nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒01‒30
fifteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. The micro processes underlying small firms'integration into territorial innovation dynamics - a knowledge based perspective By Rani Jeanne Dang; Christian Longhi; Catherine Thomas
  2. Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India By Pradhan, Jaya Prakash
  3. Centralized Innovation Policy in an agglomeration and growth model: A welfare analysis By Benjamin Montmartin
  4. The Effects of the Internationalisation of Firms on Innovation and Productivity By Siedschlag, Iulia; Zhang, Xiaoheng; Cahill, Brian
  5. Business Visits and the Quest for External Knowledge By Tani, Massimiliano
  6. Methods of analysis of local tourist systems By AMODIO, Teresa
  7. Economies of scale and scope of university research and technology transfer: a flexible multi-product approach By Néstor Duch-Brown; Martí Parellada-Sabata; Jose Polo-Otero
  8. The value of an educated population for an individual's entrepreneurship success By André van Stel; Mirjam van Praag; José Maria Millan; Emilio Congregado; Concepcion Roman
  9. Collective efficiency strategies: a policy instrument for the competitiveness of low-density territories By Rui Nuno Baleiras
  10. Public Science and Public Innovation: Assessing the Relationship between Patenting at U.S. National Laboratories and the Bayh-Dole Act By Link, Albert; Siegel, Donald; Van Fleet, David
  11. Does Information Network Affect Technology Diffusion? By Goswami, Rupak; Basu, Debabrata
  12. On the importance of growth spillovers and regional clustering in the Russian Federation? By Jens K. Perret
  13. Can better governance increase university efficiency? By Néstor Duch-Brown; Montserrat Vilalta
  14. Modeling Routines and Organizational Learning. A Discussion of the State-of-the-Art By Giovanni Dosi; Marco Faillo; Luigi Marengo; Daniele Moschella
  15. Is the concept of sustainable tourism sustainable? Developing the Sustainable Tourism Benchmarking Tool By Lucian Cernat; Julien Gourdon

  1. By: Rani Jeanne Dang (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Christian Longhi (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Catherine Thomas (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis)
    Abstract: The paper is concerned with the process of SMEs' insertion into innovation projects within regional clusters. The objective is to contribute to a better understanding of this process by examining the underlying mechanisms of territorial innovation dynamics. A particular attention is given to the interplay between the features of territorial dynamics of innovation identified, and SMEs' capacity to participate to collaborative innovation projects. In this perspective, the article analyse the front-end process of territorial inter-organizational innovation, the early stage during which partners negotiate and establish collaborative innovation projects. Rather than investigating how clusters facilitate the access to new resources and knowledge, the crucial question here is how clusters allow the combination of different component of knowledge among heterogeneous actors. First, our findings reveal the key underlying role of architectural knowledge in local innovation processes. Second, they suggest that the nature of architectural knowledge inside the cluster influences the capacity and the motivation of SMEs to participate to local innovation projects. These findings contribute to theory by developing a grounded model of territorial dynamics of innovation and of SMEs integration into localised innovation projects
    Keywords: clusters; SMEs; architectural innovation; knowledge; local innovation projects
    Date: 2010–06–28
  2. By: Pradhan, Jaya Prakash
    Abstract: This study makes an early attempt to estimate the magnitude and intensity of manufacturing firms’ R&D by Indian states during the period 1991‒2008 and analyses the role of regional factors on firm-level R&D activities. As there is little research on state-wise R&D performance of firms in India, this study serves an important contribution to the academic and policy realm. It has brought out the fact the total manufacturing R&D investment in India is unevenly distributed regionally with a few states accounting for disproportionate share of it. Regional heterogeneity or inter-state disparities in R&D has increased between the 1990s and the first decade of the twenty-first century. In view of this persistent regional heterogeneity in R&D, the study has developed and estimated an empirical model for a sample of 4545 Indian manufacturing firms with R&D facilities located in single state and that explicitly includes regional factors as probable factors affecting R&D. The three-step Censored Quantitle Regression results confirm that regional factors play an important role in shaping the R&D intensity of the sample of firms. This led us to some useful policy suggestions for regional governments to promote local firms’ R&D activities.
