Low-technology Industries Research Articles

Can companies' input of data factor eliminate investors' home biases?

Data as a new production factor plays an increasingly crucial role in influencing investor decision-making. This paper investigates how the data factor input, measured using a two-stage regression decomposition approach, impacts investors' home biases. Analyzing a sample of Chinese listed companies from 2012 to 2022, we find that: 1) companies' input of data factor effectively reduces investors' home biases; 2) this reduction is primarily driven by a decrease in information asymmetry; 3) the mitigating effect of data factor input is further strengthened by external factors such as heightened attention from analysts and stronger corporate governance. Additionally, our results reveal that this mitigating effect is more pronounced among companies facing high financing constraints, possessing low reputations, operating in low-technology industries, or located in regions with underdeveloped digital financial infrastructure. These findings offer new insights into underscore the critical role of data factor in shaping capital markets.

Australian innovative activity and international technology, 1854–2016

Abstract Has Australia’s focus as a producer and exporter of natural resources—often considered low technology industries—constrained the development of its innovation system? We exploit a new digital database from the Commonwealth Patent Office to investigate this question. We find that the focus of domestic innovativeness supported key industries for Australian development and complemented technological specialization by foreign patent applicants, particularly in European and American manufacturing. The results support the argument that shifts in national technological orientation is a relatively long game and that technical advantage is shaped by a nation’s stage of economic development.

Impact of ISO 14000 on Energy Intensity of Manufacturing Plants in India

Using plant-level data for 2008-2017, we examine the impact of the adoption of ISO 14000 by Indian manufacturing plants on their energy intensity. The propensity-score-matching difference-in-difference (PSM-DID) estimator is used to assess the effect. Our results show that the adoption of ISO 14000 tends to reduce energy intensity in Indian manufacturing plants, especially among the low and low-medium technology industries. ISO 14000 lowers energy intensity in industrial plants in energy-intensive industries, and the effect is stronger for the group of such industries covered under the Perform–Achieve–Trade (PAT) scheme of the Indian government, a market-based compliance mechanism for energy efficiency improvement.

Agglomeration economies: different effects on TFP in high-tech and low-tech industries

ABSTRACT We study the impact of agglomeration effects on firms’ total factor productivity (TFP) for industry groups defined by technology intensity. This allows for non-uniform effects on firms depending on their technological level. We find that urban economies have the largest impact on firm productivity in high-technology industries, while they have no effect in low-technology industries. For firms in the latter industries, the diversity of the local economic structure is relevant. Localisation effects have a consistently positive and significant impact on TFP, with the effect increasing with the technology intensity of the industries.

How exports affect green technology innovation in small- and medium-sized enterprises? Evidence from Chinese companies listed on the growth enterprise market.

Using matched data from China Stock Market and Accounting Research (CSMAR) and Wind databases, this paper explores the impact of exports on the green technology innovation (GTI) of small- and medium-sized enterprises (SMEs). The mechanisms are analyzed through a two-way fixed effects model. First, exports contribute significantly to GTI of SMEs. Second, exports mainly contribute to GTI of SMEs by attracting government subsidies and increasing firms' environmental awareness. Third, from the perspective of heterogeneity, exports significantly positively impact GTI of SMEs especially in medium- and low-technology industries and in eastern China. The impact of exports on GTI is also examined by replacing core variables, modifying the sample for robustness testing, and utilizing both urban river density and distance from the center of the city to the nearest port as instrumental variables for endogeneity test. With the continuous development of international import and export trade, enterprises increase GTI research and development by attracting government subsidies, improving the quality of disclosed information, and increasing environmental awareness.

