Topic Research and Development

Entrepreneurs and Their Impact on Jobs and Economic Growth: Updated

Entrepreneurs, creators of new firms, are a rare species. Even in innovation-driven economies, only 1–2% of the work force starts a business in any given year. Yet entrepreneurs, particularly innovative entrepreneurs, are vital to the competitiveness of the economy and may establish new jobs. The gains of entrepreneurship are only realized, however, if the business environment is receptive to innovation. ...

The Internationalisation of R&D: Past, Present and Future

In this perspective paper we discuss major trends that will shape the internationalisation of business R&D in the future. New scientific discoveries will provide new opportunities to innovate; the growing scientific capabilities in emerging economies will create new hot spots for relevant knowledge; new research activities will emerge from the need to combat climate change; digital technologies including ...

Buyer Power and the Effect of Vertical Integration on Innovation

Our article investigates the impact of vertical integration (without foreclosure) on innovation. We compare cases where either (i) two manufacturers or (ii) a manufacturer and a vertically integrated retailer invest. Then, the independent manufacturer( s) and the retailer bargain over non-linear contracts before selling to consumers. We show that vertical integration always increases the incentives ...

Acquiring R&D Projects: Who, When, and What? Evidence from Antidiabetic Drug Development

This paper analyzes M&A patterns of R&D projects in the antidiabetics industry. For this purpose, we construct a database with all corporate individual antidiabetics R&D projects over the period 1997 - 2017, and add detailed information on firms’ technology dimension using patent information, next to their position in product markets. This allows us to identify the identity of targets and acquirers ...

Editorial: Fostering the Energy Transition Amidst Geopolitical and Climate Risks in a Post-covid World

Energy Asset Stranding in Resource-Rich Developing Countries and the Just Transition: A Framework to Push Research Frontiers

Climate policy will inevitably lead to the stranding of fossil energy assets such as production and transport assets for coal, oil, and natural gas. Resource-rich developing countries are particularly affected, as they have a higher risk of asset stranding due to strong fossil dependencies and wider societal consequences beyond revenue disruption. However, there is only little academic and political ...

Technological Progress, Occupational Structure, and Gender Gaps in the German Labour Market

We analyze if technological progress and the change in the occupational structure have improved women’s position in the labour market. We show that women increasingly work in non-routine manual and in interactive occupations. However, the observed narrowing of the gender wage gap is entirely driven by declining gender wag gaps within, rather than between, occupations. A decomposition exercise reveals ...

Revisiting Investment Costs for Green Steel: Capital Expenditures, Firm Level Impacts, and Policy Implications

The transition of the steel sector to carbon neutrality requires significant investment. In this study, we aim to better understand the scale of investment required for a transition to hydrogen-based steelmaking and the ability of listed steelmakers to finance this investment. First, we analyze how capital expenditures are estimated in the academic literature and compare them with reported investment ...

Persistent US Current Account Deficit: The Role of Foreign Direct Investment

This paper re-evaluates the US external deficit which has considerably widened over the 1990s. US safe asset provision to the rest of the world is the dominant explanation for the persistent nature of the US external deficit. We suggest that apart from the safe asset hypothesis, there is an important role for technology shocks originating in US multinational companies that have a strong foreign direct ...

Mixed mid-term review for German traffic light coali-tion in the energy transition; significant effort needed to achieve targets

December 13, 2023 – The German traffic light coalition began its term two years ago with ambitious energy policy goals. Halfway through the legislative period, its track record is mixed. Good progress has been made in some areas, but in others a large gap between targets and the status quo remains. The Ampel-Monitor Energiewende by the German Institute for Economic Research (DIW Berlin) shows...