0000000000222271
AUTHOR
Eugenio J. Miravete
Aggregation in Input–Output Tables: How to Select the Best Cluster Linkage
In this paper we try to give a solution to the aggregation problem on working with Input–Output tables. First of all we verify the degree of similarity among the production functions of the industries which aggregate in each sector. Secondly, once we have established the aggregation by using different cluster analysis, we set a number of conditions required to choose the proper linkage method that allows us to characterize the process of aggregation (weighted or unweighted) of the input–output table.
Innovation Complementarity and Scale of Production
We present an econometrically feasible model that uses the information contained in the innovation profile of each firm to test for the existence of complementarity among production and innovation strategies. Our approach is able to distinguish between complementarity and correlation induced by unobserved heterogeneity. We apply the model to analyze the Spanish ceramic tile industry where the adoption of the single firing furnace in the 1980's facilitated the introduction of new product designs as well as opening new ways of organizing production. Our econometric results show that there is significant complementarity between product and process innovation. Small firms tend to be more innova…