Internal And External Adjustment To New Technologies
AbstractSchumpeterian creative destruction occurs not only at the industry level, but also with each firm trying to maintain or improve its position in the technology race. Based on a rich data set on more than 4,000 German business units, this paper shows that the simultaneous occurrence of hiring and separations is more likely in firms with the most advanced technologies in use than in units more distant from the technological frontier. This positive relation between technological advance and creative destruction documented also by churning and 'excess job reallocation equations - holds particularly in recovery years, while it is weak during a recession. The explanation provided for this finding in the paper is that firms can also improve technologies by upgrading machinery and/or retraining workers, and these 'implementation' costs arc likely to be lower during economic downturns.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.
Volume (Year): 5 (1998)
Issue (Month): 2-4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/GEIN20
Find related papers by JEL classification:
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Eric J. Bartelsman & Mark Doms, 2000.
"Understanding productivity: lessons from longitudinal microdata,"
Finance and Economics Discussion Series
2000-19, Board of Governors of the Federal Reserve System (U.S.).
- Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
- Ilmakunnas, Pekka & Maliranta, Mika, 2003.
"Worker Inflow, Outflow, and Churning,"
861, The Research Institute of the Finnish Economy.
- Alda, Holger & Allaart, Piet & Bellmann, Lutz, 2005. "Churning and institutions : Dutch and German establishments compared with micro-level data," IAB Discussion Paper 200512, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Boockmann, Bernhard & Hagen, Tobias, 2002. "Arbeitsplatzdynamik und befristete Verträge: Empirische Evidenz aus dem IAB-Betriebspanel für Baden-Württemberg (Job dynamics and fixed-term contracts : empirical evidence from the IAB establishmen," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(3), pages 385-396.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.