Entrepreneurship, Spillovers and Productivity Growth in the Small Firm Sector of UK Manufacturing
AbstractThis paper considers the sources of technological change and productivity growth in the small firm sector of UK manufacturing over the period 1973- 2002, focusing on the mechanisms by which spillovers occur between the large firms which perform the bulk of R&D and smaller firms which are the recipients. It is argued that the current volume of domestic R&D generates profitable and high productivity opportunities for smaller firms. However this mechanism ignores the ways in which R&D also contributes to the more general knowledge base available to small firms as codified information which frequently takes the measurable form of industrial standards. A simple model of labour demand among small manufacturing is developed which employs two measures of technological activity intended to capture both these channels. A co-integrating relationship based upon an augmented labour demand equation is established for UK manufacturing, showing the relevance of both channels for the explanation of productivity growth in the small firm sector.
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Bibliographic InfoPaper provided by School of Economics, University of Surrey in its series School of Economics Discussion Papers with number 0708.
Length: 23 pages
Date of creation: Aug 2008
Date of revision:
Key Words: Small firms; productivity; technological change; R&D; standards.;
Find related papers by JEL classification:
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-31 (All new papers)
- NEP-BEC-2008-08-31 (Business Economics)
- NEP-CSE-2008-08-31 (Economics of Strategic Management)
- NEP-EEC-2008-08-31 (European Economics)
- NEP-EFF-2008-08-31 (Efficiency & Productivity)
- NEP-ENT-2008-08-31 (Entrepreneurship)
- NEP-INO-2008-08-31 (Innovation)
- NEP-KNM-2008-08-31 (Knowledge Management & Knowledge Economy)
- NEP-TID-2008-08-31 (Technology & Industrial Dynamics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis,"
Econometric Society, vol. 57(6), pages 1361-1401, November.
- Perron, P, 1988. "The Great Crash, The Oil Price Shock And The Unit Root Hypothesis," Papers 338, Princeton, Department of Economics - Econometric Research Program.
- Paul Temple & Robert Witt & Chris Spencer, 2004. "Institutions and Long-Run Growth in the UK: the Role of Standards," School of Economics Discussion Papers 1004, School of Economics, University of Surrey.
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