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Foreign Subsidiaries in the East German Innovation System – Evidence from manufacturing industries
Jutta Günther, Johannes Stephan, Björn Jindra
Applied Economics Quarterly Supplement, No. 59, 2008
Abstract
This paper analyses the extent of technological capability of foreign subsidiaries located in East Germany, and looks at the determinants of foreign subsidiaries’ technological sourcing behaviour. The theory of international production underlines the importance of strategic and regional level variables. However, existing empirical approaches omit by and large regional level factors. We employ survey evidence from the “FDI micro database” of the IWH, that was only recently made available, to conduct our analyses. We find that foreign subsidiaries are above average technologically active in comparison to the whole East German manufacturing. This can be partially explained by the industrial structure of foreign direct investment. However, only a limited share of foreign subsidiaries with R&D and/or innovation activity source technological knowledge from the East German innovation system. If a subsidiary follows a competence augmenting strategy or does local trade, it is more likely to source technological knowledge locally. The endowment of a region with human capital and a scientific infrastructure has a positive effect too. The findings suggest that foreign subsidiaries in East Germany are only partially linked with the regional innovation system. Policy implications are discussed.
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Alterung und technologisches Innovationspotential. Eine Linked Employer-Employee Analyse
Lutz Schneider
Zeitschrift für Bevölkerungswissenschaft, No. 1, 2008
Abstract
Growth in advanced economies is essentially driven by innovation activities. The question rises from a demographic point of view as to whether the trend of an ageing workforce will affect the innovation capacities of these economies. To answer this question, the paper examines on the basis of a German linked-employer-employee-dataset whether an older workforce lowers a firm’s potential to generate product innovations. The empirical approach is based on an Ordered-logit regression model, relating a firm’s innovation potential to the age composition of its employees. The analysis provides evidence of significant age effects. The estimated age-innovation-profile follows an inverted U-shaped pattern, it peaks at the age of about 40 years. A separate estimation shows that technicians and engineers age seems to be particularly relevant.
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Shrinking due to corpulence? BMI in childhood predicts subsequent linear growth among US children and youth, 1963-1970
Marco Sunder
Annals of Human Biology, 2008
Abstract
While the USA is one of the most opulent countries, its population is not among the tallest but is among the most corpulent. This short report investigates the association between body mass index in childhood and subsequent change in height-for-age at the individual level, based on data from the National Health Examination Study (1963-1970). A sub-sample of participants in this survey was measured twice at intervals between 2.3 and 4.4 years, and assessed bone age can be used to account for differences in maturation at baseline. Regression results indicate that a BMI-for-age above the 85th percentile is associated with a reduction in growth by 0.03-0.06 height-for-age standard deviations per year, or roughly 1 cm within 4 years. An inefficiently high nutritional status in childhood may thus jeopardize subsequent linear growth. However, the trans-Atlantic height gap is considerably larger than what this empirical relationship could predict.
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Beseitigung struktureller Defizite mit der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur“ – Ein Vergleich der Strategien in den neuen Bundesländern
Mirko Titze
Raumforschung und Raumordnung, 2008
Abstract
The Joint Task “For the Improvement of the Regional Economic Structure” is one of the most important instruments for the “Reconstruction East”. Herein the federal states have an extensive flexibility to define their own kind of industrial policy. Due to their structural deficits this paper is focused on the federal states in East-Germany. A decrease in the budget constrains the governments to improve efficiency of subsidies. However, there is one way to solve this problem: change unselective government aid to regional as well as sectoral government aid. This paper shows that there is no federal state, which has applied this kind of policy forcefully.
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On the Rationale of Leniency Programs: a Game-Theoretical Analysis
Ulrich Blum, Nicole Steinat, Michael A. Veltins
European Journal of Law and Economics, 2008
Abstract
In order to enhance the enforcement of Antitrust Law, leniency policies were introduced in nearly all industrialized countries. These programs aim at deterring and eliminating cartels. In this paper we analyze the rationale of the current European and German leniency regulation. We challenge the contemporary view that the standard leniency privilege is incentive-compatible with respect to its aim to enhance competition. Instead, we argue for it to be used as a preemptive strike against competitors under circumstances where cartels become unstable. This implies a tightening of markets in subsequent periods and, thus, a potential reduction in competition intensity. Given strategic reasoning by agents, the principal witness may assure an economically privileged position in the future. This consequence might not be intended by the bonus regulations. Nevertheless if the leniency policies lead to more competition in the market the results should be welcomed by the national cartel offices. We give anecdotal evidence of the German cement case and base our arguments on a game-theoretical model.
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Performance of European countries in biotechnology - How does Europe compare to the USA?
Thomas Reiss, Iciar Dominguez Lacasa
International Journal of Biotechnology Vol. 10 (4), 2008
Abstract
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Bridging the biotechnology gap: policy experiences from the Czech Republic, Estonia, Hungary and Slovenia.
Iciar Dominguez Lacasa
International Journal of Biotechnology Vol. 10 (4), 2008
Abstract
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The Role of the Human Capital and Managerial Skills in Explaining the Productivity Gaps between East and West
Johannes Stephan, Wolfgang Steffen
Eastern European Economics, No. 6, 2008
Abstract
This paper assess determinants of productivity gaps between firms in the European transition countries and regions and firms in West Germany. The analysis is conducted at the firm level by use of a unique database constructed by field work. The determinants tested in a simple econometric regression model are focussed upon the issue of human capital and modern market-oriented management. The results are novel in as much as a solution was established for the puzzling results in related research with respect to a comparison of formal qualification between East and West. Furthermore, the analysis was able to establish that the kind of human capital and expertise mostly needed in the post-socialist firms are related to the particular requirements of a competitive market-based economic environment. Finally, the analysis also finds empirical support for the role of capital deepening in productivity catch-up, as well as the case that the gaps in labour productivity are most importantly rooted in a more labour-intense production, which does not give rise to a competitive disadvantage.
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Capital Stock Approximation using Firm Level Panel Data: A Modified Perpetual Inventory Approach
Steffen Müller
Jahrbücher für Nationalökonomie und Statistik, No. 4, 2008
Abstract
Many recent studies exploring conditional factor demand or factor substitution issues use firm level panel data. A considerable number of establishment panels contains no direct information on the capital input, necessary for production or cost function estimation. Incorrect measurement of capital leads to biased estimates and casts doubt on any inference on output elasticities or input substitution properties. The perpetual inventory approach, commonly used for long panels, is a method that attenuates these problems. In this paper a modified perpetual inventory approach is proposed. This method provides more reliable measures for capital input when short firm panels are used and no direct information on capital input is available. The empirical results based on a replication study of Addison et al. (2006) support the conclusion that modified perpetual inventory is superior to previous attempts in particular when fixed effects estimation techniques are used. The method thus makes a considerable number of recently established firm panels accessible to more sophisticated production function or factor demand analyses.
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Does Temporary Employment Affect the Work-related Training of Low-skilled Employees?
Eva Reinowski, Jan Sauermann
Zeitschrift für Arbeitsmarktforschung, No. 4, 2008
Abstract
Using the German Mikrozensus 2004, this paper analyses the effect of temporary contracts on work-related training for low-skilled workers. To take systematic differences between temporary and permanent employees into account, we estimate a bivariate probit model for whether fixed-term employment affects participation in work-related training. We conclude that holding a temporary contract does not have systematic disadvantages in access to further training.
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