IDEAS home Printed from https://ideas.repec.org/a/spr/jopoec/v31y2018i4d10.1007_s00148-017-0679-3.html
   My bibliography  Save this article

Business visits, knowledge diffusion and productivity

Author

Listed:
  • Mariacristina Piva

    (Universita’ Cattolica del Sacro Cuore)

  • Massimiliano Tani

    (UNSW Canberra, Australia and IZA)

  • Marco Vivarelli

    () (Universita’ Cattolica del Sacro Cuore
    UNU-MERIT
    IZA)

Abstract

Abstract We investigate whether labor mobility can be a distinct source of growth by studying the productivity impact of business visits (BVs), vis-à-vis that of other well-known drivers of productivity enhancement. Our analysis uses an unbalanced panel—covering on average 16 sectors per year in ten countries during the period 1998–2011—which combines unique and novel data on BVs sourced from the US National Business Travel Association with Organization for Economic Cooperation and Development (OECD) data on R&D and capital formation. We find that mobility through BVs is an effective mechanism to improve productivity, being about half that obtained by investing in R&D. This relevant finding invites viewing short-term mobility as a strategic mechanism and prospective policy tool to overcome productivity slowdowns and foster economic growth.

Suggested Citation

  • Mariacristina Piva & Massimiliano Tani & Marco Vivarelli, 2018. "Business visits, knowledge diffusion and productivity," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1321-1338, October.
  • Handle: RePEc:spr:jopoec:v:31:y:2018:i:4:d:10.1007_s00148-017-0679-3
    DOI: 10.1007/s00148-017-0679-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00148-017-0679-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    2. Zellner, Christian, 2003. "The economic effects of basic research: evidence for embodied knowledge transfer via scientists' migration," Research Policy, Elsevier, vol. 32(10), pages 1881-1895, December.
    3. Richard Florida, 2002. "Bohemia and economic geography," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 55-71, January.
    4. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    5. Daniel S. Hamermesh, 2006. "The Value of Peripatetic Economists: A Sesqui-Difference Evaluation of Bob Gregory," The Economic Record, The Economic Society of Australia, vol. 82(257), pages 138-149, June.
    6. Gaspar, Jess & Glaeser, Edward L., 1998. "Information Technology and the Future of Cities," Journal of Urban Economics, Elsevier, vol. 43(1), pages 136-156, January.
    7. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, Elsevier.
    8. Ian Dew-Becker & Robert J. Gordon, 2005. "Where Did the Productivity Growth Go? Inflation Dynamics and the Distribution of Income," NBER Working Papers 11842, National Bureau of Economic Research, Inc.
    9. Dietmar Harhoff, 1998. "R&D and Productivity in German Manufacturing Firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(1), pages 29-50.
    10. Subal Kumbhakar & Raquel Ortega-Argilés & Lesley Potters & Marco Vivarelli & Peter Voigt, 2012. "Corporate R&D and firm efficiency: evidence from Europe’s top R&D investors," Journal of Productivity Analysis, Springer, vol. 37(2), pages 125-140, April.
    11. Bronwyn H. Hall, 2010. "Measuring the Returns to R&D: The Depreciation Problem," NBER Chapters,in: Contributions in Memory of Zvi Griliches, pages 341-381 National Bureau of Economic Research, Inc.
    12. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    13. Nadiri, M Ishaq & Prucha, Ingmar R, 1996. "Estimation of the Depreciation Rate of Physical and R&D Capital in the U.S. Total Manufacturing Sector," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 43-56, January.
    14. Dowrick, Steve & Tani, Massimiliano, 2011. "International business visits and the technology frontier," Economics Letters, Elsevier, vol. 110(3), pages 209-212, March.
    15. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    16. Collings, David G. & Scullion, Hugh & Morley, Michael J., 2007. "Changing patterns of global staffing in the multinational enterprise: Challenges to the conventional expatriate assignment and emerging alternatives," Journal of World Business, Elsevier, vol. 42(2), pages 198-213, June.
    17. Christiane Hellmanzik, 2013. "Does travel inspire? Evidence from the superstars of modern art," Empirical Economics, Springer, vol. 45(1), pages 281-303, August.
    18. Niels Noorderhaven & Anne-Wil Harzing, 2009. "Knowledge-sharing and social interaction within MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(5), pages 719-741, June.
    19. Michael Storper & Anthony J. Venables, 2004. "Buzz: face-to-face contact and the urban economy," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 351-370, August.
