nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒10‒02
eleven papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Enviromental Performance and Regional Innovation Spillovers By Valeria Costantini; Massimiliano Mazzanti; Anna Montini
  2. Competitiveness, Clusters and Policy at the Regional Level: Rhetoric vs. Practice in Designing Policy for Depressed Regions By Argentino Pessoa
  3. Scope of Innovations, Knowledge Spillovers and Growth By Gray, Elie; Grimaud, André
  4. Performance et dynamiques des réseaux d'alliances stratégiques asymétriques By Cheriet, F.
  5. Competition and growth: reinterpreting their relationship By ONORI, Daria
  6. Determinants of Locating R&D Activity in the Philippines: Policy Implications By Gonzales, Kathrina G.; Yap, Josef T.; Macasaquit, Mari-Len R.
  7. The Cost Competitiveness of Manufacturing in China and India: An Industry and Regional Perspective By Bart Van Ark; Abdul Azeez Erumban; Utsav Kumar; Vivian Chen
  8. the roles of intellectual property rights in the networked enterprise: the growing importance of coordination in innovation networks By Blandine LAPERCHE
  9. Internationalization and business model decisions: A business case in mobile telecommunication industry By Massimo Cortili; Manuela Menegotto
  10. Spillovers in Space: Does Geography Matter? By Sergey Lychagin; Joris Pinkse; Margaret E. Slade; John Van Reenen
  11. Cities and clusters: economy-wide and sector-specific effects in corporate location By Giulio Bottazzi; Ugo Gragnolati

  1. By: Valeria Costantini (University of Roma III); Massimiliano Mazzanti (University of Ferrara, University of Bologna and CERIS-CNR); Anna Montini (University of Bologna)
    Abstract: The achievement of positive environmental performance at national level could strongly depend on differences in local capabilities of both institutions and the private business sector. Environmental regulation alone is a weak instrument if the institutional and business environment cannot transform regulation strengths into opportunities. In this paper, we use the new environmental accounting matrix for polluting emissions now available for the 20 Italian Regions that covers 24 sectors and combines a shift-share approach with spatial econometric modelling. We provide evidence of the role played by internal innovation, innovation spillovers and regional policies in shaping the geographical distribution of environmental performance achievements.
    Keywords: Environmental Performance, Technological Innovation, Regional Spillovers, Polluting Emissions, Italian Regions
    JEL: Q53 Q55 Q56 R15
    Date: 2010–09
  2. By: Argentino Pessoa (CEF.UP, Faculdade de Economia, Universidade do Porto)
    Abstract: This paper reviews the most important theoretical foundations of the spatial competitiveness conception, dealing with three levels of competitiveness: the country, the region and the tourism destination. Consequently, it draws attention to the main aspects that such concepts of competitiveness must include and it links the regional competitiveness with the related concept of cluster. Therefore, section 2 reviews the key aspects of competitiveness at the first level highlighting the role of the main forces acting at the national level. Section 3 extends the concept to the regional level, highlighting the critical aspects that must be considered when policy tries to increase the competitiveness of a particular region. Section 4 analyses the possibilities of extending the competitiveness concept to tourism destinations. Next, the paper analyses the literature on policy advice and discuss the inconsistency between the theory and the policy designed to promote regional competitiveness. Finally, the paper presents some concluding remarks on regional policy applied to depressed regions.
    Keywords: clusters, competitiveness, regional policy, tourism
    JEL: Q25 Q28 R19 R58
    Date: 2010–09
  3. By: Gray, Elie (Toulouse Business School and Toulouse School of Economics (LERNA)); Grimaud, André (Toulouse School of Economics (IDEI, LERNA) and Toulouse Business School)
    Abstract: This paper exploits the formalization of a circular product differentiation model of Salop (1979) to propose an endogenous growth quality ladder model in which the knowledge inherent in a given sector can spread variously across the sectors of the economy, ranging from local to global influence. Accordingly, this affects the size of the pool of knowledge in which innovations draw themselves on in order to be produced. Therefore, the law of knowledge accumulation, and thus the growth rate of the economy, depend positively on the expected scope of diffusion of innovations, i.e. on the intensity of knowledge spillovers. This approach generalizes the endogenous growth theory as developed in the seminal models of Grossman & Helpman (1991) and Aghion & Howitt (1992), extending their analysis to the possibility of considering stochastic and partial knowledge spillovers. This framework allows us to mitigate the positive externality of knowledge and thus to apprehend the issue of the funding of research with more parsimony. We characterize the set of steady-state Schumpeterian equilibria as a function of the public tools. We provide an explanation for the fact that research effort can either be suboptimal or over-optimal, depending on the expected scope of knowledge. Accordingly, we find that the optimal public tool dedicated to foster R&D activity depends positively on it.
