Entrepreneurial action often stems from individual judgment about the value potential of market opportunities. Where entrepreneurs direct their search for and evaluate profitable opportunities has long received scholarly consideration. Attention has been increasingly directed toward how search is conducted, with a distinction between “cognitive” search, where actors are driven by a prior belief about the linkage between actions and outcomes (i.e., “learning-before-doing”) and “experiential search,” in which the solution must be realized through experimentation, trial-by-error, or “learning-by-doing.” We examine founders’ experiential search for market applications in uncertain technological environments. In doing so, we seek to uncover how founder background, experience, and depth of knowledge affect the firm’s degree of experiential search. We examine a sample of technology-oriented start-ups founded by researchers from six major US research universities to investigate the role of experiential search in university technology commercialization. In our context of academic entrepreneurship, we find that founding teams that draw from multiple disciplinary perspectives in selecting a market application to pursue exhibit a broader cognitive map of the technological landscape and thus expend more effort in the experiential search process than do teams with less varied backgrounds. Conversely, teams that include individuals with prior commercial experience conduct less experiential search, although this evidence is less strong. The inclusion of students appears to lead to greater experiential search by the founding team. Our findings add new understanding to the application of search heuristics by entrepreneurial firms in technology commercialization.
{"title":"Testing the waters: founding team composition and search heuristics in academic entrepreneurial ventures","authors":"Jeffrey Savage, Arvids A Ziedonis","doi":"10.1093/icc/dtad069","DOIUrl":"https://doi.org/10.1093/icc/dtad069","url":null,"abstract":"Entrepreneurial action often stems from individual judgment about the value potential of market opportunities. Where entrepreneurs direct their search for and evaluate profitable opportunities has long received scholarly consideration. Attention has been increasingly directed toward how search is conducted, with a distinction between “cognitive” search, where actors are driven by a prior belief about the linkage between actions and outcomes (i.e., “learning-before-doing”) and “experiential search,” in which the solution must be realized through experimentation, trial-by-error, or “learning-by-doing.” We examine founders’ experiential search for market applications in uncertain technological environments. In doing so, we seek to uncover how founder background, experience, and depth of knowledge affect the firm’s degree of experiential search. We examine a sample of technology-oriented start-ups founded by researchers from six major US research universities to investigate the role of experiential search in university technology commercialization. In our context of academic entrepreneurship, we find that founding teams that draw from multiple disciplinary perspectives in selecting a market application to pursue exhibit a broader cognitive map of the technological landscape and thus expend more effort in the experiential search process than do teams with less varied backgrounds. Conversely, teams that include individuals with prior commercial experience conduct less experiential search, although this evidence is less strong. The inclusion of students appears to lead to greater experiential search by the founding team. Our findings add new understanding to the application of search heuristics by entrepreneurial firms in technology commercialization.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"113 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138560813","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper advances a general and unified framework to explain the patterns of entry in an industry. The specificity of a type of entrant is examined based on the match between the entrant’s prior experience, in terms of knowledge endowment, and the target industry context. The knowledge endowment is analyzed by focusing on its content—market, technological, organizational, and scientific—and its generic and specific nature. The target industry context is examined by looking at four basic dimensions: the stage of development of the target industry (the time dimension); the specific technological regime and related innovation patterns (the technological dimension); the demand regime (the demand dimension); and the institutional regime (the institutional dimension). These dimensions moderate the matching between the knowledge endowment of the type of entrants and the features of the industrial contexts. Our newly proposed taxonomy offers a more systematic and nuanced explanation of how the complex relationship between pre-entry experience and knowledge, entrants and the chosen target industry evolves over time.
{"title":"Entrants heterogeneity, pre-entry knowledge, and the target industry context: a taxonomy and a framework","authors":"Gino Cattani, Roberto Fontana, Franco Malerba","doi":"10.1093/icc/dtad067","DOIUrl":"https://doi.org/10.1093/icc/dtad067","url":null,"abstract":"This paper advances a general and unified framework to explain the patterns of entry in an industry. The specificity of a type of entrant is examined based on the match between the entrant’s prior experience, in terms of knowledge endowment, and the target industry context. The knowledge endowment is analyzed by focusing on its content—market, technological, organizational, and scientific—and its generic and specific nature. The target industry context is examined by looking at four basic dimensions: the stage of development of the target industry (the time dimension); the specific technological regime and related innovation patterns (the technological dimension); the demand regime (the demand dimension); and the institutional regime (the institutional dimension). These dimensions moderate the matching between the knowledge endowment of the type of entrants and the features of the industrial contexts. Our newly proposed taxonomy offers a more systematic and nuanced explanation of how the complex relationship between pre-entry experience and knowledge, entrants and the chosen target industry evolves over time.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"49 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138560520","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Building on Schumpeter Mark I and Mark II, I propose an additional pattern of innovation and technological regime called the intellectual monopoly (IM) to explain the co-habitation of large incumbent firms with high entry and exit rates and provide evidence for pharmaceuticals and information technologies. I associate the IM pattern and technological regime with corporate innovation systems and illustrate that patterns not only evolve after changes in technological regimes but also due to economic, political, and institutional transformations.
