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on Economics of Strategic Management |
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Issue of 2010‒07‒17
nine papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Vega-Jurado, Jaider; Manjarrés-Henríquez, Liney; Gutiérrez-Gracia, Antonio; Fernández-de-Lucio, Ignacio |
| Abstract: | This paper analyses the effect of interaction with universities on firms? innovation output, measured as the degree of novelty of product innovation. The analysis is based on a sample of 3,257 manufacturing firms, active in innovation, and located in Spain. We distinguish between two types of interaction mechanisms: cooperation in innovation activities and outsourcing of research and development (R&D) services. Using data from two waves of the Spanish innovation survey (2004 and 2007), we examine the effect of interaction in 2004 on subsequent product innovation in 2005-2007. The results show that neither cooperation with universities nor outsourcing of R&D services to these agents has a significant effect on product innovation. In other words, for Spanish manufacturing firms the acquisition of knowledge from universities does not represent an important strategy to introduce new products into the market. In contrast, cooperation with customers and acquisition of external R&D from other firms seem to be important for innovation, especially for firms pursuing more radical innovation. |
| JEL: | O31 O32 L60 |
| Date: | 2010–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:201008&r=cse |
| By: | Tamás Sebestyén (Department of Economics and Regional Studies, University of Pécs) |
| Abstract: | In this paper we examine the evolution of network formation. We present a model in which companies in an industry can innovate alone or in alliance with others. Alliance formation is based on the cognitive distance of companies. If two companies form an alliance, their probability of success in innovation depends on their proximity in knowledge space, that is, their cognitive distance. Knowledge, on the other hand, is modelled in two dimensions: breadth and depth. The main results of our analysis are that in the present setting heterogeneity decreases among companies whilst innovation can increase and decrease also, depending on the initial parameters of the industry's knowledge endowment. The model also reveales the importance of external shocks in maintaining heterogeneity and concludes with a possible typology of cluster evolution among the dimensions of heterogeneity and innovativeness. |
| Keywords: | knowledge network, innovation, knowledge heterogeneity, alliance formation, cluster evolution |
| JEL: | I23 O18 O33 R11 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:pec:wpaper:2010/1&r=cse |
| By: | Grazia Santangelo; John Cantwell |
| Abstract: | This paper analyses the restructuring of technological capabilities following M&A-based growth in large industrial firms with a substantial technological knowledge base. In particular, we focus on the restructuring of those technological capabilities that are of a general purpose kind (namely ICT) or related to the core capabilities of a firm. We develop and test a conceptual framework grounded on a co-evolutionary view, that relates the motivations and environment for corporate expansion to the firm-specific pattern of restructuring in the composition of corporate technological capabilities. We find that distinct patterns of technological capability restructuring are associated with each combination of the motivations and environment for firm growth. In particular, inter-industry contexts reduce technological relatedness in market motivated expansions, while relatedness has also declined in more recent technology-motivated growth in general. The acquisition of ICT is common as well to both technology-motivated inter-industry deals and more recent market-motivated deals. However, we speculate that any similarities in the outcomes of these alternative motives for firm growth arise for quite different purposes. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:10-18&r=cse |
| By: | ITO Keiko; LECHEVALIER Se'bastien |
| Abstract: | Although heterogeneity in the performance of firms is a well-established stylized fact, we still lack full understanding of its origins and the reasons why it persists. Instead of assuming that performance differences are exogenous, this paper focuses on two endogenous strategies - innovation and global engagement - and interprets them as two ways to accumulate knowledge and improve firms' capabilities. We are particularly interested in analyzing interactions between these strategies and their effect on firms' performance. By using a firm-level panel dataset drawn from a Japanese large-scale administrative survey for the years 1994 - 2003, we first find that innovation and exporting strategies are characterized by complementarities, which define coherent productive models or patterns of learning. Second, we show that these different strategies lead to various performances in terms of productivity and survival. Third, by using a propensity score matching approach, we show that these differences in performance are lasting. Overall, our paper shows that the interaction of innovation and export investments is a source of permanent differences in performance among firms. |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:10037&r=cse |
| By: | Simon Alder |