    Keywords: Schumpeterian growth, scope of diffusion of innovations, knowledge spillovers
    JEL: O30 O31 O41
    Date: 2010–03
  4. By: Cheriet, F.
    Abstract: Our work aims to examine the relationship between the instability management of asymmetric strategic alliances by a multinational hub firm, and network performance and dynamics. An integrated framework is proposed to appreciate network performance. It includes issues determinants and process variables. Our model enhance global and dynamic analysis of networks' performance. ...French Abstract : Nous examinons dans cet article, les relations entre d'une part le management de l'instabilité des alliances stratégiques asymétriques par une firme multinationale- pivot et d'autre part la performance et la dynamique du réseau en termes de création et de répartition de la valeur. Nous avons ainsi proposé un cadre d'analyse de la performance du réseau comprenant à la fois des variables " issues " (valeur créée et répartition) et des variables " processus " (dynamique d'évolution et management). Une telle construction renforce les analyses globales et dynamiques de la performance des organisations réticulaires..
    JEL: D21 L22 L24 L25
    Date: 2010
  5. By: ONORI, Daria (Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium; University of Rome "La Sapienza", Faculty of Economics, I-00161 Rome, Italy)
    Abstract: In this paper we modify a standard quality ladder model by assuming that R&D is driven by outsider firms and the winners of the race sell licenses over their patents, instead of entering directly the inter- mediate good sector. As a reward they get the aggregate profit of the industry. Moreover, in the intermediate good sector firms compete à la Cournot and it is assumed that there are spillovers represented by strategic complementarities on costs. Our goal is to prove that there exists an interval of values of the spillover parameter such that the relationship between competition and growth is an inverted-U-shape.
    Keywords: quality ladder, Cournot oligopoly, strategic complementarities, competition and growth
    JEL: L13 L16 O31 O52
    Date: 2010–07–01
  6. By: Gonzales, Kathrina G.; Yap, Josef T.; Macasaquit, Mari-Len R.
    Abstract: <p>Research and development (R&D) is an important resource for sustained economic growth. New knowledge created by a firm has spillover effects that improve the productivity of other firms and even other sectors. This is the heart of endogenous growth theory. In this framework, government policies can affect the rate of long-term economic growth by impacting the accumulation of both physical and human capital and the effort dedicated to research and development and the creation of new knowledge. A country can supplement its R&D efforts by enticing R&D firms to locate in the country or encourage local firms and multinational corporations operating there to conduct R&D activities. Factors that affect these decisions can be classified into push factors, pull factors, policy factors, and enabling factors. The last three are relevant for the host country while the first set of factors relate to the home country.</p> <p>A survey of firms operating in the Philippines was conducted to determine which factors are deemed important and areas where the Philippines is deemed inadequate. The findings have important policy implications. Push factors are found to be important, particularly the need to remain competitive. The pull factors that rate highly are (i) availability of talented skills at low cost; and (ii) size of market. The main policy factors that encourage firms to locate in the Philippines are: (i) good quality of education; and (ii) protection of intellectual property rights. The enabling factors are: (i) low cost of doing business; (ii) good physical and communication infrastructure; (iii) legal system; and (iv) availability of R&D support services. Two aspects are prominent in terms of discouraging R&D activity in the Philippines: (i) the high cost of R&D equipment and technology; and (ii) lack of technical manpower/engineers.</p> <p>Policies can look into the host country factors that do not rate highly and address the areas that are evaluated poorly. Policymakers should also be aware of the source of outward R&D spending which are mainly firms from the US and Japan. Most R&D of these firms is conducted in the ICT, automotive, and pharmaceutical industries. Meanwhile, interviews with associations of firms indicate that there is no cooperation among individual firms in terms of conducting R&D. The government can also initiate, strengthen, and support joint R&D efforts among firms in a specific sector given that there will likely be significant spillover effects in this type of endeavor.</p>
    Keywords: economic growth, foreign investment, technological innovation, intellectual property rights, research and development, Philippines, outsourcing, knowledge spillover, endogenous growth theory, push and pull factors, R&D spending, R&D investment
    Date: 2010
  7. By: Bart Van Ark; Abdul Azeez Erumban; Utsav Kumar; Vivian Chen
    Abstract: This paper focuses on comparisons of productivity, (unit) labor cost and industry-level competitiveness for the manufacturing sector of China and India. They first provide a comparison between India and China using a broad international perspective. [ICRIER Working Paper No. 228]
