This thesis explores three important factors that have been central to the pursuit of economic growth, particularly in the developing and emerging economies. These are Outward Foreign Direct Investment, Reverse Technology Spillovers, and Total Factor Productivity. Chapter 2 examines whether India’s Outward Foreign Direct Investment (OFDI) pattern is consistent with Dunning’s Investment Development Path (IDP) sequence using macro data over the period 1980-2010. It tests whether the level of development - proxied by GDP per capita - is the main factor explaining OFDI, and augments the IDP by studying other major determinants such as exports, Inward FDI, human capital, and R&D using the Cointegration and Error Correction Model techniques. The results support the main proposition of the IDP, but also highlight the importance of other factors. We also find that OFDI granger-causes R&D, suggesting a possibility of reverse technology spillover. Chapter 3 analyses the ‘feedback effect’ of Foreign Direct Investment (FDI) on Total Factor Productivity (TFP) growth of emerging economies via technology spillovers across borders. We study the effect of R&D spillovers resulting from Outward FDI flows from 18 emerging economies into 34 OECD countries over the 1990-2010 period, comparing the impact with that of spillovers resulting from Inward FDI flows. The result confirms that FDI enhances productivity growth in the home country; however the impact is much larger when R&D-intensive developed countries invest in the emerging economies than the other way round. The country-specific bilateral elasticities also support this outcome. Finally, Chapter 4 studies twofold stages of OFDI – determinants and effects – at a disaggregated level, using data on OFDI undertaken by 34 countries in 10 major sectors of US during 1990-2010. The main aim of this essay is to provide micro evidence in support of outcomes of Chapter 2 & 3. The first stage concentrates on the driving forces of OFDI to understand its macroeconomic determinants, by distinguishing the factors into 3 broad categories: country specific, sector specific and time specific variables. In the second stage, we then study how the home countries benefit from the OFDI that they undertake in the US, in terms of the impact of induced reverse technology spillovers. This stage entails the creation of a foreign R&D capital term as the weighted average of R&D intensity of US with the OFDI undertaken by the home countries into US. It investigates both direct and interaction effects of such R&D spillovers on the growth of home country’s TFP. The analysis also considers a lag structure to allow for a time lag in the transfer and effect of foreign R&D capital. Results for both the stages confirm the set hypotheses.

This dissertation comprises three individual chapters. Chapter Two examines how free riding across neighbors influenced the diffusion of color television sets in rural China. Chapter Three tests for asymmetric information between a firm’s management and other investors concerning its patent output. Chapter Four discusses how knowledge stocks influence a patenting firm’s later diversification. Chapter Two documents the existence of a type of network effects - free riding across neighbors - in the consumption of color television sets in rural China, which reduces the propensity of non-owners to purchase. I construct a model of the timing of the purchase of a durable good in the presence of free riding, and test its key implications using household survey data in rural China. Chapter Three tests for asymmetric information between a firm’s management and other investors about its patent output by examining insider trading patterns and stock price changes in R&D intensive firms. It demonstrates that management has considerable information about its patent output beyond what is known to investors. It also shows that the predictive power of insider trading patterns on patent output comes from purchases rather than sales. Chapter Four discusses two sequential channels through which knowledge stocks may influence a firm’s later diversification. One is that firms with more knowledge are more likely to enter a new industry. The other is that firms’ businesses have a better chance of surviving, conditional on being formed. By examining U.S. public patenting firms in manufacturing sectors for 1984-1996, I find that knowledge stocks predict the likelihood of new industry entry when controlling for firm size. However, this predictive power is weakened when diversification effects are included. On the other hand, a survival study of newly established segments shows that initial knowledge stocks have significant positive effects on segment survival, whereas diversification effects are insignificant.

This dissertation is about research and development (R&D) and formation of research joint ventures (RJV). The first chapter analyzes R&D competition and cooperation regimes with coordination costs under full information sharing and no spillovers in a Stackelberg model. The findings show that profits and R&D incentives of RJV members decrease with coordination costs. R&D cooperation of leaders results in higher profits for insiders and also higher welfare compared with R&D competition. Checking the robustness of the results shows that with R&D spillovers and no information sharing no RJV forms. With convex costs, an RJV containing all leaders forms. The second chapter considers a duopoly Cournot model where production may result in environmental damage. Firms can either invest in process or environmental R&D. In the first case, we assume an exogenous emission tax. With high enough emission tax, welfare is always higher under public R&D than cooperation. Under endogenous emission tax, when the regulator acts before firms’ decision on R&D, with high R&D spillovers, public R&D yields higher welfare than R&D cooperation. When the regulator sets the emission tax after firms’ decision on R&D, welfare under R&D cooperation is higher than public R&D. Comparison of commitment and no commitment also shows that commitment increases private R&D. Chapter three investigates the endogenous formation of coalitions under the size announcement game in a Cournot framework and analyzes the effect of coordination costs on equilibrium and optimal coalitions. When there are industry-wide R&D spillovers numerical simulations show that with high enough coordination costs no RJV forms in equilibrium, which also maximizes welfare. When there is intra coalition full information sharing and no inter-coalitions R&D spillovers with high enough coordination costs, the equilibrium coalition structure is more concentrated than when coordination costs are low and the size is higher than when RJVs could not form endogenously. Also, with high enough coordination costs, the welfare maximizing coalition is less concentrated than the equilibrium one while the opposite is true for low coordination costs.

