simulation and econometrics 57
1 Introduction 57
2 Micro-meso-macro 59
3 A Methodology 62
3.1 The meso 62
3.2 The macro 64
3.3 The micro 68
4 Conclusion 70
Product variety, competition and economic growth 74
Abstract 74
Introduction 74
Nature of the model 78
Boundary conditions 84
Relationship between search activities and human capital 85
Employment and human capital 85
Fundamental search activities and boundary conditions 85
Distribution of education over sectors 86
Wages 86
Experiments and results 86
Summary and conclusions 94
Appendix 95
References 97
A dual economy model of endogenous growth with R& D and market structure
Abstract 99
Introduction 99
The model 102
Consumers’ behavior 102
Producers’ behavior 104
The innovative goods sector 104
The traditional goods sector 105
General and dynamic equilibrium 107
Result analysis 107
Growing traditional goods sector 109
Conclusions 112
Appendix 1 113
Proof of Proposition 1 113
Appendix 2 115
Proof of proposition 2 115
Proof of proposition 4 115
Proof of proposition 6 115
Proof of proposition 7 116
References 116
Technological change and the vertical organization of industries 117
Abstract 117
Introduction 118
Innovation and the organization of industries: the need of a complex approach 119
The model 121
The general setting 122
Demand 123
Technological landscape and innovation 124
Costs 125
Outsourcing and integration 126
Technological dynamics and industrial organization: simulation results 126
Types of technological dynamics: examples of organizational change 127
Types of technological dynamics: extended analysis 130
Industrial evolution and technological change 131
Concluding remarks 135
References 136
Evolutionary micro-dynamics and changes in the economic structure 138
Abstract 138
Introduction 139
A model of evolutionary micro-founded structural change 142
The macro--economic framework 142
The micro--behaviors 144
Simulation results 148
Simulation procedure 148
Simulation scenarios 149
The case of Germany 150
Final remarks 157
Appendix 158
References 160
The microfoundations of business cycles: an evolutionary, multi-agent model 162
Abstract 162
Introduction 163
Macro and micro stylized facts 164
The model 166
The dynamics of microeconomic decisions 166
Production and investment: the consumption-good sector 167
Machine production 169
The consumption-good market 170
Entry, exit, and technical change 171
Macro dynamics and consumption scenarios 171
Simulation results 173
Conclusions 180
References 180
Technological progress and inequality: an ambiguous relationship 182
Abstract 182
Introduction 183
The model 186
Optimal condition 188
Comparative dynamics 190
Wealth and income inequality 193
Aggregation and balanced growth path 194
Retooling 195
Initial condition on the distribution of technologies 196
Transitional dynamics 196
The average quality of capital and investment 196
The behavior of the Hulten's technological gap index () 197
Conclusion 200
References 200
Labor market institutions and industrial performance: an evolutionary study 204
Abstract 204
Introduction 204
Labor market institutions and economic performance 205
Labor market institutions and innovation 206
Labor market institutions and selection 207
Empirical evidence 208
Construction of labor market regulation indices 209
Labor market regulation index 209
Inter-industry wage differentials index 210
A descriptive analysis of labor market regulation indices 211
Labor market regulation, industrial structure and productivity 213
The model 213
Summary statistics 214
Estimation results 215
Conclusions and policy implications 217
References 218
Renascent entrepreneurship 220
Abstract 220
Introduction 221
A model of entrepreneurship 222
Literature review on nascent entrepreneurship 223
Human capital 224
Financial capital 225
Social capital 225
Demographics 225
Firm exit type 226
Hypotheses 226
Measurement issues 227
Empirical results 229
Human capital 230
Social capital 230
Firm exit type 230
Demographics 230
Industry 231
Discussion and conclusions 231
References 232
Growing like mushrooms? Sectoral evidence from four large European economies 235
Abstract 235
Introduction 236
Data and variables 237
Empirical evidence 238
Basic statistical properties 238
Variance-size scaling 239
The distribution of sectoral growth rates 243
Conditioning on technological intensity 248
Concluding remarks 250
References 252
Diversity in innovation and productivity in Europe 254
Abstract 254
Introduction 255
Diversity in innovation, diversity in productivity 255
Explaining labour productivity growth 257
Innovation and demand as determinants of hourly labor productivity growth 257
The model for technological competitiveness 258
The model for cost competitiveness 259
Results 260
The diversity between product and process-based industries 263
The diversity between countries 264
Conclusions and policy implications 265
Appendix 267
References 269
Heterogeneity of innovation strategies and firm performance 271
1 Introduction 272
2 Profitability and innovation: a short survey 274
3 Descriptive analysis 276
4 The econometric model 284
4.1 Variables description 284
4.2 Estimation and results 287
5 Discussion and conclusion 290
New business formation, growth, and the industry lifecycle 295
1 Introduction 295
2 Data 297
3 Estimation procedure 301
4 Results 302
5 Discussion and policy conclusions 306
Division of labor and division of knowledge: A case study of innovation in the video game industry 308
1 Division of labor and division of knowledge More on the topic in Becker et al. ( 2007 ) Cohendet and Llerena (forthcoming, 2009 ).
