nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒03‒05
twenty-one papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Competition and R&D Cooperation with Universities and Competitors By Thomas Bolli; Martin Woerter
  2. Entrepreneurial Origin, Technological Knowledge and the Growth of Spin-off Companies By B. CLARYSSE; M. WRIGHT; E. VANDEVELDE
  3. The Relationship between Innovation and Marketing in SMEs in the EU Food Sector By Banterle, Alessandro; Cavaliere, Alessia; Stranieri, Stefanella; Carraresi, Laura
  4. Entrepreneurial team and performance in Lombard SMEs.An empirical study By Marco Talaia; Serena Mascherpa
  5. Factors Influencing Industry Adoption of R&D on Marketing: The Case of the Australian Seafood Cooperative Research Centre By Dentoni, Domenico; English, Francis
  6. Relationship Quality and Innovation Capacity of Chains: The Case of the Traditional Food Sector in the EU By Gellynck, Xavier; Kühne, Bianka; Weaver, Rob D.
  7. Integrating supply chains: An investigation of collaborative knowledge transfers By Done, Adrian
  8. CREATIVE MILIEUS IN THE STOCKHOLM REGION By Johansson, Börje; Klaesson, Johan
  9. R&D Projects Fostering Small Firmsâ Market-Sensing and Customer-Linking Capabilities: A Multivariate Statistics Approach By Dentoni, Domenico; English, Francis
  10. Local Food Marketing: Factors for Growth of Small Agriâfood Businesses in the UK By Hingley, Martin; Boone, Julie; Haley, Simon
  11. Innovation and Entrepreneurship: A first look at linkage data of Japanese patent and enterprise census By MOTOHASHI Kazuyuki
  12. Cycle of Knowledge in the Management of the Supply Chain of Corn for Human Consumption By Martínez Soto, Moises; Rodríguez Monroy, Carlos; FuentesâPila, Joaquin; Morris, A.; GilâAraujo, M.; Velasco, J.
  13. Export and Innovation in SMEs and Large Firms: The main determinants By Ana Rita Gomes; Horácio Crespo Faustino
  14. Networking in Meat Production Systems: The Influence of Cooperative Structures on Farmersâ Participation By Deimel, Mark; Theuvsen, Ludwig
  15. Innovation Trajectories in Hondurasâ Coffee Value Chain? â Public and the Private Influence on the Use of new Knowledge and Technology among Coffee Growers â By Fromm, Ingrid; Hartwich, Frank; Romero, Gustavo
  16. Managing Network Goals: The Interplay of Network and Firm Levels By Ziggers, Gerrit Willem; Gagalyuk, Taras; Hanf, Jon
  17. The Role of Services in the New Member States: A Comparative Analysis Based on Input-Output Tables By Doris Hanzl-Weiss; Robert Stehrer
  18. Sustainability Dilemmas and their Solution Strategies by Committed Food Businesses By Mikkola, Minna; Risku-Norja, Helmi; Post, Anna
  19. Change Begets Change: Employment Effects of Technological and Non-Technological Innovations - a Comparison across Countries By Robert Stehrer; Johannes Pöschl; Sandra M. Leitner
  20. Location Choice of Multinational Enterprises in China: Comparison between Japan and Taiwan By Kuo-I CHANG; Kazunobu HAYAKAWA; Toshiyuki MATSUURA
  21. Has Australia fallen behind the strategic alliance contracting trend in the global food industry? If so, is government assistance warranted? By Taylor, Philip

  1. By: Thomas Bolli (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Woerter (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: This paper analyzes the relationship between competition and R&D cooperation with universities and competitors. Our simple model predicts that more competitors reduce the incentives for horizontal cooperation as it diminishes the gains from “collusion”. Assuming that the value of synergies and spillovers created by cooperation depends on competition intensity reveals two distinct and opposing incentives for cooperation. While synergies foster R&D cooperation, spillovers may hinder cooperation. We mainly hypothesize that university cooperation corresponds to product innovation and hence quality competition, while horizontal cooperation lead to process innovations and therefore relates to price competition. We test these hypotheses based on Swiss firm-level panel data controlling for simultaneity of cooperation decisions and endogeneity of competition. Our empirical analysis supports the relevance of distinguishing between competition dimensions and cooperation partners, respectively. We find that price competition matters for both university and horizontal cooperation and it takes the form of an inverted U-shape. On the contrary, quality competition only matters for university cooperation and the relationship shows a U-form. Moreover we see that the number of principal competitors is significantly related only to cooperation between competitors and the relationship shows an inverted U-form. Hence, markets with a medium number of competitors are more receptive for horizontal cooperation. In sum these findings advance our understanding of the relationship between innovation and competition policy.
