How to Optimally Design Contests in Development Settings for Rapid and Efficient Results: Firms increasingly leverage their expert suppliers to develop innovative products and services while minimizing both time-to-market and expenses. In “Dynamic Development Contests,” Sina Khorasani, Ersin Korpeoglu, and Vish Krishnan study how companies can effectively organize contests to stimulate development efforts from competing suppliers to minimize project lead times while keeping the cost of incentives in check. Their characterization of the optimal designs reveals that flexible rewards are most effective when funds are sufficient. However, in cases where resources are constrained, strategic information disclosure in the form of probabilistic disclosure of any change in the state of competition serves as a valuable incentive instrument that helps contest organizers achieve their lead-time minimization objectives.
{"title":"Dynamic Development Contests","authors":"S. Khorasani, Ersin Körpeoğlu, V. Krishnan","doi":"10.2139/ssrn.3804454","DOIUrl":"https://doi.org/10.2139/ssrn.3804454","url":null,"abstract":"How to Optimally Design Contests in Development Settings for Rapid and Efficient Results: Firms increasingly leverage their expert suppliers to develop innovative products and services while minimizing both time-to-market and expenses. In “Dynamic Development Contests,” Sina Khorasani, Ersin Korpeoglu, and Vish Krishnan study how companies can effectively organize contests to stimulate development efforts from competing suppliers to minimize project lead times while keeping the cost of incentives in check. Their characterization of the optimal designs reveals that flexible rewards are most effective when funds are sufficient. However, in cases where resources are constrained, strategic information disclosure in the form of probabilistic disclosure of any change in the state of competition serves as a valuable incentive instrument that helps contest organizers achieve their lead-time minimization objectives.","PeriodicalId":11062,"journal":{"name":"Development of Innovation eJournal","volume":"40 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74960460","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We develop a unique dataset of 24 thousand U.S. finance patents granted over last two decades to explore the evolution and production of financial innovation. We use machine learning to identify the financial patents and extensively audit the results to ensure their reasonableness. We find that patented financial innovation is substantial and economically important, with the number of annual grants expanding from a few dozen in the 1990s to over 2000 in the 2010s. The subject matter of financial patents has changed, consistent with the industry’s shift in revenue and value-added towards household investors and borrowers. The surge in financial patenting was driven by information technology firms and others outside of financial sector, which collectively accounted for 69% of the awards. The location of innovation has shifted, with banks moving this activity from regions with tight financial regulation to more permissive ones. High-tech regions have attracted financial innovation by payments, IT, and other non-financial firms. Turning to the source of these ideas, while academic knowledge remained associated with more valuable patents, citations in finance patents to academic papers, especially in those by banks, fell sharply. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
{"title":"Financial Innovation in the 21st Century: Evidence from U.S. Patents","authors":"J. Lerner, Amit Seru, Nick Short, Yuan Sun","doi":"10.2139/ssrn.3871977","DOIUrl":"https://doi.org/10.2139/ssrn.3871977","url":null,"abstract":"We develop a unique dataset of 24 thousand U.S. finance patents granted over last two decades to explore the evolution and production of financial innovation. We use machine learning to identify the financial patents and extensively audit the results to ensure their reasonableness. We find that patented financial innovation is substantial and economically important, with the number of annual grants expanding from a few dozen in the 1990s to over 2000 in the 2010s. The subject matter of financial patents has changed, consistent with the industry’s shift in revenue and value-added towards household investors and borrowers. The surge in financial patenting was driven by information technology firms and others outside of financial sector, which collectively accounted for 69% of the awards. The location of innovation has shifted, with banks moving this activity from regions with tight financial regulation to more permissive ones. High-tech regions have attracted financial innovation by payments, IT, and other non-financial firms. Turning to the source of these ideas, while academic knowledge remained associated with more valuable patents, citations in finance patents to academic papers, especially in those by banks, fell sharply. \u0000 \u0000Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.","PeriodicalId":11062,"journal":{"name":"Development of Innovation eJournal","volume":"19 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84449398","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper explores how technology adoption can shape local innovative activity in the context of the early 20th century rollout of airmail in the United States. Our theoretical framework highlights the mechanism of technological feedback and market incentives through which technology adoption induces local innovation, as well as the role of regional domain-specific capabilities in this process. Using our novel dataset of early 20th-century patents, we quantitatively examine these issues by measuring the effect of local airmail upon aviation innovation. Our results suggest that the establishment of an airmail route in a given county led to an increase in local aviation patenting by approximately 32%. Both individual and corporate inventors in treated counties had higher rates of aviation patenting in broad and diverse areas of aviation technology. We also find that the effect of airmail adoption was stronger in the treated counties with pre-existing local capabilities that specifically catered to, or could be readily applied to, the focal technological domain. This work contributes to the academic literature on antecedents and consequences of technology adoption and innovation. Our findings are also relevant for present-day managers and policymakers who are navigating the potential costs and benefits of new technology adoption.