The thesis is concerned with the role of science and technology parks in the world economy. It explores the experience of Silicon Valley and Route 128 and tries to identify key factors that are important for development of a science and technology park (STP). There is a signifact part of the thesis concerned with the role of STPs in selected european and asian economies.

My investigations based on wide cross-section analysis of 5128 firms in Czech Republic (1998-2006) present some evidence of their behaviour in field of innovations. Business sector relationship to technological change is characterized by following findings (ceteris paribus): 1) Size of a firm (given by capital, employees and total sales) has ambiguous relation to total number of R&D workers. 2) There is negative relationship between concentration and number of R&D workers. 3) Competition is positively associated with intensive using of intellectual property rights (given by intangible assets). 4) Benefits of in-house R&D that is represented by total number of R&D workers come with multiplicative relation towards total sales. 5) Companies owned by foreigners substantially contribute to total R&D activity in Czech Republic and there is some evidence of technological transfer.

La littérature économique attribuant des rôles endogènes à l'évolution technologique et à lagéographie pour expliquer la croissance économique suggère que la compréhension des fluxde connaissances dans l'espace et de leurs conséquences sur les activités d'innovation est aucoeur de l'explication des disparités dans la croissance économique. À cet égard, cette thèsemet l'accent sur les réseaux de connaissances comme un mécanisme permettant la circulationdes connaissances dans l'espace et le temps. Parmi les différents types de réseaux deconnaissances, elle étudie les réseaux de collaboration de R&D et explore deux questionsprincipales.Tout d'abord, elle examine l'effet de la géographie sur la formation du réseau pour savoir si lesflux de connaissances par les réseaux de collaboration en R&D sont limités dans l'espace oupas. Elle s'enquiert de cette question à la fois pour le réseau multilatéral entre lesorganisations et le réseau inter-régional entre les régions européennes dans le domaine desbiotechnologies en utilisant les données sur les collaborations de R&D promues par lesProgrammes-Cadres Européens.Deuxièmement, elle explore comment un réseau évolutif de collaborations de R&D entre lesrégions affecte les performances des régions en matière d'innovation. Elle utilise l'économétriespatiale pour quantifier les effets statiques et dynamiques des flux de connaissances desvoisins spatiaux et d'un ensemble évolutif de partenaires de collaboration sur l'activitéinventive des régions dans le domaine des TIC au cours de la période 2003-2009. / The economic literature attributing endogenous roles to technological change and geography inexplaining economie growth suggests that understanding knowledge flows in space and theirconsequences on innovative activities is central to explaining disparities in economie growth. Inthis regard, this PhD thesis focuses on knowledge networks as a mechanism that enablesknowledge flows in space and time. Among different types of knowledge networks, it studiesR&D collaboration networks and addresses two main issues.First, it investigates the effect of geography on network formation to figure out whetherknowledge flows through R&D collaboration networks are constrained in space or not. It inquiresthis question both for multilateral R&D collaboration network among organizations and theresulting inter-regional network among European regions in the field of biotechnology using dataon R&D collaborations promoted via European Framework Programmes.Second, it addresses how an evolving network of R&D collaborations among regions affectsregional innovation performances in time. It employs a spatial econometric approach to quantifythe static and dynamic effects of knowledge flows from spatial neighbors and an evolving set ofcollaboration partners on inventive activity of regions in the field of ICT durin 2003-2009.

