IDEAS home Printed from https://ideas.repec.org/p/uto/labeco/201301.html
   My bibliography  Save this paper

Demand pull and technological flows within innovation systems: the intra-European evidence

Author

Listed:

Abstract

We investigate the demand pull effects on sector-level total factor productivity growth. Such effects stem from the knowledge interactions carried by the market Transactions of intermediate inputs between competent customers and innovative suppliers. Both knowledge interactions and transactions are substantial ingredients in making the competent demand operate the positive impact on productivity growth of the entire economic system. The demand pull hypothesis is, thus, rejuvenated through the focus on the inter-sectoral linkages between competent users and innovative producers. In the empirical analysis based on a dynamic panel technique, we implement intermediate flows from input-output tables, qualified by productivity increases downstream, in order to investigate their joint influence on the upstream growth of productivity. The evidence Union of the derived demand-driven influence regarding the European (EU) over the period 1995-2007 is strong and positive, but varies between three EU innovation systems, EU core, East and South.

Suggested Citation

  • Antonelli,Cristiano & Gehringer, Agnieszka, 2013. "Demand pull and technological flows within innovation systems: the intra-European evidence," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201301, University of Turin.
    • Handle: RePEc:uto:labeco:201301
    as

    Download full text from publisher

    File URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati_wp/wp2013dip_l_b/wp_1_2013_leibrick.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. W. Scott Frame & Lawrence J. White, 2004. "Empirical Studies of Financial Innovation: Lots of Talk, Little Action?," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 116-144, March.
    2. Marco Guerzoni, 2010. "The impact of market size and users' sophistication on innovation: the patterns of demand," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(1), pages 113-126.
    3. Michael Dunford, 2006. "Industrial Districts, Magic Circles, and the Restructuring of the Italian Textiles and Clothing Chain," Economic Geography, Taylor & Francis Journals, vol. 82(1), pages 27-59, January.
    4. Walsh, Vivien, 1984. "Invention and innovation in the chemical industry: Demand-pull or discovery-push?," Research Policy, Elsevier, vol. 13(4), pages 211-234, August.
    5. von Hippel, Eric, 1976. "The dominant role of users in the scientific instrument innovation process," Research Policy, Elsevier, vol. 5(3), pages 212-239, July.
    6. Antonelli, Cristiano, 2008. "Pecuniary Externalities: the Convergence of Directed Technological Change and the Emergence of Innovation Systems," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200807, University of Turin.
    7. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211, December.
    8. Morales, María F., 2003. "Financial Intermediation In A Model Of Growth Through Creative Destruction," Macroeconomic Dynamics, Cambridge University Press, vol. 7(3), pages 363-393, June.
    9. Robert Evenson & Daniel Johnson, 1997. "Introduction: Invention Input-Output Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 9(2), pages 149-160.
    10. Daron Acemoglu & Philippe Aghion & Fabrizio Zilibotti, 2006. "Distance to Frontier, Selection, and Economic Growth," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 37-74, March.
    11. Brouwer, Erik & Kleinknecht, Alfred, 1999. "Keynes-Plus? Effective Demand and Changes in Firm-Level R&D: An Empirical Note," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(3), pages 385-391, May.
    12. Edquist, Charles & Zabala-Iturriagagoitia, Jon Mikel, 2012. "Public Procurement for Innovation as mission-oriented innovation policy," Research Policy, Elsevier, vol. 41(10), pages 1757-1769.
    13. Franco Malerba & Richard Nelson & Luigi Orsenigo & Sidney Winter, 2007. "Demand, innovation, and the dynamics of market structure: The role of experimental users and diverse preferences," Journal of Evolutionary Economics, Springer, vol. 17(4), pages 371-399, August.
    14. G.M. Constantinides & M. Harris & R. M. Stulz (ed.), 2003. "Handbook of the Economics of Finance," Handbook of the Economics of Finance, Elsevier, edition 1, volume 1, number 1.
    15. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, vol. 47(4), pages 687-710, August.