    20. Massimiliano Tani, 2014. "Business Visits and the Quest for External Knowledge," Research in Labor Economics,in: Factors Affecting Worker Well-being: The Impact of Change in the Labor Market, volume 40, pages 293-324 Emerald Publishing Ltd.
    21. Raquel Ortega-Argilés & Mariacristina Piva & Marco Vivarelli, 2014. "The transatlantic productivity gap: Is R&D the main culprit?," Canadian Journal of Economics, Canadian Economics Association, vol. 47(4), pages 1342-1371, November.
    22. Nune Hovhannisyan & Wolfgang Keller, 2015. "International business travel: an engine of innovation?," Journal of Economic Growth, Springer, vol. 20(1), pages 75-104, March.
    23. Bart Los & Bart Verspagen, 2000. "R&D spillovers and productivity: Evidence from U.S. manufacturing microdata," Empirical Economics, Springer, vol. 25(1), pages 127-148.
    24. Manuel Toselli, 2017. "Knowledge sources and integration ties toward innovation. A food sector perspective," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 43-65, April.
    25. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
    26. Emilie-Pauline Gallié, 2009. "Is geographical proximity necessary for knowledge spillovers within a cooperative technological network? The case of the French biotechnology sector," Post-Print hal-00375805, HAL.
    27. Feldstein, Martin, 2008. "Did wages reflect growth in productivity?," Journal of Policy Modeling, Elsevier, vol. 30(4), pages 591-594.
    28. Harald Bathelt & Nina Schuldt, 2008. "Between Luminaires and Meat Grinders: International Trade Fairs as Temporary Clusters," Regional Studies, Taylor & Francis Journals, vol. 42(6), pages 853-868.
    29. Raquel Ortega-Argilés & Mariacristina Piva & Marco Vivarelli, 2015. "The productivity impact of R&D investment: are high-tech sectors still ahead?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(3), pages 204-222, April.
    30. Tahvanainen, Marja & Welch, Denice & Worm, Verner, 2005. "Implications of Short-term International Assignments," European Management Journal, Elsevier, vol. 23(6), pages 663-673, December.
    31. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
    32. Meric S. Gertler, 2003. "Tacit knowledge and the economic geography of context, or The undefinable tacitness of being (there)," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 75-99, January.
    33. Jorge Moll-de-Alba & Lluís Prats & Lluís Coromina, 2016. "The need to adapt to travel expenditure patterns. A study comparing business and leisure tourists in Barcelona," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 253-267, August.
    34. Feldstein, Martin, 2008. "Did Wages Reflect Growth in Productivity?," Scholarly Articles 2794832, Harvard University Department of Economics.
    35. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    36. Cowan, Robin & David, Paul A & Foray, Dominique, 2000. "The Explicit Economics of Knowledge Codification and Tacitness," Industrial and Corporate Change, Oxford University Press, vol. 9(2), pages 211-253, June.
    37. Pierre Mohnen & Bronwyn Hall, 2013. "Innovation and Productivity: An Update," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 47-65, June.
    38. Alfonso Gambardella & Myriam Mariani & Salvatore Torrisi, 2009. "How 'Provincial' Is Your Region? Openness and Regional Performance in Europe," Regional Studies, Taylor & Francis Journals, vol. 43(7), pages 935-947.
    39. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, August.
    40. von Hippel, Eric, 1987. "Cooperation between rivals: Informal know-how trading," Research Policy, Elsevier, vol. 16(6), pages 291-302, December.
    41. Andre Torre & Alain Rallet, 2005. "Proximity and Localization," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 47-59.
    42. Emilie-Pauline Gallie, 2009. "Is Geographical Proximity Necessary for Knowledge Spillovers within a Cooperative Technological Network? The Case of the French Biotechnology Sector," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 33-42.
    43. repec:dau:papers:123456789/6955 is not listed on IDEAS
    44. Almas Heshmati & Hyesung Kim, 2011. "The R&D and productivity relationship of Korean listed firms," Journal of Productivity Analysis, Springer, vol. 36(2), pages 125-142, October.
    45. Thomas Andersen & Carl-Johan Dalgaard, 2011. "Flows of people, flows of ideas, and the inequality of nations," Journal of Economic Growth, Springer, vol. 16(1), pages 1-32, March.
    46. Ian Dew-Becker & Robert J. Gordon, 2005. "Where Did Productivity Growth Go? Inflation Dynamics and the Distribution of Income," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 36(2), pages 67-150.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Business visits; Labor mobility; Knowledge; R&D; Productivity;

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    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:spr:jopoec:v:31:y:2018:i:4:d:10.1007_s00148-017-0679-3. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.