How should the ‘Greater Mekong Subregion’ — flowing through Cambodia, China, Laos, Myanmar, Thailand and Viet Nam — close the gap with the world’s most advanced economies? A new report for the Asian Development Bank says the region can improve its prospects by further integrating into the global economy, significantly upgrading production and exports, enabling cities to be engines of growth, and improving road infrastructure and connectivity.
How does digital infrastructure affect employment in the services sector across sub-Saharan Africa? A new study covering 45 countries finds that positive effects depend on education, institutional quality and macroeconomic conditions as captured by the inflation rate. In particular, the authors find that positive effects increase in line with institutional quality.
These are just two questions tackled by our researchers in April 2021 — in 23 journal articles, five working papers and two books, among many others. Click here for the full list of our most recent publications.
Books
‘Crisis and Politicisation. The Framing and Re-framing of Europe’s Permanent Crisis‘ argues that the way in which a crisis is framed and contested determines its potential impact on the level of politicisation of European integration. This book explains that crises require a double framing: a situation needs to be identified as one of crisis in the first place and, subsequently, the nature and character of the crisis need to be specified. It demonstrates that the framing of crises, i.e., identifying one situation both as a crisis and a crisis of a particular kind, contributes to the politicisation (or depoliticisation) of the process of European integration. Edited by Dr. Michal Natorski et al.
‘New Perspectives on Structural Change: Causes and Consequences of Structural Change in the Global Economy‘ outlines both the historical roots and state-of-the-art debates on the role of structural change in the process of economic development, including both orthodox and heterodox perspectives and contributions from prominent scholars in this field. The volume consists of four main sections. The first section covers the theoretical foundations of the structural change literature. The second section presents an empirical overview of the major trends of structural change, using up-to-date data sources and methods. The third section presents a broad-ranging empirical analysis of the drivers of structural change. The fourth section examines how processes such as inclusive growth, poverty reduction, productive employment, global income distribution, and environmental sustainability are affected by structural change, and how they can be influenced by policy. Edited by Prof. Bart Verspagen, Prof. Neil Foster-McGregor, Prof. Ludovico Alcorta and Prof. Adam Szirmai.
Book chapters
‘Characterizing Growth Instability: New Evidence on Unit Roots and Structural Breaks in Long Run Time Series‘ investigates whether long run time series of income per capita are better described by a trend-stationary model with few structural changes or by unit root processes in which permanent stochastic shocks are responsible for the observed growth discontinuities. For a group of advanced and developing countries in the Maddison database, the authors employ a unit root test that allows for an unspecified number of breaks under the alternative hypothesis (up to some ex-ante determined maximum). Monte Carlo simulations studying the finite sample properties of the test are reported and discussed. When compared with previous findings in the literature, the results show less evidence against the unit root hypothesis. The study finds even fewer rejections when relaxing the assumption of Gaussian shocks. These results are broadly consistent with the implications of evolutionary macro models which posit frequent growth shifts and fat-tailed distribution of aggregate shocks. By Prof. Neil Foster-McGregor et al.
‘ICT, R&D, and Organizational Innovation: Exploring Complementarities in Investment and Production‘ examines whether there are complementarities between investments in ICT, R&D and organizational innovation, and the effects of different investment profiles on total factor productivity growth on Dutch firm-level data. The authors estimate an integrated model of investment profile adoption and total factor productivity growth. The study finds that the three investment decisions are complementary, in the sense that investing in one increases the probability of investing in another one because joint investments lead to higher TFP growth than individual investments. ICT earns on average an expected rate of return of 9.7%, followed by 6% to 7% on organizational innovation and a modest 1.4% to 1.8% on R&D in services and manufacturing respectively. By Prof. Pierre Mohnen et al.
Reports
‘The Greater Mekong Subregion 2030 and Beyond: Integration, Upgrading, Cities and Connectivity‘ shows that while the six countries of The Greater Mekong Subregion (GMS) have made impressive gains in recent decades, much remains to be done to close the gap with the world’s most advanced economies. The report indicates that GMS needs to further integrate into the global economy, significantly upgrade production and exports, enable cities to be engines of growth, and improve the quality of road infrastructure and connectivity. By Prof. Bart Verspagen, Prof. Neil Foster-McGregor and Dr. Önder Nomaler.