{"title":"Local Technology Adoption and Innovation: The Establishment of U.S. Airmail and the Organization of Aviation Innovation","authors":"Eunhee Sohn, Robert C. Seamans, D. Sands","doi":"10.2139/ssrn.3869801","DOIUrl":"https://doi.org/10.2139/ssrn.3869801","url":null,"abstract":"This paper explores how technology adoption can shape local innovative activity in the context of the early 20th century rollout of airmail in the United States. Our theoretical framework highlights the mechanism of technological feedback and market incentives through which technology adoption induces local innovation, as well as the role of regional domain-specific capabilities in this process. Using our novel dataset of early 20th-century patents, we quantitatively examine these issues by measuring the effect of local airmail upon aviation innovation. Our results suggest that the establishment of an airmail route in a given county led to an increase in local aviation patenting by approximately 32%. Both individual and corporate inventors in treated counties had higher rates of aviation patenting in broad and diverse areas of aviation technology. We also find that the effect of airmail adoption was stronger in the treated counties with pre-existing local capabilities that specifically catered to, or could be readily applied to, the focal technological domain. This work contributes to the academic literature on antecedents and consequences of technology adoption and innovation. Our findings are also relevant for present-day managers and policymakers who are navigating the potential costs and benefits of new technology adoption.","PeriodicalId":11062,"journal":{"name":"Development of Innovation eJournal","volume":"55 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80203366","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
How does a firm’s market power in existing products affect its incentives to innovate? We explore this fundamental question using granular project-level and firm-level data from the pharmaceutical industry, focusing on a particular mechanism through which incumbent firms maintain their market power: “reverse payment” or “pay-for-delay” agreements to delay the market entry of competitors. We first show that when firms are unfettered in their use of “pay-for-delay” agreements, they reduce their innovation activities in response to the potential entry of direct competitors. We then examine a legal ruling that subjected these agreements to antitrust litigation, thereby reducing the incentive to enter them. After the ruling, incumbent firms increased their net innovation activities in response to competitive entry. These effects center on firms with products that are more directly affected by competition. However, at the product therapeutic area level, we find a reduction in innovation by new entrants after the ruling in response to increased competition. Overall, these results are consistent with firms having reduced incentives to innovate when they are able to maintain their market power, highlighting a specific channel through which this occurs.
{"title":"Paying off the Competition: Market Power and Innovation Incentives","authors":"Xuelin Li, A. Lo, Richard T. Thakor","doi":"10.2139/ssrn.3870420","DOIUrl":"https://doi.org/10.2139/ssrn.3870420","url":null,"abstract":"How does a firm’s market power in existing products affect its incentives to innovate? We explore this fundamental question using granular project-level and firm-level data from the pharmaceutical industry, focusing on a particular mechanism through which incumbent firms maintain their market power: “reverse payment” or “pay-for-delay” agreements to delay the market entry of competitors. We first show that when firms are unfettered in their use of “pay-for-delay” agreements, they reduce their innovation activities in response to the potential entry of direct competitors. We then examine a legal ruling that subjected these agreements to antitrust litigation, thereby reducing the incentive to enter them. After the ruling, incumbent firms increased their net innovation activities in response to competitive entry. These effects center on firms with products that are more directly affected by competition. However, at the product therapeutic area level, we find a reduction in innovation by new entrants after the ruling in response to increased competition. Overall, these results are consistent with firms having reduced incentives to innovate when they are able to maintain their market power, highlighting a specific channel through which this occurs.","PeriodicalId":11062,"journal":{"name":"Development of Innovation eJournal","volume":"11 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88638558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-02-10DOI: 10.31014/AIOR.1992.04.01.325
Josephine K. Mulaa, J. Kilika, M. Namusonge
The literature on strategic management recognizes the pivotal role played by strategic innovation as a strategic choice in organizations in order to create a sustainable competitive advantage. However, although there are emerging calls for the adoption of strategic innovation in a firm’s strategic management process, the concept of strategic innovation is not well understood. The scanty empirical literature reviewed has methodological and conceptual gaps that affect the generalizability of findings even in similar contexts. In this paper, the authors have attempted to review Strategic Innovation and argued that the emerging phenomena from its deployment in firms invite the role of the firm structure and innovative capacity as the firm seeks to enhance its chances of survival in a rapidly changing firm context. The conceptual, theoretical and empirical literature reviewed identified diverse issues that present a case for a theoretical model suitable to advance the current understanding of strategic innovation and the emerging phenomenon in firms. This paper therefore proposes an integrated theoretical model conceptualizing strategic innovation in a firm context and identifies relevant implications for future research.
