Long Term Economic Development: Demand, Finance, Organization, Policy and Innovation in a Schumpeterian Perspective

483 Pages·2013·1.17 MB·English

by  Andreas Pyka

Economic Complexity and Evolution
Andreas Pyka
Esben Sloth Andersen Editors
Long Term
Economic
Development
Demand, Finance, Organization,
Policy and Innovation in
a Schumpeterian Perspective
Economic Complexity and Evolution
SeriesEditors:
UweCantner,Jena,Germany
KurtDopfer,St.Gallen,Switzerland
JohnFoster,Brisbane,Australia
AndreasPyka,Stuttgart,Germany
PaoloSaviotti,Grenoble,France
For furthervolumes:
http://www.springer.com/series/11583
.
Andreas Pyka (cid:129) Esben Sloth Andersen
Editors
Long Term
Economic Development
Demand, Finance, Organization, Policy and
Innovation in a Schumpeterian Perspective
Editors
AndreasPyka EsbenSlothAndersen
Lehrstuhlfu¨rInnovationso¨konomik DepartmentofBusinessandManagement
UniversityofHohenheim AalborgUniversity
Stuttgart,Germany Aalborg,Denmark
ISBN978-3-642-35124-2 ISBN978-3-642-35125-9(eBook)
DOI10.1007/978-3-642-35125-9
SpringerHeidelbergNewYorkDordrechtLondon
LibraryofCongressControlNumber:2013937717
#Springer-VerlagBerlinHeidelberg2013
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Contents
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
AndreasPykaandEsbenSlothAndersen
Schumpeter’sCoreWorksRevisited. . . . . . . . . . . . . . . . . . . . . . . . . . . 9
EsbenSlothAndersen
BacktoEngel?SomeEvidencefortheHierarchyofNeeds. . . . . . . . . . 33
AndreasChaiandAlessioMoneta
TechnologicalRegimesandDemandStructureintheEvolution
ofthePharmaceuticalIndustry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
ChristianGaravaglia,FrancoMalerba,LuigiOrsenigo,
andMichelePezzoni
InnovationandDemandinIndustryDynamics:R&D,NewProducts
andProfits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
FrancescoBogliacinoandMarioPianta
Productionandfinanciallinkagesininter-firmnetworks:structural
variety,risk-sharingandresilience. . .. . . .. . . .. . . .. . . . .. . . .. . . .. 113
GiulioCainelli,SandroMontresor,andGiuseppeVittucciMarzetti
DoesHistoryMatter?EmpiricalAnalysisofEvolutionaryVersus
StationaryEquilibriumViewsoftheEconomy. . . . . . . . . . . . . . . . . . . 137
KennethI.CarlawandRichardG.Lipsey
Innovation,RealPrimaryCommodityPricesandBusinessCycles. . . . 175
HarryBlochandDavidSapsford
KnowledgeFlowsinHigh-TechIndustryClusters:Dissemination
MechanismsandInnovationRegimes. . . . . . . . . . . . . . . . . . . . . . . . . . 191
BoCarlsson
v
vi Contents
TheInternationalDiffusionofBiotechnology:theArrival
ofDevelopingCountries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
JorgeNiosi,PetrHanel,andSusanReid
TheInternetasaGlobalProductionReorganizer:TheOld
IndustryintheNewEconomy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
GunnarEliasson
LookingAround:TheSmartWayofItalianSMEs
toInnovate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
PiergiuseppeMorone,CarmeloPetraglia,andGiuseppinaTesta
StrategicFitBetweenRegionalInnovationPolicyand
RegionalInnovationSystems:TheCaseofLocalPublic
TechnologyCentersinJapan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
NobuyaFukugawa
SchumpeterianPatternsofInnovationandtheSourcesof
BreakthroughInventions:EvidencefromaData-setof
R&DAwards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313
RobertoFontana,AlessandroNuvolari,HiroshiShimizu,
andAndreaVezzulli
R&D,PatentsandStockReturnVolatility. . . . . . . . . . . . . . . . . . . . . . . 341
MarianaMazzucatoandMassimilianoTancioni
OnProfitDifferentialsBetweenPersistentandOccasional
Innovators:NewEvidencesfromaRandom-Coefficient
TreatmentModel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363
GiovanniCerulliandBiancaPot`ı
FinancialFactorsandPatents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
GustavMartinssonandHansLo¨o¨f
BuildingSystems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417
BrianJ.Loasby
WhatCausesCreativeDestruction?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 431
MichaelJoffe
MarketsandOrganizationsIndividualismand
EconomicTheory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439
MariaBrouwer
FinancialSystemandTechnologicalCatching-up:an
EmpiricalAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461
MuhammadNadeemJavaidandPier-PaoloSaviotti
Introduction
AndreasPykaandEsbenSlothAndersen
The general theme of the thirteenth International Joseph A. Schumpeter Society
Conference,heldduringJune21th–24th,2010atAalborgUniversityinDenmark,
was the exploration of the interrelated phenomena of innovation, organization,
sustainability and crises. By addressing these phenomena an attempt was madeto
confrontsomeoftheunderexploredpartstheSchumpeterianlegacy,buttherewas
also room for new results concerning more well-developed parts of evolutionary
economics.