    Keywords: innovation cooperation, university cooperation, horizontal cooperation, number of competitors, price competition, quality competition, synergy, knowledge spillover, collusion
    JEL: O3
    Date: 2011–02
    Abstract: We contribute to the literature on corporate spin-offs and university spin-offs by exploring how different characteristics in the technological knowledge base at start-up influence spin-off performance. We investigate how the technological knowledge characteristics endowed at start-up predict growth, taking into account whether the knowledge / technology is transferred from a corporation or university. We use a novel, hand-collected dataset involving 48 corporate and 73 university spin-offs, comprising the population of spin-offs in Flanders during 1991-2002. We find corporate spin-offs grow most if they start with a specific narrow-focused technology sufficiently distinct from the technical knowledge base of the parent company and which is tacit. University spin-offs benefit from a broad technology which is transferred to the spin-off. Novelty of the technical knowledge does not play a role in corporate spin-offs, but has a negative impact in university spin-offs unless universities have an experienced technology transfer office to support the spin-off.
    Keywords: technological knowledge, corporate spin-offs, university spin-off
    Date: 2010–12
  3. By: Banterle, Alessandro; Cavaliere, Alessia; Stranieri, Stefanella; Carraresi, Laura
    Abstract: In the EU market small and medium sized enterprises (SMEs) represent the greater part of the food industry, specially with regard to traditional food products (TFPs). However, the growth of competition, connected mainly to globalisation, is making it very difficult for SMEs to survive. On the other hand, market opportunities for SMEs are connected to the evolution of consumer preferences toward food quality. To profit from such opportunities and to survive on the market, SMEs need to adapt their strategies, focusing on innovation aspects in order to meet consumer requirements and to compete on the market. The literature shows that firmsâ market orientation and marketing capabilities are very important for innovation in food industries to guarantee that innovation reflects market needs. The purpose of this paper is to analyse the relationship between the level of firm innovativeness and the different stages of marketing management process, in order to understand if good results in marketing management can affect firm innovation. An interactive questionnaire available on the web has been used for the data collection, with the aim of evaluating SME marketing management capabilities and innovation development. The survey was conducted on 468 EU country SMEs producing TFPs. Linear Regression was run to assess the link between marketing activities and the level of firm innovation. Our empirical analysis reveals that SME marketing management capabilities show significant and positive relationships with a firmâs innovation. This aspect reinforces our assumptions on the strategic role of marketing activities on a firmâs capacity to understand consumer needs, and thus its need to be innovative and market oriented.