Journal articles
‘Job Automation Risk, Economic Structure and Trade: A European Perspective‘ discusses whether technological developments in machine learning and artificial intelligence present a significant risk to jobs in advanced countries. Results indicate that with trade, automation risk is higher in Europe, although moderately so. Automation risk in the high-productivity European countries is higher with trade, with trade between European and non-European nations driving these results. This implies that these countries do not, on balance, offshore automation risk, but rather import it. The sectors that show the largest automation risk-relation to trade are manufacturing, trade, transport and finance. By Prof. Neil Foster-McGregor, Prof. Bart Verspagen and Dr. Önder Nomaler.
‘Imported intermediates, technological capabilities and exports: Evidence from Brazilian firm-level data‘ explores how internal technological capabilities influence the relationship between imported inputs and the export performance of firms. The study finds a strong positive influence of innovation skills on the relationship between imported intermediates and export revenues. Complementarities between capabilities and importing are found only for high-quality imports and are stronger for exports of products with a higher scope for quality differentiation. The authors also observe that technological capabilities are directly correlated with export performance, confirming the view that innovation positively influences firms’ international competitiveness. However, this relationship is not found to be significant for firms that export products with a low scope for quality differentiation. Overall, the results suggest that technological capabilities and the quality of imported inputs not only benefit firms directly but also complement each other in enhancing export competitiveness. By Dr. Caio Torres Mazzi and Prof. Neil Foster-McGregor.
‘Impact evaluation in a multi-input multi-output setting: Evidence on the effect of additional resources for schools‘ proposes an innovative approach to evaluate the causal impact of a policy change in a multi-input multi-output setting. It combines insights from econometric impact evaluation techniques and efficiency analysis. In particular, the paper accounts for endogeneity issues by introducing a quasi-experimental setting within a conditional multi-input multi-output efficiency framework and by decomposing the overall efficiency between ‘group-specific’ efficiency (i.e., reflecting internal managerial inefficiency) and ‘program’ efficiency (i.e., explaining the impact of the policy intervention on performance). This framework allows the researcher to interpret the efficiency scores in terms of causality. The practical usefulness of the methodology is demonstrated through an application to secondary schools in Flanders, Belgium. By exploiting an exogenous threshold, the paper examines whether additional resources for disadvantaged students impact the efficiency of schools. The empirical results indicate that additional resources do not causally influence efficiency around the threshold. By Prof. Kristof De Witte et al.
‘How politics influence public good provision, Socio-Economic Planning Sciences‘ examines whether the shares of left-wing, populist, and extremist councillors on all regional councillors are associated with higher or lower efficiency of education, healthcare, and infrastructure provision as well as with the global spending efficiency of regional governments. On a rich panel dataset of Czech regional governments in the period between 2007 and 2017, the authors find that the share of left-wing members in the regional councils is negatively associated with the global spending efficiency. This global negative relationship appears to driven by the low performance in health provision, which outweighs a good performance in education. Finally, while the study does not find any significant relationship between the share of populist councillors in the councils and the global spending efficiency, it finds a significant and negative relationship between this share and the efficiency of education provision. By Prof. Kristof De Witte et al.
‘The Failure of Foreign Policy Entrepreneurs in the Trump Administration‘ examines the elements of a contractor presidency, which is evidenced by a president empowering top‐level policy entrepreneurs. The study first establishes that Donald J. Trump embraced the contractor presidency as an approach toward his foreign policy. The authors then identify the alternate scenarios for a failed contractor presidency and consider whether these explanations apply to Trump’s version. The subsequent case studies further demonstrate that all three instances of failure were present and that two of the five possible explanations apply to Trump’s unsuccessful contractor presidency. By Dr. Lutz Krebs et al.
‘The effects of R&D subsidies and publicly performed R&D on business R&D: A survey‘ shows that a majority of studies find complementarity between R&D subsidies and private R&D expenditures. A minority finds incomplete crowding out. Full crowding out is found only for small parts of the respective samples or small sub-sectors of the economies considered. Publicly performed R&D stimulates private R&D. The exceptions from these dominant results concern firm size, the interaction of policy instruments, and effectiveness of parts of publicly performed R&D. Important suggestions for future research derived from the literature review are the use of dynamic models with time lags and taking into account the effects of country and firm heterogeneity. By Dr. Thomas Ziesemer.
