nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒10‒23
ten papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Anatomy of cluster development in China: The case of health biotech clusters By Conlé, Marcus; Taube, Markus
  2. Clusters, Convergence, and Economic Performance By Mercedes Delgado; Michael Porter; Scott Stern
  3. Knowledge cluster formation in Peninsular Malaysia: The emergence of an epistemic landscape By Evers, Hans-Dieter; Nordin, Ramli; Nienkemper, Pamela
  4. Anatomy of Learning-from-Exporting: Role of foreign knowledge acquisition By YASHIRO Naomitsu; HIRANO Daisuke
  6. Who Do Scientists in Public Research Institutions Cooperate with Private Firms? By David B. Audretsch; Werner Bönte; Stefan Krabel
  7. Non-cooperative incentives to share knowledge in competitive environments By Andrzej Kwiatkowski
  8. Network Extension By Hans Haller
  9. Competition for Scarce Resources.. By Eső, Péter; Nocke, Volker; White, Lucy
  10. Universities as Research Partners By Hall, Bronwyn; Link, Albert; Scott, John

  1. By: Conlé, Marcus; Taube, Markus
    Abstract: Focussing on China's health biotech clusters the study explores the anatomy of interaction in as well as between various clusters. While the literature has identified the existence of a dense network of durable interactions among firms and between firms and academia at a particular location as one of the most important prerequisites for well-performing clusters, we show that network ties extending beyond regional boundaries are equally valuable for the innovative capacity of China's biotech firms. Analysing the demographic process of cluster emergence we show that there exist different types of biotech clusters in China, which are closely linked and exchange knowledge and technology amongst each other. It appears as if further analysis of these cross-cluster links may provide important insights of how learning and innovation works in China's health biotech industry. Although China's science parks and industrial bases may on an individual basis appear to be badly structured, the organization of China's health biotech industry turns out to be substantially enhanced once these external linkages are taken into consideration. --
    Keywords: China,health biotechnology,cluster,entrepreneurship,localization
    Date: 2010
  2. By: Mercedes Delgado; Michael Porter; Scott Stern
    Abstract: This paper evaluates the role of regional cluster composition in the economic performance of industries, clusters and regions. On the one hand, diminishing returns to specialization in a location can result in a convergence effect: the growth rate of an industry within a region may be declining in the level of activity of that industry. At the same time, positive spillovers across complementary economic activities provide an impetus for agglomeration: the growth rate of an industry within a region may be increasing in the size and strength (i.e., relative presence) of related economic sectors. Building on Porter (1998, 2003), we develop a systematic empirical framework to identify the role of regional clusters – groups of closely related and complementary industries operating within a particular region in regional economic performance. We exploit newly available data from the US Cluster Mapping Project to disentangle the impact of convergence at the region-industry level from agglomeration within clusters. We find that, after controlling for the impact of convergence at the narrowest unit of analysis, there is significant evidence for cluster-driven agglomeration. Industries participating in a strong cluster register higher employment growth as well as higher growth of wages, number of establishments, and patenting. Industry and cluster level growth also increases with the strength of related clusters in the region and with the strength of similar clusters in adjacent regions. Importantly, we find evidence that new industries emerge where there is a strong cluster environment. Our analysis also suggests that the presence of strong clusters in a region enhances growth opportunities in other industries and clusters. Overall, these findings highlight the important role of cluster-based agglomeration in regional economic performance.
