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GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY Productivity and Inclusive Growth December 5 th and 6 th , 2016 Santiago Chile

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Page 1: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

GVCS,

KNOWLEDGE

FLOWS AND

PRODUCTIVITY

Productivity and Inclusive GrowthDecember 5th and 6th, 2016Santiago Chile

Page 2: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Average of MFPR (Wooldridge) across each 2-digit sector (log, 2001=0)

Divergence of MFPR (sample of 24 OECD economies)

Source: Andrews, D. C. Criscuolo and P. Gal (2016), “The Global Productivity Slowdown, Technology Divergence

and Public Policy: a Firm Level Perspective”, forthcoming.

Frontier

Frontier

Laggards Laggards

Page 3: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Reviving the diffusion machine:

structural factors shape diffusion

Estimated frontier spillover (% pa) associated with a 2% point increase in

MFP growth at the global productivity frontier

Source: Saia, A., D. Andrews and S. Albrizio (2015), “Public Policy and Spillovers From the Global Productivity Frontier: Industry Level Evidence”, OECD Economics Department Working Papers, No. 1238.

Globalisation Reallocation Knowledge-Based Capital

3

Page 4: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Source: OECD ICIO/TiVA database (2015)

Foreign value added embodied in domestic demand for

computer, electronic and optical equipment

Page 5: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Source: OECD ICIO/TiVA database (2015)

Foreign value added embodied in domestic demand for

textiles and apparel

Page 6: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Source: OECD ICIO/TiVA database (2015)

Business Sector Services Value Added Embodied in

OECD Manufacturing Exports

Page 7: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Limited participation in Regional

Value Chains in Latin America

Source: Cadestin et al. (2016), OECD Trade Policy Papers, No. 192

Page 8: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Manufacturing linkages are mainly with

key hubs in USA and CN

Notes: Node size denotes total centrality (forward and backward) of manufacturing sectorswithin global production networks, Edges reflect direct manufacturing input flows. For clarityonly the largest input flows are reflected, those exceeding 15% of total inputs used in theimporting or exporting country. Source: Author’s calculations using 2011 data from OECD TiVA2015 edition

Page 9: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Services linkages are more limited and

also mainly with key hubs in USA

Notes: Node size denotes total centrality (forward and backward) of business-sector service sectors withinglobal production networks, Edges reflect direct business-sector service input flows. For clarity only the largestinput flows are depicted, those exceeding 10% of total inputs used in the importing or exporting country.Source: Author’s calculations using 2011 data from OECD TiVA 2015 edition

Page 10: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

International Institutional Collaboration in

Scientific Publications and Research Impact

USA

CHN

GBR

DEU

JPN

FRA

CAN

ITA

IND

ESP

AUS

KOR

NLD

BRA

RUS

CHE

POL

SWE

TUR

BEL

AUTISR

DNK

GRC

FIN

MEX

CZE

NOR

PRT

NZL

ZAF

IRL

HUNCHL

SVK

SVN

IDN

EST

ISL

LUX

Maximumdocuments4 958 242

Mediandocuments

191 734

Minimumdocuments

6 282

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

2

0 10 20 30 40 50 60 70 80

Normalised citation impact

International collaboration among institutions (%)

World average = 1

OECD and SCImago Research Group (CSIC) (2015), Compendium of Bibliometric Science Indicators 2014, http://oe.cd/scientometrics.

Page 11: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Intensity of “International Co-

invention” (1)

Notes: Co-invention is calculated by adding the sum of co-invention shares betweencountry-pairs divided by the sum of domestic inventions in these respected countriesfor industry j at time t. Based on extractions from PATSTAT

2000-05

Mining and quarrying (ISIC 10 to 14)

2006-11

Page 12: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Intensity of International Co-

invention (2)

2000-05

Electrical and Optical Equipment (ISIC 30-33)

2006-11

Notes: Co-invention is calculated by adding the sum of co-invention shares betweencountry-pairs divided by the sum of domestic inventions in these respected countriesfor industry j at time t. Based on extractions from PATSTAT

Page 13: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

Intensity of International Co-

invention (3)

Textiles, textile products, leather and footwear (ISIC 17 to 19)

2000-05 2006-11

Notes: Co-invention is calculated by adding the sum of co-invention shares betweencountry-pairs divided by the sum of domestic inventions in these respected countriesfor industry j at time t. Based on extractions from PATSTAT

Page 14: GVCS, KNOWLEDGE FLOWS AND PRODUCTIVITY · 2017-11-10 · Reviving the diffusion machine: structural factors shape diffusion Estimated frontier spillover (% pa) associated with a 2%

On-going work of relevance

• Linking TiVA with other relevant data – i.e. R&D,

MNE Activity,

• GVC Participation and Risks (e.g. product recall

database)

• GVCs and centrality – Using network analysis to

understand propagation (and mitigation) of shocks

• Using citation data to better understand non-market

knowledge flows

• The role of international research cooperation in

accessing the frontier (and public-private

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