nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒09‒11
fifteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Technology that Produces Sustainable Competitiveness : A Comparison of Innovative Technologies and Accumulated-knowledge Technologies By Nobeoka, Kentaro
  2. Aviation, Space or Aerospace? Exploring the knowledge networks of two industries in den Netherlands. By Tom Broekel; Ron Boschma
  3. The Impact of R&D Offshoring on the Home Knowledge Production of OECD Investing Regions By Lorena M. D’Agostino; Keld Laursen; Grazia Santangelo
  4. The Importance of Broadband Provision to Knowledge Intensive Firm Location By Elizabeth A. Mack; Luc Anselin; Tony H. Grubesic
  5. University Research Management: An Exploratory Literature Review By Schuetzenmeister, Falk
  6. Agglomeration and interregional network effects on European R&D productivity By Attila Varga; Dimitrios Pontikakis; George Chorafakis
  7. Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents By Chia-Lin Chang; Sung-Po Chen; Michael McAleer
  8. "Knowledge-Capital, International Trade and Foreign Direct Investment: A Sectoral Analysis" By Titus O. Awokuse; Keith E. Maskus; Yiting An
  9. Discontinuity in the Environment, Firm Response, and Dynamic Capabilities By M. R. Dixit; Bhaskar Bhowmick
  10. Is foreign trade important for regional growth? Empirical evidence from Portugal By Elias Soukiazis; Micaela Antunes
  11. Science-Based Business : Knowledge Capital or Entrepreneurial Ability? : Theory and Evidence from a Survey of Biotechnology Start-ups By Braguinsky, Serguey; Honjo, Yuji; Nagaoka, Sadao; Nakamura, Kenta
  12. The Effects of Imbalanced Competition on Demonstration Strategies By Heiman, Amir; Ofir, Chezy
  13. Regional Integration, Fragility and Institution Building: An Analytical Framework Applied to the African Context By Thierry Verdier
  14. Geographic Macro and Regional Model for EU Policy Impact Analysis of Intangible Assets and Growth By Attila Varga; Péter Járosi; Tamás Sebestyén

  1. By: Nobeoka, Kentaro
    Abstract: Approaches that serve as a source of technology that produces sustainable competitiveness can be classified into two types: the acquisition of patents based on innovative technology (innovative technologies), and accumulation of knowledge over many years in specific technical fields (accumulated-knowledge technologies). This paper compares the influence these two sources of technological advantage have on corporate competitiveness. As a conclusion, accumulated-knowledge technologies are demonstrated to be more important for sustainable competitiveness than innovative technologies. This tendency is especially notable when technological change is rapid.
    Keywords: Sustainable competitiveness, Innovative technologies, Accumulated-knowledge technologies, Organizational capabilities
    Date: 2010–08
  2. By: Tom Broekel (Section of Economic Geography, Faculty of Geosciences, Utrecht University); Ron Boschma (Section of Economic Geography, Faculty of Geosciences, Utrecht University)
    Abstract: Little effort has been made to identify industries’ knowledge networks, and to what extent knowledge relations occur between actors in different industries. This paper presents a network study on the Dutch aviation and space industry. Both industries are often treated as similar and categorized as aerospace accordingly, although they tend to rely on different knowledge bases. Our study shows that the structure of the knowledge networks differs between the two industries, and few knowledge linkages have been established between the two. Our findings also suggest that the gap between the two industries’ knowledge networks is more pronounced for market knowledge than for technological knowledge. Non-profit organizations do seem to bridge the knowledge networks of the two industries.
    Date: 2010–08
  3. By: Lorena M. D’Agostino; Keld Laursen; Grazia Santangelo
    Abstract: This paper investigates the relationship between home and offshore R&D activities on the knowledge production of the investing home region. Debate is ongoing on whether R&D offshoring complements the R&D performed at home. In the light of increased offshoring of innovative activities to emerging countries, we explicitly focus on Brazil, Russia, India, China, Singapore and Taiwan. We suggest that complementarity should obtain, when home region and offshore R&D activities are dissimilar as well as when offshore R&D activities is about modular and less complex technologies. We ground our predictions on arguments related to geographical technological specialisation and reverse knowledge transfer from offshore locations to home regions within the more general open innovation trend. Using a theoretical framework based on the international business literature and the regional system of innovation perspective, we estimate a knowledge production function for a sample of 221 regions from 21 OECD countries with home region patent applications as the dependent variable. Our test supports our predictions on the complementarity between home region and offshore R&D.
