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We present direct econometric tests of the induced innovation hypothesis. We test whether the price of herbicides relative to labor, machinery, and land, as well as research stocks, affects the direction of technological change and long-run substitution of herbicides for labor, machinery, and land, in U.S. agriculture. In the long run, a decrease in the price of herbicides relative to labor induces a strong labor-saving and herbicide-using bias in technological change. Public research induces labor-saving, machinery-saving, land-saving, and herbicide-using biases. Exogenous changes in scientific knowledge and/or spillovers from other sectors are labor and machinery saving and herbicide using.

In this paper, we seek to understand how changes in product architecture affect the innovation performance of firms in a complex product ecosystem. The canonical view in the literature is that changes in the technological dependencies between components, which define a product’s architecture, undermine the innovation efforts of incumbent firms because their product development efforts are built around existing architectures. We extend this prevailing view in arguing that component dependencies and changes in them affect firm innovation efforts via two principal mechanisms. First, component dependencies expand or constrain the choice set of firm component innovation efforts. From the perspective of any one component in a complex product (which we label the focal component), an increase in the flow of design information to the focal component from other (non-focal) components simultaneously increases the constraint on focal component firms in their choice of profitable R&D projects while decreasing the constraint on non-focal component firms. Second, asymmetries in component dependencies can confer disproportionate influence on some component firms in setting and dictating the trajectory of progress in the overall system. Increases in such asymmetric influence allow component firms to expand their innovation output. Using historical patenting data in the personal computer ecosystem, we develop fine-grained measures of interdependence between component technologies and changes in them over time. We find strong support for the empirical implications of our theory.

Researchers began investigating the diffusion of renewable energy technologies (RETs) in the late 1990s, and, up to today, a variety of authors have presented different approaches to understand the special characteristics of RET diffusion. However, one factor has been thus far disregarded in the research: the influence of raw material prices on RET diffusion. The dependence of a multitude of technologies on raw material prices became especially apparent in recent years due to rather sudden and volatile price movements in raw material markets. Thus, the aim of this work is to contribute to the research by providing evidence for a direct linkage between raw material price developments and RET diffusion.

A theoretical framework used in this article derives from the concept of induced diffusion. This empirical study is based on publicly available data of 18 Organisation for Economic Co-operation and Development (OECD) countries over 20 years and uses multivariate regression analysis to identify the corresponding diffusion models for selected established and emerging RETs.

Results reveal that crude oil prices play a crucial role in the diffusion of emerging RETs. In addition, a joint reflection of induced diffusion and path dependencies as the theoretical foundation of RET diffusion models might be reasonable.

This paper makes a significant contribution to the literature on induced diffusion in the field of renewable energies by providing insights from publicly available data from 18 OECD-countries. The findings are highly relevant for managers of the energy industry and policymakers in this field.

The purpose of this paper is to identify the effects of recent demographic transition and rising labor costs on agricultural production structure and pattern in China during 1998-2012.

The authors, first, theoretically discuss the effects of changing relative input prices due to rising labor cost on producers’ decisions regarding input mix (substitution effect), output level, and product quality (output effect). A logarithmic mean Divisia index decomposition method is then applied to empirically identify these effects at aggregated levels, followed by an analysis based on the visualization of land use indicators on changing cropping patterns across Chinese provinces.

The authors find that tightened effective agricultural labor supply and rises in rural labor costs are associated with divergent changes in input mixes and output choices across products. Producers of land-intensive products focusing more on input mix adjustment, while those of labor-intensive products seem to more likely to adjust output choices. Producers’ adaption strategies also varied across Chinese provinces due to natural conditions, leading to shifts and concentrations in the regional distribution of agricultural products, with lower-value bulk products concentrating in the plain areas, whereas higher-value horticulture products increasingly prevailing in sloped areas.

This paper illustrates how adjustments in input mixes and output choice in Chinese agriculture counteracted disadvantages caused by rising labor costs and how such adjustments are product and region specific. Based on these observations, implications regarding further innovations in production technology and institutional arrangements needed within China’s agricultural sector are highlighted in the paper.

The decline in the share of agriculture in both output and employment is a central feature of structural transformation. The authors present the distinct features between developed and developing countries in the process of agricultural share decline and dig into the real changes that occurred in the agricultural sector during the rapid decline in the agricultural share.

Taking the declining share of agriculture as a clue, the authors depict heterogeneous characteristics in the declining share of agriculture in developed and developing countries. Secondly, by criticizing the factor substitution hypothesis, the authors argue that the essence of agricultural transformation is the process of agricultural industrialization characterized by the combination, reconstruction, and continual changes of agricultural production factors. Finally, based on the theory of agricultural industrialization, this paper analyzes the combination of factors in different stages of declining agricultural share in typical economies.

In this paper, the authors find that the rapid decline in agricultural employment share is accompanied by an increase in the returns to agricultural production in developed economies. In contrast, the decline in agricultural employment share in developing economies lags, and agricultural production efficiency is way much poorer than that of developed economies. Taking the United States and Japan as examples, the authors find that the agricultural sector underwent agricultural industrialization, featured by reconstruction and upgrades of production factors combination.

The authors systematically reveal why huge changes occurred in the agricultural sector in developed economies during structural transformation, and also provide further thoughts and lessons for developing countries to accomplish agricultural modernization.

