Localized Technological Change and Unemployment in the Global Economy: a Schumpeterian approach

This paper develops a Schumpeterian approach to analyse the interaction between unemployment and localized technological change in a global competitive process. The model predicts that the present levels of unemployment are caused by a combination of three factors: (i) the localized character of the wave of information and communication technology generated in the more advanced countries which, because of this, it is characterized by a factor mix appropriate to economic systems where there is an abundance of capital and a relative scarcity of labour; (ii) the strong and rapid dynamic decline of competitive advantages and quasi-rents, based on the introduction of new information and communication technology; (iii) the strong international competitive pressure from countries with lower wage levels and a greater capability to host the affiliates of multinational companies and to imitate the new information and communication technologies developed in the innovative countries. The results of the empirical analysis, for the OECD countries in the years 1990–92, suggest that a country's competitiveness and therefore its share of total world demand and employment is mostly, if not exclusively, determined by its innovative capacity. Wage levels alone cannot, even when they fall, at least in relative terms, re-establish conditions of full employment: efficiency wages are an important complementary factor in building the innovation capacity of a country.     

Trust and reciprocity: misunderstandings

We contest a reductive view of trust, quite diffused in economics, and in studies influenced by the Game-Theory framework: the idea that trust has necessarily to do with contexts requiring “reciprocation”; or that trust is trust in the other’s reciprocation. A multi-layer cognitive model of trust will be proposed. Trust is not conceived only as an attitude towards the other, implying different kinds of beliefs (evaluations, expectations, beliefs on the other”s motives, etc.), but also as a willingness to rely on others that makes us dependent and vulnerable to them, as well as a concrete act of reliance based on this. Not necessarily we trust people because they will be willing to reciprocate; and we do not necessarily reciprocate for reciprocating. Trust (even “genuine” trust) is based on a variety of motivations ascribed to others and makes prevail the adoption of our needs and goals: from “altruism” to “self-interest”, from reciprocation to norms or to affective reasons.     

The derived demand for knowledge*

ABSTRACT

This paper calls attention on the effects of the economic properties of knowledge on its derived demand, an issue that has not received enough attention in the literature. The results of the analysis suggests that, because of the idiosyncratic – Arrovian – properties of knowledge, a chain of effects takes place: (i) in downstream markets the price of goods that have been produced using knowledge as an intermediate good, falls, (ii) consequently the derived demand in upstream knowledge markets – both within corporations and by them to knowledge-intensive business services – has a lower position, and (iii) the price of knowledge is lower than it should be were knowledge a standard good traded in competitive markets, (iv) with negative consequences in terms of adverse selection of large scale high quality research projects, but (v) possible compensating effects stemming from the use of knowledge spillovers to generate cheaper knowledge. Such results have important implications for economic policy discussions and decisions.     

Percolation Processes, Technological Externalities and the Evolution of Technological Clubs

Technological cooperation has become more widespread in recent years. Percolation processes have been studied in physics as the outcome of four classes of forces termed as density, external pressure, connectivity and receptivity. In this paper the methodology of percolation processes has been adapted to interpret the dynamics of knowledge flows within innovation networks as communication systems and to understand the evolution of technological cooperation among firms both within and among industries.     

New Information Technology and the Knowledge-Based Economy. The Italian Evidence

This work analyses the outcome of the interaction between: 1) the diffusion of new information technologies; 2) their effects on the tradability, divisibility and transportability of information; 3) the growing role of business service industries in the introduction of new technologies; 4) the interaction between receptivity and connectivity of learning agents in the generation of localized technological change based upon both tacit and generic knowledge, and 5) the parallel increase in total factor productivity. The empirical results provide some support, with respect to the Italian economy, to two hypotheses: 1) The co-evolution of usage of business and communication services. Our empirical analysis has shown the strong correlation between the levels and rates of growth in the use of communication and business services. 2) The productivity enhancing effects of the co-evolution in the use of business and communication.     

Technological diffusion and investment behaviour: The case of the textile industry

Zusammenfassung Verbreitung von Technologien und Investitionsverhalten: Der Fall der Textilindustrie. — Die Verbreitung einer neuen Produktionstechnologie h?ngt sowohl von ihren eigenen Eigenschaften wie Gewinnaussichten und technischer Leistungsf?higkeit als auch von den allgemeinen Bedingungen für Investitionen ab. Die Autoren versuchen zu erkl?ren, da\ die Verbreitung neuer Technologien das Ergebnis einer Kombination aus allgemeinem Investitionsverhalten und speziellen Lernprozessen in bezug auf die neue Ausrüstung ist. Sie machen einfache Annahmen darüber, welche Faktoren bei der Wahl neuer Anlagen eine Schlüsselstellung einnehmen, wenn in einer Welt begrenzter Rationalit?t investiert wird. Dieses Modell benutzen sie für Sch?tzungen der Entwicklung in der Textilindustrie von 16 L?ndern. Simulationen ergeben endogen definierte Diffusionskurven und Unterschiede im Modernisierungs-verhalten zwischen den einzelnen L?ndern.

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Résumé La diffusion technologique et le comportement de l’investissement: Le cas de l’industrie textile. — La diffusion de la nouvelle technologie dans le processus de production dépend de ses propres caractères en termes de profit et de la capacité technique et des conditions générales pour l’investissement. Cette étude a l’intention d’expliquer que la diffusion est le résultat combiné du comportement de l’investissement et des fa?ons d’apprendre en ce qui concerne le nouvel équipement. Des simples suppositions concernant les facteurs clé, étant importants pour le choix de l’équipement moderne dans un monde d’une rationalité limitée, mènent aux estimations des relations pour l’industrie textile de 16 pays. Les simulations démontrent des courbes de diffusion endogènes et des différences en modernisation industrielle entre les pays.

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Resumen Difusión tecnológica e inversión: el caso de la industria textil. — Le difusión de tecnologíca nueva en la productión dépende tanto de sus propias características en términes de beneficios y calificaciones téenicas como de las condiciones générales para la inversión. El objetivo de este trabajo es explicar cómo los procesos de difusión constituyen el resultado combinado de la inversión y de procesos de aprendizaje relacionados con el nuevo equipo. Los supuestos simples sobre los factores decisivos para la electión de un equipo nuevo (en el momento de invertir) permiten realizar estimaciones para la industria textil de 16 países en un mundo de racionalidad limitada. Las simulaciones muestran curvas de difusión definidas endógenamente y diferencias entre las pautas de modernizatión de los países.

     

Accounting and governance in the final years of the Papal States: Dual roles in the papacy of Pius IX (1846–1870)

The Papal States represent a unique and long period in Italian government and in the government of the Roman Catholic Church prior to Italy's unification in 1870. The 25-year period prior to unification was a particularly tumultuous period when the Papal States struggled for survival, faced military and popular challenges and became increasingly indebted. Accounting could become an important tool to assist decision-making and enhance the Papal States' sustainability, as shown by the governance reforms promulgated by Pope Pius IX in this period. Nevertheless, accountants chose what to make visible and emphasised secular, rather than the sacred aspects of the Papal States. Despite reforms, there was a disconnection between the leaders and the accountants. This research therefore examines the role of accounting in such an institution, and extends the concept of a sacred-secular divide to a state government beset by resource constraints and challenged to fulfil its spiritual aims.     

Trust and trustworthiness after a land restitution program: lab-in-the-field evidence from Colombia

Constitutional Political Economy - We assess the impact on trust and trustworthiness of a governmental program to compensate victims of forced displacement. All our subjects were eligible to apply...