Entrepreneurship, Entry and Exit in Creative Industries: an explorative Survey

Series: Creative Industries in Vienna: Development, Dynamics and Potential

The evolutionary theory of the firm: Routines, complexity and change

This paper provides an overview on the evolutionary theory of the firm. The specific feature of the evolutionary approach is that it explains the adaptive behaviors of firms through the tension between innovation and selection. It is suggested that the evolutionary theory can provide a useful basis for a theory of the firm which is concerned with change over time and development.theory of the firm, complexity, routines, change of routines

Exit, Entry and industry turbulence in Austrian Manufacturing, 1981-1994

This research explores both industry and temporal aspects of entry, exit and industry turbulence in Austrian manufacturing in the period between 1981 to 1994. It is shown that while the net entry of both firms and establishments is quite stable over time, exit and especially the turnover and volatility of firms is influenced more by temporal effects. A regression analysis into the determinants of industry dynamics associated with entry and exit shows that sunk costs, scale economies and industry growth are primary determinants for different entry and exit regimes across 2-digit sectors, while profitability is found to be significant for dynamics related to exit but not for the entry of firms. The net entry dynamics of firms and establishments are found to be different in regard to capital intensity and profitability.exit, entry; industry turbulence; Austrian manufacturing

The effect of technology and demand shocks on structural and industrial dynamics: Evidence from Austrian manufacturing.

In this paper we analyse the influence of sector specific developments in productivity and demand on net entry and employment in 19 industrial sectors of the Austrian economy. Based on the model of structural dynamics of Pasinetti, we develop an identification scheme that allows us to extract technology and demand shocks, by means of a structural vector autoregressive (SVAR) model with long-run restrictions. We study the patterns of productivity and demand shocks across industries by means of a principal components analysis and find that sectoral and macro-economic developments in demand strongly correlate, while this is not the case for technology shocks. Impulse-response analysis shows that for almost all sectors productivity growth rates experience an immediate increase to positive technology shocks while the hours worked decline as conjectured by Pasinetti. Finally, we use the identified shocks as explanatory variables in time-series cross-section regressions on net-entry and employment data. Both types of shocks are able to explain dynamics on the industry level in terms of employment and sales but not firm dynamics.Industrial dynamics, structural change, technology shocks, demand shocks, entry and exit, employment

The Technological Bias in the Establishment of a Technological Regime: the adoption and enforcement of early information processing technologies in US manufacturing, 1870-1930

This paper presents a qualitative study on the adoption of early information technologies, such as typewriters, calculators or Hollerith machines in US manufacturing in the period between 1870 and 1930, which was by all means a true systemic innovation. Our empirical work is guided by a theoretical framework in which the theory of induced innovation is interpreted along "classical" lines in which an explicit link to the concept of technological regimes is established. We show how the presence of a distinct bias in technical change in US manufacturing led to the opening of a window of opportunity for early information technologies. We work out how the presence of this bias influenced the technological search and adoption process of firms and how this found its final reflection in the rules and heuristics of the regime, as well as the technological trajectories of the technologies. The reliance on established practices led organisation designers to cast the logic of large scale manufacturing into the administrative organisation of firms. This required the convergence of technical practices. The resulting technological trajectories and path dependencies were the outcome of the diffusion and the hardening of the early office work regime. Our analysis of US manufacturing data of the period suggests that even though electrification and "bureaucratisation" overlapped they cannot considered being the result of the same pattern of technology adoption, identified by the development of the capital-labour ratio.economics of technology ;

The creative response in economic development: the case of information processing technologies in US manufacturing, 1870-1930

This paper presents a theoretical framework along "Classical" lines in which Schumpeter's concept of "Creative Response" is linked to a theory of induced innovation and the concept of technological regimes. We devote particular attention to the role of indivisibilities between factors of production. On the basis of this framework, we study the adoption of early information technologies, such as typewriters, calculators or Hollerith machines in US manufacturing in the period between 1870 and 1930. We show how the presence of a distinct bias in technical change in US manufacturing led to the opening of a window of opportunity for early information technologies, and how the presence of this bias influenced the technological search and adoption process of firms and how this found its final reflection in the rules and heuristics of the new regimemulation is found.Technological regimes; systemic innovation; adoption of technologies; path dependence; information technology 1870-1930

The Impact of technology and demand shocks on structural dynamics: evidence from Austrian manufacturing

This paper examines the link between structural change between and within industries. We analyse the influence of sector specific developments in productivity and demand on net entry and employment in 19 industrial sectors of the Austrian economy. Based on the model of structural dynamics of Pasinetti, we develop an identification scheme that allows us to extract technology and demand shocks, by means of a structural vector autoregressive (SVAR) model with long-run restrictions. We study the patterns of productivity and demand shocks across industries by means of a principal components analysis and find that sectoral and macro-economic developments in demand strongly correlate, while this is not the case for technology shocks. Impulse-response analysis shows that for almost all sectors productivity growth rates experience an immediate increase to positive technology shocks while the hours worked decline as conjectured by Pasinetti. Finally, we use the identified shocks as explanatory variables in time- series cross section regressions on net-entry and employment data. Both types of shocks are able to explain dynamics on the industry level in terms of employment and sales but not firm dynamics.microeconomics ;

Complementarity constraints and induced innovation: some evidence from the First IT Regime

Technological search is often depicted to be random. This paper takes a different view and analyses how innovative recombinant search is triggered, how it is done and what initial conditions influence the final design of technological artefacts. We argue that complementarities (non-separabilities) play an important role as focusing devices guiding the search for new combinations. Our analysis takes the perspective of technology adopters and not that of inventors or innovators of new products. We illustrate the process of decomposition and re-composition under the presence of binding complementarity constraints with a historical case study on the establishment of the First IT Regime at the turn of the 19th century.research and development ;

Sectoral and aggregate technology shocks: Is there a relationship?

We analyze sector specific shocks in productivity and demand in 19 manufacturing sectors of the Austrian economy. Based on a structural vector autoregressive (SVAR) model with long run restrictions developed by Gali's (1999) we extract technology and non-technology shocks from sectoral andaggregate data and study their patterns and relationship by means of a principal components analysis. We find a close association of sectoral and macroeconomic non-technology shocks but only a very weak association for technology shocks. Impulse-response analysis indicates that for almost all manufacturing sectors and the Austrian economy productivity growth rates experience an immediate increase to positive technology shocks while the hours worked decline. We therefore confirm Gali's results on the level of manufacturing industries. Finally, we use the identified shocks as explanatory variables in fixed effect regressions on growth rates of employment, output and investment. We find that our shocks are closely associated to employment growth and output growth but not to growth in investment. The effect of technology shocks is different on the level of manufacturing industries and the aggregate economy. (A substaintially revised version of this paper is published in Empirica vol. 32 pp. 45-72)Economic growth, business cycle, manufacturing industries, technology shocks, employment, SVAR

Estimates of capital stocks and capital productivity in Austrian manufacturing industries, 1978 -1994

We present gross, net and productive capital stock estimates for 20 industries of the Austrian manufacturing sector based on the perpetual inventory method for the period 1969-1994. The estimation of the net capital stocks and the volume index of capital services follows an integrated method derived from the neoclassical theory of investment. Based on the estimates we calculate capital intensity and capital productivity measures for the 20 industries and provide estimates of capital productivity developments. We find that capital productivity decreased only for 5 out of the 20 industries. The other industries showed in part marked increases in both capital and labor productivity.Capital Services, Capital Productivity, Austria, Manufacturing