2019 Fiscal Year Research-status Report
A Study of the Implications of Innovation Location Patterns for Economic Growth and National Welfare
| Project/Area Number |
19K01638
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| Research Institution | Doshisha University |
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Principal Investigator |
DAVIS COLIN 同志社大学, 国際教育インスティテュート, 教授 (70432557)
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| Co-Investigator(Kenkyū-buntansha) |
橋本 賢一 神戸大学, 経済学研究科, 准教授 (70403219)
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| Project Period (FY) |
2019-04-01 – 2022-03-31
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| Keywords | R&D Offshoring / Industry Location / Endogenous Growth / International Trade |
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| Outline of Annual Research Achievements |
This research project provides a theoretical study of how firms select geographic locations for R&D activities in an increasingly integrated world economy, and evaluates the benefits of the resulting R&D offshoring patterns for home and host countries, with an emphasis on employment and productivity growth. The first stage has successfully constructed a general equilibrium model of international trade in which firms select the best locations for innovation and production. The model provides an analysis of the tension between access to technical knowledge in advanced economies and the supply of low-cost high-skilled labor in emerging economies in the firm-level R&D location decision. We derive results for the relationship between R&D offshoring, productivity growth, and national welfare.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
Discussion papers: (i) Davis, Colin and Hashimoto, Ken-ichi. (2019) “Productivity Growth, Industry Location Patterns and Labor Market Frictions,” Discussion Paper No. 1052, ISER, Osaka University. (ii) Davis, Colin and Hashimoto, Ken-ichi. (2019) “Innovation Offshoring with Fully Endogenous Growth,” Discussion Paper No. 1055, ISER, Osaka University. (iii) Davis, Colin and Hashimoto, Ken-ichi. (2019) “Import Competition and Industry Location in a Small-Country Model of Productivity Growth,” Discussion Paper No. 1066, ISER, Osaka University. Presentation: “Endogenous Productivity Growth, Industry Location Patterns, and Labor Market Frictions,” Asian Pacific Trade Seminars, Tokyo University, 2019.
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| Strategy for Future Research Activity |
The research project members will continue to present and refine the research results that have been obtained over the last year. In addition, the research project will proceed with applications of the theoretical framework that was developed over the first stage of the research project to the consideration of the implications of geographic patterns of industry and innovation for employment outcomes in national labor markets that are characterized by search frictions and union power. These employment outcomes will then be connected with the level of market entry, productivity growth, and national welfare levels.
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| Causes of Carryover |
The spread of the Coronavirus (COVID-19) resulted in the cancellation of international conferences that the research project members had been planning to attend as conference presenters. The budget that had been allocated for travel to and attendance of the cancelled conferences has been carried over to the second year of the research project, and conditions allowing will be used to attend international conferences with the aim of receiving feedback on research results.
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