Technology, Innovation and Productivity

 

(a) The Economic Impact of Information and Communication Technologies (ICT): Research in this area has taken place as part of an international research project funded by the European Commission’s Institute for Prospective Technological Studies. The research team includes international and national experts from eleven European countries. This research focused on an in-depth analysis of the consequences of ICT use and globalisation on regional economies. This analysis suggests the following key conclusions: the relationship between ICT, globalisation, elements of regional innovation system and regional development is systemic; ICT is a key sector for regional development; ICT have a tendency for spatial concentration; regional framework conditions and history matter. It appears that the level of regional development has conditioned the extent and the configuration of the interplay between globalisation, ICT and elements of the regional innovation system.

(b) International Technology Spillovers and Productivity. Research in this area is funded by the Directorate General Research of the European Commission. Siedschlag (2009) shows that international technology spillovers can take place through a number of channels: embodied technology can be transmitted through international trade with goods and services; capital flows; and mobility of scientists; disembodied technology is diffused via international trade of technology. However, international technology diffusion is neither inevitable nor automatic. Empirical evidence suggests that international technology spillovers are conditioned by domestic R&D expenditure, human capital and the quality of institutions. Thus, domestic R&D expenditure has the potential to generate total factor productivity growth from both innovation and technology transfer. This effect is different for laggard countries and technology leaders. Further research funded under the EU 6th RTD Framework Programme (Schiffbauer, Siedschlag and Ruane, 2009) finds that the effects of foreign acquisitions on firm productivity are heterogeneous across industries.  

 

(c) Internationalisation of Firms and Productivity. Research in this area, funded under the Irish Research Council for the Humanities and Social Sciences focused on decomposing the sources of labour productivity growth. Gleeson and Ruane (2009) finds that exporters are the dominant sources of productivity growth, with over 90 percent of that growth coming from foreign-owned enterprises. This confirms the huge dependence of Irish manufacturing on foreign direct investment and the continuing poor productivity performance of indigenous firms. While the restructuring in the Irish manufacturing sector has contributed to productivity growth, most productivity growth occurs within firms.

 

Other members of staff currently working in this area include: Stefanie Haller, Edgar Morgenroth, Gavin Murphy, Frances Ruane, Richard Tol,  Donal Smith and Xiaoheng Zhang.

The ESRI is ranked among the top 5% of research institutes in the world in the field of Efficiency & Productivity.