‘Ageing, Human Capital and Demographic Dividends with Endogenous Growth, Labor Supply and Foreign Capital‘ aims to find (i) the optimal reaction of the growth of the labour active in production or education, Lt, to an ageing population, and (ii) the optimal share of it in education or production. In particular, the study seeks to examine how the economy reacts to an increase in the rate of depreciation of human capital when retirement leads to the loss of qualified persons in their workforce. By Dr. Thomas Ziesemer et al.
‘Making one’s own way: jumping ahead in the capability space and exporting among Indian firms‘ provides large scale evidence on the determinants of international competitiveness of Indian manufacturing firms, focusing in particular on the role of technology, costs and imported intermediate inputs. The article suggests that innovation, in particular R&D investment, is positively related to both firms’ probability to export and firms’ export volumes. It also finds that imported intermediate inputs, incorporating foreign technology are strongly associated with expanding export activities of firms. Finally, and in contrast to much of previous evidence on developed economies, it finds that higher productivity or lower unit labour costs are not systematically associated with the probability to enter export markets, but they are positively related to higher export volumes. Overall the results point to the existence of a pattern of involvement in international trade for firms in developing countries that is not relying as a main driver on cost competitiveness. By Dr. Nanditha Mathew et al.
‘Science and technology relatedness: the case of DNA nanoscience & DNA nanotechnology‘ aims to extend our understanding of the relationship and interaction between scientific knowledge and technological knowledge by first looking at the interaction between these domains based on the stylised views of science-push and technology-pull, and then detect their similarities, differences, and potential complementarities based on the evolution of their knowledge content. The authors employ a novel method, called the concept approach for selecting publications and patents in an emerging knowledge field, namely DNA Nanoscience/Nanotechnology, then perform the co-occurrence of terms. The results not only show that both elements of the stylised ‘science push’ and ‘technology pull’ views can be recognised but also suggest that co-evolution plays a much more prominent role. By PhD fellow La Hanh et al.
‘Climate-Smart Innovations and Rural Poverty in Ethiopia: Exploring Impacts and Pathways‘ provides microeconomic evidence of the welfare effects of conservation agriculture (CA), a climate‐smart agricultural practice. The study finds that the CA practices that play a pivotal role in addressing the exigencies of rural poverty are minimum tillage, cereal‐legume intercropping, and their combination. These practices reduce the incidence and depth of poverty in areas prone to rainfall stress, which is an indication of their risk mitigation role. In contrast, crop residue retention and its combination with minimum tillage appear not to be economically attractive CA options. The results show that CA portfolios that include minimum tillage and cereal‐legume associations can accelerate efforts to reduce rural poverty and improve climate risk management. The study cautions against exaggerated expectations of CA’s economic benefits and a rigid recommendation of CA. By Wondimagegn Tesfaye, Dr. Nyasha Tirivayi et al.
‘Active Ageing Index in Russia-Identifying Determinants for Inequality‘ aims to develop a tool analysing the AAI results for the Russian older citizens from different population groups, as well as identify factors underlying the inequalities in active ageing outcomes. The results of the project provide scientific evidence for the implementation of policy measures in the target groups. The high correlation of the index values with human capital indicators (health and education) underlines the importance of the early interventions aimed at promoting and supporting human capital at the earlier stages of the life course till old age. The substantial positive connection of employment with other forms of activity stresses the necessity of developing a package of activation policy measures aimed at the retention of older adults in the labour market. At the same time, the statistical analysis shows the absence of a “dilemma of choice” between certain types of activity of the older generation, for example, between caring for grandchildren and employment, or employment and volunteering – the potential in different areas may be increased simultaneously. By Oxana Sinyavskaya et al.
‘Beef quality assurance schemes: Can they improve farm economic performance?‘ uses farm‐level data to identify the drivers of Irish farmers’ participation in Bord Bia’s Beef and Lamb Quality Assurance Scheme (BLQAS) in 2012, and assesses the impact of participation on farm gross margins. After controlling for potential self‐selection bias, the authors cannot find reliable evidence that the gross margins of participants in beef quality assurance schemes have been affected by their decision to participate. Consequently, lack of financial incentives can be a barrier to farmer participation in beef quality assurance schemes. By Prof. Cathal O’Donoghue et al.