    16. Giada Di Stefano & Alfonso Gambardella & Gianmario Verona, 2012. "Technology Push and Demand Pull Perspectives in Innovation Studies: Current Findings and Future Research Directions," Post-Print hal-00696607, HAL.
    17. Antonelli, Cristiano & Gehringer, Agnieszka, 2015. "Knowledge externalities and demand pull: The European evidence," Economic Systems, Elsevier, vol. 39(4), pages 608-631.
    18. Cooke, Philip, 2001. "Regional Innovation Systems, Clusters, and the Knowledge Economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 945-974, December.
    19. M. Ozman, 2009. "Inter-firm networks and innovation: a survey of literature," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(1), pages 39-67.
    20. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
    21. Francesco Crespi & Mario Pianta, 2008. "Demand and innovation in productivity growth," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(6), pages 655-672.
    22. Mohnen, Pierre & Roller, Lars-Hendrik, 2005. "Complementarities in innovation policy," European Economic Review, Elsevier, vol. 49(6), pages 1431-1450, August.
    23. Leydesdorff, Loet & Meyer, Martin, 2006. "Triple Helix indicators of knowledge-based innovation systems: Introduction to the special issue," Research Policy, Elsevier, vol. 35(10), pages 1441-1449, December.
    24. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    25. King, Robert G. & Levine, Ross, 1993. "Finance, entrepreneurship and growth: Theory and evidence," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 513-542, December.
    26. Jaffe, Adam B, 1988. "Demand and Supply Influences in R&D Intensity and Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 431-437, August.
    27. Giulio Bottazzi & Elena Cefis & Giovanni Dosi, 2002. "Corporate growth and industrial structures: some evidence from the Italian manufacturing industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(4), pages 705-723, August.
    28. David I. Stern and Astrid Kander, 2012. "The Role of Energy in the Industrial Revolution and Modern Economic Growth," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    29. Arthur, W. Brian, 2007. "The structure of invention," Research Policy, Elsevier, vol. 36(2), pages 274-287, March.
    30. Andersson, Martin & Johansson, Borje & Karlsson, Charlie & Loof, Hans (ed.), 2012. "Innovation and Growth: From R&D Strategies of Innovating Firms to Economy-wide Technological Change," OUP Catalogue, Oxford University Press, number 9780199646685, Decembrie.
    31. Agnieszka Gehringer, 2012. "A New Sectoral Taxonomy Based On Pecuniary Knowledge Externalities: Knowledge Interactions In A Vertically Integrated System," Economic Systems Research, Taylor & Francis Journals, vol. 24(1), pages 35-55, December.
    32. Gennaioli, Nicola & Shleifer, Andrei & Vishny, Robert, 2012. "Neglected risks, financial innovation, and financial fragility," Journal of Financial Economics, Elsevier, vol. 104(3), pages 452-468.
    33. John W. Kendrick & Beatrice N. Vaccara, 1980. "New Developments in Productivity Measurement and Analysis," NBER Books, National Bureau of Economic Research, Inc, number kend80-1, October.
    34. G.M. Constantinides & M. Harris & R. M. Stulz (ed.), 2003. "Handbook of the Economics of Finance," Handbook of the Economics of Finance, Elsevier, edition 1, volume 1, number 2.
    35. 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.
    36. Agnieszka Gehringer, 2011. "Pecuniary Knowledge Externalities across European Countries—Are there Leading Sectors?," Industry and Innovation, Taylor & Francis Journals, vol. 18(4), pages 415-436.
    37. Etzkowitz, Henry & Leydesdorff, Loet, 2000. "The dynamics of innovation: from National Systems and "Mode 2" to a Triple Helix of university-industry-government relations," Research Policy, Elsevier, vol. 29(2), pages 109-123, February.
    38. Shleifer, Andrei & Vishny, Robert W., 2010. "Unstable banking," Journal of Financial Economics, Elsevier, vol. 97(3), pages 306-318, September.
    39. Gehringer, Agnieszka, 2013. "Growth, productivity and capital accumulation: The effects of financial liberalization in the case of European integration," International Review of Economics & Finance, Elsevier, vol. 25(C), pages 291-309.
    40. Nestor Terleckyj, 1980. "Direct and Indirect Effects of Industrial Research and Development on the Productivity Growth of Industries," NBER Chapters, in: New Developments in Productivity Measurement and Analysis, pages 357-386, National Bureau of Economic Research, Inc.