Thefiveplenarysessionsconcerned:advancesintheunderstandingofindustrial
evolution;newresearchonentrepreneurship,spill-oversandregionaldevelopment;
theanalysisofinnovation-basedgrowth,fluctuationsandcrises;thecurrentcrises
inalong-termhistoricalperspective;andtheprocessesofdevelopmentinrelation
totheproblemsofcatching-up,fallingbehindandforgingahead.
Thescopeoftheconferencecanberecognizedbythebroadrangeoftopicsthat
was covered by the 62 parallel sessions. The session titles included: finance and
innovation; evolutionary economic development; perspectives on patenting and
licensing; creative destruction and labor mobility; consumption and evolution;
evolution and development; incentives, learning and complexity; agent-based
modeling;financialinnovationandfinancialcrisis;innovationinpharmaceuticals;
knowledge networks; capitalism, labor markets and reorganization; innovation in
the medical industry; the environment and sustainability; clusters and industry
ModifiedandextendedversionfromJournalofEvolutionaryEconomics22(4),621–625,Springer
(2012).
A.Pyka(*)
UniversityofHohenheim,Stuttgart,Germany
e-mail:[email protected]
E.S.Andersen
AalborgUniversity,Aalborg,Denmark
A.PykaandE.S.Andersen(eds.),LongTermEconomicDevelopment, 1
EconomicComplexityandEvolution,DOI10.1007/978-3-642-35125-9_1,
#Springer-VerlagBerlinHeidelberg2013
2 A.PykaandE.S.Andersen
evolution; innovation in consumption goods; modeling technical change and
growth;modelingindustrydynamics;discontinuities andcontinuities; technologi-
calandregionalrelatedness;perspectivesoninnovationstudies;R&Dandpatents;
survivaloffirms;publicpolicyandinnovativegrowth;growthandresilience;eco-
innovations;Schumpeteriananalysesofgrowthandfluctuations;structuralchange
and growth; firm practices and innovation; outsourcing and offshoring; public
action and innovation; financial constraints on innovation; regulation and
innovation; environmental policy and innovation; Schumpeter and innovation;
entrepreneurship and evolution; high-tech clusters; sustainable emergence; firm
growth and innovation; technological regimes and change; biotechnology; persis-
tent performance; diversity and knowledge creation; innovation in Africa;
innovation policy and policy innovation; universities and business innovation;
entrepreneurship in regions; learning and locating; perspectives on catching up;
innovation and market concentration; organizational forms; small and new firms;
perspectives on networks; entrepreneurship and self-organization; Schumpeterian
creative destruction; innovation and interaction; perspectives on Chinese
transitions; environmental sustainability and innovation; the role of patents; tech-
nologyandcycles;R&D,spillovers,andinnovation;andpreferencesandevolution.
Theproceedingsfollowingthe2010conferenceoftheInternationalSchumpeter
SocietystartswiththepresidentialaddressgivenbyEsbenSlothAndersenwiththe
title “Schumpeter’s Core Works Revisited: Resolved Paradoxes and Remaining
Challenges”. The chapter begins with an analysis of Schumpeter’s core works in
German and English that serves to characterize the Schumpeterian legacy and its
challengesformodernevolutionaryeconomics.Theanalysisispartlymadethrough
the distinction between microevolution and macroevolution, and major tasks for
futureresearchconcernthelatterphenomenon.Otherresearchissuesemergefrom
the distinction between Schumpeter’s three major evolutionary models: the entre-
preneur-driven model (Mark I), the oligopoly-driven model (Mark II), and the
modelofsocio-economiccoevolution(MarkSC).
