Catching-up and falling behind knowledge spillover from American to German machine tool makers

In our days, German machine tool makers accuse their Chinese competitors of violating patent rights and illegally imitating German technology. A century ago, however, German machine tool makers used exactly the same methods to imitate American technology. To understand the dynamics of this catching-up process we use patent statistics to analyze firms? activities between 1877 and 1932. We show that German machine tool makers successfully deployed imitating and counterfeiting activities in the late 19th century and the 1920s to catchup to their American competitors. The German administration supported this strategy by stipulating a patent law that discriminated against foreign patent holders and probably also by delaying the granting of patents to foreign applicants. Parallel to the growing international competitiveness of German firms, however, the willingness to guarantee intellectual property rights of foreigners was also increasing because German firms had now to fear retaliatory measures in their own export markets when violating foreign property rights within Germany

From Russia with Love: The Impact of Relocated Firms on Incumbent Survival

We identify the impact of local firm concentration on incumbent performance with a quasi natural experiment. When Germany was divided after World War II, many firms in the machine tool industry fled the Soviet occupied zone to prevent expropriation. We show that the regional location decisions of these firms upon moving to western Germany were driven by non-economic factors and heuristics rather than existing industrial conditions. Relocating firms increased the likelihood of incumbent failure in destination regions, a pattern that differs sharply from new entrants. We further provide evidence that these effects are due to increased competition for local resources

Abhandlungen über wertvolle Patente in Deutschland aus internationaler Perspektive 1880-1932

