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on Economics of Strategic Management |
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Issue of 2010‒04‒24
thirteen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Andersson, Martin (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Baltzopoulos, Apostolos (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper analyzes how different R&D strategies of incumbent firms affect the quantity and quality of their entrepreneurial spawning. By examining entrepreneurial ventures of ex-employees of firms with different R&D strategies three things emerge: First, firms with persistent R&D investments with a general superiority in sales, exports, productivity, profitability and wages are less likely to generate entrepreneurs than firm with temporary or no R&D investments. Second, start-ups from knowledge intensive business service (KIBS) firms with persistent R&D investments have a significantly increased probability of survival. No corresponding association between the R&D strategies of incumbents and survival of entrepreneurial spawns is found for incumbents in manufacturing sectors. Third, spin-outs from KIBS-firms are more likely to survive if they start in the same firm, indicating the importance of inherited related knowledge. The findings suggest that R&D intensive firms spur fewer entrepreneurs, but their entrepreneurial spawns tend to be of higher quality. |
| Keywords: | entrepreneurship; self-employment; R&D strategy; innovation; new firms; spin-off; spin-out |
| JEL: | J24 L26 M13 O31 O32 |
| Date: | 2010–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0228&r=cse |
| By: | Masso, Jaan; Roolaht, Tõnu; Varblane, Urmas |
| Abstract: | A growing literature is trying to analyse the productivity gap between domestic and foreign firms with differences in innovation indicators. In our paper we analyse the relationship between inward and outward FDI at either company or industry level and the innovation behaviour of companies in Estonia. We use company-level data from three waves of the Community Innovation Surveys, which are combined with financial data from the Estonian Business Register and FDI data from the balance of payments statistics. For the analysis we apply a structural model involving equations on innovation expenditure, innovation outcome and productivity, and also innovation accounting and propensity score matching approaches. Our results show that the higher innovation output of foreign owned companies vanishes after various company characteristics are controlled for, but there were significant differences in innovation inputs such as the higher use of knowledge sourcing and the lower importance of various impeding factors. Outward investment has a positive influence on innovativeness among both domestic and foreign owned companies |
| Keywords: | innovation, internationalisation, foreign direct investments, catching-up countries |
| JEL: | F10 F23 O30 |
| Date: | 2010–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:eea:boewps:wp2010-05&r=cse |
| By: | Bouguezzi, Fehmi; EL ELJ, Moez |
| Abstract: | The present paper studies and compares different vertical integration structures on consumers and total surplus with licensing by mean of a fixed fee in two successive homogeneous-good Cournot duopolies where one of the firms in each market has a different cost-reducing innovation. The key difference between the present model and models in the existing literature is that here we suppose the existence of two different patents in upstream and downstream markets. In each market we find two firms: the patent holding firm and a non innovative firm. In upstream market, the innovative firm owns an innovation allowing to reduce the input marginal production cost. In downstream market the innovative firm owns an innovation allowing to reduce marginal cost of transforming the input into output. We discuss different structures of vertical integration and we show that consumer surplus and total surplus are depending of cost-reducing innovation in upstream and downstream markets and the structure of vertical integration. |
| Keywords: | Cournot successive markets; Fee licensing; Vertical integration; process innovation |
| JEL: | D23 O32 O31 L22 L24 |
| Date: | 2009–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22212&r=cse |
| By: | Thorsten Hansen (University of Munich) |
| Abstract: | This paper studies the impact of innovation on the organizational structure. The theoretical framework predicts that a larger parental pool of knowledge raises the probability of offshoring. This holds in a national as well as an international context. However, when the producer loses territorial protection, the changeover from non-integration to integration is delayed. Employing data on German firms investing in Eastern Europe finds empirical evidence for the theoretical predictions. The results are robust to different measurements and an instrumental variable regression. |
| JEL: | D23 D51 F23 L14 L21 L22 L23 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:trf:wpaper:315&r=cse |
| By: | Frauke G. Braun; Jens Schmidt-Ehmcke; Petra Zloczysti |
