Automation, Performance and International Competition: Firm‐Level Comparisons of Process Innovation

47 Pages Posted: 2 Oct 2015

See all articles by Lene Kromann

Lene Kromann

University of Southern Denmark - Department of Business and Economics; Copenhagen Business School - Center for Economic and Business Research (CEBR)

Anders Sorensen

Copenhagen Business School - Department of Economics

Date Written: May 20, 2015

Abstract

This paper presents new evidence on trade‐induced automation in manufacturing firms using unique data combining a retrospective survey that we have assembled with register data for 2005‐2010. In particular, we establish a causal effect where firms that have specialized in product types for which the Chinese exports to the world market has risen sharply invest more in automated capital compared to firms that have specialized in other product types. We also study the relationship between automation and firm performance and find that firms with high increases in scale and scope of automation have faster productivity growth than other firms. Moreover, automation improves the efficiency of all stages of the production process by reducing setup time, run time, and inspection time and increasing uptime and quantity produced per worker. The efficiency improvement varies by type of automation.

Suggested Citation

Kromann, Lene and Sorensen, Anders, Automation, Performance and International Competition: Firm‐Level Comparisons of Process Innovation (May 20, 2015). Available at SSRN: https://ssrn.com/abstract=2667002 or http://dx.doi.org/10.2139/ssrn.2667002

Lene Kromann (Contact Author)

University of Southern Denmark - Department of Business and Economics ( email )

DK-5230 Odense
Denmark

Copenhagen Business School - Center for Economic and Business Research (CEBR) ( email )

Porcelænshaven 16F
Frederiksberg, Copenhagen DK-2000
Denmark

Anders Sorensen

Copenhagen Business School - Department of Economics ( email )

Porcelaenshaven 16A
DK-2000 Frederiksberg
Denmark
+45 3815 3493 (Phone)
+45 3815 2576 (Fax)

HOME PAGE: http://www.cbs.dk/en/staff/aseco

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