‘Afforestation: Replacing livestock emissions with carbon sequestration‘ aims to estimate the net GHG emission benefit resulting from a land-use change with forest replacing livestock systems (dairy, beef cattle and sheep). Results indicate that the greatest carbon benefit is achieved when forest replaces dairy production. This is due to high emissions per hectare from dairy systems, and greater sequestration potential in higher-yielding forests planted on better quality soils associated with dairy production. The inclusion of harvested wood products in subsequent rotations has the potential to enhance GHG mitigation and offset terrestrial carbon loss. A hypothetical national planting scenario, afforesting 100,000 ha substituting dairy, beef cattle and sheep livestock systems could abate 13.91 Mt CO2e after 10 years, and 150.14 Mt CO2e (unthinned plantations) or 125.89 Mt CO2e (thinned plantations) over the course of the rotation. These results highlight the critical role of forest land-use change in meeting the urgent need to tackle rising agricultural emissions. By Prof. Cathal O’Donoghue et al.
‘What Drives Cross-Country Health Inequality in the EU? Unpacking the Role of Socio-economic Factors‘ investigates how individual-level differences in demographic characteristics, education, labour market factors and income shape the prevalence of poor self-assessed health in the EU. The article finds clustering of decomposition results within EU regions. When compared with Ireland, differences in the examined factors explain up to a third of excess poor health in the Southern and Central and Eastern European countries. On the other hand, the study could not explain health differences between Ireland and the other Western European countries, which tend to have poorer self-assessed population health but more favourable distributions of socio-economic factors. Cultural differences in reporting styles may be responsible for this result. By PhD fellow Gintare Mazeikaite, Prof. Cathal O’Donoghue and Dr. Denisa Maria Sologon.
‘The nascent ecology of social enterprise, Small Business Economics‘ examines the emergence of social enterprise population in the UK after 2005 when a new organizational form for the social enterprise was established. The density dependence analysis of nearly seven thousand community interest companies finds that survival is positively influenced by age and population densities of both other social enterprises and commercial organizations. Two specific patterns in population emergence are identified: social enterprise survival is more likely influenced by industry than age, a finding that the authors label the liability of specificity, and their survival benefits from the population density of commercial organizations but not non-profit organizations, a finding that they label the hybrid-commercial benefit. This research identifies the liability of specificity as a new concept in population ecology theory and the hybrid-commercial benefit as a contextual influence on social enterprise survival. By Prof. John Hagedoorn.
‘The effects of productivity and benefits on unemployment: Breaking the link‘ discusses the tight link between the quantitative effects of (i) aggregate productivity shocks on unemployment and (ii) unemployment benefits on unemployment, which is at odds with the empirical literature. The study shows that a two-sided model of labour market search where the household and firm decisions are decomposed into job offers, job acceptances, firing, and quits can break this link. In such a model, unemployment benefits affect households’ behaviour directly, without having to run via the bargained wage. A calibration of the model based on U.S. JOLTS data generates both a solid amplification of productivity shocks and a moderate effect of benefits on unemployment. This analysis shows the importance of investigating the effects of policies on the households’ work incentives and the firms’ employment incentives within the search process. By Dr. Alessio Brown et al.
‘The causal influence of increasing the statutory retirement age on job satisfaction among older workers in the Netherlands‘ analyses the effect of the increase in retirement age on overall job satisfaction in the Netherlands and satisfaction with the organisation’s personnel policy. The study shows that the increase had no effect on overall job satisfaction. An effect was only observed for satisfaction with the personnel policy in one of the groups analysed. Further, there was only a significant effect if the statutory retirement age was increased by seven months, but this relation was no longer significant when controlling for the difference in days between the date of birth and the cut-off. By PhD fellow Patrick Pilipiec, Prof. Wim Groot et al.
‘Production fragmentation and upgrading opportunities for exporters: An empirical assessment of the case of Brazil‘ studies how production fragmentation has affected the performance of Brazilian exporters in the manufacturing sector. Results indicate that fragmentation, by promoting trade in customized intermediates, can benefit developing countries and their firms by providing them with opportunities to export a range of industrial goods associated with higher productivity levels, but that performance gains after entry are not necessarily facilitated by this process. The findings therefore provide relevant insights regarding the actual benefits and the challenges of promoting GVC participation for developing countries. By Dr. Caio Torres Mazzi and Prof. Neil Foster-McGregor et al.