| Abstract: | This paper studies technological change in renewable energies, providing empirical evidence on the determinants of innovative activity with a special emphasis on the role of knowledge spillovers. We investigate two major renewable energy technologies - wind and solar - across a panel of 21 OECD countries over the period 1978 to 2004. Spillovers may occur at the national level, either within the same technology field or economic sector (intra-sectoral spillovers) or in related technologies or sectors (inter-sectoral spillovers), or at the international level. We find that innovation is strongly driven by knowledge spillovers, especially those occurring at the national level. Wind and solar technologies exhibit distinct innovation characteristics: both are stimulated by intra-sectoral spillovers, but respond differently to inter-sectoral spillovers, which are only influential in the case of wind technology. We also find evidence that public R&D stimulates innovation, particularly in solar technologies. |
| Keywords: | Technological change, renewable energy, patents, knowledge spillover, climate change, innovation |
| JEL: | O31 Q42 Q55 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp993&r=cse |
| By: | Erzo G. J. Luttmer (Department of Economics, University of Minnesota and Federal Reserve Bank of Minnesota) |
| Abstract: | Although employment at individual firms tends to be highly non-stationary, the employment size distribution of all firms in the United States appears to be stationary. It closely resembles a Pareto distribution. There is a lot of entry and exit, mostly of small firms. This paper surveys general equilibrium models that can be used to interpret these facts and explores the role of innovation by new and incumbent firms in determining aggregate growth. The existence of a balanced growth path with a stationary employment size distribution depends crucially on assumptions made about the cost of entry. Some type of labor must be an essential input in setting up new firms. |
| Keywords: | firm size distribution, organization capital, heterogeneous productivity, selection. |
| JEL: | L1 O4 |
| Date: | 2010–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:min:wpaper:2010-1&r=cse |
| By: | Jacques Mairesse; Pierre Mohnen |
| Abstract: | After presenting the history, the evolution and the content of innovation surveys, we discuss the characteristics of the data they contain and the challenge they pose to the analyst and the econometrician. We document the two uses that have been made of these data: the construction of scoreboards for monitoring innovation and the scholarly analysis of various issue related to innovation. In particular we review the questions examined and the results obtained regarding the determinants, the effects, the complementarities, and the dynamics of innovation. We conclude by suggesting ways to improve the data collection and their econometric analysis. <P>Dans cet article de survol sur les utilisations des enquêtes innovation, nous commençons par présenter leur historique et les informations qu’elles apportent. Nous discutons en détail les caractéristiques des données fournies et les difficultés qu’elles peuvent poser pour les analyses. Nous considérons successivement les deux usages auxquelles ces données servent principalement : la construction d'indicateurs et de « scoreboard » de l'innovation et les études économétriques sur différents thèmes ayant trait à l'innovation. Nous passons ainsi en revue les questions posées et les résultats obtenus par les études sur les déterminants de l’innovation, sur ses effets, sur les complémentarités entre types d’innovation et sur sa dynamique. Nous concluons par une liste de suggestions pour améliorer la conception et l’organisation des enquêtes innovation et pour progresser dans leur analyse économétrique. |
| Keywords: | innovation survey, econometrics, complementarity, productivity, R&D, collaboration. , enquêtes innovation, économetrie, complémentarité, productivité, R&D, collaboration |
| JEL: | O30 O50 C35 C81 |
| Date: | 2010–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2010s-15&r=cse |
| By: | Giovanni Villani |
| Abstract: | This paper provides a real option methodology for evaluating R&D investment opportunities assuming that potential competitors can en- ter in the market. As it is well known, R&D investments are made often in a phased manner and so each stage creates an opportunity (option) for subsequent investment. Therefore, R&D projects can be consid- ered as ‘Compound Exchange Options' in which investments present uncertainty both in the gross project value and in costs. According to Majd and Pindyck (1987), in a real options context, “div- idends” are the opportunity costs inherent in the decision to defer an investment project and so deferment implies the loss of project's cash flows. Moreover, Trigeorgis (1996) incorporates the preemption effect through the “competitive dividends” which are the cash flows that can be eroded by anticipated competitive arrivals. In this paper we propose to value, using Montecarlo simulation, the R&D investments of a pioneer firm assuming that the Development cost can be spent in two moments: t2 or t3. If the Develpment cost is realized in t2 no firms enters in the market since the rivals' R&D plan is not yet concluded otherwise, if the investment D is delayed at time t3 waiting better market conditions, other rivals can enter in the market and so the opportunity costs (“dividends”) increase. |