Export Participation and Employment of Contract Workers in Organized Manufacturing Plants in India

The share of contract workers, i.e., the workers employed through contractors, as against the workers directly employed by factories, out of all workers employed in India’s organized manufacturing has increased significantly over the last three decades, reaching 38.6% in 2019–2020. Using plant-level panel data for the years 2008–2009 to 2017–2018, the paper examines econometrically whether export participation by the organized sector manufacturing plants in India induced them to hire contract workers. The empirical results indicate that the export market participation by manufacturing plants tends to raise their probability of employing contract workers. This effect of export participation on the probability of employing contract workers is found for plants in the medium-low and low-technology industries, and the impact is bigger in the medium-high and high-technology industries. The effect is found to be relatively stronger for bigger plants than small-sized plants. In high-technology industries, in-house firm-specific skill formation is important for firms for their being able to export their products, and, hence, in many technology-oriented plants of these industries export participation should not induce them to employ contract workers. Some support for this hypothesis is found in the empirical results obtained in the study.

Processes of spatial concentration and specialisation of industry by the intensity of R&D work in the Lower Silesian Voivodeship (Poland)

The aim of this article is to assess the spatial diversity and to identify the spatial distribution of industry, as well as the directions and scales of its transformations based on the processes of spatial concentration and specialisation of the industrial activity from the perspective of the intensity of research and development (R&D) work in the areas of the Lower Silesian Voivodeship. The analysis of the location of industrial activity was conducted based on the entities registered in section C (manufacturing) of the Polish Classification of Activity (PKD). Spatial structures of the industry innovation are presented by applying the classification of manufacturing concerning the intensity of R&D for high-technology, medium high-technology, medium low-technology and low-technology industries. The research was conducted for municipalities divided into cities and rural areas. The results indicate significant changes that took place in the years 2009–2020 in the spatial structure of the whole region, as well as in the urban spatial distribution due to the occurring processes of concentration and specialisation of industrial activity. These changes were simultaneously accompanied by the decreasing level of the concentration of industrial production. Additionally, the Lower Silesian Voivodeship is also characterised by significant spatial diversity of the concentration and specialisation processes of industrial activity. The identified regularities demonstrate the growing role of the suburban zones of large cities, which is particularly visible in the example of Wrocław, an area of intensive diffusion of industrial activity from the central hub. These processes also diffuse into smaller urban centres in the voivodeship.

Determinants of technological and non-technological innovation: empirical insights from Indian manufacturing industries

PurposeThis paper empirically explored the influence of external and internal factors on technological and non-technological innovation of 5747 Indian firms. The study also explored novel insights about manufacturing firms by segregating them into high-technology and low-technology industries.Design/methodology/approachThe study employed hierarchical regression analysis to analyse a cross-sectional dataset gathered from the World Bank enterprise survey. The firms are segregated into high-technology and low-technology industries based on the technology-intensity classification of the manufacturing industry given by the Organisation for Economic Co-operation and Development.FindingsThe main results highlight that technological and non-technological innovation was primarily driven by internal resources and capabilities rather than external factors. The authors found the highest effect of research and development spending on both forms of innovation. In both high-tech and low-tech industries, technology transfer is positively associated with technological innovation and negatively associated with non-technological innovation. Furthermore, external business support has substantially influenced non-technological innovation in low-tech industries.Originality/valueThis study used two-step hierarchical regression to explore the influence of external and internal factors on technological and non-technological innovation separately. Exploring determinants of innovation in high-technology and low-technology industries also brings the distinct prerequisites of enhancing innovation to the attention of policymakers and industry experts.

Digitalization and global value chain participation: firm-level evidence from Indian manufacturing

We analyze the role of digital infrastructure in shaping the global value chain (GVC) participation of Indian manufacturing firms. To examine the digitalization and GVC nexus, a rich, firm-level, unbalanced panel of 4875 manufacturing firms from the past two decades is used to detail the rising significance of digital infrastructure in the Indian context and then to examine empirically the relationship between digitalization and GVCs. Employing a logit model, we observe a positive and significant association of digitalization on firms’ GVC participation. Further, subsample results highlight that digitalization promotes the integration of small firms and firms from low-technology industries into the GVC. Moreover, the findings of our analysis are robust to alternate measures of GVCs.

