nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒12‒11
twelve papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Innovation in symbolic industries: the geography and organisation of knowledge sourcing By Martin, Roman; Moodysson, Jerker
  2. Different competences, different modes in the globalization of innovation?. A comparative study of the Pune and Beijing regions By Plechero, Monica; Chaminade, Cristina
  3. A three-stage model of the Academy-Industry linking process: the perspective of both agents By De Fuentes, Claudia; Dutrénit, Gabriela
  4. Comparing systems approaches to innovation and technological change for sustainable and competitive economies: an explorative study into conceptual commonalities, differences and complementarities By Coenen, Lars; Díaz López , Fernando J
  5. Spatial social-networking externality and firm location: a simulation model of Chile By Marcelo Lufin; Daisuke Nakamura
  6. National industry cluster templates and the structure of industry output dynamics: a stochastic geometry approach By João C. Lopes; Tanya Araújo; João Dias; João F. Amaral
  7. Innovation, R&D Investment and Productivity in Chile By Roberto Alvarez; Claudio Bravo-Ortega; Lucas Navarro
  8. Business Survival in Portuguese Regions By Alcina Nunes; Elsa de Morais Sarmento
  9. Public Procurement of Innovation Diffusion: Exploring the Role of Institutions and Institutional Coordination By Rolfstam, Max; Phillips, Wendy; Bakker, Elmer
  10. The Impact of Governance on European Football Leagues’ Competitiveness By Bastien Drut; Gaël Raballand
  11. Business Takeover or New Venture? Individual and Environmental Determinants from a Cross-Country Study By Block, J.H.; Thurik, A.R.; Zwan, P.W. van der
  12. Universities as Stakeholders in their Students' Careers: On the Benefits of Graduate Taxes to Finance Higher Education By McKenzie, Tom; Sliwka, Dirk

  1. By: Martin, Roman (CIRCLE, Lund University); Moodysson, Jerker (CIRCLE, Lund University)
    Abstract: This paper deals with geographical and organisational patterns of knowledge flows in the media industry of southern Sweden, an industry that is characterised by a strong ‘symbolic’ knowledge base. Aim is to address the question of the local versus the non-local as the prime arena for knowledge exchange, and to examine the organisational patterns of knowledge sourcing with specific attention paid to the nature of the knowledge sourced. Symbolic industries draw heavily on creative production and a cultural awareness that is strongly embedded in the local context; thus knowledge flows and networks are expected to be most of all locally configured, and firms to rely on informal knowledge sources rather than scientific knowledge or principles. Based on structured and semi-structured interviews with firm representatives, these assumptions are empirically assessed through social network analysis and descriptive statistics. Our findings show that firms rely above all on knowledge that is generated in project work through learning-by-doing and by interaction with other firms in localised networks. The analysis contributes to transcending the binary arguments on the role of geography for knowledge exchange which tend to dominate the innovation studies literature.
    Keywords: knowledge base; cultural industry; regional innovation system; network analysis; Sweden
    JEL: O30
    Date: 2010–12–01
  2. By: Plechero, Monica (ATPS, Tanzania); Chaminade, Cristina (CIRCLE, Lund University)
    Abstract: Since the seminal work of Archibugi and Michie (1995) on the globalization of innovation, several authors have tried to understand the complex relationship between innovation and internationalization, mainly using firm or sectoral level data. However, most of them tend to focus on just one form of globalization of innovation – exploitation of technology, research collaboration or offshoring of R&D – and often One traditional indicator of innovation, like patents or R&D investments, thus ignoring the complexity of the phenomenon. Furthermore, little attention has been paid to the interplay of the micro characteristics of firms, the region in which they are embedded and different forms of globalization of innovation. Our paper is based on three distinct modes of globalization of innovation: global exploitation of innovation, global sourcing of technology and global research collaboration, thus adapting Archibugi and Michie’s taxonomy to a developing country context. We then use this taxonomy to explore empirically the linkages of firm-level competences, the nature of the international activities and the region in which the firms are located: Pune in India and Beijing in China. We use primary data on the two regions to show that the Pune region is specialized in the three types of globalization of innovation, and in particular in the exploitation of innovation more than Beijing. A deeper analysis of the micro characteristics of the firms shows that the three modes of globalization of innovation are associated to different competences. Firms with technological and organizational competences show a higher propensity to develop international linkages, while firms with a high level of educated human resources seems to focus more on the domestic market.