The aim of this doctoral thesis is to look at the worldwide relevance of high-value patents granted in Germany between the enactment of the first nationwide German patent law in 1877 and 1932. This patent act enabled both, national and foreign patentees to reap the fruits of their intellectual investment by restraining competitors to adapt the patented invention. Much research is done on patents and their economic effects within national borders at macro and micro levels. But the cross-border importance of patent protection for domestic and foreign inventors and economies is still underrepresented in the literature especially for pre- and post-WWI Germany. Accordingly, this thesis is an attempt to close the gap in the literature by analysing the determinants of foreign high-value patents in Germany for the periods 1880-1914 and 1919-1932. Therefore, we study the potential influence of patent laws, institutional quality, and primary and secondary schooling. Controls for distance and industrial structure are included. We analyse how and why international patenting in Germany changed in the interwar period comparing it the pre-WWI phase. Which factors caused the decline in foreign high-value patents and which countries significantly reduced their patenting activities in Germany? We contrast the patenting behaviour of WWI opponents and analyse the differences in relation to Germany’s confederates and neutral states. In addition, we explore the impact of a newly developed human capital measure based on adjusted patents and primary school enrolment rates, on long-run economic growth in the respective counties. This new measure of human capital takes into account its technical component, to the hypothesis that human capital levels in 1910 had a strong persistent effect on national income until the late 20th century (and perhaps even longer). Which factors caused the growing international competitiveness of German mechanical engineering industry in the pre-World War I period? We elucidate whether or not the international market success of machine builders in the German Empire was determined by technological creativity and the availability of a comparatively cheap labour force. Based on an unbalanced panel, we therefore investigate the influence of demand, labour costs and technological creativity on export performance of thirty-two different machinery types. We find robust evidence that the development of export-import ratios in mechanical engineering was positively influenced by the growth of patent stocks that represent the new knowledge being available for German machine builders. In addition, we present some evidence for the assumption that the growing international competitiveness of German mechanical engineering was also caused by decreasing relative unit labour cost. Based on firm-specific data on foreign direct investment of 377 German companies from 1873 to 1927, we study firm characteristics that caused FDI, preferred host countries, and whether FDI was successful in terms of enhancing corporate profitability. Large companies with high profitability conducted more FDI. Market size and similarity of the respective host country triggered horizontal FDI. However, wage gaps and differences in human capital stimulated FDI flows; hence, incentives for vertical FDI existed. Considering endogeneity between FDI and profitability, we uncover that FDI did not enhance profitability, and profitability did not drive FDI. Interestingly, FDI was driven by the company’s past FDI transactions.Die vorliegende Dissertationsschrift befasst sich mit der weltweiten Relevanz von wertvollen Patenten, die zwischen der Verabschiedung des ersten für das gesamte deutsche Reich gültige Patentgesetz im Jahre 1877 und 1932 gewährt wurden. Die Gleichstellung von in- und ausländischen Patenthaltern in diesem Patentgesetz ermöglichte es beiden Gruppen gleichermaßen, Konkurrenten davon abzuhalten patentierte Erfindungen zu kopieren und somit Erträge aus ihren intellektuellen Investitionen zu sichern. Patente und ihre ökonomische Bedeutung innerhalb nationaler Grenzen auf Mikro- und Makro-Ebene sind ein beliebter Forschungsgegenstand. Hingegen sind Studien über die grenzüberschreitende Bedeutung von Patentschutz für in- und ausländische Erfinder und Volkswirtschaften, insbesondere für Deutschland vor und nach dem Ersten Weltkrieg unterrepräsentiert in der einschlägigen Literatur. Ein Ziel dieser Arbeit ist, diese Lücke in der Literatur weiter zu schließen. Ein Beitrag hierzu leistet die Analyse von wertvollen Patenten, die von ausländischen Patentnehmern in Deutschland in den Zeiträumen 1880-1914 und 1919-1932 gehalten wurden. Dabei wird insbesondere der potentielle Einfluss der exogenen Variablen vorhandenes Patentgesetz im Heimatland, Schutz der Eigentumsrechte, Primär- und Sekundärbildung, Entfernung und Industriestruktur untersucht. Zudem gehen wir auf die Frage ein, ob und warum sich das Verhalten internationaler Patenthalter in Deutschland während der Zwischenkriegszeit im Vergleich zur Vorkriegszeit geändert hat. Welche Faktoren verursachten die rückläufigen Patentanmeldungen in diesem Zeitraum und welche Länder waren insbesondere betroffen? Das Patentverhalten von Kriegsgegnern des Ersten Weltkriegs wird dabei jenem von Deutschlands Kriegsverbündeten, bzw. neutralen Ländern gegenübergestellt. Darüber hinaus untersuchen wir die Auswirkungen eines auf Primärschulbildung und internationaler adjustierter Patenten basierenden Humankapitalmaßes auf langfristiges Wirtschaftswachstum in den jeweiligen Ländern. Inwieweit hat Humankapitalbildung im Jahre 1910 einen nachhaltigen Einfluss auf nationales Wirtschaftswachstum Mitte bzw. Ende des 20. Jahrhunderts? Die wachsende internationale Wettbewerbsfähigkeit der Deutschen Maschinenbau¬industrie vor dem Ersten Weltkrieg wirft die Frage nach ihren Erfolgsfaktoren auf. Inwieweit trugen Innovationsfähigkeit und Lohnkostenvorteile zum weltweiten Erfolg der deutschen Maschinenbauunternehmen bei? Eine Panelanalyse lässt den Schluss zu, dass das steigende Export-Import Verhältnis dieser Industrie im Deutschen Kaiserreich positiv durch eine vermehrte ausländische Nachfrage und die relative Innovationsfähigkeit der Branche beeinflusst wurden. Als weiterer Einflussfaktor ist das Reallohnverhältnis zu den Haupthandelspartnern zu nennen. Individuelle Daten über 948 ausländische Direktinvestitionen von 377 Aktiengesellschaften im Zeitraum von 1873 bis 1927 ermöglichen die Analyse unternehmensspezifischer Charakteristika, die Investitionen im Ausland stimuliert haben. Größere effizientere Unternehmen wiesen bereits zu Beginn des 20. Jahrhunderts eine verstärkte Investitionstätigkeit im Ausland auf. Auf Länderebene waren Marktgröße und Ähnlichkeit des Ziellandes von entscheidender Bedeutung für horizontale ausländische Investitionen. Lohnkostenunterschiede und unterschiedliche Humankapitalausstattung zwischen den Ländern ließen sich als Motive für vertikale ausländische Direktinvestitionen identifizieren

The deliberative muscle of the democratic algorithm: Podemos and citizenship participation

In this interview, Miguel Ardanuy (1991) and Eric Labuske (1988) address their political careers, based on a cycle of mobilization and technopolitical learning in Madrid, which nurtures the Podemos Effect. The media, organizational and electoral challenge pushed them to devising a new use for social media and new IT tools. We will be discussing the dynamics of the online/offline participation  processes and public debate between traditional activists and the new hacktivists.Miguel Ardanuy e Eric Labuske abordam, nesta entrevista, sua trajetória política: um ciclo de mobilização e de aprendizado “tecnopolítico” em Madrid, que alimenta o efeito Podemos. O desafio midiático, organizativo e eleitoral, exigiu que ambos pensassem como tirar proveito das redes sociais e das novas ferramentas telemáticas. Com eles discutimos algumas das dinâmicas dos processos participativos online-offline, e os debates abertos com militantes tradicionais e “hack-ativistas”.Miguel Ardanuy y Eric Labuske abordan en esta entrevista su trayectoria política, un ciclo de movilización y de aprendizaje tecnopolítico en Madrid, que alimenta el efecto Podemos. El reto mediático, organizativo y electoral les exigió pensar cómo sacar provecho a las redes sociales y nuevas herramientas telemáticas. Con ellos discutimos algunas dinámicas de los procesos participativos online-offline y los debates  abiertos con militantes tradicionales y con hackctivistas