Les pôles de compétitivité sont un instrument important de la politique industrielle française. Ils ont pour objectif de mettre en place des dynamiques d’innovation ouverte et coopérative, moteurs de croissance et d’emplois. Les pôles de compétitivité sont une forme atypique d’organisation de l’innovation.Les études et évaluations menées ont mis en lumière les effets positifs des pôles de compétitivité sur l’emploi. Ces études ont été menées à partir de cadres d’analyse ne permettant pas de prendre en compte de manière précise et adaptée l’effet des pôles de compétitivité. Ce travail de thèse propose de mesurer les effets des pôles de compétitivité sur l’emploi à partir d’un cadre d’analyse prenant en compte leurs caractéristiques résiliaires et coopératives et basé sur une approche microéconomique, au niveau des établissements d’entreprise. Cette évaluation mesure l’impact direct de la participation des entreprises aux projets de pôles sur leurs performances d’emploi et leurs dynamiques salariales. A partir de données de panel, un modèle d’évaluation de différences en différences permet de tester l’effet de la participation des entreprises sur les dynamiques d’emploi et de salaires entre 2004 et 2010, comparativement à des entreprises restées hors des pôles. Les entreprises ayant pris part à un projet de R&D collaboratif ont vu leur effectif global moyen augmenter de 31 emplois par rapport à des entreprises étant restées hors des pôles, toutes choses égales par ailleurs. Les pôles auraient permis la création de 20 115 emplois, dont 8 428 emplois de cadres et liés à la R&D. Les pôles de compétitivité ont un impact positif sur les emplois cadres et de R&D, mais pas sur les emplois ouvriers. En outre, les pôles de compétitivité influencent la masse salariale des entreprises ayant pris part aux projets de R&D coopératifs des pôles, elle a augmenté de 11,3% suite à la participation à un projet de R&D entre 2004 et 2010, relativement à des entreprises restées hors des pôles. Les caractéristiques coopératives et résiliaires des réseaux formés par les projets de R&Dentre entreprises et acteurs de l’innovation expliquent ces dynamiques d’emploi et de salaires. La richesse du capital social des entreprises (le nombre de liens sociaux qu’elles possèdent), impacte négativement ses performances d’emploi. Inversement, la valeur du capital social des entreprises (diversité des acteurs du capital social) impacte positivement ses performances d’emploi. Ainsi, la multiplication des liens sociaux conduit les entreprises à disposer d’un nombre important de ressources et les incite davantage à mobiliser ses liens sociaux, au détriment du recrutement de nouveaux salariés. En revanche, la diversité des acteurs est pourvoyeur d’emplois. Cette diversité permet aux entreprises de bénéficier d’un environnement propice aux échanges et l’émergence d’idées qui les conduit à mettre en place des projets de R&D, créateurs d’emplois.Les résultats de cette évaluation montrent que les pôles de compétitivité sont créateurs d’emploi et que les caractéristiques coopératives et résilaires des pôles ont un impact sur les performances d’emploi des entreprises. / French competitiveness clusters are an important tool of French industrial policy, they aim to develop open and collaborative innovation, growth and employment. These clusters are an atypical form of innovation organization. Studies and evaluations highlight the positive effects of French competitiveness clusters on employment. These studies were conducted with an analytical framework which does not allow taking into account accurately and appropriately the effect of clusters. This thesis proposes to measure the effects of clusters on employment from an original analytical framework. This framework, based on a microeconomic approach at firm level, considers the network and cooperative characteristics of French clusters. This evaluation measures the direct impact of firms participation into clusters projects on their employment performances and wage dynamics. From panel data, a Difference-in-Differences model is used to test the effect of the firm participation in clusters projects on the dynamics of employment and wages between 2004 and 2010, compared to companies which remained outside the clusters. Average total manpower increases by 31 jobs in firms which took part in a collaborative R&D project, compared to companies outside clusters, all things being equal. Clusters allowed the creation of 20 115 jobs, including 8 428 managerial and R&D jobs. French competitiveness clusters have a positive impact on managerial and R&D jobs, but not on workers’ jobs. In addition, clusters affect payroll for firms participating in R&D projects. The payroll increased by 11,3% for firms which participated in an R&D project between 2004 and 2010, relative to firms which remained outside clusters. Cooperative and network features of R&D networks explain these dynamics of employment and wages. The wealth of firms social capital (number of social links) negatively impacts firms employment performances. Conversely, the value of social capital companies (diversity of actors in social capital) positively impacts their employment performances. Thus, the multiplication of social links lead firms to have a large number of resources and a greater incentive to mobilize social links, to the detriment of the recruiting of new employees. However, the diversity of actors can create jobs. This diversity enables firms to benefit from an environment conducive to trade and new ideas, favourable to R&D projects and employment.These evaluation results show that French competitiveness clusters are job creators and that clusters cooperative and network characteristics have an impact on firms employment performances.

This master thesis deals with intangible results of research and development with a focus on the ICT sector from the perspective of two world-scale systems IFRS and US GAAP and their comparison with the Czech accounting standards. The introductory section focuses on the general definition of research and development by the FRASCATI manual, the macroeconomic dimension of ICT sector and ICT project life cycle, as defined by methodology MMDIS. It follows the part that deals with the specific definition of intangible results of research and development in IFRS, US GAAP and Czech accounting standards whose differences are indicated by the subsequent chapter. At the end of the thesis it deals with the examination of the relationship between the reported costs of research and development and the market price of the shares of specific companies listed on the NASDAQ comparing two methods - the date of the financial statements release and analysis of the annual changes.