    Keywords: globalization; innovation; regions; competences; China; India
    JEL: O30
    Date: 2010–03–01
  3. By: De Fuentes, Claudia (CIRCLE, Lund University); Dutrénit, Gabriela (Universidad Autónoma Metropolitana-Xochimilco)
    Abstract: Interactions between public research organizations and industry can be conceptualized in three main stages: the engagement in collaboration, the knowledge transfer during collaboration, and the benefits perceived from collaboration. Both agents differ in terms of the incentives to collaborate and the behaviors they adopt along these three stages. Following a three stages model based on Crépon, Duguet and Mairesse (1998), this paper discusses the impact of drivers to collaborate on channels of interaction, and the impact of channels of interaction on benefits for both agents -researchers and firms, and discusses the policy implications. The study is based on original data collected by two surveys carried out in Mexico during 2008, to R&D and product development managers of firms and to academic researchers. Our results show different perceptions from both agents across the three stages of the linking process; the main drivers for firms’ collaboration are largely related to behavioral characteristics (formalization of R&D activities, fiscal incentives for R&D and openness strategy), while for researchers they are associated with individual (academic degree, members of a team, type of research -basic science and technology development) and institutional factors (affiliation to public research centres. All channels of interaction play an important role in determining benefits for researchers and firms; however, R&D projects & consultancy channel play a particular important role for long-term benefits, while the information & training channel is particularly important for short-term benefits. Usually policies do not discriminate much between agents’ perception at each stage of the linking process and introduce general programs that look for stimulating interaction by both agents; this unique incentive to promote interaction will probably fail to change agents’ behavior. Thus, a better understanding of the different perspectives will contribute to more efficient policy programs.
    Keywords: university-industry interactions; collaboration drivers; channels of interaction; benefits; innovation policy; developing countries; Mexico
    JEL: O30
    Date: 2010–10–01
  4. By: Coenen, Lars (CIRCLE, Lund University); Díaz López , Fernando J (TNO Innovation and Environment)
    Abstract: This paper makes a distinction between three theoretical frameworks that have been highly influential in the discourse on innovation, competitiveness and sustainability: sectoral systems of innovation (SSI), technological innovation systems (TIS) and sociotechnical systems (ST-Systems). These frameworks share a common systems approach to innovation but are often positioned as different bodies of literature that correspond to different epistemic communities. This paper is explorative and conceptual in nature. It presents a systematic comparative review of SSI, TIS and ST-Systems based on the following analytical dimensions: (1) system boundaries, (2) actors and networks, (3) institutions, (4) knowledge, and (5) dynamics. In the concluding section commonalities and differences, of the three approaches are presented and suggestions for complimentarily are made.
