Showing papers by "Óscar Afonso published in 2010"

A growth model for the quadruple helix innovation theory

Abstract: We propose a theoretical growth model with which to frame analytically the Quadruple Helix Innovation Theory (QHIT). The aim is to emphasise the investment in innovation transmission mechanisms in terms of economic growth and productivity gains, in one-high-technology sector, by stressing the role played by the helices of the Quadruple Helix Innovation Model: Academia and Technological Infrastructures, Firms of Innovation, Government and Civil Society. In the existing literature, the relationship between the helices and respective impacts on economic growth does not appear clear. Results are fragile due to data weakness and the inexistence of a theoretical framework to specify the relationship between the helices. Hence our motivation for providing the QHIT with a theoretical growth model. Our intent is to model the importance of emerging, dynamically adaptive, and transdisciplinary knowledge and innovation ecosystems to economic growth. We find that higher economic growth rate is obtained as a result of an increase in synergies and complementarities between different productive units, or an increase in productive government expenditure.

Costly investment, complementarities, international technological-knowledge diffusion and the skill premium

Abstract: We examine the behaviour of the skill premium in a two-country general equilibrium growth model assuming (i) technological-knowledge diffusion; (ii) internal costly investment in both physical capital and RD and (iii) complementarities between intermediate goods in production. We find that these three economic features affect the steady-state growth rate in both countries. However, only in the imitator country do they influence the skill premium. We also find that the steady-state skill premium in the innovator country is affected by its relative labor productivity rather than by its relative labor endowments. This result contrasts with most skill-biased technological change models and suggests that the sustained increase in the skill premium observed in several developed countries over the last three decades may have been due to increases in the relative productive advantage of skilled labor.

Value of Intangibles Arising from R&D Activities

Abstract: This paper develops an empirical approach using econometric techniques for panel data which aims to contribute to the reduction/elimination of the deviation between the book and market value of firms. Based on 20 of the firms with the largest number of patents granted between 1996 and 2006, the results show that: (i) the increase in the return on equity following from an increase in the share of investment in RD (ii) there is a positive relationship between the results (and the value of firms) and RD (iii) by updating the additional periodical results generated by investment in R&D, the present value of the intangible asset can be determined.

Economic Growth, Ecological Technology and Public Intervention

Abstract: Seminal works on growth theory had mainly focused on exogenous technological change, where a certain given path of technological change was considered. At the end of the 1980s, a new growth theory emerged allowing for the endogeneity of technological change, where economic agents can affect the pace of technological change and where technology is essentially interpreted as “knowledge”. The present paper aims to develop a simple endogenous growth model to study the effects of taxation on dirty intensive resources and the effects of subsidies on clean/ecological intensive resources. It also intends to analyse how exogenous environmental quality can affect the development of better quality (environmentally cleaner) inputs to production. For that, a dynamic general equilibrium growth model is considered based on the endogenous skill*biased technological change literature. It is shown that final*good sector bias is caused by the technological*knowledge

The connection between oil and economic growth revisited

Abstract: This study shows that the cross-section “curse” result found with oil abundance indicators for producing countries disappears in a panel estimation considering the most important growth factors. This happens even excluding institutional quality, which is hindered by oil and ores abundance in several cross-section studies, causing the resource curse. In our estimations, neither of the oil indicators shows a significant impact on growth, but when we consider rig productivity there is a positive effect by capital efficiency in: (i) countries with medium and low income per head from East Asia & Pacific and Latin America & the Caribbean, all technological followers; (ii) countries with high income inequality. These results can reflect the broader scope for factor efficiency increases in less developed countries arising from the oil industry, which is described by a highly globalised know-how.

Learning-by-exporting: what we know and what we would like to know

Abstract: This paper revises the thesis that exporting firms learn to be more innovative and efficient as they have contact with certain information flows from their foreign activity (e.g., from buyers, suppliers or competitors). The paper begins by exploring the connections between two distinct concepts: Self-Selection (of more efficient firms into exports) and Learning-by-Exporting. The study then proceeds with a comparative analysis of the most recent literature and presents common facts and evidence, as well as key issues still open to debate. Learning-by-Exporting should be measured directly using firms´ innovative performance. However, given the lack of suitable data on firms’ innovative activities most studies have followed an indirect approach, using productivity measures. Several methodologies have been employed to estimate Total Factor Productivity and to test the Learning-by-Exporting hypothesis, but so far no final consensus has been reached on the best way to do it.

E3 Models Revisited

Abstract: This article analyses the contribution of E3 models to fully understand the complex relationship between the environment, economics and the energy sector We present a survey of the literature on these models, analyzing the assumptions, features and scope of the main kinds of methodological approaches: bottom-up, top-down and hybrid models Since the literature on these models is vast, complex and diffuse, our aim is to present it in a simple and compact way We also show how bottom-up (BU) models depart from top-down (TD) ones and how that approach affects their conclusions and implications As an attempt to solve the TD-BU incompatibilities, different kinds of hybrid models are examined and their capacity to support realistic environmental policies is criticized under a microeconomic perspective

Value of intangibles arising from R&D activities

Abstract: This paper develops an empirical approach using econometric techniques for panel data which aims to contribute to the reduction/elimination of the deviation between the book and market value of firms. Based on 20 of the firms with the largest number of patents granted between 1996 and 2006, the results show that: (i) the increase in the return on equity following from an increase in the share of investment in RD (ii) there is a positive relationship between the results (and the value of firms) and RD (iii) by updating the additional periodical results generated by investment in R&D, the present value of the intangible asset can be determined.