    41. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(3), pages 249-283.
    42. Franco Malerba, 2005. "Sectoral systems of innovation: a framework for linking innovation to the knowledge base, structure and dynamics of sectors," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(1-2), pages 63-82.
    43. Agnieszka Gehringer, 2011. "Pecuniary knowledge externalities and innovation: intersectoral linkages and their effects beyond technological spillovers," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(5), pages 495-515.
    44. Asheim, Bjorn T & Isaksen, Arne, 2002. "Regional Innovation Systems: The Integration of Local 'Sticky' and Global 'Ubiquitous' Knowledge," The Journal of Technology Transfer, Springer, vol. 27(1), pages 77-86, January.
    45. Mariacristina Piva & Marco Vivarelli, 2007. "Is demand-pulled innovation equally important in different groups of firms?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 31(5), pages 691-710, September.
    46. Alexander Galetovic, 1996. "Specialization, Intermediation, and Growth," Documentos de Trabajo 1, Centro de Economía Aplicada, Universidad de Chile.
    47. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    48. H. W. Singer, 1998. "Growth, Development and Trade," Books, Edward Elgar Publishing, number 1358, December.
    49. Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-1255, December.
    50. Mowery, David & Rosenberg, Nathan, 1993. "The influence of market demand upon innovation: A critical review of some recent empirical studies," Research Policy, Elsevier, vol. 22(2), pages 107-108, April.
    51. Roberto Fontana & Franco Malerba, 2010. "Demand as a source of entry and the survival of new semiconductor firms," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(5), pages 1629-1654, October.
    52. Horst Hanusch & Andreas Pyka (ed.), 2007. "Elgar Companion to Neo-Schumpeterian Economics," Books, Edward Elgar Publishing, number 2973, December.
    53. Kleinknecht, Alfred & Verspagen, Bart, 1990. "Demand and innovation: Schmookler re-examined," Research Policy, Elsevier, vol. 19(4), pages 387-394, August.
    54. Cristiano Antonelli, 2008. "Pecuniary knowledge externalities: the convergence of directed technological change and the emergence of innovation systems," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(5), pages 1049-1070, October.
    55. Eric von Hippel, 1998. "Economics of Product Development by Users: The Impact of "Sticky" Local Information," Management Science, INFORMS, vol. 44(5), pages 629-644, May.
    56. Di Stefano, Giada & Gambardella, Alfonso & Verona, Gianmario, 2012. "Technology push and demand pull perspectives in innovation studies: Current findings and future research directions," Research Policy, Elsevier, vol. 41(8), pages 1283-1295.
    57. Baskin,Jonathan Barron & Miranti, Jr,Paul J., 1997. "A History of Corporate Finance," Cambridge Books, Cambridge University Press, number 9780521555142, Enero-Abr.
    58. repec:bla:econom:v:65:y:1998:i:257:p:107-24 is not listed on IDEAS
    59. Galetovic, Alexander, 1996. "Specialization, intermediation, and growth," Journal of Monetary Economics, Elsevier, vol. 38(3), pages 549-559, December.
    60. Ashish Arora & Alfonso Gambardella, 2011. "Implications for Energy Innovation from the Chemical Industry," NBER Chapters, in: Accelerating Energy Innovation: Insights from Multiple Sectors, pages 87-111, National Bureau of Economic Research, Inc.
    61. Scherer, F M, 1982. "Inter-Industry Technology Flows and Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 627-634, November.
    62. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    63. Scherer, F M, 1982. "Demand-Pull and Technological Invention: Schmookler Revisited," Journal of Industrial Economics, Wiley Blackwell, vol. 30(3), pages 225-237, March.
    64. Geroski, P A & Walters, C F, 1995. "Innovative Activity over the Business Cycle," Economic Journal, Royal Economic Society, vol. 105(431), pages 916-928, July.
    65. Nemet, Gregory F., 2009. "Demand-pull, technology-push, and government-led incentives for non-incremental technical change," Research Policy, Elsevier, vol. 38(5), pages 700-709, June.