‘Place-specific determinants of income gaps: New sub-national evidence from Mexico‘ argues that place-specific characteristics condition the choices and behaviours of individuals living in Chiapas and explain persisting income gaps. Most importantly, they limit the necessary investments at the firm level in dynamic capabilities. Based on census data, the study calculates the economic complexity index, a measure of the knowledge agglomeration embedded in the economic activities at the municipal level. Economic complexity explains a larger fraction of the wage gap than any individual factor. The results suggest that the problem is Chiapas, and not Chiapanecos. By Prof. Carlo Pietrobelli et al.
‘Estimating Employment Gains of the Proposed Infrastructure Stimulus Plan in Post-Covid-19 South Africa‘ analyses the potential growth and employment effects of an ambitious infrastructure investment stimulus plan in post-Covid South Africa. Based on lower and upper bound values of the country’s estimated fiscal multipliers, the authors built a scenario prediction template with which output and employment expansion can be analysed within specified constraints on the fiscal space and the country’s economic dynamics. The analysis also suggests that investing in the types of infrastructure that shift the production technology could change the long-term growth trajectory, while focusing on employment-intensive investment may only generate temporary effects. By Dr. Alexis Habiyaremye et al.
‘Fettered cross-border capital flows, external finance dependence, and international trade‘ evaluates how capital controls affect exports. While the study finds that capital controls adversely affect total exports, analyses of the export margins indicate that the export distorting effect of capital controls works by deterring single and multiple export market entries by exporters, reducing export intensities of exporters, and the range of goods exporters can ship to each market destination. Further analysis in the paper reveals that the export distorting effects of capital controls is invariant of whether the restriction is on inward or outward capital controls, although the relative impact of inward capital control is higher. The author also finds that capital controls distort exports in OECD and non-OECD countries, although the effect is higher for non-OECD countries. The article discusses the policy implications of the findings. By PhD fellow Gideon Ndubuisi.
‘How important is global value chain participation for export upgrading‘ investigates how participation in the global value chain (GVC) affects the quality of exported products. Using a highly disaggregated product‐level export data from 122 countries, the article finds that participation in (backward and forward) GVC impacts positively on the quality of exported products and brings the quality level closer to the quality frontier. While this result persists in the sub‐sample comprising developed countries, developing countries only benefit from backward GVC participation. Overall, the results indicate that GVC participation matters to export upgrading but points to a potential heterogeneity on the channel of impact across countries at different levels of development. By PhD fellows Gideon Ndubuisi and Solomon Owusu.
‘Digital infrastructure and employment in services: Evidence from Sub-Saharan African countries‘ examines the effect of digital infrastructure on services sector employment. Employing panel data comprising 45 Sub-Saharan Africa countries over the period 1996–2017, the study finds that digital infrastructure contributes positively to services sector employment. However, further analyses reveal that the positive effect of digital infrastructure on services sector employment depends on education, institutional quality, and macroeconomic conditions as captured by the inflation rate. In particular, the authors find that the positive effect of digital infrastructure on services sector employment increases as institutional quality becomes better, while poor macroeconomic conditions decrease the effect of digital infrastructure on employment in services. They also find evidence suggesting that the effect of digital infrastructure on employment in the services sector tends to benefit countries at low levels of education. By PhD fellows Gideon Ndubuisi, Chuks Otioma and Godsway Tetteh
Policy briefs
‘How should policymakers tackle ‘wicked’ problems? From designing solutions to building legitimacy‘ is the first in a policy brief series that will examine societal problems from a solution design perspective. It presents the frameworks that will be applied to examine consequential challenges with deep shades of wickedness such as COVID-19, open defecation, climate change and violence against girls and women etc. By Prof. Shyama V. Ramani.
Working papers
‘Will the AI revolution be labour-friendly? Some micro evidence from the supply side‘ investigates the possible job-creation impact of AI technologies, focusing on the supply side, namely the providers of the new knowledge base. The empirical analysis is based on a worldwide longitudinal dataset of 3,500 front-runner companies that patented the relevant technologies over the period 2000-2016. Obtained from GMM-SYS estimates, the results show a positive and significant impact of AI patent families on employment, supporting the labour-friendly nature of product innovation in the AI supply industries. However, this effect is small in magnitude and limited to service sectors and younger firms, which are the leading actors of the AI revolution. Finally, some evidence of increasing returns seems to emerge; indeed, the innovative companies which are more focused on AI technologies are those obtaining the larger impacts in terms of job creation. By Dr. Daniel Vertesy, Prof. Marco Vivarelli et al.