    Date: 2010–10
  3. By: Evers, Hans-Dieter; Nordin, Ramli; Nienkemper, Pamela
    Abstract: Knowledge clusters are central places within an epistemic landscape, i.e. in a wider structure of knowledge production and dissemination. They have the organisational capability to drive innovations and create new industries. Examples of such organisations in knowledge clusters are universities and colleges, research institutions, think tanks, government research agencies and knowledge-intensive firms with their respective knowledge workers. The following paper will look at Malaysia and its path towards a Knowledge-based economy. We first describe the development strategy of the Malaysian government which has emphasized cluster formation as one of its prime targets. We then provide evidence of the current state of knowledge cluster formation in Peninsular Malaysia and try to answer the following questions. If the formation of a knowledge cluster (especially in the ICT and multimedia industry) has been the government policy, what has been the result? Has Malaysia developed an epistemic landscape of knowledge clusters? Has the main knowledge cluster really materialised in and around Cyberjaya in the MSC Malaysia? Data collected from websites, directories, government publications and expert interviews have enabled us to construct the epistemic landscape of Peninsular Malaysia. Several knowledge clusters of a high density of knowledge producing institutions and their knowledge workers have been identified and described. The analysis of the knowledge output, measured in terms of scientific publications, patents and trademarks show that existing knowledge clusters have, indeed, been productive as predicted by cluster theory. On the other hand government designed development corridors do not always coincide with the distribution of knowledge assets. The analysis of our data pertaining to Cyberjaya, the MSC Malaysia and the “corridors” needs to be developed further to produce more robust results.
    Keywords: Malaysia; Cyberjaya; knowledge and development; knowledge-based economy (KBE); knowledge clusters; knowledge corridors; epistemic landscape; development strategy
    JEL: H41 O16 L52 C81 D8 R11 D85
    Date: 2010–10–10
  4. By: YASHIRO Naomitsu; HIRANO Daisuke
    Abstract: The essence of learning-from-exporting can be thought of as a process in which exporters absorb international knowledge spillovers and feed it back to their innovation efforts. Learning-from-exporting is often difficult to observe because it is conditional on at least two efforts: information gathering from foreign markets and zealous R&D. We exploit unique survey data to explicitly analyze the contribution of these activities to exporters' innovation. We find that gathering information from foreign markets significantly raises exporters' probability of succeeding in technology upgrades or new product developments, along with their R&D activities. While learning about the latest foreign technology and competitor products is at the core of such knowledge acquisition, international marketing activities, such as gathering feedback from foreign customers or information on the taste and needs of foreign customers, is also associated with a significant contribution. The importance of foreign knowledge acquisition is also confirmed for exporters that do not serve high-income markets or those that supply intermediate goods. Although it is likely that the acquisition of foreign knowledge contributes to exporters' innovation strategies, such as where to allocate R&D resources, it does not seem to raise the marginal effectiveness of R&D.
    Date: 2010–10
  5. By: Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble Ecole de Management); Khalid Errabi (MTS - Management Technologique et Strategique - Grenoble Ecole de Management)
    Abstract: There is growing academic and policy interests in the factors that underpin the formation and the growth of clusters, especially for such ‘hyped up' scientific and technological fields as the nanotechnologies. This paper analyses the determinants of scientific cluster growth (measured by the number of publications that emanate there from), distinguishing between structural effects (i.e. initial cluster size, scientific field composition and geographic location) on the one hand and its scientific variety, organizational diversity and degree of openness (in terms of collaboration with outside actors) on the other. Overall, scientific variety enhances clusters growth, but organizational diversity slows it down. However, patterns of growth are different in Asia, Europe and North America. It seems that cluster evolution is highly contingent on national systems of innovation and on the history of collaboration amongst local actors. Policy makers and cluster strategists must design specific policies by zone, and should not simply attempt to replicate best practices from one zone to another. Slow growth may reflect also ‘elitist' strategies - those based on quality rather than on numbers
    Keywords: cluster growth; nanotechnology; scientific district; publication
    Date: 2010–10–15
  6. By: David B. Audretsch; Werner Bönte; Stefan Krabel
    Abstract: As public research institutions are increasingly pressured to transfer research results to industry, evaluation of their performance is not only based on their scientific output but also on their commercialization success. Although it is well known that research cooperation activities are an important channel of knowledge transfer, the knowledge about factors driving research cooperation is limited. This paper explicitly focuses on scientist perspective and investigates the relevance of academic values and perceived costs and benefits of cooperation for a scientist's decision to cooperate with private firms. Our analysis is based on two survey waves performed with scientists in the Max Planck Society in Germany which is a publicly funded research organization focusing on basic research. Our empirical results suggest that open science identity is an important determinant of scientist fundamental decision to cooperate with private firms at all. The decision to keep on cooperating with private firms is directly influenced by cost sharing incentives and by firms' confidentiality requirements. Besides these direct effects, our results suggest that perceived reputational reward, monetary benefits, and time costs associated with cooperation influence cooperation behavior indirectly through their impact on the attractiveness of cooperation. The latter is a strong and robust predictor of cooperation behavior.
