IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v26y2017i8p779-804.html
   My bibliography  Save this article

The gains from technology: new products, exports and profits

Author

Listed:
  • Dario Guarascio
  • Mario Pianta

Abstract

The introduction of new products, greater competitiveness-based export performances, and higher profits are three major benefits from technological change. We build on previous work that has identified ‘virtuous circles’ between R&D, innovation and profits in firms and industries [Bogliacino, F., and M. Pianta. 2013a. “Profits, R&D and Innovation: A Model and a Test.” Industrial and Corporate Change 22 (3): 649–678; Bogliacino, F., and M. Pianta. 2013b. “Innovation and Demand in Industry Dynamics. R&D, New products and Profits.” In Long Term Economic Development, edited by A. Pyka, and E. S. Andersen. Berlin: Springer., Bogliacino, F., M. Lucchese, L. Nascia, and M. Pianta. 2016a. “Modelling the Virtuous Circle of Innovation. A Test on Italian Firms” Industrial and Corporate Change. doi:10.1093/icc/dtw045.] and between R&D, innovation and exports [Guarascio, D., M. Pianta, M. Lucchese, and F. Bogliacino. 2015. “Business Cycles, Technology and Exports.” Economia Politica – Journal of Analytical and Institutional Economics 32 (2): 167–200; Guarascio, D., M. Pianta, and F. Bogliacino. 2016. “Export, R&D and New Products: A Model and a Test on European Industries.” Journal of Evolutionary Economics 26 (4): 869–905.]. We test a model – with a Three Stage Least Squares methodology – using data at the industry level – for 39 manufacturing and service industries – for 6 major EU economies – Germany, France, Italy, Spain, the Netherlands and the United Kingdom – over the period 1995–2011. Results confirm the presence of a ‘virtuous circle’ linking the gains from technology, and identify the specific role of additional variables and the presence of lags and feedbacks. Moreover, the relevance of differences between Northern and Southern European countries is examined, with separate estimations that shed new light on the heterogeneity of these relationships.