    Keywords: Home Region R&D; Offshore R&D; Knowledge Production; Complementarity; Emerging Countries
    Date: 2010
  4. By: Elizabeth A. Mack (GeoDa Center for Geospatial Analysis and Computation; Arizona State University); Luc Anselin (GeoDa Center for Geospatial Analysis and Computation; Arizona State University); Tony H. Grubesic
    Abstract: Despite the volume of literature afforded knowledge work and innovations in information and communications technologies (ICTs), few studies have examined the importance of ICTs to firms in knowledge industries. This study will develop spatial econometric models to examine the relative importance of the level of broadband provision to knowledge intensive firms in select U.S.  metropolitan statistical areas (MSAs). Results demonstrate the need for both a spatial econometric and a metropolitan area specific evaluation of this relationship. They also suggest potential spillover effects to knowledge intensive firm location, which may explain why some regional economies are relatively more successful at stimulating firm growth in this increasingly important sector of the U.S economy.
    Date: 2010
  5. By: Schuetzenmeister, Falk
    Abstract: Professional management is increasingly important for successful research at universities as well as other organizations. This exploratory review draws on different bodies of literature in order to reformulate the complex challenges of research management by applying newer organizational theory. Research management can be described as boundary work that produces couplings between science and the wider society. Because of the complexity of organized science, management is increasingly indispensable to ensure the social, cognitive, and material preconditions of research. This paper discusses different means of research management on the research group level and within university departments. Research organizations are characterized by their relative diffuse distribution of management functions over organizational levels as well as by little direct determination between organizational elements. Charismatic scientific leaders can enhance the efficiency of research organizations and projects. More recently, universities have started to create new management positions within projects and centers. Scientifically trained people are hired as specialists in research management, constituting a new professional role. In contrast to pure administration, the new research managers make decisions with reference to scientific knowledge and the societal environment of research.
    Keywords: IES, Institute of European Studies, Research Management, Higher Education, Research Organization, Organizational Theory, University Collaboration, Science Studies, Scientific Leadership, Organization of Science, Boundary Work, Professionalization
    Date: 2010–01–02
  6. By: Attila Varga (Department of Economics and Regional Studies, University of Pécs); Dimitrios Pontikakis (Institute for Prospective Technological Studies, Joint Research Centre, European Commission Seville, Spain); George Chorafakis (Research Directorate-General, European Commission Brussels, Belgium)
    Abstract: This paper explores the effects of intra-regional agglomeration and interregional networking on the productivity of R&D across EU regions. The paper is based on the spatial econometric modelling framework presented in Varga (2000), and further develops a methodology for estimating the dynamic effects of agglomeration and interregional networks on R&D productivity in regional knowledge creation (measured by patent applications and publications) at the level of EU regions. This empirical modelling framework is applied to classify EU regions into different tiers according to the strengths of their agglomeration effects. These effects are then compared to the network effects of interregional connectedness as reflected in regional participation in the EU Framework Programme for Research. The estimated model is used then for an assessment of the impacts of EU Framework Programme expenditures on technological development and for carrying out policy impact simulations.
    Keywords: Agglomeration, network effects, R&D productivity
    JEL: O18 O33 R11
    Date: 2010–06
  7. By: Chia-Lin Chang (Department of Applied Economics, National Chung Hsing University); Sung-Po Chen (Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam); Michael McAleer (Erasmus University Rotterdam, Tinbergen Institute, The Netherlands, and Institute of Economic Research, Kyoto University)
    Abstract: This paper examines the impact of the three main channels of international trade on domestic innovation, namely outward direct investment, inward direct investment (IDI) and exports. The number of Triadic patents serves as a proxy for innovation. The data set contains 37 countries that are considered to be highly competitive in the world market, covering the period 1994 to 2005. The empirical results show that increased exports and outward direct investment are able to stimulate an increase in patent output. In contrast, IDI exhibits a negative relationship with domestic patents. The paper shows that the impact of IDI on domestic innovation is characterized by two forces, and the positive effect of cross-border mergers and acquisitions by foreigners is less than the negative effect of the remaining IDI.