    Keywords: traditional food products, innovation, marketing management capabilities, linear regression model, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods, L25, L66, M31, Q13,
    Date: 2010–10
  4. By: Marco Talaia; Serena Mascherpa (Department of Economics, University of Insubria, Italy)
    Abstract: Identifying which factors affect firms’ performance is a critical issue. Within International Entrepreneurship stream of search, most of the extant studies have focused on the individual entrepreneur (Watson et al., 1995), with entrepreneurial team (ET) neglected in the literature (Foo et al., 2006). Our paper addresses the influence of ET over the behavior and performance of small and medium-sized enterprises (SMEs). We argued that the entrepreneurial team is decisive in SMEs, inasmuch as the lack of resources push them to rely more on their entrepreneurial team (Escribà-Esteve et al. 2009). Based on a survey of 301 small and medium-sized enterprises of Lombardy, we demonstrated that entrepreneurial team demographics have a crucial role in the determination of performance
    Date: 2011–02
  5. By: Dentoni, Domenico; English, Francis
    Abstract: Researchers have widely analysed the economic, managerial, social and psychological drivers of industry adoption of R&D outputs both in the international (e.g. Rogers 2003) and Australian context (e.g. Pannell et al. 2006). Many of these studies have mainly focused on the drivers of industry adoption of technical research, whose value - increasing productivity or decreasing costs within a firm's boundaries - is generally more tangibly perceived by the industry (Pralahad 1993). On the other hand, research has not focused on the drivers of industry adoption of R&D outputs stimulating market development, whose value - identifying and exploiting a market opportunity outside the boundaries of the firm - is usually more uncertain and difficult to be perceived (Pralahad 1993). At the same time, the industry uptake of research for market development is crucial in current agri-food systems, where companies increasingly need to be consumer-responsive in order to sustain their competitive advantage and survive. To attempt to start filling this gap, we explored the factors influencing industry adoption of R&D in marketing by taking a case-based grounded theory approach (Glaser and Strauss 1967; Eisenhardt 1989). Thirty-five market development projects conducted by the Australian Seafood Cooperative Research Centre, in collaboration with a number of industry and research partners, provided the instrumental cases for this study. Although limited to the seafood sector, by comparing and contrasting cases in sub-sectors with very different characteristics (oyster, wild prawn, rock lobster, abalone, tuna, salmon, finfish, sardines, barramundi) this study empirically explores factors related to 1) individual firms' characteristics and capabilities, 2) firms' organization within their industry and with external stakeholders 3) the project scope of the value proposition and industry engagement process. Results show that although individual firms' characteristics and the governance and structure of their industry associations influences the industry uptake, the scope of value proposition and the process of industry engagement are in determining industry uptake. In particular, the focus of consumer/market research, the timely communication among partners and the industry acquisition of market-sensing capabilities are three key elements influencing the industry uptake of the public market development research outputs.
    Keywords: Research and Development/Tech Change/Emerging Technologies,
    Date: 2011
  6. By: Gellynck, Xavier; Kühne, Bianka; Weaver, Rob D.
    Abstract: The purpose of the paper is to explore how the perceived relationship quality is related to the innovation capacity in chains of the traditional food sector. Based on suggestions from theory and previous studies, empirical evidence is drawn from a survey of 90 traditional food chains including 270 companies from 3 European countries in 6 traditional food product categories. Heterogeneity across these chains is first examined based on cluster analysis that identifies three distinct clusters interpreted as reflecting three levels of intensity in innovation capacity: high, medium, and low. Next, we define measures of the chain relationship quality through characteristics such as trust, conflict and reputation. The quality of the chain relationship is then shown for each innovation capacity cluster and compared among the clusters. Results suggest that measures of the chain relationship quality may be important factors in providing both an institutional foundation and a member motivation for innovation. As chain relationship quality fosters sharing of resources necessary for innovation as well as sharing incentives, these results further strengthen the emerging conclusion from the literature that innovation can be catalyzed by policies encouraging firms to build strong relationships.