在熊彼特马克 I 和马克 II 的基础上,我提出了另一种称为智力垄断(IM)的创新模式和技术体制,以解释高进入率和高退出率的大型在位企业的共存现象,并提供了制药和信息技术方面的证据。我将 IM 模式和技术体制与企业创新体系联系起来,并说明这种模式不仅会在技术体制发生变化后发生演变,而且还会因经济、政治和体制转型而发生演变。
{"title":"Intellectual monopolies as a new pattern of innovation and technological regime","authors":"Cecilia Rikap","doi":"10.1093/icc/dtad077","DOIUrl":"https://doi.org/10.1093/icc/dtad077","url":null,"abstract":"Building on Schumpeter Mark I and Mark II, I propose an additional pattern of innovation and technological regime called the intellectual monopoly (IM) to explain the co-habitation of large incumbent firms with high entry and exit rates and provide evidence for pharmaceuticals and information technologies. I associate the IM pattern and technological regime with corporate innovation systems and illustrate that patterns not only evolve after changes in technological regimes but also due to economic, political, and institutional transformations.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"53 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138560340","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Introduction to the Industrial and Corporate Change special issue on: “knowledge resources and the heterogeneity of entrants within and across industries”","authors":"G. Cattani, Roberto Fontana, Franco Malerba","doi":"10.1093/icc/dtad068","DOIUrl":"https://doi.org/10.1093/icc/dtad068","url":null,"abstract":"","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"13 5","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-11-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139200006","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper investigates how investments in automation affect the gender pay gap. The evidence of the effects of automation on the labor market is growing; however, little is known about the implications of automation for the gender pay gap. The data used in this paper are from a matched employer–employee dataset incorporating detailed information on firms, their imports, and employee–level data for Estonian manufacturing and service employers for the period of 2006–2018. Through the use of the imports of automation goods as a proxy for the introduction of automation at the firm level, this paper estimates the effect of automation using simple Mincerian wage equations. The causality of the effect is further validated using propensity score matching (PSM). We find that introducing automation enlarges the gender pay gap, and PSM confirms that this also has a higher causal effect on the wages of male employees than female employees. The results imply that a higher representation of women in higher-paid positions does not guarantee a reduction in the gender pay gap in the presence of automation, and appropriate measures in education and retraining are needed to tackle the effect of automation on gender inequality.
{"title":"Effects of automation on the gender pay gap: the case of Estonia","authors":"Ilona Pavlenkova, Luca Alfieri, Jaan Masso","doi":"10.1093/icc/dtad065","DOIUrl":"https://doi.org/10.1093/icc/dtad065","url":null,"abstract":"This paper investigates how investments in automation affect the gender pay gap. The evidence of the effects of automation on the labor market is growing; however, little is known about the implications of automation for the gender pay gap. The data used in this paper are from a matched employer–employee dataset incorporating detailed information on firms, their imports, and employee–level data for Estonian manufacturing and service employers for the period of 2006–2018. Through the use of the imports of automation goods as a proxy for the introduction of automation at the firm level, this paper estimates the effect of automation using simple Mincerian wage equations. The causality of the effect is further validated using propensity score matching (PSM). We find that introducing automation enlarges the gender pay gap, and PSM confirms that this also has a higher causal effect on the wages of male employees than female employees. The results imply that a higher representation of women in higher-paid positions does not guarantee a reduction in the gender pay gap in the presence of automation, and appropriate measures in education and retraining are needed to tackle the effect of automation on gender inequality.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"51 10","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138515374","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper investigates the effects of digitalization and organizational practices on innovation in Europe, between 2010 and 2016. We analyze the cross-country and industry differences in firms’ investments and capabilities to adopt and use new technologies and their effects on innovation outputs. Along with traditional drivers of innovation, such as research and development (R&D) expenditure, two composite indicators are constructed. One encompasses direct measures of the adoption and use in enterprises of a set of digital technologies. The other measures the learning capacity of organizations, which captures the use of management tools and organizational practices concerned with the improvement of individual and organizational learning. Product, process, organizational, and marketing innovations are identified as well as their combinations within companies. Empirical evidence is provided by a unique dataset based on the integration at the sector within the country level of European Union (EU)-wide employers’ and employees’ surveys: the Community Innovation Survey (CIS), the Community Information and Communication Technologies (ICT) usage and e-commerce in enterprises survey (Eurostat), and the European Working Conditions Survey (Eurofound). The descriptive evidence shows that Digital technology adoption and use is rapidly growing across Europe, while the Learning capacity of organizations remains stagnant. By contrast, our results from the econometric analysis show that these investments can favor all forms of innovations and that, further, they may show some complementarity. Overall, a mix of product/process innovations and organizational/marketing innovations rests on joint investments in R&D, digital technology adoption and use, and learning capacity of the organization.