    Keywords: International direct investment, Export, Triadic Patent, Outward Direct Investment, Inward Direct Investment, R&D, negative binomial model
    JEL: F14 F21 O30 O57
    Date: 2010–08
  8. By: Titus O. Awokuse (Department of Food and Resource Economics, University of Delaware); Keith E. Maskus (Department of Economics,University of Colorado); Yiting An (Senior Economist, Ernst and Young Consulting)
    Abstract: The knowledge-capital (KC) model of MNEs is now a widely adopted empirical approach to explaining the location and production decisions of global firms based on both horizontal and vertical motivations. While most of the existing studies have focused on highly aggregated national data, we extend this model to sectoral data consisting of broad manufacturing industries and explicitly account for the dynamic nature of international investment data. The empirical results from a dynamic panel data analysis indicate that that the predictions of the KC model regarding MNE behavior vary by the type of industry. Production processes in electronics and transportation-equipment are more characterized by efficient vertical specialization of R&D activities and assembly, while other sectors display more complex motivations.
    Keywords: FDI, knowledge-capital model, exports, GMM
    JEL: F14 F23 L23
    Date: 2010
  9. By: M. R. Dixit; Bhaskar Bhowmick
    Abstract: This paper identifies and focuses on a specific type of environmental development called discontinuity. Discontinuities in the forms of rapid technological innovations, regulatory reforms, institutional overhauls, and socio-cultural developments are the source of opportunities and threats to the firm. Firm responds to these discontinuities in specific ways in sustaining its existence at different points of time. This paper conceptualizes discontinuity and identifies its natures; explores the possible types of responses by the firm, and their enablers. The capability of sensing, seizing and reshaping are captured to establish the linkages in the framework of interrelations. It posits a set of propositions based on conceptual development and illustration of two cases. [W.P. No. 2010-08-03]
    Keywords: Environmental, development, regulatory, institutional, overhauls, framework, interrelations
    Date: 2010
  10. By: Elias Soukiazis (GEMF/Faculdade de Economia, Universidade de Coimbra, Portugal); Micaela Antunes (Faculdade de Economia, Universidade de Coimbra, Portugal)
    Abstract: Both the neoclassical approach associated to the Solow’s exogenous growth model and the endogenous growth theories have been criticised for being more consistent with a closed economy. In these approaches, the effects of international trade on growth and the trade deficits are not explicitly considered as impediments to economic expansion. The aim of this study is to contribute to the debate, investigating whether openness, exports share or trade balances affect regional growth in Portugal. In combination with external trade indicators, human capital is also considered as a conditional factor to growth, expressed by the rate of success in high school education. Thus, we analyse whether the combination of international trade measures and human capital is relevant to explaining regional growth in Portugal and how it affects the convergence process between regions. Additionally, interaction terms are considered to explore the existence of different performances between regions of the Littoral and the Interior zones. As an alternative to the traditional approach that considers the population growth rate, we include the share of the industrial employment as an indicator of regional specialisation. The empirical analysis estimates the conditional convergence model of the Barro’s type, applied to the Portuguese NUTS3 regions for the period 1996-2005. The estimation approach based on regional panel data and using the GMM estimation technique reveals that factors associated to external trade, human capital and reallocation of resources to more productive sectors (industry) are relevant to explain regional growth and convergence in Portugal.
    Keywords: conditional convergence, human capital, external trade, employment share in industry, GMM regressions, panel data.
    JEL: E12 F43 O11
    Date: 2010–07
  11. By: Braguinsky, Serguey; Honjo, Yuji; Nagaoka, Sadao; Nakamura, Kenta
    Abstract: We present a model of science-based entrepreneurship where ideas initially produced by researchers with high-level knowledge capital may be developed by high-ability entrepreneurs. With moderate investment costs, startups continuously managed by inventors-founders coexist in equilibrium with startups that experience entrepreneurial turnover. The model predicts that startups managed by non-founder entrepreneurs would on average outperform the startups managed by their founders and that better functioning of the market for entrepreneurial talent should result in more entrepreneurial turnover in equilibrium which in its turn leads to more ideas being commercialized and higher rewards to successful startups. The predictions of the model are tested against a unique dataset drawing upon a representative sample of biotechnology startups in Japan and are found to be broadly supported in the data.