Does the development of the Internet improve the allocative efficiency of production factors? Evidence from surveys of Chinese manufacturing firms

Using data from the Annual Survey of Industrial Firms conducted from 1998 to 2013 in China, this study examines whether the expansion of the Internet improves the allocative efficiency of production factors in manufacturing industry. Allocative efficiency is measured by the deviation of the actual output from the hypothetical efficient output level. We construct an instrumental variable based on historical data to address potential endogeneity. The results highlight that the Internet improves capital and labour allocative efficiency and has heterogeneous effects in different industries. The effect is larger in low-technology industries. As a technology augmenting production factor, the Internet significantly improves the allocative efficiency of capital (labour) in the industries that use capital (labour) intensively. The mechanism analysis reveals that the Internet improves the allocative efficiency of firms by reducing their overhead expenses and raising the exit rate of inefficient firms from the market. This study extends the research on the effect of Internet and explores the causal relationship between the Internet and the allocative efficiency within industries, to highlight the importance of digital technology in economic growth, especially in the context of developing countries.

Absorptive Capacity and Technology Spillovers: A Quantile Regression Approach

Employing a quantile regression estimator, the study presents new evidence on the role of human capital in exploiting the technology effects from foreign direct investment (FDI) in low-technology industries. A new model of human capital to capture the non-linearity of FDI effects according to employees’ educational qualifications was developed. This study examined whether workers’ absorptive capacity had different effects on FDI spillover at different points of conditional distribution. Although the study found that the ability of employees with degrees and diplomas to exploit foreign technology exceeds the median quantile, it also acknowledges the existence of both ‘over-skilled’ and ‘over-educated’ workers at a higher quantile of FDI distribution. As the problem of shortages and mismatch between skills and education for workers with degrees and diplomas still hinders firms from applying advanced technologies from FDI, this study proposes using the law to make firms work with universities. Firms could inform universities of the industry’s in-demand skills regularly and get involved in the development of the university curriculum to ensure that graduates are equipped with skills and knowledge that can be ‘transmitted’ to different industries.

Motion condition monitoring of underwater gliders based on deep learning and dynamic identification

— With the development of low power technology and battery industry, underwater gliders (UGs) have realized a remarkable endurance. As autonomous platforms for long-term observation in complex ocean environment beyond visual line of sight, their motion condition monitoring appears to be particularly important for adjusting flight parameters in real time or finding malfunction in time. This paper proposes a novel method of motion condition monitoring for UGs. Firstly, a dynamic model is established for data collection, which takes system errors and variables influenced by disturbances into consideration. Then, the deep learning networks are trained and tested with datasets from dynamic model, which is used to identify the variable parameters by importing the cleaned and standardized glider datasets based on the multi-objective optimization problem. Finally, the motion conditions of UGs in three-dimensional space can be monitored by analyzing the trend of identification parameters, which contributes to flight parameter adjustment for improving glide efficiency and trajectory accuracy, or fault diagnosis in time for avoiding loss and potential risks. The method proposed in this paper is verified by massive trial data of Petrel-L, which is also appropriate for other marine autonomous systems.

The role of network relations and previous knowledge in the ACAP of low-tech intensity clusters

PurposeThe mainstream research on knowledge transfer and absorptive capacity (ACAP) in clusters was conducted in high-technology industries in developing countries. However, low technology intensity clusters present a different scenario that might affect this external knowledge transfer and ACAP. This study aims to understand the role of network relations and previous knowledge in the ACAP of a low-technology intensity cluster.Design/methodology/approachThe authors analyzed companies from a low-technology industry in an emerging country. The authors collected 109 questionnaires from companies in the Brazilian footwear manufacturing cluster. Factor analysis led the independent variables to be regrouped into eight variables. This data set was analyzed using regression techniques.FindingsIn a low-tech cluster prevalently populated by small companies, companies have access to novelties and knowledge that influence their products and production through the frequency and stability of the network’s relational ties with the supplier. The quality of relationships with clients may provide access to products, materials, technologies and learning. Small companies consider intra-cluster competition because of limitations in accessing external competition. Although low-tech companies need to exchange knowledge and technology with suppliers and clients outside the cluster, most companies are limited in size because of liabilities. In a low-tech cluster dominated by small companies, access to better purchasing costs, new technologies or innovations is an expected weakness. Intra- and extra-cluster ties positively influenced ACAP, as did organizational capabilities, whereas employees’ skills did not.Originality/valueIndividual skills are not related to ACAP in low-technology intensity clusters. The level of ACAP in small and medium enterprises (SMEs) can be explained by the scope of individuals’ knowledge and other individual capabilities.