This thesis explores two important aspects of growth, namely the roles of financial development and inequality. The recent literature has indicated that both the finance-growth and inequality-growth relationships are complex and not well captured through conventional linear regression analyses. Thus, most of the existing empirical literature focuses on marginal or direct growth effects, ignoring the role of possible factors, conditions and thresholds that may alter our thinking about how financial development or inequality may affect economic growth. Further, it ignores the presence of outliers, especially in cross-sectional analyses which may hinder our understanding of these relationships. Therefore, Chapter 1 addresses the issue of outliers in finance-growth literature and provides a robust sensitivity analysis of some past studies and an updated data set. Chapter 2 focuses on whether R&D plays a role, potentially as a proxy for an omitted variable, for growth and whether it has important interactions with financial development. Chapter 3 then examines the role of inequality for growth, allowing the effects to differ depending on the level of human versus physical capital accumulation.The cross-sectional analysis of Chapter 1 employs the robust regression methods of median quantile regression and least trimmed squares. It shows that the findings of past studies are sensitive to outlier observations. Further, we find that the positive effect of financial development on growth disappears and even becomes negative once we use our extended data set of 86 countries over the period 1997-2006. This last finding is consistent with Rousseau and Wachtel (2011). Moreover, we investigate whether our understanding of the finance-growth relationship can further be improved by introducing a measure of R&D into the standard analysis. We note that our measure of R&D has a strong positive effect on growth and may proxy the role of an omitted variable which is highly correlated with economic growth.Chapter 2 also uses R&D and investigates its interaction with conventionally measured financial development. It employs a variety of panel data techniques for a panel of 36 OECD and non-OECD countries to show that the relationship between financial development and economic growth is not straightforward; rather, it is conditional upon the level of innovation or R&D. Further, we find that a high level of technological innovation or R&D is associated with a weak or negative effect of financial development on economic growth. It is also noted that R&D is associated with financial innovation and the results suggest that countries with a high level of R&D may have less regulated financial systems which can adversely affect the finance-growth relationship.The third chapter explores the relationship between inequality and growth in the context of a unified empirical approach suggested by the theoretical model of Galor and Moav (2004). Based on that model, we construct a new measure, the human capital to physical capital ratio, which is used to study threshold effects in the inequality-growth relationship. Methodologically, we use threshold regression with instruments, developed by Caner and Hansen (2004), which allows us to endogenously identify the threshold human capital to physical capital ratio that alters the inequality-growth relationship. Using data on 82 countries, our results show that there exist significant threshold effects, with a level of the human capital to physical capital ratio below which the effect of inequality on growth is positive and significant, whereas it is negative and significant above it. We also test the robustness of our results using different measures of the human capital to physical capital ratio. These results are consistent with the theoretical predictions of Galor and Moav (2004).

There exist some concern regarding the sustainability of the production of R&D output and R&D capacity in South Africa. Recent trends indicated evidence of disinvestments and decay of South Africa’s R&D capacity. Questions arise concerning the detrimental effects these trends could have on South Africa’s ability to generate R&D output. As problems are addressed insufficiently and the system is allowed to decay, the costs of rebuilding the system might increase even further. The main research of objective of this thesis is to develop a computer simulation program of R&D performance and the creation of R&D output in the NSI. This model will in turn produce a tool to be used for policy testing, what-if scenario testing or policy optimisation. The purpose of the model is to simulate R&D output generated in the South African system of innovation and to model and explain the effect the presence/lack of long-term investment in R&D and R&D resources could have on the system’s ability to produce R&D output. In developing this model and by using the corresponding simulation programme, decision-makers in government and industry are provided with a tool to analyse policy alternatives. The model will provide a better understanding of the interrelationships between different elements of the NSI, in particular those interacting as funders and performers of R&D. This model will also aid decision makers in enhancing the efficiency of addressing problem areas within the South African R&D system. The contribution made by this thesis to the body of knowledge is that the development of a system dynamic model will result in the establishment of a dynamic hypothesis of the development of new knowledge through R&D in an R&D performing sector. The dynamic hypothesis will in turn lead to a method for modelling the effect of R&D investment on the development of an R&D capacity, i.e. the system’s ability to absorbed knowledge and produce R&D output. The above is essentially a dynamic description of the process around creating and absorbing knowledge through R&D activities. / Thesis (PhD (Engineering Management))--University of Pretoria, 2007. / Graduate School of Technology Management (GSTM) / PhD / Unrestricted