Does East Germany need a new technology policy? – Implications from the functioning of the R&D market after the transformation
Ralf Müller
IWH Discussion Papers,
No. 145,
2001
Abstract
Technology policy is a major part of government's efforts in contributing to East Ger-many's economic recovery. However, even a decade after unification East Germany does not produce sufficient technology goods. Thus, the question is whether technology policy is either not suitable or inefficient in tackling East Germany's deficits. A special technology policy for East Germany is justified by the lack of regional networks for technology firms; without a compensating policy East Germany would continue to lag behind West Germany also with respect to incomes. Yet only a few of the policy in-struments applied so far are efficiently dealing with these deficits. Thus, a future technology policy for East Germany should – mainly by the supply of R&D-infrastructure – support implementation of these kinds of networks.
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Spillover effects and R&D co-operations - The influence of market structure
Anita Wölfl
IWH Discussion Papers,
No. 122,
2000
Abstract
This paper examines empirically the role of market structure for the influence of spill-over effects on R&D-cooperations. The results of a microeconometric analysis, based on firm data on innovation, let in general presume that with intensified competition also the influence of spillovers on R&D-cooperation increases. However, competition seems to induce firms to search for effective firm-specific appropriation facilities first. Spillovers that are sufficiently high such that the internalisation effect from R&D-cooperation more than outweighs the competitive effect from research, only arise whenever firms are not able to protect their research results through any appropriation facility. Additionally, there is some evidence that spillover effects may even hinder firms from cooperating in R&D when there is intensive competition on the research stage.
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Worker Beliefs about Outside Options
Simon Jäger, Christopher Roth, Nina Roussille, Benjamin Schoefer
Quarterly Journal of Economics,
2099
Abstract
Standard labor market models assume that workers hold accurate beliefs about the external wage distribution, and hence their outside options with other employers. We test this assumption by comparing German workers’ beliefs about outside options with objective benchmarks. First, we find that workers wrongly anchor their beliefs about outside options on their current wage: workers that would experience a 10% wage change if switching to their outside option only expect a 1% change. Second, workers in low-paying firms underestimate wages elsewhere. Third, in response to information about the wages of similar workers, respondents correct their beliefs about their outside options and change their job search and wage negotiation intentions. Finally, we analyze the consequences of anchoring in a simple equilibrium model. In the model, anchored beliefs keep overly pessimistic workers stuck in low-wage jobs, which gives rise to monopsony power and labor market segmentation.
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