{"title":"Conceptualizing Strategic Innovation in a Firm Context: A Theoretical Review and Research Agenda","authors":"Josephine K. Mulaa, J. Kilika, M. Namusonge","doi":"10.31014/AIOR.1992.04.01.325","DOIUrl":"https://doi.org/10.31014/AIOR.1992.04.01.325","url":null,"abstract":"The literature on strategic management recognizes the pivotal role played by strategic innovation as a strategic choice in organizations in order to create a sustainable competitive advantage. However, although there are emerging calls for the adoption of strategic innovation in a firm’s strategic management process, the concept of strategic innovation is not well understood. The scanty empirical literature reviewed has methodological and conceptual gaps that affect the generalizability of findings even in similar contexts. In this paper, the authors have attempted to review Strategic Innovation and argued that the emerging phenomena from its deployment in firms invite the role of the firm structure and innovative capacity as the firm seeks to enhance its chances of survival in a rapidly changing firm context. The conceptual, theoretical and empirical literature reviewed identified diverse issues that present a case for a theoretical model suitable to advance the current understanding of strategic innovation and the emerging phenomenon in firms. This paper therefore proposes an integrated theoretical model conceptualizing strategic innovation in a firm context and identifies relevant implications for future research.","PeriodicalId":11062,"journal":{"name":"Development of Innovation eJournal","volume":"56 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80692026","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Spanish Abstract: El proceso de globalización, caracterizado por el avance vertiginosos de las fuerzas productivas, en particular en un grupo de ramas de reciente creación como la genética, la biotecnología, la electrónica, la informática, la robótica, entre otras, la ciencia y la innovación tecnológica se han ido convirtiendo en un elemento fundamental en el crecimiento y desarrollo económico y la productividad, convirtiéndose por ende el conocimiento, en uno de los más apreciados recursos y ganando cada vez mayor espacio en todos los ámbitos de la vida social, en especial en la esfera económica.
English Abstract: The globalization process, characterized by the vertiginous advance of the productive forces, in particular in a group of recently created branches such as genetics, biotechnology, electronics, computer science, robotics, among others, science and technological innovation have become a fundamental element in economic growth and development and productivity, thus becoming knowledge, one of the most appreciated resources and gaining more and more space in all areas of social life, especially in the economic sphere.