| Abstract: | This paper provides new evidence on the relationship between innovation, competition and distance to the technology frontier, using enterprise surveys from 40 developing and transition countries. Different from previous empirical studies, the distance to frontier is measured by a firm's technology level relative to its main competitor. This self-reported comparison allows to capture a crucial determinant of a firm's business strategy and its response to competition. The findings from the empirical analysis are as follows. Firstly, firms with more advanced technology compared to their main competitors have more product innovations. Secondly, there is evidence that innovation and competition are more positively correlated at low levels of competition than at high levels. With some measures of competition, the correlation is highest at intermediate levels of competition, which suggests an inverted-U relationship. Thirdly, in certain specifications, competition is most positively correlated with product innovation when a firm is more advanced than its main competitor. In other cases, this correlation is strongest for firms that are at the same technology level as their competitors. However, the differences in the correlations between more and less advanced firms are not always significant. |
| Keywords: | Market structure, competition, innovation, technology adaption, growth |
| JEL: | O16 O31 O33 O38 O40 L16 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:zur:iewwpx:493&r=cse |
| By: | Müller, Kathrin; Peters, Bettina |
| Abstract: | This paper explores the role of R&D worker mobility on innovation performance. As one main novelty, we employ churning as a measure for worker mobility. Churning depicts the number of workers which are replaced by new ones. It is a very informative indicator since a firm may be exposed to simultaneous leave and inflow of R&D workers even if the size of R&D employment remains unchanged. Hence, we can separate the effect of replacement from net change in R&D workforce. Our results from estimating various knowledge production functions suggest an inverse u-shaped relationship. The exchange of R&D personnel fosters innovation through inter-firm knowledge spillovers and improved job-match quality up to certain threshold. The point when costs of churning exceed the benefits is reached faster if the R&D knowledge is non-duplicative. -- |
| Keywords: | innovation,churning,mobility |
| JEL: | O33 C35 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10032&r=cse |
| By: | Francesco Bogliacino (JRC-IPTS); Mario Pianta (University of Urbino) |
| Abstract: | In this article we investigate – both conceptually and empirically – the relationship between three interconnected elements of the Schumpeterian “engine of progress”: the ability of industries’ R&D efforts to turn out successful innovations; the ability of innovations to lead to high entrepreneurial profits; the commitment of industries to invest profits in further technological efforts. We build a simultaneous three-equation model – with appropriate lags – and we test it at industry level – for 38 manufacturing and service sectors – on eight European countries over two time periods from 1994 to 2006. The results show that the model effectively accounts for the dynamics of European industries. Our main results are that demand and innovation are the key determinants for firm profitability; second that both technology adoption and R&D concur to improve innovative performance; third, that R&D is path dependent and is negatively related to the distance from the frontier. Finally, manufacturing and services show similar behaviour. |
| Keywords: | Profits, R&D, Innovation, System Two Stages Least Squares |
| JEL: | L6 L8 O31 O33 O52 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201005&r=cse |
| By: | Wörter, Martin; Rammer, Christian; Arvanitis, Spyros |
| Abstract: | This paper analyses the relationship between past innovation output, competition, and future innovation input in a dynamic econometric setting. We distinguish two dimensions of competition that correspond to the concepts of product substitutability and entry barriers due to fixed costs. Based on firm-level panel data for Germany and Switzerland we obtain consistent results for both countries. Innovation output in t-1 as measured by the sales share of innovative products is positively related to the degree of product obsolescence in t, and negatively to the degree of substitutability in t in both countries. Further, we find that rapid product obsolescence provides positive incentives for higher - primarily product-oriented - R&D investments in t+1, while high substitutability exerts negative incentives for future R&D investment. -- |
| Keywords: | Innovation,R&D,Competition |
| JEL: | O3 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10039&r=cse |
| By: | Tattara, Giuseppe |
| Abstract: | Vertical disintegration in most industries and the globalization of markets has led to significant changes in the pattern of international division of labour among manufacturing firms. At the same time increased competition from low cost producers, exchange rate constraints, the opening up of CEE countries have had huge consequences for the Italian industrial system. This paper deals with the Veneto footwear, furniture and refrigeraion industries and examines the effects of foreign direct investments and subcontracting in Romania. The reorganization of the division of labour, in the most dynamic suppliers induced a change in the “nature of subcontracting”, upgrading along the ladder of the value chain as more and more operations are offshored. |
| Keywords: | Foreign direct investment; International subcontracting; |
| JEL: | D23 F16 F23 |
| Date: | 2010–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23787&r=cse |