The evolutionary patterns of intercity co‐invention networks in the Greater Pearl River Delta, China: A comparative analysis based on the technological intensity of industry

AbstractA substantial amount of research has examined the collaborations within technology‐based industries, but how technological intensity relates to the evolution of interregional research collaboration is less well understood. This paper investigates the dynamic changes of spatial structure and determinants of intercity research collaborations in the sectoral innovation networks of high‐tech industries contrasting to low and medium technology (LMT) industries in the Greater Pearl River Delta (GPRD), China. Using the sectoral patent application data over the period 2008–2016, the social network analysis results confirm a higher level of triangles in the co‐invention network of high‐tech industries than within LMT industries. Moreover, the empirical results through Exponential Random Graph Model (ERGM) show that, compared to LMT industries, collaboration in the co‐invention network of high‐tech industries is less sensitive to geographical and linguistic distance, while more subject to economic distance, regional educational level and government support with time. In addition, cognitive proximity and regional R&D intensity are both important prerequisite in the formation of these two collaborative networks.

A configurational approach to the intended use of IPO proceeds and performance

PurposeThe authors seek an answer to the research question: how do the disclosure of the intended use of initial public offering (IPO) proceeds and firm characteristics jointly influence IPO performance?Design/methodology/approachData on the use of proceeds, firm age, size, high- or low-tech industry, and the length of the use of proceeds section were collected from 341 IPOs in the USA, UK, and Hong Kong. Fuzzy-set Qualitative Comparative Analysis was used to predict which configurations of IPO use of proceeds and firm characteristics consistently led to above-average IPO performance.FindingsTen configurations of causal factors were found to lead to above-average IPO performance. Disclosure of IPO proceeds use matters for IPO performance but is contingent on firm characteristics. Whether a firm is in a high- or low-technology industry along with its size and age have distinct effects on which intended uses of proceeds are beneficial and how long their intended proceeds section must be to lead to above-average IPO performance.Originality/valueThese findings contribute to a multidimensional view of IPO performance. The authors use information processing and a management perspective to see how the use of proceeds sections help frame an IPO’s equity story. The use of a configurational methodology and a management perspective shows how IPOs can be viewed as a bundle of attributes.

Internal and outsourced research and development: are they complements or substitutes?

ABSTRACT A theoretically ambiguous relationship exists between internal and outsourced research and development (R&D). Along these lines, previous empirical studies report mixed results regarding the nexus between these two broad forms of R&D activity. Using a firm-level unbalanced panel dataset from South Korea for the period 2006–2018, this study investigates the relationship between internal and outsourced R&D while considering the sunk cost of internal R&D activity and the technology level of firms. We find that the relationship between internal and outsourced R&D depends on the level of industry technology and the size of firms. A complementarity exists between internal and external R&D for larger firms in high-technology industries, while a substitutive relationship is discovered for small and medium-sized firms in medium- and low-technology industries. The results suggest that the complementary or substitutive nature of the relationship between internal and external R&D depends on the industry’s technology level and firm size.

Foreign Financial Services Adoption in Manufacturing by Asian Economies: New Index from the Global Value Chain Perspective

In this paper, we employ the input–output framework and recent global value chain (GVC) results to construct the index of foreign financial services adoption in manufacturing (FFSAM) that captures the role of foreign financial services in facilitating domestic manufacturing production. The FFSAM index shows that foreign financial services adoption by Asian economies has rapidly caught up with the Western world between 2007 and 2017. Asian economies tend to deploy more foreign financial services from high-income economies than low-income economies, and in high-technology manufacturing industries than low-technology manufacturing industries. Manufacturing industries that produce for domestic consumption and for exports tend to attract different groups of financial servicification providers. It is found that the FFSAM index is affected by the GVC position, financial institution factors, and financial market characteristics.