O músculo deliberativo do algoritmo democrático: Podemos e a participação cidadã

Miguel Ardanuy y Eric Labuske abordan en esta entrevista su trayectoria política, un ciclo de movilización y de aprendizaje tecnopolítico en Madrid, que alimenta el efecto Podemos. El reto mediático, organizativo y electoral les exigió pensar cómo sacar provecho a las redes sociales y nuevas herramientas telemáticas. Con ellos discutimos algunas dinámicas de los procesos participativos online-offline y los debates  abiertos con militantes tradicionales y con hackctivistas.In this interview, Miguel Ardanuy (1991) and Eric Labuske (1988) address their political careers, based on a cycle of mobilization and technopolitical learning in Madrid, which nurtures the Podemos Effect. The media, organizational and electoral challenge pushed them to devising a new use for social media and new IT tools. We will be discussing the dynamics of the online/offline participation  processes and public debate between traditional activists and the new hacktivists.Miguel Ardanuy e Eric Labuske abordam, nesta entrevista, sua trajetória política: um ciclo de mobilização e de aprendizado “tecnopolítico” em Madrid, que alimenta o efeito Podemos. O desafio midiático, organizativo e eleitoral, exigiu que ambos pensassem como tirar proveito das redes sociais e das novas ferramentas telemáticas. Com eles discutimos algumas das dinâmicas dos processos participativos online-offline, e os debates abertos com militantes tradicionais e “hack-ativistas”

O músculo deliberativo do algoritmo democrático: Podemos e a participação cidadã

Miguel Ardanuy y Eric Labuske abordan en esta entrevista su trayectoria política, un ciclo de movilización y de aprendizaje tecnopolítico en Madrid, que alimenta el efecto Podemos. El reto mediático, organizativo y electoral les exigió pensar cómo sacar provecho a las redes sociales y nuevas herramientas telemáticas. Con ellos discutimos algunas dinámicas de los procesos participativos online-offline y los debates  abiertos con militantes tradicionales y con hackctivistas.In this interview, Miguel Ardanuy (1991) and Eric Labuske (1988) address their political careers, based on a cycle of mobilization and technopolitical learning in Madrid, which nurtures the Podemos Effect. The media, organizational and electoral challenge pushed them to devising a new use for social media and new IT tools. We will be discussing the dynamics of the online/offline participation  processes and public debate between traditional activists and the new hacktivists.Miguel Ardanuy e Eric Labuske abordam, nesta entrevista, sua trajetória política: um ciclo de mobilização e de aprendizado “tecnopolítico” em Madrid, que alimenta o efeito Podemos. O desafio midiático, organizativo e eleitoral, exigiu que ambos pensassem como tirar proveito das redes sociais e das novas ferramentas telemáticas. Com eles discutimos algumas das dinâmicas dos processos participativos online-offline, e os debates abertos com militantes tradicionais e “hack-ativistas”

Fiscal Effects of Minimum Wages: An Analysis for Germany

Against the background of the current discussion of statutory minimum wages in Germany, this paper analyzes the potential employment and fiscal effects of such a policy. Based on estimated labor demand elasticities obtained from a structural labor demand model, the empirical results imply that minimum wages in Germany will be associated with significant employment losses among marginal and low- and semi-skilled full-time workers. Even though minimum wages will lead to increased public revenues from income taxes and social security benefits, they will result in a significant fiscal burden, due to increased unemployment benefits and decreased revenues from corporate taxes. Copyright 2009 The Authors. Journal Compilation 2009 Verein für Socialpolitik and Blackwell Publishing Ltd. 2009.

FDI of German companies during globalization and deglobalization

Based on micro-level data of German companies from 1873 to 1927, we identified horizontal and vertical FDI applying a Knowledge-Capital model and analyzed individual FDI decisions. Our KC model revealed that market-driven FDI predominated; however, wage gaps and differences in human capital stimulated cost-driven FDI flows, which accounted for up to 10% of total FDI. On an individual level, large companies with high profitability conducted more FDI. Higher tariffs after WWI enhanced FDI, as companies could circumvent trade barriers – but declining openness reduced FDI. In spite of disintegration after WWI, the propensity to invest increased due to higher market concentration and firm specific investment patterns - albeit industry agglomeration effects were of minor importance