    66. Stefano Breschi & Francesco Lissoni, 2009. "Mobility of skilled workers and co-invention networks: an anatomy of localized knowledge flows," Journal of Economic Geography, Oxford University Press, vol. 9(4), pages 439-468, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cristiano Antonelli & Agnieszka Gehringer, 2015. "The competent demand pull hypothesis: which sectors do play a role?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(1), pages 97-134, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antonelli, Cristiano & Gehringer, Agnieszka, 2015. "Knowledge externalities and demand pull: The European evidence," Economic Systems, Elsevier, vol. 39(4), pages 608-631.
    2. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    3. Hötte, Kerstin, 2023. "Demand-pull, technology-push, and the direction of technological change," Research Policy, Elsevier, vol. 52(5).
    4. Gehringer, Agnieszka, 2016. "Knowledge externalities and sectoral interdependences: Evidence from an open economy perspective," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 240-249.
    5. Herbert Dawid & Gabriele Pellegrino & Marco Vivarelli, 2021. "The role of demand in fostering product vs process innovation: a model and an empirical test," Journal of Evolutionary Economics, Springer, vol. 31(5), pages 1553-1572, November.
    6. Cristiano Antonelli & Agnieszka Gehringer, 2015. "The competent demand pull hypothesis: which sectors do play a role?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(1), pages 97-134, April.
    7. Park, Inchae & Triulzi, Giorgio & Magee, Christopher L., 2022. "Tracing the emergence of new technology: A comparative analysis of five technological domains," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    8. Laeven, Luc & Levine, Ross & Michalopoulos, Stelios, 2015. "Financial innovation and endogenous growth," Journal of Financial Intermediation, Elsevier, vol. 24(1), pages 1-24.
    9. Hasan Cömert & Gerald Epstein, 2016. "Finansal Yenilik Yazinindaki Son Gelismeler," STPS Working Papers 1604, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Jan 2016.
    10. Wei Jin & ZhongXiang Zhang, 2014. "Explaining the Slow Pace of Energy Technological Innovation: Why Market Conditions Matter," CCEP Working Papers 1401, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    11. Dawid, Herbert & Pellegrino, Gabriele & Vivarelli, Marco, 2017. "Is the demand-pull driver equally crucial for product vs process innovation?," MERIT Working Papers 2017-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Dario Guarascio & Mario Pianta & Francesco Bogliacino, 2017. "Export, R&D and New Products: A Model and a Test on European Industries," Economic Complexity and Evolution, in: Andreas Pyka & Uwe Cantner (ed.), Foundations of Economic Change, pages 393-432, Springer.
    13. Cristiano Antonelli, 2011. "The Economic Complexity of Technological Change: Knowledge Interaction and Path Dependence," Chapters, in: Cristiano Antonelli (ed.), Handbook on the Economic Complexity of Technological Change, chapter 1, Edward Elgar Publishing.
    14. Bastian Rake, 2017. "Determinants of pharmaceutical innovation: the role of technological opportunities revisited," Journal of Evolutionary Economics, Springer, vol. 27(4), pages 691-727, September.
    15. Migliori, Stefania & De Massis, Alfredo & Maturo, Fabrizio & Paolone, Francesco, 2020. "How does family management affect innovation investment propensity? The key role of innovation impulses," Journal of Business Research, Elsevier, vol. 113(C), pages 243-256.
    16. José García-Quevedo & Gabriele Pellegrino & Maria Savona, 2017. "Reviving demand-pull perspectives: The effect of demand uncertainty and stagnancy on R&D strategy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 41(4), pages 1087-1122.
    17. Mariacristina Piva & Marco Vivarelli, 2007. "Is demand-pulled innovation equally important in different groups of firms?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 31(5), pages 691-710, September.
    18. Dawid, Herbert & Pellegrino, Gabriele & Vivarelli, Marco, 2017. "Demand and innovation: theory and evidence," GLO Discussion Paper Series 92, Global Labor Organization (GLO).
    19. Dosi, Giovanni & Nelson, Richard R., 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 51-127, Elsevier.
    20. Bogliacino, Francesco & Cardona, Sebastian Gómez, 2014. "Capabilities and investment in R&D: An analysis on European data," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 101-111.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:uto:labeco:201301. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Laura Ballestra or Cinzia Carlevaris (email available below). General contact details of provider: https://edirc.repec.org/data/leifrit.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.