The purpose of this study is to analyze the nonlinear relationship between electricity consumption (EC) and electricity transmission losses (ETL) in Ghana. Also, we examined how ETL moderate the effect of EC on economic growth in Ghana from 1980 to 2021.

We used timeseries data from 1980 to 2021 within an autoregressive distributed lag framework to analyze the links among ETL, EC and economic growth in Ghana.

Findings show the existence of an asymmetric long-run relationship between EC and ETL. Also, the negative effects of ETL on EC are bigger in the long run. In addition, ETL and EC combine to reduce economic growth, in the long run, providing evidence for the energy-led growth theory in Ghana. Population and inflation were also found to have a significant effect on economic growth in Ghana.

We examined the nonlinear nexus of EC and ETL, which extant studies have ignored in discussing the link between EC and economic growth. Again, we showed that ETL reduces EC causing a reduction in economic growth.

This paper aims to explore whether firms’ performance determines innovation using a sample of Indian manufacturing firms. The impact of innovation on firms’ performance across specific countries has been discussed in the literature. However, the effect of firms’ performance on innovation output, especially for a developing country like India, remains an open question. Against this backdrop, this paper investigates whether firms’ performance determines innovation in Indian manufacturing firms.

The authors use patent filing information to instrument innovation and total factor productivity to instrument firms’ performance. The patent data are collected from the Patent Search and Analysis Software database and firm-level data from the Centre for Monitoring Indian Economy’s Prowess database. The study uses a sample of 309 Indian manufacturing firms from 2005 to 2021. Given the count nature of the data set used in this study coupled with over-dispersion issues, the authors have used the negative binomial regression to estimate the empirical specification of the models. There could be a possible problem of endogeneity due to the contemporary nature of innovation and firms’ performance. Therefore, to address the possible issues of endogeneity in the model, the authors have used the Generalized Method of Moments (GMM) estimators for more robustness checks of the empirical results.

The empirical results exhibit a positive and significant impact of firms’ performance on the innovation output, validating that firms’ performance determines innovation in Indian manufacturing firms. The posterior estimation results using GMM estimation also corroborate that firms’ productivity is a determining factor for the innovation output of Indian manufacturing firms. Furthermore, empirical results exhibit that the ex ante innovativeness of the firms substantially affects the current innovation. This validates that the firms’ prior experience, learning by doing and past innovative efforts are more likely to precipitate more innovation in the current period.

This paper’s main contribution is empirically estimating whether firms’ performance determines innovation, which is hardly discussed in the existing innovation literature, specifically using Indian manufacturing industries. Further, it adds to the existing literature in two other prominent ways. First, this paper investigates whether firms require ex ante expertise to innovate or if a firm starting from scratch can innovate significantly without any hindrances. Second, it enriches the literature by instrumenting innovation in output terms with the patent application against input measures of innovation, such as research and development expenditures, acquisition of machinery and equipment, while discussing the relationship between firms’ performance and innovation, specifically in the context of a developing economy like India.

The purpose of this paper is to examine firms’ knowledge-sourcing behavior in green technology development with respect to the home country’s market- vs nonmarket environmental policy stringency.

This paper empirically analyzes the effects of market and nonmarket environmental policy stringency on firms’ knowledge sourcing activity with patent data from OECD countries during 1991–2010, across five categories of green technologies.

When a nation establishes more stringent market environmental policies, firms likely source more international knowledge rather than domestic knowledge about green technology, up to a point. After that level, this balance shifts (inverted U-shaped curve) due to the risks associated with greater investment costs and commerciality. Nonmarket environmental policies instead should exhibit a positive, linear relationship with international relative to domestic knowledge sourcing. This study also reveals the dynamic roles of a firm’s green technological capability with market-based environmental policy stringency and a substitutive role of the capability with nonmarket-based environmental policy stringency.

This study shows the effect of market and nonmarket environmental policy stringency on firms’ knowledge sourcing. The findings provide meaningful implications for policymakers regarding the optimal levels of market and nonmarket environmental policy stringency that will enhance their countries’ green technology development.

This paper enriches the literature of environmental policy and knowledge sourcing and offers the direction of future research of how environmental policy stringency influences a firm’s knowledge sourcing for green technology development.

A research and development project disseminated ecological technologies to approximately 3,250 vegetable farmers through farmer field schools (FFS) in four districts of Bali and East Java provinces of Indonesia. This article aims to assess the economic sustainability of vegetable production after FFS participation.

A survey randomly sampled 500 farmers, comprised of FFS participants (50%) and non-FFS participants (50%). Based on 1,000 farm operations, this analysis employed input-saving technology as the fundamental model examined using the double-difference method. Simultaneous reduction of agrochemicals and improvement of productivity represent indicators of economic sustainability.

Results indicate that pesticide use decreased without jeopardising farm productivity; moreover, vegetable production increased. These findings indicate that the ecological technologies transferred through FFS significantly improved economic sustainability performance.

This study purposively selected farmers who grew tomato and chilli. Thus, the outcomes are not generalisable to other crops.

FFS continues to be an effective method for transferring agricultural technologies to farmer communities. Policymakers are recommended to use FFS for disseminating beneficial and sustainable technologies to broader agricultural communities.

The adoption of ecological technologies provides positive economic and ecological milieus.

This study employs a double-differences approach to verify input-saving technological progress. Therefore, the performance of economic sustainability attributable to the project intervention is theoretically justified.