Institutional support, innovation capabilities and exports: Evidence from the semiconductor industry in Taiwan

Rasiah, Rajah; Shahrivar, Rafat Beigpoor; Yap, Xiao-Shan

doi:10.1016/j.techfore.2016.05.015

Cited by 53 publications

(44 citation statements)

References 20 publications

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“…The fact that in all clusters TFP dictates the evolution of aggregate output gives credit to the Schumpeterian view of business cycles, since clustering of innovations force economic activity to shift from one equilibrium point to another, a finding consistent with the work of Rasiah et al (2016) and Noori et al (2016) who also validated this Schumpeterian view using data on the Taiwanese semiconductor industry and Iranian firms, respectively.…”

Section: Results Analysissupporting

confidence: 53%

Does technology cause business cycles in the USA? A Schumpeter-inspired approach

Michaelides

2017

Structural Change and Economic Dynamics

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Abstract:The purpose of this paper is to deal with questions of instability and economic crisis, deriving theoretical arguments from Schumpeter's works and presenting relevant empirical evidence for the case of the US manufacturing sector in the time period , just before the first signs of the global recession made their appearance. More precisely, we use a wide dataset that contains 473 manufacturing industries, that are clustered based on their annual change of hourly earnings per worker and we make an attempt to interpret the economic fluctuations in the clusters formed. Meanwhile, we study the causal relationships between the crucial variables dictated by Schumpeterian theory. In this context, a number of relevant techniques have been used, such as hierarchical clustering, canonical discriminant analysis, cointegration analysis, periodograms and Granger causality tests. Our findings seem to give credit to certain aspects of the Schumpeterian theory of business cycles. The results are discussed in a broader context, related to the US economy.Keywords: Economic Crisis, US Manufacturing sector, Schumpeter, Business Cycles. IntroductionThe Western World is superior, in terms of economic growth, compared to the poverty in most parts of the world due to, among other things, its technological superiority. In the words of Mokyr (1990, preface): "The difference between rich nations and poor nations is not […] that the rich have more money than the poor, but that rich nations produce more goods and services. One reason they can do so is because their technology is better; that is, their ability to control and manipulate nature and people for productive ends is superior".In the meantime, it is also true that the history of technological change and innovation contains several uneven periods in the history of particular economies. For instance, several nations are quite rich in technological progress and innovation. However, several peaks are often followed by periods during which the rate of technological change falls. So far, no satisfactory explanation has been found. As Thomson (1984, p. 243) has argued: "[t]echnical change is likeGod. It is much discussed, worshipped by some, rejected by others, but little understood".According to Mokyr (1990, p. 6), the reason is simple: "The diversity of technological history is such that almost any point can be contradicted with a counterexample." However, "Technological change is never automatic.[…] there usually must be a combination of considerations to…make it possible: (1) an opportunity for improvement…, or a need for improvement…and (2) a degree of superiority such that the new methods pay sufficiently to cover the costs of the change" (Landes 1969, p. 42).In this paper, we are dealing with questions of instability and economic crises, deriving arguments from Schumpeterian theory and presenting relevant empirical evidence for the case of the US manufacturing sector using disaggregate industrial data for the time period 1957-2006, based on relevant quantitative techniqu...

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Section: Results Analysissupporting

confidence: 53%

Does technology cause business cycles in the USA? A Schumpeter-inspired approach

Michaelides

2017

Structural Change and Economic Dynamics

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“…Traditionally, innovation studies at the firm level follow two perspectives: innovation as the result of R&D investments and as the consequence of different innovation capabilities. However, although there is important research in each of these perspectives, studies that explicitly link them are scarce (see for example, Reichert et al, 2016;Rasiah et al, 2016;Chamsuk et al, 2017). The present paper goes exactly in the direction of better understanding the relation between R&D investment and innovation capabilities.…”

Section: Introductionmentioning

confidence: 93%

R&D investment and the arrangement of innovation capabilities in Brazilian manufacturing firms

Ruffoni

D’Andrea

Chaves

et al. 2018

Journal of Technology Management & Innovation

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This paper aims at identifying the different arrangements of innovation capabilities for firms with different levels of R&D investment. The four innovation capabilities model (development, operations, management and transaction) by Zawislak et al., (2012) was crossed with the three level-low, medium and high-R&D intensity classification by Legler and Frietsch (2007). A multiple regression was applied on data from a survey of 1,331 Brazilian manufacturing firms, results clearly show different arrangements of innovation capabilities for each level of R&D investment. Operations capability does not generate innovation performance in any level. Development capability becomes increasingly relevant to performance, as R&D investment increases, on the other hand, management and transaction capabilities turn to be less prominent.