    Keywords: Science-based Business, Biotechnology, Start-ups, Entrepreneurship, Innovation
    JEL: O31 O32
    Date: 2010–09
  12. By: Heiman, Amir; Ofir, Chezy
    Abstract: This paper analyzes the effect of competition on product demonstration decisions. Pre-purchase product demonstration enables marketers to differentiate products that are ex-post differentiated but are judged according to perceived fit, rather than actual fit, due to pre-purchase consumer uncertainty. Imbalanced competition accompanied by fit uncertainty motivates the follower to offer demonstrations to avoid a price war. This paper explores the conditions that lead the leader to retaliate. In addition to effects on quantity, competition may increase the quality of demonstrations offered by the leader. We analyze a business case, showing that competition may increase the demonstration intensity and that the leading manufacturerâs response to changes in competition is stronger than the responses of the followers. Our research has the potential to aid mangers in formulating demonstration strategies and in responding to competitorsâ demonstration efforts.
    Keywords: Imbalanced competition, product demonstration, differentiation, test-drive, price war, Political Economy, Production Economics,
    Date: 2010
  13. By: Thierry Verdier
    Abstract: The purpose of this paper is to discuss how regional integration processes may contribute to statebuilding and promote exit from fragility for countries characterised by weak state institutions. After presenting a simple conceptual framework to discuss the effects of external and regional integration on fragile states, we analyse the policy trade-offs that may arise in such contexts. The paper then reviews the specific regional experiences of Sub-Saharan countries and their inter-actions with fragility issues. Finally, we discuss policy implications for the EU in the context of its regional trade and development policies with African fragile countries. The central conclusions of the analysis are the following: I) a two-tier approach to regional integration, which combines both top-down and bottom-up processes, is necessary; 2) the EU approach to regional integration in Africa should promote Building-Blocks and not Stumbling-Blocks; and 3) specific considerations should be given to make the trade integration strategy fragility responsive.
    Keywords: state building
    Date: 2010–06–15
  14. By: Attila Varga (Department of Economics and Regional Studies, University of Pécs); Péter Járosi (Department of Economics and Regional Studies, University of Pécs); Tamás Sebestyén (Department of Economics and Regional Studies, University of Pécs)
    Abstract: This paper introduces the geographic macro and regional model for NUTS-2 regions of the Euro zone. This model consists of three blocks: the TFP, the SCGE and the MACRO blocks. The model is built for impact analysis of policies targeting intangible assets in the forms of R&D, human capital and social capital. The analysis can be done both at the regional and the EU macroeconomic levels. Policy simulations illustrate the capabilities of the complex model system.
    Keywords: TFP, SCGE models, DSGE models, impact analysis, R&D, human capital, social capital
    JEL: O31 H41 O40
    Date: 2010–06
  15. By: Thibault Daudigeos (IFGE - Institut Français de Gouvernement des Entreprises - EM-LYON, MC - Management et Comportement - Grenoble Ecole de Management); Bertrand Valiorgue (Pôle Stratégie et Gouvernance des Organisations - Groupe ESC Clermont, IFGE - Institut Français de Gouvernement des Entreprises - EM LYON)
    Abstract: This paper highlights overlap and differences between Convention Theory and New Organizational Institutionalism and thus states the strong case for profitable dialog. It shows how the former can facilitate new institutional approaches. First, convention theory rounds off the model of institutionalized action by turning the spotlight to the role of evaluation in the coordination effort. In parallel, the attention focused on the two components of the qualification process also sheds new light on the institutional dynamics issue at the heart of organizational institutionalism research since the mid-90s.
    Keywords: Convention; new institutionalism; institutional logic; qualification; compromise; higher-order principles of justice; order of worth
    Date: 2010–08–30

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