    Keywords: Innovation capacity, Chain relationship quality, Traditional food products, SMEs, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods,
    Date: 2010–10
  7. By: Done, Adrian (IESE Business School)
    Abstract: This paper aims to empirically investigate the impact upon performance of explicit knowledge transfer in the integrated supply chain between a manufacturer and its external suppliers and customers. Literature derived hypotheses were evaluated using International Manufacturing Strategy Survey data from 338 companies. Valid and reliable scales were created via confirmatory factor analysis, and effects upon inventory performance tested via regression techniques. Whilst knowledge transfers from upstream and downstream directions were positively related to a manufacturer's performance, knowledge derived from customers was more powerful. Furthermore, integrated knowledge transfer- the combination of knowledge emanating from both suppliers and customers- had the strongest link to performance. The implications for practioners are that integrating knowledge across supply chains could be more far reaching than the exchange of assets, data and information usually considered in supply chain literature. Furthermore the current generalized approach to managing external knowledge is inadequate. This study expands upon existing literature by including directional implications as to which knowledge inflows are most valuable. For academics, this paper supports and extends existing literature by considering the supplier-manufacturer-customer triad in unison. The focus goes beyond asset, data and information exchange towards the leveraging of external knowledge. Relevant perspectives and dimensions were adopted from the knowledge management stream in order to add conceptual depth. Several areas of knowledge-based supply chain research have been identified as potential opportunities for further investigation.
    Keywords: Supply Chain; Knowledge Management; Empirical Research:
    Date: 2011–01–17
  8. By: Johansson, Börje (Jönköping International Business School (JIBS)); Klaesson, Johan (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This chapter intends to demonstrate that the Stockholm region is the key centre for knowledge development, innovations and intellectual creativity in Sweden. The region is an attractor for individuals with ambitions and talents in political, economic and cultural life. At the same time novel ideas and solutions diffuse from the Stockholm region to other regions of the country. A major effort in the study is to describe occupations with regard to (i) the skills of a job and (ii) the tasks associated with a job. Moreover, the knowledge intensity of an ur-ban region can be related to the absorption capacity of firms in the region, implying that firms can make use of all sorts of novelties in the world economy as stimuli for own imi-tations and innovations. Compared to other parts of Sweden, the Stockholm region has both a richer inflow of creative ideas and a larger absorptive capacity. This allows the Stockholm region to function as a source of innovation and business renewal for the rest of the country as novelties diffuse through the regional hierarchy.
    Keywords: Sweden; Stockholm; Creativity; Knowledge; Innovation; Diversity
    JEL: J24 O30 R11 R12
    Date: 2011–02–25
  9. By: Dentoni, Domenico; English, Francis
    Abstract: A large number of empirical studies have recently explored the processes and the conditions under agri-food companies acquire and develop market orientation (e.g. Martin et al. 2009), entrepreneurship (e.g. Holster 2008) and innovation (e.g. Verhees 2005), which have been proven to have a positive relationship with their performance (e.g. Micheels and Gow 2008). A much smaller number of studies focused on how agri-food firms can acquire the capabilities that are necessary to become market-oriented and innovative (e.g. Anderson & Narus 2007), specifically market sensing and customer linking (Day 1994). As a number of public-private partnership projects are attempting to enhance agri-food companies' market orientation and innovation, it is useful to identify which research and dissemination methods effectively develop these capabilities and under which conditions. To attempt to start filling this gap, this study analyses under which conditions public-private projects based on research and dissemination manage to foster market-sensing and customer-linking capabilities of small agri-food firms. Fostering these capabilities in small firms is particularly challenging, as they have limited resources to absorb the new information, learn and apply strategic changes as a result of the learning process. The case of five knowledge-building Seafood Cooperative Research Centre projects based on supply chain mapping and benchmarking methods with the oyster, wild prawn, farmed prawn and finfish industries provides the instrumental cases to the study. We collected data both quantitatively and qualitatively to gain more insight on the cause-effect relationship among variables (Eisenhardt 1989). Then, we analysed data with a structural equation model, whose multivariate statistic approach allows a rigorous analysis of the relationships between latent variables such as market-sensing and customer-linking capabilities and attitudes. Preliminary results can be summarized as follows. First, an estimation of profit margins that different customers make along the chain and an assessment of customers' needs, when customers'concentration and rivalry along the chain is low, are crucial to foster small farms' capabilities. Second, informal networks play a key role for fostering these capabilities from few small firms to the majority of the target.