    Keywords: Regional heterogeneity; R&D; manufacturing firms; Indian states; censored quantitle regression.
    JEL: O18 O30 O32 C21 L60
    Date: 2011–01–12
  3. By: Benjamin Montmartin (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)
    Abstract: Innovation policies are strategic tools for reinforcing long-term economic growth. If the literature highlights the need for coordination among national R&D policies, the need for transnational policies appears to be less clear. Using a model à la Martin and Ottaviano (1999), we conduct a welfare analysis in order to judge the effect of a centralized R&D subsidy policy. If theoretical results suggest that this policy can improve efficiency and equity, our welfare analysis shows that when there are few knowledge spillovers between countries, then the policy leads to a conflict of interest. In the case of strong international knowledge spillovers however, the conflict of interest disappears suggesting that innovation policies should first focus on the development of knowledge flows between countries.
    Keywords: agglomeration and growth models; innovation policy; welfare criteria
    Date: 2011
  4. By: Siedschlag, Iulia; Zhang, Xiaoheng; Cahill, Brian
    Abstract: This paper examines the effects of the internationalisation of firms via foreign direct investment and trade on their innovation and productivity performance. Our econometric results suggest that foreign affiliates and domestic exporters were more likely to invest in innovation and furthermore that they were more likely to be more successful in terms of innovation output and higher productivity than firms that served only the domestic market. On average, innovation output was positively associated with labour productivity over and above other determinants. Access to external knowledge flows explain to a large extent the innovation performance of firms, in particular co-operation with suppliers, with consultants, commercial labs or private R&D institutes, with universities or other higher education institutions.
    Keywords: Productivity/Foreign direct investment/investment/exporters/education
    Date: 2010–12
  5. By: Tani, Massimiliano (Macquarie University, Sydney)
    Abstract: This paper contributes to existing work on innovation by studying the determinants of various types of interaction between a firm and its external environment. In particular, it focuses on face-to-face interactions carried out through international business visits. The results indicate that accessing external knowledge is a key determinant of the decision to interact, regardless of the chosen form of interaction. Conferences and trade fairs are the interactions with the highest probability of knowledge gain, while visits to new customers and suppliers are those with the lowest. The likelihood of accessing external knowledge is also affected by the type of employer and functional unit involved, and the characteristics of the employee carrying the visit out. The results support that labour mobility aimed at interacting can add to an organisation's efficient use of human resources. As a result, it highlights that cutting travelling budgets to reduce financial expenditures also reduces opportunities to interact and, with it, the access to external knowledge.
    Keywords: external knowledge, face-to-face interactions, international business visits
    JEL: F2 J6
    Date: 2011–01
  6. By: AMODIO, Teresa (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy)
    Abstract: The phenomenon of tourism, due to the variables involved and their instability, is a highly complex and dynamic sector. Faced with an increasingly competitive market, characterized by political, economic and social megatrends which affect local performance, the role of the setting becomes significant. In fact, territorial properties, through tangible and intangible elements, can trigger the development process or,conversely, affect the evolution when the local context does not allow for growth conditions and management of competition. The variety of configurations, structures and phenomena within the territory make it a highly structured knowledge process, with the enhancing and upgrading of the local characteristics. However, one of the main problems is that legislation does not clarify the operational aspect of a definite boundary between Local Touristic System within the territorial context, deferring the need to identify approaches to the districts themselves. The choice of variables to investigate and the systemic reading that they should be given, determine the responsibility of creating a functional knowledge framework to the adoption of decision trajectories in line with territorial inclinations. The proposal that has inspired and supported the research presented in this paper can also be included within this context, with scientific applications and knowledge requirements needed by policy makers engaged in the drawing up and implementation of local development policies
    Keywords: tourism; local systems; methodology of analysis; districts.
