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Automation, Performance and International Competition: Firm-level Comparisons of Process Innovation

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Abstract

This paper presents new evidence on tradeinduced automation in manufacturing firms using unique data combining a retrospective survey that we have assembled with register data for 2005-2010. In particular, we establish a causal effect where firms that have specialized in product types for which the Chinese exports to the world market has risen sharply invest more in automated capital compared to firms that have specialized in other product types. We also study the relationship between automation and firm performance and find that firms with high increases in scale and scope of automation have faster productivity growth than other firms. Moreover, automation improves the efficiency of all stages of the production process by reducing setup time, run time, and inspection time and increasing uptime and quantity produced per worker. The efficiency improvement varies by type of automation.

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  • Kromann, Lene & Sørensen, Anders, 2015. "Automation, Performance and International Competition: Firm-level Comparisons of Process Innovation," Working Papers 03-2015, Copenhagen Business School, Department of Economics.
    • Handle: RePEc:hhs:cbsnow:2015_003
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    1. Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 321-340.
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    Cited by:

    1. Davide Antonioli & Alberto Marzucchi & Francesco Rentocchini & Simone Vannuccini, 2022. "Robot Adoption and Innovation Activities (last revised: December 2023)," Munich Papers in Political Economy 21, Munich School of Politics and Public Policy and the School of Management at the Technical University of Munich.
    2. Bahoo, Salman & Cucculelli, Marco & Qamar, Dawood, 2023. "Artificial intelligence and corporate innovation: A review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    3. Gu, Grace & Malik, Samreen & Pozzoli, Dario & Rocha, Vera, 2021. "Worker Reallocation, Firm Innovation, and Chinese Import Competition," Working Papers 9-2021, Copenhagen Business School, Department of Economics.
    4. Wilson, Grant Alexander & Case, Tyler & Dobni, C. Brooke, 2023. "A global study of innovation-oriented firms: Dimensions, practices, and performance," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    5. Davide Antonioli & Alberto Marzucchi & Francesco Rentocchini & Simone Vannuccini, 2024. "Robot Adoption and Product Innovation," GREDEG Working Papers 2024-01, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

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    More about this item

    Keywords

    automation; productivity; production theory; efficiency;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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