    Keywords: Agribusiness, Marketing,
    Date: 2011
  10. By: Hingley, Martin; Boone, Julie; Haley, Simon
    Abstract: This study aims to understand local food and explore the barriers to development for small innovative food businesses. Research was conducted through depth interviews and a survey in NorthâWest England. Results indicate that small business success can be subjective and performance dependent on business aims. Identified were issues concerning access to finance, burden of regulations and the need for support from industry networks and government. Lack of an official and recognised definition of the term âlocal foodâ had implications for marketing strategy. Small businesses recognise that customers are increasingly concerned with food provenance and traceability, but that they and their representative associations need to do more to make these links.
    Keywords: Local, food, smallâbusiness, growth, UK, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods,
    Date: 2010–10
  11. By: MOTOHASHI Kazuyuki
    Abstract: This paper presents the results of a comprehensive analysis of the innovative activities of the entire population of Japanese firms by using a linked dataset of Establishment and Enterprise Census and the IIP Patent Database (JPO patent application data). As of 2006, it was found that about 1.4% of about 4.5 million firms filed patents, and substantial patenting activities were found not only in the manufacturing field but also in a wide range of fields such as B2B services and financial sectors. In addition, a firmfs survival and growth are regressed with patenting and open innovation (measured by joint patent application with other firms and universities), and it is shown that innovative activities measured by patenting are positively correlated with such firm performance. It is also found that the relationship between patents and the survival rate is stronger for larger firms, while that between patents and firm growth is stronger for smaller firms.
    Date: 2011–02
  12. By: Martínez Soto, Moises; Rodríguez Monroy, Carlos; FuentesâPila, Joaquin; Morris, A.; GilâAraujo, M.; Velasco, J.
    Abstract: The objective of this study is to characterize the cycle of knowledge in the supply chain of the industry of corn for human consumption. White corn is cultivated almost exclusively for human consumption and it has a significant value in the food supply in countries whose diet has a high proportion of this variety of corn, such as: Venezuela, México and Colombia in America, and the Republic of South Africa and Sahel countries in Africa. Corn is produced in Venezuela, under rainfed conditions and in a highly mechanized production system. The cycle of knowledge is defined as a progressive spiral in which knowledge is created, stored, transferred, applied and preserved, in order to increase the competitiveness and sustainability of organizations and companies in the food supply chain. This nonâexperimental and crossâsectional research is of a descriptive type. It was conducted in Venezuela during the second semester of 2009 in the supply chain of white corn, specifically, at the level of first tier producers (primary sector). The population is constituted by 1,754 producers of corn in the most important producing regions of the country. The representative sample was selected by the stratified sampling technique with proportional allocation: by association of corn producers and according to the grain yield. A questionnaire was designed and conducted according to the structured survey method. Its validity was verified by discriminant tests of items and its reliability through Bartlett's test, variance factorial analysis, KaiserâMeyerâOlkin and Cronbach Alpha, achieving the last one a value of 0.9276. The production units have an average area of 67.17 ha, with 1.97 permanent workers and 4.06 temporary workers. They obtained a physical productivity of 4,210.45 kg.haâ1. The Knowledge Index (KI) achieved a value of 69.78% and the Perception Index of the results (PI) was 76.06%. The Pearson correlation among these indices was positive and significant with a value of 0.51. The factorial analysis for principal components with rotated factors allows obtaining four factors from the five dimensions originally considered. These factors are: (1) knowledge creation, (2) knowledge storage, (3) knowledge transfer and application, and (4) preservation of knowledge. The results allow us to conclude that the cycle of knowledge is managed in four stages in an intuitive and predominantly tacit manner which is the reason why those practices related to explicit knowledge become the agents of differentiation. Moreover, the existence of a positive correlation between the Knowledge Index and the Perception Index of the positive results by the producer was also proven.