    JEL: R11
    Date: 2011–01–18
  7. By: Néstor Duch-Brown (University of Barcelona & IEB); Martí Parellada-Sabata (University of Barcelona & IEB); Jose Polo-Otero (University of Barcelona & IEB & CYD foundation)
    Abstract: This paper empirically analyzes economies of scale and of scope in the production of research and technology transfer outputs in the Spanish public university system. We employ the flexible fixed cost quadratic function which relates total university R&D expenditure and the budget of the technology transfer offices with different outputs of research and technology transfer, from which we then compute the ray economies of scale, the specific economies of scale and the economies of scope. Our results indicate that ray economies of scale and research specific economies of scale hold up to 100% of current mean expenditure. The technology transfer product specific economies of scale hold up to 150% of current mean of the R&D expenditure. Our results also show that cost subadditivity acts a positive constraint, from which we infer the presence of economies of scope.
    Keywords: Multi-product cost function, economies of scale and scope, research and technology transfer
    JEL: I21 I23
    Date: 2010
  8. By: André van Stel; Mirjam van Praag; José Maria Millan; Emilio Congregado; Concepcion Roman
    Abstract: Human capital obtained through education has been shown to be one of the strongest drivers of entrepreneurship performance. The entrepreneur's human capital is, though, only one of the input factors into the production process of her venture. The value of other input factors, such as (knowledge) capital and labor is likely to be affected by the education level of the possible stakeholders in the entrepreneur's venture. The education distribution of the (local) population may thus shape the supply function of the entrepreneur. Likewise, the demand function faced by the entrepreneur is also likely to be shaped by the taste, sophistication and thus the education level of the population in their role as consumers. In other words, a population with a higher education level may be associated with (i) a working population of higher quality; (ii) more and/or higher quality universities with a positive effect on research and development (R&D) and knowledge spillovers leading to more high tech and innovative ventures; and finally, (iii) a more sophisticated consumer market. Based on this, we formulate the following proposition: The performance of an entrepreneur is not only affected positively by her own education level but in addition, also by the education level of the population. We test this proposition using an eight years (1994-2001) panel of labor market participants in the EU-15 countries from which we select individuals who have been observed as entrepreneurs. We find strong support for a positive relationship between enrolment rates in tertiary education in country j and year t and several measures of the performance of individual entrepreneurs in that same country and year, including survival and the probability that an entrepreneur starts employing personnel and maintains as an employer for a longer period of time. An implication of our novel finding is that entrepreneurship and higher education policies should be considered in tandem with each other.  
    Date: 2011–01–18
  9. By: Rui Nuno Baleiras (Universidade do Minho - NIPE)
    Abstract: This paper motivates the focus of EU cohesion policy at large and the territorial cooperation tools on the economic development of territories featuring impoverishing growth associated to low population density. An innovative policy approach to help solving this problem in many Member States is put forward here. It is based on the economic concept of “collective efficiency”. It should be understood as a proposal to improve EU cohesion policy in the next programming period. As such, the paper suggests actual ideas to be included in the forthcoming Common Strategic Framework and Development and Investment Partnership Contracts.
    Date: 2011
  10. By: Link, Albert (University of North Carolina at Greensboro, Department of Economics); Siegel, Donald (SUNY Albany); Van Fleet, David (Arizona State University)
    Abstract: Most studies of the effects of the Bayh-Dole Act have focused on universities. In contrast, we analyze patenting activity at two prominent national laboratories, Sandia National Laboratories and the National Institute of Standards and Technology before and after the enactment of this legislation and the Stevenson-Wydler Act. It appears as though the enactment of Bayh-Dole and the Stevenson-Wydler Act were not sufficient to induce an increase in patenting at these labs. However, the establishment of financial incentive systems, embodied in passage of the Federal Technology Transfer Act, as well as the allocation of internal resources to support technology transfer, stimulated an increase in such activity.
