Sectoral patterns of technical change: Towards a taxonomy and a theory

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1 Sectoral patterns of technical change: Towards a taxonomy and a theory 기술경영협동과정 박사 4학기 유광용/ 김동희

2 Contents Keith PAVITT, Research Policy 13 (1984) Chapter 1 Summary Chapter 2 Critiques Chapter 3 Applied method and examples

3 Summary Purpose of this paper is to explain similarities and differences amongst sectors in the sources, nature and impact of innovations Economics development and social change s essential factors: production, adoption and spread of technical innovations Technical innovation is a distinguishing feature of the products and industries where high wage countries compete successfully on world markets Data: Volume-2,000 significant innovations and of innovating firms in UK Period: 1945~1979 Industry coverage: 4,3 digit(under 2 digit, expected distortion of results) Main body of Inference: Based on various experts opinion

4 Sources of technology User s needs Means of appropriating benefits Summary

5 Summary High degree of dependence on external sources for process technology Relatively small proportion of innovative activity devoted to product innovations Relatively small average size of innovating firm Technological diversification mainly vertically into production technology with very little movement into other product markets Relatively big contribution to innovations in the sector by firms with their principal activities

6 Summary The main technological linkages amongst different categories of firm Supplier Dominated firms Sciencebased firms Scaleintensive firms Specialized equipment suppliers

7 Summary Science and technology push vs. demand pull The close relationship between investment in user sectors and innovative activities in upstream capital goods(coincidence with Schmooker, Scherer) Investment activities in supplier dominated and production intensive firms are likely to stimulated innovative activities in both the productions engineering departments of user firms, and the upstream firms supplying capital goods. Unexpectedly, Science-based firms a similarly neat and lagged correspondence between the volume of investment in user sectors and of innovative activities. Scherer found that in materials sectors, in contrasts to capital goods, the statistical relationship between the volume of innovative activities and of investment in user sectors is much weaker

8 Summary Product vs. process innovation Assumptions The relative importance of product innovation in a sector to be positively associated with its R&D and patent intensity Negatively associated with proxy measures of the scale and complexity of its process technology, such as its capital/labour ratio, average size of production plant, or sales concentration ratios.

9 Summary The locus of process innovation Assumptions Supplier-dominated firms will be small in size and innovations to come by definition from suppliers In sectors with production intensive firms and plan to be large in size, and a high proportion of process technology to be generated in-house

10 Summary Diversification Assumptions The relative importance of upstream(i.e. vertical) technological diversifications into sectors supplying equipment is likely to be negatively associated with R&D intensity Positively associated with the scale and complexity of production technology

11 Critiques Is it possible to adopt in recent technology trend? New categories is need! Using patent DB Patent Network Analysis Method

12 Applied method and examples IPC and SIC concordance [by The importance of technology based inter-sectoral linkages for market share dynamics, Keld Laursen and Valentian Meliciani(1999)]

13 Applied method and examples IPC and SIC concordance GICS(Global Industry Classification Standard)

14 Applied method and examples Co-IPC Network Analysis results (2006~2008, by ucinet) A01G A23B A41D A41F A47C A47G A47L A61B A61M A61N A63B A63F A63H B01D B01J B01L B02C B03C B05D B08B B09B B23C B25J B29C B30B B32B B41J B60B B60J B60K B60R B60T B60W B62D B64F B64G B81B B81C B82B C01B C01G C03C C04B C07D C08G C08J C08K C08L C09D C09J C12M C12N C12Q C22C C23C C25D D02G D03D D04B E01F E04B E04C E04H E05B F02D F03G F16B F21V F23D F23G F24B F24C F24F F24J F25B F25D F28D F41G G01B G01C G01D G01G G01H G01J G01K G01L G01M G01N G01P G01R G01S G02B G02C G02F G03B G03F G05B G05D G05F G06F G06G G06K G06N G06Q G06T G07B G08B G08C G08G G09B G09F G09G G10L G11B G11C H01B H01C H01F H01G H01H H01J H01L H01M H01P H01Q H01R H01S H02H H02J H02M H02N H03B H03D H03F H03G H03H H03J H03K H03L H03M H04B H04H H04J H04L H04M H04N H04Q H04R H04S H04W H05B H05K

15 Applied method and examples How to build Co-IPC Network Patent A B C D E IPCs a b c d e f g h i j k l m a i k c b f m Co-IPC network h j l e d g X : : : : : C X X Patents by IPCs matrix (n х k, if k=5) Co-IPC matrix (k*k) Weighted matrix

16 Applied method and examples Patent Network by forward citation By forward citation, new categories will be created Citation is powerful component for a representative of technology innovation s flow Recently, technology innovation has highly relationship with patents

17 Kwang yong Yoo