    Keywords: Innovation Policy; Innovation System; Governmental Activism; Governmental Experimentalism
    JEL: O30
    Date: 2010–11–01
  5. By: Marcelo Lufin (Department of Economics, Universidad Católica del Norte); Daisuke Nakamura (Department of Economics, Universidad Católica del Norte)
    Abstract: There have already been several established approaches regarding social externalities and location decision-making of the firm. However, those usually face certain difficulties when the model is applied to the real economic system. This technical problem may be solved by testing the case of spatial structure of Chile, where particular spatial configurations characterized by extremely narrow and long geographical attributes are available. While there are various methods of investigation such as spatial econometrics and CGE models, we attempt to compose a spatial Keiretsu framework by applying numeric simulation analysis. To be precise, the simulation initially distributes firms at random across whole regions of the country in order to observe the evolution process of every individual firm together with given conditions of spatially-constrained external economies of scale, scope and complexity in each region. It is then examined the potential impact of changes in internal economies such as horizontal, lateral and vertical integrations on the efficiency of further growth with respect to expansion time and scale of firms in addition to given availability of external economies. Furthermore, sensitivity of simulation is measured to evaluate the creation of new firms as well as their evolution processes by means of repeating Monte-Carlo method. The simulation outcome may provide policy implications such as the accumulating issue of severe spatial concentration in the Metropolitan Region of the country. Finally, the analysis explores further avenues of research towards general framework of spatial social externalities
    Keywords: Firm location, social network externalities, simulation model, internal and external economies
    JEL: C51 D85 L14 O15
    Date: 2010–11
  6. By: João C. Lopes; Tanya Araújo; João Dias; João F. Amaral
    Abstract: Cluster analysis has been widely used in an Input-Output framework, with the main objective of uncover the structure of production, in order to better identify which sectors are strongly connected with each other and choose the key sectors of a national or regional economy. There are many empirical studies determining potential clusters from interindustry flows directly, or from their corresponding technical (demand) or market (supply) coefficients, most of them applying multivariate statistical techniques. In this paper, after identifying clusters this way, and since it may be expected that strongly (interindustry) connected sectors share a similar growth and development path, the structure of sectoral dynamics is uncovered, by means of a stochastic geometry technique based on the correlations of industry outputs in a given period of time. An application is made, using Portuguese input-output data, and the results do not clearly support this expectation.
    Keywords: Clusters, Input-output analysis, Industry output dynamics
    Date: 2010–11
  7. By: Roberto Alvarez; Claudio Bravo-Ortega; Lucas Navarro
    Abstract: This paper uses two sources of information and different methodologies to analyze the causal effect of product and process innovation on productivity in the Chilean manufacturing industry during the past decade. In general, the evidence suggests there is not a contemporaneous effect of product innovation on productivity, but there is a positive effect of process innovation. This notsignificant effect of product innovation contrasts with evidence of studies for other countries. However, the results show the presence of lagged effects product innovation on productivity two years after innovation. Compared with the case of developed countries, this evidence might be consistent with a very slow process of “learning by doing” on the part of Chilean firms with regard to mastering new technologies. These slow and frequently uncertain gains in productivity could help to explain the low levels of investment in research and development (R&D) activities by Chilean firms.
    Keywords: Productivity, Innovation, Investment, Research and development, Chile
    JEL: D24 D92
    Date: 2010–10
  8. By: Alcina Nunes (Escola Superior de Tecnologia e Gestão do Instituto Politécnico de Bragança e GEMF, Faculdade Economia Universidade de Coimbra, Portugal); Elsa de Morais Sarmento (Departamento de Economia e Gestão da Universidade de Aveiro, Portugal)
    Abstract: This work addresses the post-entry performance of employer enterprises for seven regions in Portugal, at the NUT II level, by investigating the structural characteristics of survival, using non-parametric and semi-parametric methods, during the period 1985 to 2007. The last decades of the 20th century were characterized by a period of creative destruction in Portugal. In particular, regions such as Norte, Algarve and Madeira show the highest growth rates in enterprise births, deaths and firm churn. After 2000, firms´ births and deaths get relatively less turbulent. In the non-parametric analysis, we identify statistically significant disparities among regions. Norte has the lowest survival rate and Centro holds the longest surviving firms and the survival gap between the former two regions gets amplified over time. Concerning the semi-parametric analysis, firm’s current size dimension is a strong determinant for the probability of survival, particularly in the Norte and Açores. In industries characterized by high entry rates at the moment of a firm’s birth, post-entry survival becomes harder, especially in the south and in the Portuguese archipelagos, the regions with the lowest number of active employer enterprises. A higher entry rate combined with fast growth rates for any given industry also generates a shorter duration of firms. Manufacturing is the sector where more firms are more likely to abandon the market, particularly in Madeira and Norte. But it is turbulence, given by the sum of firms´ entry and exit rates that exhibits the most significant effect on survival. For every region, except for the Açores, where there is no statistical significance, those that have the highest record of firm turbulence, also display the lowest business survival probabilities. Turbulence decreases severely the survival probabilities of firms located in Madeira and Norte and to a lesser extent in the Algarve.
