Abstract
AbstractThis paper employs establishment level data from the annual respondents database to consider technological differences between establishments operating in the UK. We adopt very precise measures of technology, arguably much more detailed than have hitherto been employed to address the key question of whether use of technology differs by nationality. After numerous controls we find that typically North American establishments have a higher probability of being more technologically intensive than their UK counterparts. This result also stands up in panel analysis.
Highlights
The purpose of this paper is to examine some of the differences in the use of new technology between foreign and domestically owned firms in the UK
Most of the data contained in the Annual Respondents Database (ARD) relates to the establishment and this is our basic unit of observation.vii In common with most users of these data, Haskel and Heden (1999), Girma and Wakelin (2001), Oulton (2001) and Griffith and Simpson (2002), we focus on “selected” establishments only, that is, those required by law to fill in a return for the ONS
This paper has discussed some of the heterogeneity that exists with the population of inward investors in the UK, from the perspective of technological intensity
Summary
There is a large literature that seeks to determine the scale and scope of productivity spillovers resulting from inward FDI,i the justification for this being the assumption that the foreign owned sector is more technology intensive. An investigation of this assumption, as well as identifying specific technologies is the principal motivation for this paper. The data we employ allows us to focus explicitly on specific types of technology, in particular computer equipment and employees using computers at their workplace, as well as a binary indicator asking establishments whether they employ any workers for R&D purposes.iv The motivation for the empirical model presented is designed to compare the employment of technology, between foreign and domestic plants, and to offer an analysis of differences within the foreign owned sector
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