Growth and Firm Dynamics with Horizontal and Vertical R&D

Abstract: This paper develops a tournament model of horizontal and vertical R&D under a lab-equipment specification. A key feature is that the overall growth rate is endogenous, as the splitting of the growth rate between the intensive and the extensive margin is itself endogenous. This setup gives rise to strong inter-R&D composition effects, while making economic growth and firm dynamics closely related, both along the balanced-growth path and transition. The model hence offers a (qualitative) explanation for the negative or insignificant empirical correlation between aggregate R&D intensity and both firm size and economic growth, a well-known puzzle in the growth literature.

Do Portuguese manufacturing firms self select to ex ports

Abstract: Using a longitudinal database (1996-2003) at the pl ant level, this paper aims to shed light, on the thesis that most productive domestic firms self select to export markets. Self selection and learning by exporting are two non-mutually exclusiv e theses that try to explain the high correlation between international trade involvement of firms and their superior performance, relative to domestic firms. In general, we find evi dence of a self-selection to exports. However, there is a significant heterogeneity accor ding to the destination of sales, to firms’ import status before exporting and to the specifici ties of sectors firms’ belong to.

Which Portuguese Manufacturing Firms Learn by Exporting

Abstract: Using a longitudinal database (1996-2003) at the plant level, this paper aims to shed light on the causal nexus between international trade engagement and productivity in Portugal. We analyse in particular the learning-by-exporting hypotheses. In line with recent empirical literature, we apply mainly the Propensity Score Matching and a differences-in-differences estimator. In post-entry years we find a higher growth of labour productivity and total factor productivity for new exporting firms when compared to firms that, although having similar characteristics, have decided not to begin exporting in that year. Moreover, in an attempt to uncover the channels through which the learning effects are driven to new exporters, we applied the same methodology to some sub-samples. We found that learning effects are higher for new exporters that are also importers or start importing at the same time. Other important factors influencing that learning ability are found in firms that export to more developed markets, in those that achieve a certain threshold of export intensity and particularly for those firms that belong to sectors in which Portugal is at a comparative disadvantage

SBTC versus trade: testing skill-premia evidence across 25 OECD countries

Abstract: The recent widening of intra-country wage inequality in favour of high-skilled labour has been attributed by some authors to Skill-Biased Technological Change (SBTC) and by others to International Trade (IT) liberalization. As few empirical studies have tried to assess both explanations across a comprehensive sample of countries, we analyse the impact of both explanations within a unified framework and across 25 Organisation for Economic Co-operation and Development countries. Results suggest that the SBTC (IT) explanation dominates in developed (developing) countries and when intra-country wage inequality is measured by the wage ratio of college-to-lower (upper)-secondary graduates.

International trade involvement and performance of Portuguese manufacturing firms: causal links

Abstract: Using a longitudinal database (1996-2003) at the pl ant level, this paper analyses the causal nexus bet ween international trade engagement and productivity in Portugal. By applying the Propensity Score Matching and a differences-in-differences estimator, the learning- by-exporting hypothesis is particularly analysed. A higher growth of labour productivity and total factor prod uctivity is found for new exporting firms. To uncov er the channels through which the learning effects are dri ven, the same methodology to some sub-samples is applied. Learning effects are higher for new exporters that are also importers or start importing at the same t ime. Other factors affecting learning ability are found in fir ms exporting to more developed markets, in those th at achieve a certain threshold of export intensity and mainly fo r those firms that belong to sectors where Portugal has comparative disadvantage.

Economic performance and international trade engagement: the case of Portuguese manufacturing firms

Abstract: By combining economic and financial data for Portuguese manufacturing firms with data of their exports and imports, we uncover some aspects of the relationship between international trade engagement and firms’ performance. In line with recent theoretical and empirical developments in the international trade literature: (i) we testify that Portuguese international trade is highly concentrated, especially on the import side, and both in inter- and intra-sector terms; (ii) we corroborate previous studies and theses according to which two-way traders outperform only importers, only exporters and above all domestic firms; (iii) we find that the greater the diversification of markets and goods (especially with regard to imports) the better the performance achieved by internationalized firms; (iv) we also present evidence that destination markets, for exports, and, origin markets, for imports, are also important in explaining the performance of firms.

Non-scale effects of international technological-knowledge diffusion on southern growth and wages

Abstract: We develop a dynamic, general equilibrium non-scale endogenous growth model of North–South technological-knowledge diffusion by imitation. Countries differ in levels of exogenous productivity, human-capital levels and R&D capacity. Growth is driven by Northern innovative R&D and the South converges towards the North. Growth is also driven by human-capital accumulation, scale effects are removed, imitation is only feasible once a threshold distance to the frontier has been attained and is dependent on the South’s relative level of employed human capital and on domestic policies promoting R&D. Imitation promotes partial convergence of inter-country wages and governs the path of intra-South wage inequality. jere_495 341..366

Growth and wage inequality in a scale‐independent model with r&d and human‐capital accumulation

Abstract: We present a dynamic, non-scale general equilibrium model with two human-capital types where Schumpeterian R&D and human-capital accumulation are the engines of growth and wage inequality. In particular, wage inequality is encouraged by relative changes in supply and demand of both human-capital types. Relative supply restricts employed human-capital levels. Relative demand is instantly affected by a new general-purpose technology and, as in the skill-biased technological change literature, by technological-knowledge bias. By considering substitutability between technologies and complementarity between inputs, the bias is driven by the price channel (not by the market-size channel) and is affected by human-capital accumulation.