nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒12‒11
five papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Innovation through Long-distance Conversations? Lessons from Offshoring-based Software Clusters in Bangalore By Aya Okada
  2. The importance of R&D subsidies and technological infrastructure for regional innovation performance - A conditional efficiency approach By Tom Broekel; Charlotte Schlump
  3. Measuring International Technology Spillovers and Progress Towards the European Research Area By Siedschlag, Iulia
  4. Optimal allocation of tradable emission permits under upstream-downstream strategic interaction By Joana Resende; Maria Eugénia Sanin
  5. Joint Venture Breakup and the Exploration-Exploitation Trade-off By Ngo Van Long; Antoine Soubeyran; Raphael Soubeyran

  1. By: Aya Okada
    Abstract: This paper is aganist the popular assertion regarding the links between innovation and clustering and it is found that the main sources of knowledge transfer and innovation among key firms in Bangalore’s software cluster are their external linkages outside the cluster rather than face-to-face interactions between firms within the cluster. Moreover, the rich pool of skilled labor, made available through clustering has played an important role in facilitating learning, that is, diffusing the knowledge brought in by foreign networks.
    Keywords: innovation, clustering, transfer, Bangalore, software, cluster, linkages, labor, skilled labour, foreign, knowledge, firms, knowledge, economies of scale, economy, information, human resources, competitive environment, biotechnology, India
    Date: 2009
  2. By: Tom Broekel; Charlotte Schlump
    Abstract: The importance of R&D subsidies for innovation activities is highlighted by numerous firm-level studies. These approaches miss however the systematic regional character of innovation activities and potential firm-spanning effects of this policy measure. The literature on regional innovation performance has widely neglected R&D subsidies so far. This paper analyzes the importance of R&D subsidies as well as the relevance of a publicly funded technological infrastructure for the innovation efficiency of German regions. Using conditional nonparametric frontier techniques we find positive effects of R&D subsidies and somewhat smaller ones for the technological infrastructure, which however vary between industries.
    Keywords: innovation policy, regional innovation efficiency, technological infrastructure, stepwise conditional efficiency analysis
    JEL: O18 O38 R58 R12
    Date: 2009–11
  3. By: Siedschlag, Iulia
    Abstract: The objective of this paper is to contribute to the development of an evidence-based system to monitor progress towards the European Research Area (ERA) and a knowledge-based economy. We start with an overview of existing theory and empirical evidence on the role of international technology spillovers on economic growth. Further, we discuss the transmission channels of international technology spillovers and barriers to international technology diffusion. Next we turn to measuring specialisation in knowledge-based sectors and geographical concentration patterns of these sectors. The remainder of this paper proposes three sets of indicators to monitor progress towards the ERA and a knowledge-based economy in relation to international technology diffusion.
    Keywords: Absorptive capacity/European Research Area/International technology spillovers/Knowledge-intensive economy/growth
    JEL: F23 F42 F43 O33 O47
    Date: 2009–11
  4. By: Joana Resende (CORE - Center for Operations Research and Econometrics - Université Catholique de Louvain, CETE - University of Porto); Maria Eugénia Sanin (CORE - Center for Operations Research and Econometrics - Université Catholique de Louvain, Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)
    Abstract: In this paper we account for the fact that Cournot equilibrium strategies in the sector under environmental regulation depend on firms'interaction in the permits market (and vice versa). In this context, we show that the cost-effective allocation of permits between firms must compensate the cost-rising strategies exercised by the stronger firm (in the output market). Then, taking into account the previous result, we use a simulation to obtain the optimal allocation of permits between firms as a function of output market characteristics, in particular as a function of goods substitutability that serves as an indicator for the de- gree of price competition. The simulation allows us to determine how output market characteristics affect differently optimal permit allocation depending on the regulator's objective.
    Date: 2009–12–01
  5. By: Ngo Van Long; Antoine Soubeyran; Raphael Soubeyran
    Abstract: This paper explores the e¤ect of a potential joint-venture breakup on the level of technology transfer in a set-up with exploration-exploitation trade-offs in the presence of time compression costs. We consider a joint-venture relationship between a technologically advanced multinational firm and a local firm operating in a developing economy where the ability to enforce contracts is weak, and the local firm can quit without penalties. The multinational firm has to consider the advantages and disadvantages of an intensive transfer of technology versus an extensive one. In response to the breakup incentives, the multinational firm reduces the intensity (lowering the pace) and opts for a more extensive transfer mode (longer duration of transfer), compared to the first best. The scheme is supported by a flow of side payments to encourage the local firm to stay longer. We show that a fall in time compression costs may increase or decrease the intensity of technology transfer, both in the first-best and in the second-best scenarios, depending on the nature of the saving in time-compression costs.
    Date: 2009–11

This nep-cse issue is ©2009 by Joao Jose de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.