Journal ArticleDOI
Technology, productivity and economic analysis
TLDR
In this article, a model of a "network of productivity relationships" with six components is described which traces the effects of innovation, at any point in the network, on input productivities.Abstract:
A commonly held view is that innovation, deriving directly from expenditure on research and development, brings increased productivity, lower costs, increased profitability and growth, and that these relationships form a economically virtuous circle. However, this view is not supported either by the research results reported here or by other empirical findings. A richer and deeper framework of analysis than this “mythology” provides is required for management decision making in innovation and in this and the subsequent paper the author outlines the necessary features of such a framework. A model of a “network of productivity relationships” with six components is described which traces the effects of innovation, at any point in the network, on input productivities. The model points up the futility of single input measures of innovatory effects. This network is then combined with cost factors to show the effect on categories of unit costs and on total unit cost. Finally, profitability is related to the physical and cost factors to provide managerial control ratios which offer the relevent criteria by which innovation many be appraised. The history of innovation in the U.S. Basic Steel Industry is examined in the light of the model described above and hypotheses are proposed to identify possible productivity and cost effects of innovation with a view ot improving general predictive capability of the results of any given type of innovation.read more
Citations
More filters
Journal ArticleDOI
Profits and Productivity
TL;DR: In this article, the authors consider the linkage between productivity change and profit change and develop an analytical framework in which profit change between one period and the next is decomposed into three sources: (i) a productivity change effect (which includes a technical change effect and an operating efficiency effect), (ii) an activity effect (including a product mix effect, a resource mix effect and a scale effect), and (iii) a price effect).
Journal ArticleDOI
Capacity utilisation and profitability: A decomposition of short-run profit efficiency
TL;DR: In this paper, the authors measure the amount by which the profit of a multi-input, multi-output firm deviates from maximum short-run profit, and then decompose this profit gap into components that are of practical use to managers.
Journal ArticleDOI
Decomposing capacity utilization in data envelopment analysis: An application to banks in India
TL;DR: Two broad empirical findings are that competition created after financial sector reforms generates high efficiency growth, and reduces excess capacity; second, the cost gap of the short-run cost from the actual cost is higher for the nationalized banks over the private banks indicating that the former banks, though old, do not reflect their learning experience in their cost minimizing behavior.
Journal ArticleDOI
Neural Network Simulation and the Prediction of Corporate Outcomes: Some Empirical Findings
TL;DR: In this article, the use of NN techniques as a tool for the modelling and prediction of corporate bankruptcy and other corporate outcomes was investigated. And the results of the study suggest that, from a pure predictive point of view, NN simulation produces a higher predictive accuracy and is more robust than conventional logit and multilogit models.
Journal ArticleDOI
A Framework for Profitability and Productivity Measures
TL;DR: In this paper, the authors define a variety of productivity ratios, depending on whether measurements of variables are made in physical or financial terms and depending on which resource inputs are selected for performance evaluation.
References
More filters
Book
General Theory of Employment, Interest and Money
TL;DR: In this article, a general theory of the rate of interest was proposed, and the subjective and objective factors of the propensity to consume and the multiplier were considered, as well as the psychological and business incentives to invest.
Journal ArticleDOI
The General Theory of Employment, Interest and Money.
Journal ArticleDOI
The Simple Economics of Basic Scientific Research
TL;DR: In this paper, the authors examine the simple economics of basic research and argue that if we allocate a given quantity of resources to science, this implies that we are not allocating these resources to other activities and, hence, we are depriving ourselves of a flow of future benefits that we could have obtained had none of our resources been directed to basic research.