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Localized introduction of biased technological change and productivity growth. The empirical evidence in the Italian manufacturing industry

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Author Info
Antonelli Cristiano () (University of Turin)
Scellato Giuseppe

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Abstract

The features of the industrial system within which innovation processes take place affect the pace and the characteristics of the innovation processes and influence their evolution. The analysis of the industrial structure and of the innovation strategies of firms cannot be separated. The introduction of general technological changes that concern mainly the position rather than the slope of the maps of isoquants characterize the innovation process of large corporations. Small manufacturing firms instead rely upon technological knowledge implemented by means of learning processes and introduce technological changes typically characterized by a bias finalized to make the most efficient use of locally abundant production factors. Their contribution to economic growth in terms of total factor productivity is important and can be grasped only when the role of output elasticity of production factors in growth accounting is properly appreciated. The empirical evidence for a sample of 6000 Italian firms in the years 1997-2005 confirms that localized technological changes were mainly introduced by small firms with low levels of profitability and high wages and had significant positive effects on their economic efficiency.

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Paper provided by University of Turin in its series Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo Alberto. WP series with number 200908.

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Length: 33 pages
Date of creation: Jun 2009
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Handle: RePEc:uto:labeco:200908

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  1. Antonelli, Cristiano, 2006. "Localized technological change and factor markets: constraints and inducements to innovation," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 224-247, June. [Downloadable!] (restricted)
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  2. Adriana Di Liberto & Francesco Pigliaru & Roberto Mura, 2008. "How to measure the unobservable: a panel technique for the analysis of TFP convergence," Oxford Economic Papers, Oxford University Press, vol. 60(2), pages 343-368, April. [Downloadable!] (restricted)
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  3. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2005. "The skill bias effect of technological and organisational change: Evidence and policy implications," Research Policy, Elsevier, vol. 34(2), pages 141-157, March. [Downloadable!] (restricted)
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  4. Mark Rogers, 2004. "Networks, Firm Size and Innovation," Small Business Economics, Springer, vol. 22(2), pages 141-153, 03. [Downloadable!]
  5. Andrea Vaona & Mario Pianta, 2008. "Firm Size and Innovation in European Manufacturing," Small Business Economics, Springer, vol. 30(3), pages 283-299, March. [Downloadable!] (restricted)
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  6. Catherine Beaudry & G. Swann, 2009. "Firm growth in industrial clusters of the United Kingdom," Small Business Economics, Springer, vol. 32(4), pages 409-424, April. [Downloadable!] (restricted)
  7. Arvanitis, Spyros, 1997. " The Impact of Firm Size on Innovative Activity--An Empirical Analysis Based on Swiss Firm Data," Small Business Economics, Springer, vol. 9(6), pages 473-90, December. [Downloadable!] (restricted)
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