[Abstract:为特点的全球化进程,vertiginosos生产力方面的进展,特别是在一个新成立的小组分行作为遗传学、生物技术、电子学、计算机科学、机器人,包括科学和技术创新已经成为经济增长和发展的一项重要内容和生产力,因而也成为知识,成为最宝贵的资源之一，并在社会生活的各个领域，特别是在经济领域获得越来越大的空间。English Abstract:全球化进程,以中西vertiginous预付款of The力量,尤其是in a group of惧created论述的,如生物技术、电子、计算机科学、机器人、案中,科学与技术创新已经成为element in economic growth and development and生产力至关重要,因此成为一个有影响力的知识,one of The most赞赏resources and gaining more and more space in all areas of social life,特别是在经济领域。
{"title":"La Globalización y los dilemas del Desarrollo (Globalization and the Dilemmas of Development)","authors":"F. Márquez-Sánchez, Rafael Sorhegui-Ortega","doi":"10.2139/ssrn.3849020","DOIUrl":"https://doi.org/10.2139/ssrn.3849020","url":null,"abstract":"<b>Spanish Abstract:</b> El proceso de globalización, caracterizado por el avance vertiginosos de las fuerzas productivas, en particular en un grupo de ramas de reciente creación como la genética, la biotecnología, la electrónica, la informática, la robótica, entre otras, la ciencia y la innovación tecnológica se han ido convirtiendo en un elemento fundamental en el crecimiento y desarrollo económico y la productividad, convirtiéndose por ende el conocimiento, en uno de los más apreciados recursos y ganando cada vez mayor espacio en todos los ámbitos de la vida social, en especial en la esfera económica.<br><br><b>English Abstract:</b> The globalization process, characterized by the vertiginous advance of the productive forces, in particular in a group of recently created branches such as genetics, biotechnology, electronics, computer science, robotics, among others, science and technological innovation have become a fundamental element in economic growth and development and productivity, thus becoming knowledge, one of the most appreciated resources and gaining more and more space in all areas of social life, especially in the economic sphere.<br>","PeriodicalId":11062,"journal":{"name":"Development of Innovation eJournal","volume":"6 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87768934","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper provides highly significant evidence that golden parachutes spur innovation in concentrated-ownership corporations and State-Owned-Enterprises (SOEs). Taking advantage of China's institutional features, we find that golden parachutes lead to higher levels of innovation quantity and quality through a risk-taking mechanism. The positive effects of parachutes on innovation are more pronounced when ownership concentration increases for SOEs, as well as when ownership concentration decreases for non-SOEs. We establish causality with two novel instrumental variables – executive lawyer alumni connection and law firm density around headquarter.
{"title":"Do Golden Parachutes Spur Innovation in Concentrated-Ownership Corporations","authors":"Ke Wang, R. Pownall, Cong Xia, X. Tang","doi":"10.2139/ssrn.3694964","DOIUrl":"https://doi.org/10.2139/ssrn.3694964","url":null,"abstract":"This paper provides highly significant evidence that golden parachutes spur innovation in concentrated-ownership corporations and State-Owned-Enterprises (SOEs). Taking advantage of China's institutional features, we find that golden parachutes lead to higher levels of innovation quantity and quality through a risk-taking mechanism. The positive effects of parachutes on innovation are more pronounced when ownership concentration increases for SOEs, as well as when ownership concentration decreases for non-SOEs. We establish causality with two novel instrumental variables – executive lawyer alumni connection and law firm density around headquarter.","PeriodicalId":11062,"journal":{"name":"Development of Innovation eJournal","volume":"17 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-11-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79748295","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Karthik N. Kannan, Rajib Saha, Warut Khern-am-nuai
Consumer profiling has become one of the most common practices on online trading platforms. Many platforms strive to obtain and implement technological innovations that allow them to understand and identify consumers’ needs, and, thereafter, monetize this capability by charging sellers to present and/ or sell their products or services based on consumers’ interests. However, an interesting and relevant question arises in this context: Does the platform have an incentive to profile its buyers as accurately as possible? This paper develops and analyzes a parsimonious game-theoretic model to answer this research question. We find that, surprisingly, platforms that charge sellers for discoveries have a perverse incentive to deviate from accurate buyer profiling. However, such a perverse incentive does not exist for platforms that charge sellers for transactions. As a result, with such a perverse incentive, social welfare under discovery-based pricing is lower than that under transaction-based pricing.