Suggested Citation

  • Dario Guarascio & Mario Pianta, 2017. "The gains from technology: new products, exports and profits," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(8), pages 779-804, November.
    • Handle: RePEc:taf:ecinnt:v:26:y:2017:i:8:p:779-804
    DOI: 10.1080/10438599.2016.1257446
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10438599.2016.1257446
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10438599.2016.1257446?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert C. Feenstra & Gene M. Grossman & Douglas A. Irwin (ed.), 1996. "The Political Economy of Trade Policy: Papers in Honor of Jagdish Bhagwati," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061864, December.
    2. Giovanni Dosi & Keith Pavitt & Luc Soete, 1990. "The Economics of Technical Change and International Trade," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1990, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cristiano Antonelli & Christophe Feder, 2021. "Knowledge appropriability and directed technological change: the Schumpeterian creative response in global markets," The Journal of Technology Transfer, Springer, vol. 46(3), pages 686-700, June.
    2. Francesco Crespi & Dario Guarascio, 2019. "The demand-pull effect of public procurement on innovation and industrial renewal," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(4), pages 793-815.
    3. Andrey V. Misyura, 2019. "High-tech industrial company: A normative and a positive approach to the definition," Journal of New Economy, Ural State University of Economics, vol. 20(4), pages 88-107, September.
    4. Costantini, Valeria & Crespi, Francesco & Paglialunga, Elena & Sforna, Giorgia, 2020. "System transition and structural change processes in the energy efficiency of residential sector: Evidence from EU countries," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 309-329.
    5. Cristiano Antonelli & Christophe Feder, 2021. "Schumpeterian loops in international trade: the evidence of the oecd countries," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 799-820, July.
    6. Ömer Tuğsal Doruk, . "Neither Parasite nor Paragon: Are Business Groups a Source of Competitive Power?," Prague Economic Papers, Prague University of Economics and Business, vol. 0.
    7. Nascia, Leopoldo & Pianta, Mario, 2018. "Research and innovation policy in Italy," MPRA Paper 89510, University Library of Munich, Germany.
    8. Francesco Bloise & Irene Brunetti & Valeria Cirillo, 2022. "Firm strategies and distributional dynamics: labour share in Italian medium-large firms," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 623-655, July.
    9. Chadi Azmeh, 2022. "Quantity and quality of research output and economic growth: empirical investigation for all research areas in the MENA countries," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(11), pages 6147-6163, November.
    10. Cristiano Antonelli & Christophe Feder, 2021. "The Schumpeterian creative response: export and innovation: evidence for OECD countries 1995–2015," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 803-821, October.
    11. Cirillo, Valeria & Evangelista, Rinaldo & Guarascio, Dario & Sostero, Matteo, 2021. "Digitalization, routineness and employment: An exploration on Italian task-based data," Research Policy, Elsevier, vol. 50(7).
    12. V. L. Tambovtsev, 2019. "Institutions-technologies interaction and economic growth," Journal of New Economy, Ural State University of Economics, vol. 20(2), pages 55-70, May.
    13. Emanuele Brancati & Raffaele Brancati & Dario Guarascio & Andrea Maresca & Manuel Romagnoli & Antonello Zanfei, 2018. "Firm-level Drivers of Export Performance and External Competitiveness in Italy," European Economy - Discussion Papers 087, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    14. Andrea Coveri & Mario Pianta, 2019. "The Structural Dynamics of Income Distribution:Technology, Wages and Profits," Working Papers 1901, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    15. Francesco Lamperti & Franco Malerba & Roberto Mavilia & Giorgio Tripodi, 2019. "Does the Position in the Inter-sectoral Knowledge Space affect the International Competitiveness of Industries?," LEM Papers Series 2019/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dario Guarascio & Mario Pianta & Matteo Lucchese & Francesco Bogliacino, 2015. "Business cycles, technology and exports," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(2), pages 167-200, August.
    2. Dario Guarascio & Mario Pianta & Francesco Bogliacino, 2017. "Export, R&D and New Products: A Model and a Test on European Industries," Economic Complexity and Evolution, in: Andreas Pyka & Uwe Cantner (ed.), Foundations of Economic Change, pages 393-432, Springer.
    3. Eddy LEE & Marco VIVARELLI, 2006. "The social impact of globalization in the developing countries," International Labour Review, International Labour Organization, vol. 145(3), pages 167-184, September.
    4. Paolo Epifani & Gino Gancia, 2008. "The Skill Bias of World Trade," Economic Journal, Royal Economic Society, vol. 118(530), pages 927-960, July.
    5. Mark Tomlinson, 2000. "Innovation surveys: A researcher's perspective," DRUID Working Papers 00-9, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    6. Francesco Bogliacino & Mario Pianta, 2016. "The Pavitt Taxonomy, revisited: patterns of innovation in manufacturing and services," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 153-180, August.
    7. M. Magnani, 2009. "Labor share dynamics: a survey of the theory," Economics Department Working Papers 2009-EP07, Department of Economics, Parma University (Italy).
    8. Tagscherer, Ulrike, 2015. "Science-Industry-Linkages in China: Motivation, Models and Success Factors for Collaborations of MNCs with Chinese Academia," Discussion Papers "Innovation Systems and Policy Analysis" 47, Fraunhofer Institute for Systems and Innovation Research (ISI).
    9. Markus Brueckner & Ngo Van Long & Joaquin L. Vespignani, 2020. "Non-Gravity Trade," Globalization Institute Working Papers 388, Federal Reserve Bank of Dallas.
    10. Mercedes Campi & Marco Due~nas & Le Li & Huabin Wu, 2018. "Diversification, economies of scope, and exports growth of Chinese firms," Papers 1801.02681, arXiv.org, revised Jan 2018.
    11. Olarreaga, Marcelo, 1999. "Foreign-owned Capital and Endogenous Tariffs," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 14, pages 606-624.
    12. Simona Iammarino & Francesca Sanna-Randaccio & Maria Savona, 2007. "The perception of obstacles to innovation. Multinational and domestic firms in Italy," Working Papers of BETA 2007-12, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    13. Mutinelli, Marco & Piscitello, Lucia, 1998. "The entry mode choice of MNEs: an evolutionary approach," Research Policy, Elsevier, vol. 27(5), pages 491-506, September.
    14. Daron Acemoglu & Gino Gancia & Fabrizio Zilibotti, 2015. "Offshoring and Directed Technical Change," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(3), pages 84-122, July.
    15. Andre Nassif & Carmem Aparecida Feijo & Eliane Araújo, 2016. "Structural change, catching up and falling behind in the BRICS: A comparative analysis based on trade pattern and Thirlwall’s Law," PSL Quarterly Review, Economia civile, vol. 69(279), pages 373-421.
    16. Giovanni Dosi & Andrea Roventini & Emmanuele Russo, 2020. "Public Policies And The Art Of Catching Up," Working Papers hal-03242369, HAL.
    17. Mario Cimoli & Gabriel Porcile, 2014. "Technology, structural change and BOP-constrained growth: a structuralist toolbox," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(1), pages 215-237.
    18. José Contreras & Karelys Medina, 2018. "Dynamics of the Venezuelan productive structure: 1950-2012," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 43(45), pages 11-48, January-J.
    19. Colistete, Renato P., 2010. "Revisiting Import-Substituting Industrialisation in Post-War Brazil," MPRA Paper 24665, University Library of Munich, Germany.
    20. Duschl, Matthias & Schimke, Antje & Brenner, Thomas & Luxen, Dennis, 2011. "Firm growth and the spatial impact of geolocated external factors: Empirical evidence for German manufacturing firms," Working Paper Series in Economics 36, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:26:y:2017:i:8:p:779-804. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.