    Keywords: cost competitiveness, manufacturing, India, China, labor productivity
    Date: 2010
  8. By: Blandine LAPERCHE
    Abstract: The networked enterprise simultaneously seeks to develop new knowledge in order to be able to compete on international markets thanks to its innovation capacity and to improve its process of allocation of resources, notably by reducing its production and organisational costs. In this paper, we study the functions of intellectual property rights in these productive and organisational objectives of the networked enterprise. Intellectual property rights are usually studied in relation to their incentive/defensive and offensive roles. But do they play a role in the organisation and notably in the coordination of activities within the networked enterprise? We consider that they have an important ‘coordination function’, making easier the relationships between all the fragmented parts of the networked enterprise. This coordination role is moreover gaining ground in the context of collaborative innovation (innovation networks). It is thus associated to the ‘incentive/defensive function’ of IPRs, aiming at protecting and thus giving incentives to the constitution of the firm’s innovation potential, called here ‘knowledge capital’. This coordination function is also associated to the ‘offensive one’, relying on the construction and the reinforcement of entry barriers which largely contribute to define the position of the networked enterprise within the innovation network to which it usually belongs. The paper concludes by stressing the relationship between the functions of IPRs in networked enterprises and the extension and strengthening of IPRs at the global leve
    Keywords: intellectual property rights, networked enterprise, growth, coordination, innovation network
    JEL: Q55 D23 D85
    Date: 2010
  9. By: Massimo Cortili (Department of Economics, University of Insubria, Italy); Manuela Menegotto (Department of Economics, University of Insubria, Italy)
    Abstract: In a world characterized by hyper-competition (Gunther and D'Aveni 1994) and globalization (Knight 2000), the business model concept is becoming more and more popular. From the literature review arises a lack of a generally accepted definition of what it is, despite the growing importance of this concept. The paper is structured in five main sections. In the first one we present a review of the business model literature. The literature on business models is not exhaustive and moreover many authors often mixed up the business model with other concepts such as strategy and finance. Two main streams of literature are identifiable: the first one emerged in the mid Nineties and generally focused on e-business contexts; the second one emerged at the beginning of this decade and is not exclusively ascribable to high-tech companies. In the second paragraph we underline how relevant the decisions are about location; since in the literature on international entrepreneurship does not emerge a business model perspective of the matter the analysis is a lacking. In the third paragraph we focus our attention on Onetti and Zucchella’s business model (2008). The authors proposed a business model framework characterized by two main aspects: the clear separation among the business model, strategy and finance, and the emphasis on the relevance of location decisions. The outputs of the business model are the focus, locus and modus of companies activities. In the fourth section we try to apply this business model to Fi.Mo.Tec.’s business case, trying to explain the company’s past and to devise a way to manage the future. The conclusions complete the paper.
    Keywords: Business model - International Entrepreneurship
    Date: 2010–09
  10. By: Sergey Lychagin; Joris Pinkse; Margaret E. Slade; John Van Reenen
    Abstract: We simultaneously assess the contributions to productivity of three sources of research anddevelopment spillovers: geographic, technology and product- market proximity. To do this,we construct a new measure of geographic proximity that is based on the distribution of afirm's inventor locations rather than its headquarters, and we report both parametric andsemiparametric estimates of our geographic-distance functions. We find that: i) Geographicspace matters even after conditioning on horizontal and technological spillovers; ii)Technological proximity matters; iii) Product-market proximity is less important; iv)Locations of researchers are more important than headquarters but both have explanatorypower; and v) Geographic markets are very local.
    Keywords: geographic proximity, R&D spillovers, semiparametric and technological proximity
    JEL: C23 L60 O33
    Date: 2010–08
  11. By: Giulio Bottazzi; Ugo Gragnolati
    Abstract: Are the observed spatial distributions of firms decided mostly by market-mediated, economy-wide locational forces, or rather by non-pecuniary, sector-specific ones? This work finds that the latter kind of forces weight systematically more than the former in deciding firm location. The analysis uses Italian data on a variety of manufacturing and service sectors spatially disaggregated at the level of Local Labor Systems.
    Keywords: Industrial Location, Sector-specific Agglomeration, Urbanization Economy, Maximum Likelihood Estimation
    JEL: L1 C31 R3
    Date: 2010–09–16

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