{"title":"Identifying Perverse Incentives in Buyer Profiling on Online Trading Platforms","authors":"Karthik N. Kannan, Rajib Saha, Warut Khern-am-nuai","doi":"10.2139/ssrn.3046625","DOIUrl":"https://doi.org/10.2139/ssrn.3046625","url":null,"abstract":"Consumer profiling has become one of the most common practices on online trading platforms. Many platforms strive to obtain and implement technological innovations that allow them to understand and identify consumers’ needs, and, thereafter, monetize this capability by charging sellers to present and/ or sell their products or services based on consumers’ interests. However, an interesting and relevant question arises in this context: Does the platform have an incentive to profile its buyers as accurately as possible? This paper develops and analyzes a parsimonious game-theoretic model to answer this research question. We find that, surprisingly, platforms that charge sellers for discoveries have a perverse incentive to deviate from accurate buyer profiling. However, such a perverse incentive does not exist for platforms that charge sellers for transactions. As a result, with such a perverse incentive, social welfare under discovery-based pricing is lower than that under transaction-based pricing.","PeriodicalId":11062,"journal":{"name":"Development of Innovation eJournal","volume":"66 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74847909","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Health systems in Western countries are plagued by inefficiency and will likely require a substantial increase in the tax burden as populations age. Patients might also face a gradual decrease in the quality and scope of services. The organisational changes needed to drive costs down and increase quality and safety have been poorly implemented under welfare state models due to excessive regulation. While some of these systems have gradually opened up to private actors, most of the benefits of free markets have not been transferred to healthcare provision. By contrast, developing countries are not stuck in the Western model. Their greater openness has paved the way for the "Henry Fords of healthcare" who are achieving substantial cost savings and productivity gains. A common feature of their innovative models is the use of an assembly-line approach to healthcare provision, which would be difficult to introduce in Western healthcare systems without major reform. Healthcare organisation gives each local hospital the task of treating broad ranges of conditions, which makes high levels of specialisation harder to achieve. Moreover, healthcare systems are frequently organised such that patients receive portions of care from a variety of health providers, which restricts economies of scale. Western health officials could encourage trade in healthcare as a means of cutting costs and reducing waiting times, but the current welfare-state contract between the individual and the public sector hinders such initiatives.
{"title":"The Henry Fords of Healthcare","authors":"Nima Sanandaji","doi":"10.2139/ssrn.3851954","DOIUrl":"https://doi.org/10.2139/ssrn.3851954","url":null,"abstract":"Health systems in Western countries are plagued by inefficiency and will likely require a substantial increase in the tax burden as populations age. Patients might also face a gradual decrease in the quality and scope of services. The organisational changes needed to drive costs down and increase quality and safety have been poorly implemented under welfare state models due to excessive regulation. While some of these systems have gradually opened up to private actors, most of the benefits of free markets have not been transferred to healthcare provision. By contrast, developing countries are not stuck in the Western model. Their greater openness has paved the way for the \"Henry Fords of healthcare\" who are achieving substantial cost savings and productivity gains. A common feature of their innovative models is the use of an assembly-line approach to healthcare provision, which would be difficult to introduce in Western healthcare systems without major reform. Healthcare organisation gives each local hospital the task of treating broad ranges of conditions, which makes high levels of specialisation harder to achieve. Moreover, healthcare systems are frequently organised such that patients receive portions of care from a variety of health providers, which restricts economies of scale. Western health officials could encourage trade in healthcare as a means of cutting costs and reducing waiting times, but the current welfare-state contract between the individual and the public sector hinders such initiatives.<br>","PeriodicalId":11062,"journal":{"name":"Development of Innovation eJournal","volume":"81 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84600476","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper demonstrates the causal effect of new technologies on the U.S. labor market. I employ information and communications technology, and robot penetration, as two proxy for new technologies to assess the effect of automation on 795 occupations across 450 industries between 2004 and 2016. New technologies reduce the annual growth rate of occupation at risk of automation by 1.8–2.8% relative to risk-less occupations. I demonstrate causality using the differential effect of technology capital, instrumented by E.U. capital, on occupations with different risks of automation. Sector-year dummies control for Chinese and Mexican imports, the Great Recession, and conventional capital. Trade evidence reassures my results.
{"title":"New Technologies, Automation, and Labor Markets","authors":"A. Micco","doi":"10.2139/ssrn.3688685","DOIUrl":"https://doi.org/10.2139/ssrn.3688685","url":null,"abstract":"This paper demonstrates the causal effect of new technologies on the U.S. labor market. I employ information and communications technology, and robot penetration, as two proxy for new technologies to assess the effect of automation on 795 occupations across 450 industries between 2004 and 2016. New technologies reduce the annual growth rate of occupation at risk of automation by 1.8–2.8% relative to risk-less occupations. I demonstrate causality using the differential effect of technology capital, instrumented by E.U. capital, on occupations with different risks of automation. Sector-year dummies control for Chinese and Mexican imports, the Great Recession, and conventional capital. Trade evidence reassures my results.","PeriodicalId":11062,"journal":{"name":"Development of Innovation eJournal","volume":"24 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80971109","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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