Evolutionaryeconomicssometimesisstillcharacterizedasdominantlysupply-
sideoriented.Inthisviewtherelationshipbetweeninnovationanddemandarenot
at the forefront of evolutionary research. This is without doubt rather surprising
given that no innovation could have successfully diffused without consumers
adopting the new technology. In 2001 the Journal of Evolutionary Economics
pioneered with the publication of a special issue “Economic growth—What hap-
pened on the demand side” edited by Witt (2001) and triggered a continuously
increasing number of publications dealing with the dynamic interplay between
innovation, demand, income generation, consumer capabilities and changing
distributionsofconsumptionexpenditures.Thereforethecriticismofanexclusive
supply-sideorientationofevolutionaryeconomicsisnolongerjustified.Thethird
chapter in the proceedings takes up this rich research agenda. Andreas Chai and
AlessioMonetaaskthequestion“BacktoEngel?”andgiveempiricalevidencefor
ErnstEngel’shierarchyofneedswhichhepublishedalreadyin(Engel1857).The
challengingquestionaddressedinthispaperdealswiththedynamicsofconsump-
tion patterns. Is the order of consumption which Engel has introduced more than
Introduction 3
150yearsagostillobservableandhowdorisingincomesandincreasingchoicesof
consumptioninfluencethebehaviorofconsumers?
In the fourth chapter by Christian Garavaglia, Franco Malerba, Luigi Orsenigo
andMichelePezzonidemandaspectsalsomatterevenifthefocusofthepaperison
thedevelopingindustrialstructureofbiopharmaceuticalindustries.Intheirchapter
“Technologicalregimesanddemandstructureintheevolutionofthepharmaceuti-
cal industry” the authors apply a history-friendly simulation model to analyze the
mutual interaction between the nature of the demand and the development of
industry concentration. They show that the fragmented feature of the demand in
pharmaceuticals expressed in the competition for new market niches leads to a
seeminglyhighdegreeofcompetitioninthepharmaceuticalmarketdespitethehigh
R&Dandmarketingintensities.
Francesco Bogliaciono and Mario Pianta connect R&D investments, techno-
economicopportunitiesandthepotentialforentrepreneurshipwithdemandfactors.
In Chap. 5 the authors test these relationships at the industry level for 38
manufacturingandservicesectorsinsixEuropeancountriesovertwotimeperiods
from1994to2006.Theyshowthatanincreaseinoveralldemandincreasesprofits,
but is not necessarily responsible for improved innovative performances. Instead,
growing innovation activities are positively associated to export growth alone.
Accordingly, industries with a marked international openness are inclined to
improvetechnologicalcompetitivenessthroughnewproducts.Contrary,increased
demand due to household consumption slows down the introduction of new
products. Domestic demand seems to lead to an expansion of output of existing
goodsandserviceswithoutasignificanteffectoninnovation.
Supply relationships, intermediate demand and real as well as financial
interactions in supply chains are the topic of the contribution by Giulio Cainelli,
SandroMontresorandGiuseppeVittucciMarzettiinChap. 6.Tobringtogetherthe
complex interactions between firms comprising different forms of exchange the
authors apply the network metaphor and develop an analytical model to analyze
“Productionrisksharingandfinanciallinkagesininter-firmnetworks”concerning
the“structural variety, risksharingandresilience” inthese networks.Theauthors
use the network terminology also to highlight the important geographical dimen-
sion of innovation. Different occurrences of network indicators like connectivity
measuresareappliedtoassemblevariousformsofindustrialclusterswhichshowto
be characterized by specific possibilities to process shocks among the network
members.
Kenneth Carlaw and Richard Lipsey challenge core neoclassical theories like
RealBusinessCycles(RBC)intheircontribution“Doeshistorymatter?Empirical
analysisofevolutionaryversusstationaryequilibriumviewsoftheeconomy”and
disposetheirdiscussioninatraditionwhichstartedwithNelsonandWinter(1982).
Withtheirevolutionarygrowthmodeltheyproduceartificialmacrodatawhichthey
analyze for stylized facts of RBC theory. When applying the same econometric
tests which are applied to real time series the artificial macro data exhibit
stationarity features although they were created by an evolutionary model with
strong path dependencies. Therefore, the question of the role of history cannot