{"title":"Digital technologies, learning capacity of the organization and innovation: EU-wide empirical evidence from a combined dataset","authors":"Nathalie Greenan, Silvia Napolitano","doi":"10.1093/icc/dtad064","DOIUrl":"https://doi.org/10.1093/icc/dtad064","url":null,"abstract":"This paper investigates the effects of digitalization and organizational practices on innovation in Europe, between 2010 and 2016. We analyze the cross-country and industry differences in firms’ investments and capabilities to adopt and use new technologies and their effects on innovation outputs. Along with traditional drivers of innovation, such as research and development (R&D) expenditure, two composite indicators are constructed. One encompasses direct measures of the adoption and use in enterprises of a set of digital technologies. The other measures the learning capacity of organizations, which captures the use of management tools and organizational practices concerned with the improvement of individual and organizational learning. Product, process, organizational, and marketing innovations are identified as well as their combinations within companies. Empirical evidence is provided by a unique dataset based on the integration at the sector within the country level of European Union (EU)-wide employers’ and employees’ surveys: the Community Innovation Survey (CIS), the Community Information and Communication Technologies (ICT) usage and e-commerce in enterprises survey (Eurostat), and the European Working Conditions Survey (Eurofound). The descriptive evidence shows that Digital technology adoption and use is rapidly growing across Europe, while the Learning capacity of organizations remains stagnant. By contrast, our results from the econometric analysis show that these investments can favor all forms of innovations and that, further, they may show some complementarity. Overall, a mix of product/process innovations and organizational/marketing innovations rests on joint investments in R&D, digital technology adoption and use, and learning capacity of the organization.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"26 5","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138515373","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Nicoletta Corrocher, Daniele Moschella, Jacopo Staccioli, Marco Vivarelli
This paper deals with the complex relationship between innovation and the labor market, analyzing the impact of new technological advancements on overall employment, skills, and wages. After a critical review of the extant literature and the available empirical studies, novel evidence is presented on the distribution of labor-saving automation [namely robotics and artificial intelligence (AI)], based on natural language processing of US patents. This mapping shows that both upstream high-tech providers and downstream users of new technologies—such as Boeing and Amazon—lead the underlying innovative effort.
{"title":"Innovation and the labor market: theory, evidence, and challenges","authors":"Nicoletta Corrocher, Daniele Moschella, Jacopo Staccioli, Marco Vivarelli","doi":"10.1093/icc/dtad066","DOIUrl":"https://doi.org/10.1093/icc/dtad066","url":null,"abstract":"This paper deals with the complex relationship between innovation and the labor market, analyzing the impact of new technological advancements on overall employment, skills, and wages. After a critical review of the extant literature and the available empirical studies, novel evidence is presented on the distribution of labor-saving automation [namely robotics and artificial intelligence (AI)], based on natural language processing of US patents. This mapping shows that both upstream high-tech providers and downstream users of new technologies—such as Boeing and Amazon—lead the underlying innovative effort.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"64 4","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138515376","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We investigate the impact of “routinization” on the labor outcomes of displaced workers. We use a rich Brazilian panel dataset and an occupation-task mapping to examine the effect of job displacement in different groups, classified according to their tasks. Our main result is that following a layoff, workers previously employed in routine-intensive occupations suffer a more significant decline in wages and more extended periods of unemployment. As expected, job displacement has a negative and lasting impact on wages. Still, workers in routine-intensive occupations are more impacted than those in non-routine occupations in terms of wages (an increase of one point in the routine-intensity index results in a further decline of 2% in workers’ relative wages) and employment. Furthermore, our results indicate that workers in routine-intensive occupations are more likely to change occupations after the shock, and those who do not switch occupational fields suffer a more significant decline in wages. Lastly, even though the loss of employer-specific wage premiums explains 13% of displaced workers’ drop in wages, it does not explain routine-intensive workers’ more substantial losses.