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“…First of all, older firms are more likely to survive in the international market as well as enlarge their export scale (Agnihotri et al [43]); second, the number of employees, used to indicate a firm's size, has a significant and positive effect on export growth (Serrasqueiro et al [44]); third, the significantly negative estimates of the tax and receivable accounts ratio indicate that the higher taxes and insufficient financial support are likely to restrict the export growth (Rasiah [45], Riding et al [46]); fourth, the industrial agglomeration, as measured by the geographic agglomeration index, has a significantly positive effect on extensive margin, but a negative effect on intensive margin, indicating that industrial agglomeration could facilitate a firm's export propensity (Long et al [48]), while the industrial competition among exporters restricts the growth of export scale; fifth, the negative coefficients of distance from the nearest seaport suggest that the geographical location is an important factor in terms of export growth [47]. Finally, the positive and significant estimate on Export it-1 proved the positive effect on contemporaneous exports [49,50].…”

Section: Baseline Regression Results For Innovation and Exportsmentioning

confidence: 99%

“…Z it-1 indicates the other control variables that affect the exporting performance, such as a firm's experience (Agnihotri et al [43]), a firm's size (Serrasqueiro et al [44]), the regional institution factor (Rasiah [45]), financial restrictions (Riding et al [46]), as well as a firm's location (Freeman et al [47]). In this model, the age measures a firm's experience in terms of the number of years since the establishment of the firm.…”

Section: Modelingmentioning

confidence: 99%

Does Firms’ Innovation Promote Export Growth Sustainably?—Evidence from Chinese Manufacturing Firms

2016

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Recent theoretical analysis and empirical studies have emphasized that firms' innovation could significantly improve export growth. However, the positive effect of innovation on exports is likely to change due to unstable domestic offsetting for innovation and increasing worldwide competition for trade. This study aims to explore the dynamic link between them. We first develop a theoretical model between innovation and export growth based on the theory of heterogeneity. Export growth is measured through the dimensions of extensive margin and intensive margin so as to better investigate the effect of innovation on export performance. The propositions of mechanism analysis reveal that the effect of innovation on exports is non-linear rather than sustainable. An empirical study is followed to test the propositions by using data from a representative panel of Chinese manufacturing firms. Consistent with the theoretical predictions, the results show an inverted U-shaped relationship between innovation and extensive margin and a U-shaped relationship between innovation and intensive margin. The non-linear relations are verified by a threshold effect test. Further study shows less innovation and more firms on the left side of the relation curves. The distribution suggests irregular innovation ability among the exporters. Moreover, the role of innovation is more important for export growth and the corresponding threshold is higher in terms of high technological sectors. The contribution of this study is to introduce a comprehensive framework to investigate the dynamic effect of innovation on export growth, serving as a modest spur to induce the following studies to explore the sustainability of innovation effect.

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Institutional support, innovation capabilities and exports: Evidence from the semiconductor industry in Taiwan

Cited by 53 publications

References 20 publications

Does technology cause business cycles in the USA? A Schumpeter-inspired approach

Does technology cause business cycles in the USA? A Schumpeter-inspired approach

R&D investment and the arrangement of innovation capabilities in Brazilian manufacturing firms

Does Firms’ Innovation Promote Export Growth Sustainably?—Evidence from Chinese Manufacturing Firms

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Institutional support, innovation capabilities and exports: Evidence from the semiconductor industry in Taiwan

Cited by 53 publications

References 20 publications

Does technology cause business cycles in the USA? A Schumpeter-inspired approach

Does technology cause business cycles in the USA? A Schumpeter-inspired approach

R&amp;D investment and the arrangement of innovation capabilities in Brazilian manufacturing firms

Does Firms’ Innovation Promote Export Growth Sustainably?—Evidence from Chinese Manufacturing Firms

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R&D investment and the arrangement of innovation capabilities in Brazilian manufacturing firms