    Keywords: Knowledge Cycle, Industry of White Corn, Food Supply Chain, Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, Production Economics, Research Methods/ Statistical Methods,
    Date: 2010–10
  13. By: Ana Rita Gomes; Horácio Crespo Faustino
    Abstract: This study analyses the main determinants of exports and research and development (R&D) expenses of small and medium enterprises (SME) and large companies operating in Portugal during the period 2004- 2008. From a sample of 200 SMEs and 30 major exporting companies, the study uses a panel data analysis and fixed-effects and random-effects estimators to estimate the effects on exports and on R & D. Regarding exports, the study found a positive effect in terms of increased productivity and R & D in both SMEs and large companies. The results also suggest that SMEs that are owned by foreign enterprises export more than national SMEs. In relation to the determinants of spending on R & D, the study concludes that the increase in equity and net income has a positive effect on R & D spending in large companies, while in SMEs, increased expenditure on R & D is a consequence of increasing exports, whereas the increase in net income has a negative effect on R& D
    Keywords: Exports, R & D, Enterprise, SME, Panel Data, Portugal
    Date: 2011–01
  14. By: Deimel, Mark; Theuvsen, Ludwig
    Abstract: Increasing competitive pressures as well as growing requirements with regard to quality and safety pose a continuous challenge for farmers in European agrifood netchains. Against this background, the significance of networkâwide collaboration has been pointed out in recent years â especially for German livestock farming (Petersen et al., 2007). In the literature, it is generally agreed that participation in specialized networks can be beneficial to the competitiveness of individual farms and firms (Gellynck, Vermeire and Viaene, 2006). The northwestern part of Germany â known to be one of Europeâs major centres of pig production â apparently provides good structural preconditions for farmsâ and firmsâ comprehensive network participation due to an agglomeration of potential interaction partners specialized in pork production. Nonetheless, empirical studies show that, despite these good preconditions, farmersâ participation in networks is often limited. Spiller et al. (2005) for instance, found weaknesses with regard to relationship quality between pig fattening farmers and slaughterhouses. This might be due to power inequalities as well as manifold principalâagent relationships in food supply chains characterized by information asymmetries and utilityâmaximizing behaviour that limits cooperation between supply chain partners and reduces transparency of food supply chains (Theuvsen, 2004; Hingley, 2005; Deimel, Frentrup and Theuvsen, 2008).
    Keywords: Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, Production Economics,
    Date: 2010–10
  15. By: Fromm, Ingrid; Hartwich, Frank; Romero, Gustavo
    Abstract: In this paper we present results from a study on the use of improved coffee production technology schemes among smallholder coffee producers in three prominent coffee producing regions in Honduras. We analyze the impact of various schemes (trajectories) in which different agents influence the producersâ decision to use new technologies. In particular, we distinguish the influence of a) private coffee buying organizations and b) government and public development agencies on the innovation behavior of coffee growers. Drawing from network data that depict the internal and outbound connectedness of producers in three village communities in main coffee producing zones in Honduras, we applied tools of social network analysis to find out how interactions with certain agents, separately and cumulatively, has influenced their use of improved methods in coffee production and marketing. The results suggest that there are significant differences in the way that various providers of knowledge and technology, especially private buyers and development agencies, influence the farmersâ behavior towards innovation. The influence of buyers, according to our data, is focused on certification and quality aspects, whereas development agents focus on improved agronomic practices. We also find that farmers who communicate with the extension branch of input providers tend to be more innovative. These results suggest that development programs should take more seriously into account the role of private actors in innovation among agricultural producers and, hence, design development programs in such a way to allow for collaboration with these agents.