‘A taxonomy of European innovation clubs‘ provides a novel, empirically grounded map of innovation ‘clubs’ in the EU, based on a unique analysis of micro-aggregated, country-level data. Using exploratory factor analysis the paper articulates innovation variables in a taxonomy of four ‘latent’ innovation theories: Network-Innovation-System, Kaldorian, New-Growth-Theory, and Schumpeterian. It then characterises clusters of countries (‘clubs’), based on their performance against this taxonomy, and design a new map of EU innovation clubs. The authors identify an articulated map of EU innovation hierarchy beyond the rather well-known ‘core-periphery’ structure, and interpret how some of the peripheries are functional to the ‘consolidated core’ of innovative countries, raising an issue of long-term sustainability of such hierarchies. They also find that even the most innovative clusters show concerning weaknesses. The strongest cluster in terms of its innovation system does not seem to exploit its full potential and lags behind with respect to radical product innovations. Instead, the leading cluster in terms of radical product innovations is strongly dependent on external innovative activity, is focused on scale-intensive sectors, and has a fairly weak innovation system. The periphery of small countries that show a healthy network structure, do so because they mainly include supplier-dominated firms, reliant on innovation inputs from the core. The article offers some reflections on innovation policy within a broader view of EU cohesion. By Dr. Tommaso Ciarli et al.
‘How different are necessity and opportunity firms? Evidence from a quantile analysis of the Colombian microenterprise sector‘ explores the relationship between start-up motivation and business performance, by looking into the extent to which start-up motivation (necessity vs. opportunity) influences several business performance indicators. Using the Colombian Small and Microenterprise sector public dataset, the paper analyses the factors associated with microenterprise performance using a quantile regression approach to model the distribution of different measures of business performance. Among the findings, the authors present evidence of statistically significant differences among quantiles confirming the heterogeneity of start-up motivation and other firm characteristics of the firms operating in the sector. The results show that start-up motivation is a factor that explains the difference in the distribution of the business performance indicators under study. These findings contribute to the debate around the connection between entrepreneurship and growth in the context of developing economies. Even though firms motivated by necessity show a lower level of profit, in particular for the firms that perform relatively poorly, this is not necessarily associated with null or diminishing growth rates. Necessity is not necessarily a deterrent for growth. It needs to be understood as a means to support families that otherwise would have no income-generating opportunities. By Dr. Omar Rodriguez.
‘Does entrepreneurship increase the chances of the poor?‘ investigates how entrepreneurship affects the likelihood of households graduating out of poverty. The paper analyses the effect of entrepreneurship on the outcomes of the households enrolled in the Colombian poverty reduction programme. A contribution to the Capability Approach is proposed with the inclusion of entrepreneurship as a ‘functioning’ linked to overcoming poverty. Entrepreneurship presents great potential given its multidimensional nature. In its more basic conception, it is connected to income generation, and in its more complex conception, it is related to the concept of agency. Using the Colombian UNIDOS programme (which is a programme focused on helping poor graduating out of poverty) as a case study, the author employs a Probit Regression model with sample selection to model this mechanism. The results present a positive, statistically significant impact of entrepreneurial households in their probability of graduating out of poverty. The results confirmed that entrepreneurial households show a higher likelihood of escaping from poverty. By Dr. Omar Rodriguez.
‘The influence of value-chain governance on innovation performance: A study of Italian suppliers‘ explores how value-chain governance affects the innovation performance of suppliers of intermediate products. The study takes advantage of a unique dataset of Italian firms to identify governance regimes along with suppliers’ technological capabilities and the level of explicit coordination in the value chain. Our results indicate that ‘modular’ value-chain governance is more conducive to innovation for suppliers, especially when these firms have medium capability levels. Conversely, market-based governance modes appear to strongly reduce the innovativeness of suppliers with low capability. These patterns are also reflected in export performances and sales of innovative products. The results go partially against other findings in the GVC literature, whereby relational value chains are seen to provide the most favourable environment to learn and innovate. Interestingly, the highest levels of technological capabilities consistently reduce the correlation between supplying intermediates and innovation performance, which indicates that technology gap is an important mediator of learning within value chains. By Prof. Carlo Pietrobelli, Dr. Caio Torres Mazzi et al.
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