{"title":"Routine-biased technological change and employee outcomes after mass layoffs: evidence from Brazil","authors":"Antonio Martins-Neto, Xavier Cirera, Alex Coad","doi":"10.1093/icc/dtad063","DOIUrl":"https://doi.org/10.1093/icc/dtad063","url":null,"abstract":"We investigate the impact of “routinization” on the labor outcomes of displaced workers. We use a rich Brazilian panel dataset and an occupation-task mapping to examine the effect of job displacement in different groups, classified according to their tasks. Our main result is that following a layoff, workers previously employed in routine-intensive occupations suffer a more significant decline in wages and more extended periods of unemployment. As expected, job displacement has a negative and lasting impact on wages. Still, workers in routine-intensive occupations are more impacted than those in non-routine occupations in terms of wages (an increase of one point in the routine-intensity index results in a further decline of 2% in workers’ relative wages) and employment. Furthermore, our results indicate that workers in routine-intensive occupations are more likely to change occupations after the shock, and those who do not switch occupational fields suffer a more significant decline in wages. Lastly, even though the loss of employer-specific wage premiums explains 13% of displaced workers’ drop in wages, it does not explain routine-intensive workers’ more substantial losses.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"331 8","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138515371","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Stefano Dughera, Francesco Quatraro, Andrea Ricci, Claudia Vittori
Abstract In this paper, we investigate the relationship between local wages and the internal structure of the regional knowledge base. The purpose is to assess if the workers’ compensations are related to the peculiarities of the knowledge base of the regions in which they supply their labor services. The test of this hypothesis is based on the assessment of the impact of related vis-à-vis unrelated knowledge variety on cross-regional wage differentials. The empirical analysis is carried out by exploiting patent data and a unique employer–employee administrative dataset. First, using OECD-PATREG data on patent filing, we build information entropy indexes proxying the variety of NUTS 3 regions’ knowledge bases, and the decomposition in the related and unrelated component. Second, we assess the impact of these indexes on wages based on administrative data from the Italian National Institute of Social Security. Our results suggest that workers employed in regions with a heterogenous knowledge structure earn positive wage premia, while related variety has a negative effect on compensation levels.
{"title":"Technological externalities and wages: new evidence from Italian NUTS 3 regions","authors":"Stefano Dughera, Francesco Quatraro, Andrea Ricci, Claudia Vittori","doi":"10.1093/icc/dtad062","DOIUrl":"https://doi.org/10.1093/icc/dtad062","url":null,"abstract":"Abstract In this paper, we investigate the relationship between local wages and the internal structure of the regional knowledge base. The purpose is to assess if the workers’ compensations are related to the peculiarities of the knowledge base of the regions in which they supply their labor services. The test of this hypothesis is based on the assessment of the impact of related vis-à-vis unrelated knowledge variety on cross-regional wage differentials. The empirical analysis is carried out by exploiting patent data and a unique employer–employee administrative dataset. First, using OECD-PATREG data on patent filing, we build information entropy indexes proxying the variety of NUTS 3 regions’ knowledge bases, and the decomposition in the related and unrelated component. Second, we assess the impact of these indexes on wages based on administrative data from the Italian National Institute of Social Security. Our results suggest that workers employed in regions with a heterogenous knowledge structure earn positive wage premia, while related variety has a negative effect on compensation levels.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"5 5","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135086971","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract We find firm-level evidence that removing labor market rigidities can harm productivity growth. This holds, in particular, in industries with a high ‘cumulativeness’ of knowledge, i.e., when accumulation of worker-embodied (and often ‘tacit’) knowledge from experience is important for innovative competencies. We conclude that there is a trade-off between the efficient allocation of scarce resources in a static neoclassical perspective and dynamic Schumpeterian efficiency, the latter requiring rigidities in labor markets that are valuable for innovation.
{"title":"When structural reforms of labor markets harm productivity. Evidence from the German IAB panel","authors":"Sergei Hoxha, Alfred Kleinknecht","doi":"10.1093/icc/dtad060","DOIUrl":"https://doi.org/10.1093/icc/dtad060","url":null,"abstract":"Abstract We find firm-level evidence that removing labor market rigidities can harm productivity growth. This holds, in particular, in industries with a high ‘cumulativeness’ of knowledge, i.e., when accumulation of worker-embodied (and often ‘tacit’) knowledge from experience is important for innovative competencies. We conclude that there is a trade-off between the efficient allocation of scarce resources in a static neoclassical perspective and dynamic Schumpeterian efficiency, the latter requiring rigidities in labor markets that are valuable for innovation.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"124 4","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135541990","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}