| Keywords: | Real options; R&D; Monte Carlo methods; Competitive dividends. |
| JEL: | G13 O32 C15 D40 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:ufg:qdsems:21-2009&r=cse |
| By: | Antoine Soubeyran (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579); Agnès Tomini (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579) |
| Abstract: | For a few decades, a growing literature has examined the role of water resources in interstate conflicts. In line with this literature, this study analyzes the risk of a conflict between countries sharing freshwater. While some scholars claim that water-based conflicts can never occur, this analysis determines this risk by linking it to the size of a negotiation interval; the probability-to-conflict decreasing with this size. In fact, we are going to show that the size of this interval diminishes with scarcer resources and with the degree of the heterogeneity of countries measured by their productive efficiency. Then, in a peace scenario, we determine by bargaining the optimal allocation and we study its variation according to the parameters of the model. These theoretical results will be confirmed by an econometric approach. |
| Keywords: | Conflict Theory, Water-based Conflict, Nash-Bargaining, Dyadic Analysis |
| Date: | 2010–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00472728_v1&r=cse |
| By: | OKUBO Toshihiro; TOMIURA Eiichi |
| Abstract: | This paper empirically examines how productivity distributions of firms vary across regions based on Japanfs manufacturing census data. We confirm the established finding of higher average productivity in core regions, but find that firm productivity is distributed with wide dispersions, especially in core regions. Our firm-level estimates demonstrate that the productivity distribution of firms tends to be noticeably left-skewed deviating from the normal distribution, especially in regions with weak market potential but also in agglomerated or urbanized regions. These findings suggest that agglomeration economies are likely to accommodate heterogeneous firms to co-exist in the same region. |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:10017&r=cse |
| By: | Baranov, Igor N. |
| Abstract: | This policy paper highlights key theoretical issues related to the possibility of competition in provision of health care services and provides their illustrations for Russian health care system. Executive summary is available at pp. 48. |
| Keywords: | competition, health care, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:sps:wpaper:103&r=cse |
| By: | Rafael Moner; José J. Sempere; Pedro Cantos; Oscar Álvarez |
| Abstract: | This paper develops a theoretical model for freight transport characterized by competition between means of transport (the road and maritime sectors), where modes are perceived as differentiated products. Competitive behavior is assumed in the road freight sector, and there are constant returns to scale. In contrast, the freight maritime sector is characterized by oligopolistic behavior, where shipping lines enjoy economies of scale. The market equilibrium where the shipping lines behave as profit maximizers, provides a first approximation to the determinants of market shares, profits, and user welfare. We then characterize the equilibrium when horizontal integration of shipping lines occurs, with and without further economies of scale. An empirical application to the routes Valencia-Antwerp and Valencia-Genoa uncovers that the joint profit of the merged firms and social welfare always increase. However, user surplus only increases when economies of scale are significantly exploited. |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2010-13&r=cse |
| By: | Choi, Jong-Seo; Kwak, Young-Min; Choe, Chongwoo |
| Abstract: | This paper studies the empirical relation between corporate social responsibility (CSR) and corporate financial performance in Korea using a sample of 1122 firm-years during 2002-2008. We measure corporate social responsibility by both an equal-weighted CSR index and a stakeholder-weighted CSR index suggested by Akpinar et al. (2008). Corporate financial performance is measured by ROE, ROA and Tobin’s Q. We find a positive and significant relation between corporate financial performance and the stakeholder-weighted CSR index, but not the equal-weighted CSR index. This finding is robust to alternative model specifications and several additional tests, providing evidence in support of instrumental stakeholder theory. |
| Keywords: | corporate social responsibility; corporate financial performance; KEJI index; instrumental stakeholder theory |
| JEL: | M14 D21 L21 G30 |
| Date: | 2010–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22159&r=cse |