RISING R&amp;D INTENSITY AND ECONOMIC GROWTH

Pollak, Andreas

doi:10.1111/ecin.12096

Cited by 4 publications

(3 citation statements)

References 31 publications

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“…Pollak ( 2014 ) developed a model whose central idea is that incumbent establishments protect their competitive position, by innovating at a rate that is high enough to prohibit the entry of new businesses. Subsequently, R&D investment now depends upon the ease of entry in individual markets rather than expected future profits.…”

Section: Literature Reviewmentioning

confidence: 99%

Front-end Innovation and Top Income Inequality: Evidence from Emerging Markets

2023

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We contribute to the literature on income inequality, by extending existing models to examine the effect of front-end innovation (FEI) on top income inequality. We use a fixed effect panel regression, on annual country-level data for twenty-four emerging markets, over twenty-four (1995–2018) years, and find an insignificant correlation between income inequality and FEI. The instrumental variable estimates, however, show a significant association between measures of FEI and top income shares. Furthermore, we confirm that FEI is weakly related to broad measures of income inequality. Our instrumentation strategy and robustness checks suggest that this correlation partly reflects a causality, from FEI to top income inequality. Finally, we reveal that FEI is necessary for the survival of new ventures, in the crucial early years. Overall, our findings confirm that that; a) sectors that scale slowly because institutions are a substantial barrier for FEI and, b) sectors that rely solely on the most skilled front-end innovators to access credit, significantly expand top entrepreneurial income share across emerging markets.

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Section: Literature Reviewmentioning

confidence: 99%

Front-end Innovation and Top Income Inequality: Evidence from Emerging Markets

2023

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“…When innovators have a large productivity advantage over traditional producers, a higher level of inequality tends to raise innovators prices and markups. Pollak (2014) presents a model whose central idea is that incumbent establishments, protect their competitive position, by innovating at a rate that is high enough to prohibit the entry of new businesses. Subsequently, R&D investment now depends upon the ease of entry in individual markets rather than expected future pro ts.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Frontend Innovation And Top Income Inequality: Evidence From Emerging Markets

Eyisi

Kanwal²

2021

Preprint

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This paper contributes to the literature on income inequality, by extending existing models to examine the effect of front-end innovation (FEI) on top income inequality. We use a fixed effect panel regression, on annual country level data for twenty four emerging markets, over a twenty four (1995–2018) year period, and find an insignificant correlation between income inequality, and FEI. The instrumental variable estimates however, shows a significant association between measures of FEI and top income shares. Further, we confirm that FEI is weakly related with broad measures of income inequality. Our instrumentation strategy, and robustness checks, suggests that this correlation partly reflects a causality, from FEI to top income inequality. Finally, we show that FEI is necessary for the survival of new ventures, in the crucial early years. Overall, our findings confirm that FEI, is a significant determinant of increases, in entrepreneurial income share.

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“…Thus, technological differences among countries must be considered in the econometric modeling of differences in economic development. Consequently, the issue of technological complexity in economic development is increasingly attracting more attention although the concept is neither easy to capture in theoretical models (Growiec & Schumacher, ; Pintea & Thompson, ; Pollak, ) nor easy to measure (Griliches, ).…”

Section: Related Literaturementioning

confidence: 99%

Technological complexity and economic development

Nepelski

Prato

2020

Review Development Economics

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Although technological complexity seems to be a crucial determinant of economic development, it remains insufficiently explored. Relying on microinformation stored in individual patent applications and by applying the network view of countries linked to the technologies they develop, we create a global technology space and derive complexity measures that position countries in this space. We use then the measures of technological diversification and the ubiquity of technologies present in a country's technology portfolio as an input to explain the role of technological complexity in countries' income and economic development. We show that a country's position in the global technology space affects its level of income and growth. The main channel through which it happens is the exclusiveness and uniqueness of the technological portfolio a country has, as compared to the remaining countries. K E Y W O R D S diversification, economic development, networks, specialization, technological complexity, ubiquity J E L C L A S S I F I C A T I O NO57; F1; O11; O14; O3; O4 450 | NEPELSKI aNd dE PRaTO economic growth. Second, by introducing the new measures of technological development, it extends the research on technological complexity and its economic consequences. Finally, by implementing the tool of network analysis, it creates a connection with the relatively recent attempts to introduce this perspective to study economic phenomena. Later we provide a short overview of the aforementioned strands of literature and explain the relationship with the present study.Despite a long-standing interest in the determinants of economic development and growth, causal inference drawn from the empirical evidence remains questionable, and the magnitude and robustness of estimates for a wide range of factors are still under debate. Initially, empirical research on the sources of economic growth followed two theoretical classes of models (Capolupo, 2009). The first class considers capital accumulation as the driving force behind economic growth. Here, for example, the role of capital accumulation (

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RISING R&D INTENSITY AND ECONOMIC GROWTH

Cited by 4 publications

References 31 publications

Front-end Innovation and Top Income Inequality: Evidence from Emerging Markets

Front-end Innovation and Top Income Inequality: Evidence from Emerging Markets

Frontend Innovation And Top Income Inequality: Evidence From Emerging Markets

Technological complexity and economic development

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