    Keywords: U.S. National Laboratories; Patenting; Technology Transfer; Bayh-Dole Act; Stevenson-Wydler Act; Federal Technology Transfer Act
    JEL: H10 O30
    Date: 2011–01–16
  11. By: Goswami, Rupak; Basu, Debabrata
    Keywords: technology transfer, agricultural information network, social network analysis, adoptiondecision, India, Consumer/Household Economics, Crop Production/Industries, Farm Management, Teaching/Communication/Extension/Profession,
    Date: 2010–11
  12. By: Jens K. Perret (European Institute for International Economic Relations at the University of Wuppertal)
    Abstract: Regions differ from each other not only in their economic structure but concerning the impact they have on their neighbors. In the present study interregional spillover activities are analyzed for the regions of the Russian Federation. Instead of knowledge spillovers, more general growth spillovers are accounted for. The time period observed in this study is 1994 to 2008, therefore a large part of the Russian transition period. Using the local Moran's I statistic as a measure of regional spillover activity reveals that only limited spillover activity is present. Additionally, to account for the range of these spillovers, an approach introduced by Bottazzi and Peri (2003) is implemented. It is shown that the spillovers' reach is very limited if present at all.
    Keywords: Russian Federation, Spillovers, Spatial Economectrics, Clustering
    JEL: R11 R15
    Date: 2011–01
  13. By: Néstor Duch-Brown (University of Barcelona & IEB); Montserrat Vilalta (Escola Universitària del Maresme - UPF)
    Abstract: This paper links governance reforms with potential improvements in efficiency in Spanish universities. Taking the classic DEA model as our starting-point, we focus on the study of efficient units to identify the ones that present atypical behaviour (outliers) and should be removed from the analysis, and then to order the remaining institutions in terms of what is known as robust efficiency. Moreover, we use a second stage regression analysis and a three-stage adjusted values non-parametric model to analyse the influence of environmental factors on the efficiency scores obtained. Once environmental factors are taken into account, the remaining unexplained inefficiency is attributed to governance failures. Our results indicate that the observed inefficiency in Spanish public universities is mainly determined by deficient governance. Thus, there is scope for improvements in efficiency through governance reform.
    Keywords: Efficiency, governance, universities
    JEL: C14 I23 L31
    Date: 2010
  14. By: Giovanni Dosi; Marco Faillo; Luigi Marengo; Daniele Moschella
    Abstract: This paper presents a critical overview of some recent attempts at building formal models of organizations as information-processing and problem-solving entities. We distinguish between two classes of models according to two distinct objects of analysis. The first class includes models mainly addressing information processing and learning; the second class includes models focusing upon the relationship between the division of cognitive labor and search process in some problem-solving space. The results begin to highlight important comparative properties regarding the impact on problem-solving efficiency and learning of different forms of hierarchical governance, the dangers of lock-in associated with specific forms of adaptive learning, the relative role of "online" vs. "offline" learning, the impact of the "cognitive maps" which organizations embody, the possible trade-offs between accuracy and speed of convergence associated with different "decomposition schemes", the (ambiguous) role of organizational memory in changing environments. We argue that these are important formal tools towards the development of a comparative institutional analysis focusing on the distinct properties of different forms of organization and accumulation of knowledge
    Keywords: Information processing, Problem-solving, Organizational structure
    JEL: D23 D83 L22
    Date: 2010–01–24
  15. By: Lucian Cernat (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Julien Gourdon (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: Given the complexity of the issues surrounding the concept of sustainable tourism, the current paper tries to provide a unified methodology to assess tourism sustainability, based on a number of quantitative indicators. The proposed methodological framework (Sustainable Tourism Benchmarking Tool – STBT) will provide a number of benchmarks against which the sustainability of tourism activities in various countries can be assessed. A model development procedure is proposed: identification of the dimensions (economic, socio-ecologic, infrastructure) and indicators, method of scaling, chart representation and evaluation on three Asian countries. This application to three countries show us that a similar level of tourism activity might induce different sort of improvements to implement in the tourism activity and might have different consequences for the socio-ecological environment. The heterogeneity of developing countries exposed in the STBT is useful to detect the main problem of each country in their tourism activity.
    Keywords: cerdi
    Date: 2011–01–18

This nep-cse issue is ©2011 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.