    Date: 2010
  7. By: Andrzej Kwiatkowski
    Abstract: In this paper we study a model where non-cooperative agents may exchange knowledge in a competitive environment. As a potential factor that could induce the knowledge disclosure between humans we consider the timing of the moves of players. We develop a simple model of a multistage game in which there are only three players and competition takes place only within two stages. Players can share their private knowledge with their opponents and the knowledge is modelled as influencing their marginal cost of effort. We identify two main mechanisms that work towards knowledge disclosure. One of them is that before the actual competition starts, the stronger player of the first stage of a game may have desire to share his knowledge with the "observer", because this reduces the valuation of the prize of the weaker player of that stage and as a result his effort level and probability of winning in a fight. Another mechanism is that the "observer" may have sometimes desire to share knowledge with the weaker player of the first stage, because in this way, by increasing his probability of winning in that stage, he decreases the probability of winning of the stronger player. As a result, in the second stage the "observer" may have greater chances to meet the weaker player rather than the stronger one.
    Keywords: knowledge sharing, strategic knowledge disclosure, multistage contest game, non-cooperative games
    JEL: C72 D83
    Date: 2010–10
  8. By: Hans Haller
    Abstract: In a model of strategic network formation, the endogenously formed network is built around a pre-existing network. We envisage that the pre-existing or core network is publicly provided. Strategic network formation is decentralized: Players act in their private interest and bear the costs when adding links to the pre-existing network. We study how the pre-existing network affects existence of Nash equilibria and efficiency of Nash equilibrium outcomes.
    Keywords: Network formation; Network extension; Network infrastructure; Strategic games; Efficiency; Stability
    Date: 2010
  9. By: Eső, Péter; Nocke, Volker; White, Lucy
    Abstract: We show that the efficient allocation of production capacity can turn a competitive industry and downstream market into an imperfectly competitive one. Even though downstream firms have symmetric production technologies, the downstream industry structure will be symmmetric only if capacity is sufficiently scarce. Otherwise it will be asymmetric, with one large fat capacity-hoarding firm and a fringe of smaller lean and fit firms, so that Tobin`s Q varies inversely with firm size. This is so even if the number of firms is infinitely large. As demand or input quantity varies, the industry may switch between symmetric and asymmetric phases, generating predictions for firm size and costs across the business cycle. Surprisingly, an increase in available capacity resulting in such a switch can cause a reduction in total output and consumer surplus.
    JEL: L25 F15 L11 F12
    Date: 2010
  10. By: Hall, Bronwyn (University of California at Berkeley, Department of Economics); Link, Albert (University of North Carolina at Greensboro, Department of Economics); Scott, John (University of North Carolina at Greensboro, Department of Economics)
    Abstract: Universities are a key institution in the US innovation system and an important aspect of their involvement is the role they play in Private-Public Partnering activities. This study seeks to gain a better understanding of the performance of university-industry research partnerships using a sample survey of pre-commercial research projects funded the U.S. government's Advanced Technology Program. Although results must be interpreted cautiously due to the small size of the sample, the study finds that projects with university involvement tend to be in areas involving "new" science and therefore experience more difficulty and delay but also are more likely not to be aborted prematurely. We interpret this finding to imply that universities are contributing to basic research awareness and insight among the partners in ATP-funded projects.
    Keywords: university; research
    JEL: O30
    Date: 2010–10–11

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