    Keywords: Coffee production, innovation, upgrading, social networks, Honduras, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, International Relations/Trade, Marketing, Production Economics, Research Methods/ Statistical Methods,
    Date: 2010–10
  16. By: Ziggers, Gerrit Willem; Gagalyuk, Taras; Hanf, Jon
    Abstract: This article provides several contributions to the general understanding of governance in networks and the achievement of private and common goals. A simple, integrated framework for understanding why firms collaborate and under which conditions they establish durable networks that succeed in achieving goals is provided. Network theory is extended by explicitly distinguishing between dyadicâlevel governance and networkâlevel governance conditions, and by identifying exchange conditions that promote governance.This way issues as how networks evolve, how they are governed, and ultimately, how collective outcomes might be generated can be better comprehended. This is especially relevant to policy planners and those having a perspective that goes beyond the performance of individual organizations
    Keywords: Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, Production Economics, Research Methods/ Statistical Methods,
    Date: 2010–10
  17. By: Doris Hanzl-Weiss (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: The literature on international migration has repeatedly emphasized that the extent and structure of migration has an important impact on the competitiveness of regions and countries. This report provides an overview of the extent and the potential effects of high-skill migration to the EU27. It shows how many high-skilled migrants live in the EU, where these migrants come from, and how the European Union is positioned in the international competition for talent. Second, we examine how high-skilled migrants fare in European labour markets. Finally we address the issue of the effects of high-skill migration on multifactor productivity, gross value added and GDP per capita growth as well as patenting activities at the sectoral and regional levels. We find that - despite substantial heterogeneity among individual EU countries - high-skilled foreign-born are an important source for high-skilled labour in the EU27. There was some evidence that - on average - EU OECD economies (EU) had a lower share of highly qualified migrants than the (arithmetic) average of the (high migration) non-EU OECD economies. However, our results also suggest that this increasing selectivity of immigration regimes is countered by a relatively low qualification structure of short-term migrants in the EU. A second important policy relevant finding of this study is that high-skilled migrants in the EU face a number of challenges when entering the European labour market, that make them distinct from other migrant groups such as less skilled migrants. In particular the high-skilled migrants - in contrast to less skilled migrants - have lower labour market participation rates, higher unemployment rates and lower employment rates than comparable natives and face substantially higher risks of being employed in jobs that do not fit their skill structure. Our analysis regarding the impact of migration and of high-skilled migration in particular on sectoral productivity and gross value added (levels and growth) yielded a number of interesting results though still being preliminary. Particularly interesting was the difference of the impact of the share of migrants in levels and growth specifications, as well as the importance of a break-down by different groups of migrants (from EU and RoW). There was also a relatively robust result of a positive impact of the share of high-skill migrants and of an interactive effect of high-skill migrant share and ICT technology. As regards the analysis of migrants and regional growth and regional technological development (proxied by patents per capita) we found a positive relationship between the share of high-skilled employed persons and of high-skilled migrants and the growth rate of regional GDP per capita.
    Keywords: new member states, input-output analysis, linkages, key-sector analysis, services, knowledge-intensive business services
    JEL: D57 L80 P52
    Date: 2010–11
  18. By: Mikkola, Minna; Risku-Norja, Helmi; Post, Anna
    Abstract: Food businesses feel the call for sustainable development (SD). This paper about the Finnish and Swedish food system actors about their understanding of and activities towards sustainability shows that there is commitment for solving aspects of sustainability and different strategies to do this. However, the food businesses also seem to get entangled with various dilemmas regarding sustainability, and to perceive contradictions between economic, environmental and social issues; however, these situations may also turn synergistic. The businesses studied expressed commitment to sustainable solutions interpreted by their sustainability strategies. The first identified strategy was a 'selfâmade' effort, whereby businesses absorbed economically, environmentally and socially 'positive' ideas and implemented them in their activities. The second strategy was based on labels and included the certification of the environmental and/or social quality management system, the use of particular labelled products and local food. The third strategy for critical coâoperation within the chain meant learning about oneâs food networks in coâoperation with other network actors, experts or brokers. These strategies seemed to impact differently on the sustainable development of the organizations on the one hand and the chain level on the other. Label based strategies offered more visibility than âselfâmadeâ strategies, which may, however, support extensive sustainability efforts or remain narrow saving strategies implying the risk to miss the opportunity for chain level development. As a rather rare approach, the critical coâoperation strategy may upgrade sustainable developments both on the organizational and chain level. Participatory research supporting creative and contextual sustainability developments was suggested as a promising future option for food businesses to aim at organizational and system wide SD.
