Measuring process innovation outputs and understanding their implications for firms and workers: Evidence from Pakistan
August 01, 2024
This study proposes and constructs five quantitative metrics of process innovation output and delves into the factors influencing firms' decision to engage in process innovation and their success in achieving innovation outputs.
Main inducers: Breadth and depth of innovative capabilities; knowledge network embeddedness; extent and nature of competition.
Returns: Engaging in process innovation leads to immediate economic returns, boosting labor productivity and facilitating business expansion.
Adopting new processes leads to automation, but the study does not find evidence that new processes led to lower employment.
Access the full article by Dr. Waqar Wadho and Dr. Azam Chaudhry, Lahore School of Economics here.
Labels: apparel, Cost-reduction, Developing countries, Dr. Azam Chaudhry, Innovation, Labor productivity, Lahore School, Pakistan, Process innovation, Technology, Textiles
posted by S A J Shirazi @ 8/01/2024 10:03:00 AM,
Measuring process innovation outputs and understanding their implications for firms and workers: Evidence from Pakistan
June 23, 2024
Abstract
New processes significantly affect firms and workers; however, due to a lack of quantitative indicators, our understanding of the measures, determinants, and impacts of new processes remains limited. Drawing on unique data from Pakistan, we analyzed five different measures of process innovation output: cost reductions, defect rate reductions, reductions in production cycle time, increases in production capacity, and improvement in product quality. We find that the breadth and depth of innovative capabilities, level of competition, and availability of market sources of knowledge are important inducers of process innovation and that smaller firms are more likely to introduce new processes and are better able to transform them into higher output. All five process innovation outputs are associated with higher labor productivity and higher sales. We do not find that adopting new processes led to labor displacement; however, there is suggestive evidence that new processes led to the increased employment of skilled workers.
JEL Classification: O31, O32, O33, J23, J24
Read here
Labels: Cost-reduction, Developing countries, Dr. Azam Chaudhry, Innovation, Labor productivity, Pakistan, Process innovation, Technology, Textiles & Apparel
posted by S A J Shirazi @ 6/23/2024 12:56:00 PM,
Technology, Entrepreneurship and Productivity Growth – Where Pakistan stands and where it must go
January 12, 2016
Productivity isn’t everything, but in the long run it is almost everything. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.
- Why productivity growth matters? Pakistan’s own experience in this respect. The average productivity growth has been clearly low, but the average might hide a wide diversity of experience. The question then arises why/how some firms in the same industry are able to perform better than others.
- Productivity growth depends on investment in more productive/efficient equipment, introduction of new production techniques, and human capital, all that an entrepreneur is supposed to do. Causes of failure of entrepreneurship: macroeconomic management; failure of competition; financial policy/sources of financing/institutions discourage long-term investments. Are there any social determinants of entrepreneurship?
- Technology/innovation – demand side: Do Pak firms actively seek out new ideas, new technologies, talent and adapt themselves to changing circumstance.
- Technology/innovation – supply side (imitation/innovation are practically indistinguishable): Domestic R&D to create knowledge; import of foreign technologies through FDI, subcontracting etc.
- Can entrepreneurship be deliberately stimulated through policy and institutions? Examples of Pakistani success stories: cases where firms have grown from a small size to becoming big.
Labels: Annual Conference, Entrepreneurship, Management of Pakistan Economy, Productivity Growth, Technology, Twelfth Annual Conference
posted by S A J Shirazi @ 1/12/2016 04:16:00 PM,
Wi-Fi
September 06, 2010
Labels: Lahore School, Technology
posted by S A J Shirazi @ 9/06/2010 07:45:00 PM,
Most Connected Campuses
November 05, 2004
Information technology people all over the Lahore School work very hard to make sure that the infrastructure and services are in place to support faculty and students, so the results are recognition of all that work!
At the Lahore School, important question is what new or enhanced capabilities do the School students and faculty most need and how can that be made a reality
Labels: Lahore School, Technology
posted by S A J Shirazi @ 11/05/2004 01:12:00 PM,
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