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Exploring the Sources of Skill-Biased Technical Change: A Firm Performance Perspective

  • Leiponen, Aija
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    The literature on skill-biased technical change has examined the role of skills in the adoption of new technology. Here the focus is on the creation of new technology, that is, innovation. Low skill firms are hypothesized to benefit less from innovation activities, particularly collaborative research and development (R&D). In other words, skills and innovation are complementary. Complementarities associated with innovation may generate persistent differences in firm behavior and performance. Results from a panel of manufacturing firms indicate that technical skills reinforce the profitability effects of innovation and R&D collaboration. Skills, collaboration, and innovation form a system of interdependent activities.

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    File URL: http://purl.umn.edu/127282
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    Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 127282.

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    Date of creation: May 2002
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    Handle: RePEc:ags:cudawp:127282
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    1. Eve Caroli & John Van Reenen, 2001. "Skill-Biased Organizational Change? Evidence From A Panel Of British And French Establishments," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1449-1492, November.
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    8. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," NBER Working Papers 5956, National Bureau of Economic Research, Inc.
    9. Stephen Machin & John Van Reenen, 1998. "Technology And Changes In Skill Structure: Evidence From Seven Oecd Countries," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1215-1244, November.
    10. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    11. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-306, December.
    12. Holmstrom, Bengt & Milgrom, Paul, 1994. "The Firm as an Incentive System," American Economic Review, American Economic Association, vol. 84(4), pages 972-91, September.
    13. Iansiti, Marco, 1995. "Technology integration: Managing technological evolution in a complex environment," Research Policy, Elsevier, vol. 24(4), pages 521-542, July.
    14. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
    15. Veugelers, Reinhilde & Cassiman, Bruno, 1999. "Make and buy in innovation strategies: evidence from Belgian manufacturing firms," Research Policy, Elsevier, vol. 28(1), pages 63-80, January.
    16. Arora, Ashish, 1996. "Testing for complementarities in reduced-form regressions: A note," Economics Letters, Elsevier, vol. 50(1), pages 51-55, January.
    17. Kamien, Morton I. & Zang, Israel, 2000. "Meet me halfway: research joint ventures and absorptive capacity," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 995-1012, October.
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