    Keywords: Duration Analysis, Firm dynamics, Entrepreneurship, Regional Analysis.
    JEL: C14 C41 L25 L26 R11
    Date: 2010–10
  9. By: Rolfstam, Max (Sønderborg Participatory Innovation Research Centre, University of Southern Denmark); Phillips, Wendy (Centre for Research in Strategic Purchasing and Supply, School of Management, University of Bath); Bakker, Elmer (Centre for Research in Strategic Purchasing and Supply, School of Management, University of Bath)
    Abstract: The role of the public agency as a pacer of private sector innovation has been emphasised over the recent years, especially in the context of the EU. The general ambition has been to encourage public agencies to actively stimulate private sector innovation by requesting innovation instead of procuring currently existing products. This has also triggered an increased interest among researchers and practitioners to identify examples of best practice where public agencies have successfully procured innovation. Rather than addressing this demand-oriented perspective this paper focuses on the public agency as an adopter of private-sector innovation, and how this mechanism can contribute to innovation in general. The theoretical point of departure is diffusion theory, with an emphasis on the role of institutions as identified in systemic approaches to innovation studies. A particular concern of this paper is those institutions that hinder or enable adoption of an innovation in an organisational context. The paper draws on an explorative case study looking at the introduction of a new catheter into the English National Health Service supply chain and its diffusion among NHS trusts in England. Different institutional factors are identified which have had an affect on the adoption and diffusion.
    Keywords: public procurement; innovation diffusion; institutions; England
    JEL: O30
    Date: 2010–06–01
  10. By: Bastien Drut; Gaël Raballand
    Abstract: The sharp increase in TV broadcasting rights and the liberalization of the transfer market has completely reshaped the balance of power in European football, both within and between the different leagues. A trade-off has emerged with leagues whose teams perform well in the Champions League suffering financial inequality and clubs in financial difficulty, while those leagues which are less successful in the Champions League enjoy relative financial equality and less debt. The English, Italian and Spanish leagues are in the first category while the French and German leagues are in the second category. Based on interviews with several stakeholders, this paper demonstrates that this is mainly explained by the extent of financial regulation, which depends on leagues' and clubs' governance. It also discusses the role of UEFA and assesses the impact of the introduction of the financial fair-play rule.
    Keywords: Ligue Française de Football, Deutsche Fußball Liga, football clubs, competitiveness, governance
    JEL: L83
    Date: 2010
  11. By: Block, J.H.; Thurik, A.R.; Zwan, P.W. van der
    Abstract: The determinants of entrepreneurial choice have been thoroughly analyzed. Little is known, however, about the preferred mode of entry into entrepreneurship, such as taking over an existing business or starting a new venture. Using a large, international dataset, this study reports considerable differences in takeover preferences across countries. It explores many individual and environmental determinants of the preferred mode of entry. Our results show that human capital is not the only influence on the preference for starting a new venture versus taking over an existing one; a person’s risk attitude, inventiveness, perception of financial constraints of entrepreneurship and country of residence (after controlling for the individual determinants) also play important roles.
    Keywords: entrepreneurship;occupational choice;entry mode;business takeover;new venture start
    Date: 2010–11–02
  12. By: McKenzie, Tom (City University London); Sliwka, Dirk (University of Cologne)
    Abstract: We examine ways of funding higher education, comparing upfront tuition fees with graduate taxes. The tax dominates, as volatility in future income is transferred from risk-averse students to the risk-neutral state. However, a double moral hazard problem arises when students’ efforts to raise lifetime income and universities’ activities to improve teaching quality are endogenized. We show that graduate taxes reduce work incentives but provide incentives to improve teaching quality. Yet if tax revenues are distributed evenly among universities there is free riding. To solve this problem each university should be allocated the revenue generated by its own alumni. In addition, we demonstrate how a budget-balancing graduate tax would encourage more people to attend university than would the equivalent upfront tuition fee.
    Keywords: higher education, graduate tax, tuition fees, risk aversion, incentives
    JEL: H42 H52 I22 M52
    Date: 2010–11

This nep-cse issue is ©2010 by Joao Jose de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.