1.1 Knowledge worker 311
2 Case study: An innovative entrepreneurial firm 313
2.1 Methodology and firm selection 313
2.2 Description of the firm 313
3 Governance of divided labor and divided knowledge 319
3.1 Phase I: De facto governance with an initial overflow of knowledge 320
3.2 Phase II: Designing governance, and knowledge/labor division equilibrium 320
3.3 Phase III: Implementing governance and creative work outsourcing communities 321
3.4 Phase IV: Stabilizing governance and knowledge and labor division 321
3.5 A dual governance structure 322
4 Discussion: a dynamic organization representation for innovative firms based on dualities 323
Policies for a new entrepreneurial economy 328
1 The problem 329
2 The entrepreneurial environment in the experimentally organized economy 331
2.1 The static versus the experimentally organized economy 332
2.2 Entering a more distributed production order 333
2.3 Systemic productivity effects 336
3 Towards a new balance between large and small scale-theory 337
3.1 Schumpeterian creative destruction 338
3.2 Competence bloc theory 339
3.3 The balance of innovative ability and economies of scale 340
3.4 Obsolete institutions obstruct change 341
4 The three critical markets 343
4.1 Recycling workers back to work- the labour market 344
4.2 Education and competence development 345
4.3 Reducing entrepreneurial risks through Improved private insurance 346
5 Private citizens accounts a way out of the dilemma 347
5.1 Private citizens' accounts foster responsible individuals and raise people's self confidence 348
5.2 Private citizens' accounts finance the transition from employment to entrepreneurship 349
5.3 Private citizens' accounts reduce moral hazard 351
5.4 Private citizens' accounts get people back to work 352
6 Policy 354
Entrepreneurial state: The schumpeterian theory of industrial policy and the East Asian 0Miracle0 360
1 Introduction 360
2 Schumpeter on industrial policy: Approaching the entrepreneurial state 362
3 Debating industrial policy: the East Asian Miracle revisited 367
4 Towards a Schumpeterian theory of industrial policy 372
5 Conclusion 377
Promoting innovation and competition with patent policy 382
Abstract 382
Introduction 383
The model 385
Consumers 385
Products markets 386
R& D races
Values of innovations 388
The labor market and Q( t) 392
Balanced growth equilibrium 393
Optimal R& D policy
Social optimum 397
Segerstrom and Li's matter: subsidy or tax? 397
Another matter: fiscal or patent policy? 399
The equivalent subsidy rate 400
Conclusion 401
References 402
Reinforcing the patent system? Effects of patent fences and knowledge diffusion on the development of new industries, technical progress and social welfare 403
1 Introduction 403
2 The model 406
2.1 Strategies and learning processes of firms 408
2.2 Technical progress and patenting 410
2.3 Entry and exit 411
3 Simulation protocol and results 412
3.1 Simulation protocol 412
3.2 Effectiveness of the patent system 413
3.3 Why do industries die? 414
3.4 Patent system and social welfare 415
3.5 Patent regimes and technical progress 417
3.6 The role of other dimensions of the patent system 420
4 Conclusion 421
5 Appendix: Initialization of the main parameters of the model 422
The structure and the emergence of essential patents for standards: Lessons from three IT standards 425
1 Introduction 426
2 Structure of the essential patents 429
3 Why so many essential patents? 430
4 Does a firm with pioneer patents make more use of the patent applications based on earlier priority dates? 434
5 Conclusions 438