EFFECT OF FOREIGN DIRECT INVESTMENT ON LABOUR PRODUCTIVITY

This study has utilised the Seemingly Unrelated Regression (SUR) estimator method to explore the spillover effects of “technology” and “knowledge” from foreign direct investment (FDI) on Malaysian labour productivity. The study focus was on Malaysian medium-low technology and low-technology industries from 2000 to 2018. The findings showed that the presence of FDI spillovers as diffusion channels that increased labour productivity were greater through “technology effects” compared to “learning effects” for both types of industries. A cross-comparison of the results on technological spillovers between investor countries revealed that Singaporean and Japanese multinational corporations (MNCs) contributed the most significant technological effects in increasing Malaysian labour productivity, with the effects being most noticeable was in low-technology industries. These findings seem to suggest that the spillover effects of FDI are still concentrated in sectors with low-capacity technologies that commensurate with the required level of workforce capability. The negative relationship between “knowledge” spillovers and productivity found in this study seems to illustrate that the absorptive capacity of local workers to absorb high-skill-based technology from MNCs is still at a low level in both types of industries. This study has recommended that strategies and mechanisms should be devised accordingly to assist MNCs in their effort to improve knowledge and technology transfers, while simultaneously acknowledging the constraints of human factors, absorptive capacity, competition for resources or ethical dilemmas and cultural barriers.

ІНТЕГРАЦІЯ УКРАЇНСЬКИХ ВИРОБНИКІВ ОДЯГУ ТА ВЗУТТЯ ДО ГЛОБАЛЬНИХ ЛАНЦЮГІВ ВАРТОСТІ: ВИКЛИКИ ТА МОЖЛИВОСТІ

The peculiarities of producer-driven global value chains as well as buyer-driven global value chains have been characterised. The most distinct peculiarities of buyer-driven global value chains are low entry barriers, outsource production, labour intensive sectors. In addition, giant brands, large retailers and wholesalers are at the top of the value chain and coordinate it. It is emphasised that the light industry belongs to the low-technology industry and is a common example of the buyer-driven global value chain. The light industry includes industries that produce goods for end consumers among the main ones are apparel and footwear. The article outlines the challenges and opportunities for integration of Ukrainian ready-made apparel and footwear manufacturers into global value chains. It has been concluded that the domestic light industry is integrated into global value chains through the export of the finished products made primarily from the toll-raw materials. An expert survey among manufacturers of apparel and footwear was conducted in 2020. 40 representatives of small and medium-sized enterprises from different regions of Ukraine took part in the survey. According to the results of the expert survey, Ukrainian apparel and footwear manufacturers are involved in various stages of the production cycle. At least half of the enterprises have used raw materials mainly of foreign origin. Turkey and China are the main countries of imported raw materials. Apparel and footwear manufacturers in Ukraine have sold their goods to foreign as well as domestic markets. Domestic manufacturers of ready-made clothing and footwear have faced the challenges during the last three years among which are Covid-19 pandemic, the agreement on a free trade area between Ukraine and Turkey, the Russian invasion of Ukraine in 2022. Among the opportunities that have been emerged are the use of online marketplaces to sell their goods, relocation to safe regions in Ukraine, strengthening cooperation with EURATEX. Apparel and footwear manufacturers have mentioned that only if government and local authorities support and promote the domestic producers at national and regional level the industry will be further developed.

EXPERT SYSTEM FOR SHIP RECYCLING


 
 
 Ship recycling has been considered as a low technology industry. It has been established that there are more than a dozen stake holders in ship recycling having their own interests and roles. Apart from this, most of the ship recycling activities are carried out with poor infrastructure support and without adhering to proper safety and environmental standards. A Knowledge-based support is the need of the hour for improving the status of ship recycling industry. Knowledgebase support in the form of a computer based expert system encompassing entire ship recycling activities is considered as a very useful step in this direction. This paper presents the need for a user friendly expert system for ship recycling process. Two important functions of the expert system have been presented, one for the Administrators, the stake holders at the helm of the ship recycling affairs and second one for the Users, who execute the actual dismantling have been presented.