    Keywords: Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods,
    Date: 2010–10
  19. By: Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw); Johannes Pöschl (The Vienna Institute for International Economic Studies, wiiw); Sandra M. Leitner
    Abstract: This paper attempts to shed new light on the effect innovation has on employment. Specifically, it identifies the net employment effects of technological product and process innovations as well as complementary non-technological organizational innovations which have so far mostly been bypassed in comparable analyses. The analysis applies the 4th Community Innovation Survey and determines and compares innovation-induced employment effects in both manufacturing and service sectors across three country-groups: i) a set of Central and Eastern European transition countries, ii) a group of Southern EU member states as well as iii) a pool of Core EU member countries. The results reveal interesting differences across types of innovation, sectors or country-groups analysed. Particularly, in both manufacturing and service sectors of Central and Eastern European transition countries and Southern European countries, employment expands in response to the introduction of product novelties or process innovations only. Non-technological organizational innovations, on the other hand, had a detrimental effect on employment in the manufacturing sector of Central and Eastern European countries only. In contrast, employment in both manufacturing and service sectors of Core European countries only reacts to the introduction of new products but remains unaffected by the implementation of process or organizational innovations.
    Keywords: employment, technological and non-technological innovations, manufacturing and services, CIS 4
    JEL: J2 O33
    Date: 2011–01
  20. By: Kuo-I CHANG (Department of Applied Economics, National Chung Hsing University, Taiwan); Kazunobu HAYAKAWA (Inter-disciplinary Studies Center, Institute of Developing Economies, Japan); Toshiyuki MATSUURA (Institute of Economic and Industrial Studies, Keio University,Japan)
    Abstract: This paper explores the location choice of MNEs in China, shedding special light on the role of agglomeration of same-nationality firms. In particular, we examine how its role differs according to investors’ productivity. Furthermore, we compare the location choice of Japanese and Taiwanese MNEs in China, because Taiwanese MNEs are expected to experience less uncertainty in investing in China than Japanese MNEs, due to Taiwan’s linguistic and cultural advantages in China. We find that, less productive Japanese firms prefer to locate close to larger same-nationality agglomerations, there are no differences in location according to firms’ productivity in the case of Taiwanese firms.
    Date: 2011–02–01
  21. By: Taylor, Philip
    Abstract: Since the 1970s, there has been a broad shift from armâs length to long-term strategic alliance procurement practices across nations and industries. This has happened for sound commercial reasons. Peculiarities of agricultural production have slowed this shift in many food industry sectors, but it is now proceeding apace â driven primarily by rapidly globalising supermarket chains. In most Australian agri-food sectors, few firms have the scale or level of sophistication that would make them attractive strategic alliance partners either for international food retailers or for their category managers. The reasons for this include a combination of past government failures (inappropriate policies) and failures or inefficiencies in a range of information markets. The long-term nature of strategic alliances generates significant first-mover advantages for suppliers. Australian food producers risk being locked out of attractive opportunities if they fail to adapt to the new mode of contracting. For regional economies, the long-term benefits from accelerating strategic alliance adoption are likely to be large. Such benefits will flow on to many who are not usually considered private beneficiaries of that adoption. In other words, there are significant public benefits in prospect. While the results of past government intervention in this field have been mixed, there has been much learnt internationally from such experience. In Australia, many of the inappropriate policies have now been reversed and the prospects for cost-effective government assistance in the relevant information markets are good.
    Keywords: Agri-food industry sectors, strategic alliance contracting, value chain, government assistance, Agribusiness, Agricultural and Food Policy, Marketing,
    Date: 2011

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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.