This chapter analyses the dynamics of path dependence, exploring the determinants of the persistence of firm productivity, here measured by total factor productivity (TFP). It highlights the crucial role of the interplay between the internal characteristics of companies, including their size and management strategies, and system properties such as access conditions to local pools of knowledge and the dynamics of economic activity in assessing the dynamics. Analysis of transition probability matrices (TPMs) and econometric analysis provide substantial evidence of the relevance of the mix of individual and systemic factors in shaping persistence as a path-dependent process in which events that take place along the process affect its direction and the pace of productivity dynamics.
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Cristiano Antonelli, Francesco Crespi and Giuseppe Scellato
Cristiano Antonelli and Claudio Fassio
This chapter investigates the heterogeneity of the sources of external knowledge and identifies their differentiated effects on process and product innovations. Upstream vertical sources of external knowledge from suppliers exert a strong and positive role on the introduction of process innovations, while horizontal and downstream vertical sources stemming from competitors and customers respectively have stronger effects on the introduction of product innovations. The evidence supports the hypothesis that matching of sources of external knowledge and types of innovation is necessary to implement successful innovation strategies.
Jan Fagerberg, David C. Mowery and Bart Verspagen
This paper analyses the co-evolution of science, technolgy and innovation policy and industrial structure in a small, open resource-based economy (Norway) The contributions of the paper are threefold. First, it develops an evolutionary and historically oriented approach to the study of the development of these policies that may have wide applicability. Second, it focuses on a particular type of innovation, innovation in resource-based activities, that differs in many respects from the more commonly studied case of innovation in 'high-tech' industries. Third, the paper advances our understanding of the roles played by institutions and politics in innovation.
Jan Fagerberg and Manuel M. Godinho
The history of capitalism from the Industrial Revolution onwards is one of increasing differences in productivity and living conditions across different parts of the globe. According to one source, 250 years ago the difference in income or productivity per head betwen the richest and poorest country in the world was approximately 5:1, while today this difference has increased to 400:1 (Landes 1998). However in spite of this long-run trend towards divergence in productivity and income, there are many examples of (initially) backward countries that–at different times–have manged to narrow the gap in productivity and income between themselves and the frontier countries, in other words, to "catch up". How did they do it? What was the role of innovation and diffusion in the process? These are among the questions we are going to discuss in this chapter.
The Nordic countries are among the richest in Europe and globally. They are known for having a more equal distribution of income than elsewhere, for highly organized, regulated and inclusive labor markets, for universal welfare states and for well-developed and free education systems.
Jan Fagerberg and Koson Sapprasert
The term 'national innovation systems' surfaced for the first time during the late 1980s and, in the years that followed, several important contributions on this topic appeared. This paper investigates the role that this new literature plays within innovation studies and the world of science more generally and discusses the sources for its emergence.
Jan Fagerberg and Bart Verspagen
The European economy is currently in a slump, the worst since the 1930s, with high unemployment and deteriorating welfare conditions for exposed segments of the population in several European countries, espcially in the Southern parts of the continent. Although this is often seen as a consequence of the financial crisis that hit the capitalist world in 2007-8 this is only part of the story.