nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒05‒14
twenty-two papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Synergistic effects of organizational innovation practices and firm performance By MOTHE Caroline; NGUYEN Thi Thuc Uyen; NGUYEN-VAN Phu
  2. Organizational paths of commercializing patented inventions: The effects of transaction costs, firm capabilities, and collaborative ties By Taehyun Jung; John P. Walsh
  3. The impact of foreign R&D activities on the MNC’s performance at home: Evidence from the Case of Swiss Manufacturing firms By Lamia Ben Hamida
  4. Environmental Innovations, Local Networks and Internationalization By Giulio Cainelli; Massimiliano Mazzanti; Sandro Montresor
  5. Individual Preferences, Organization, and Competition in a Model of R&D Incentive Provision By Nicola Lacetera; Lorenzo Zirulia
  6. CSR firm profiles and innovation: An empirical exploration with survey data By Rachel Bocquet; Christian Le Bas; Caroline Mothe; Nicolas Poussing
  7. The strategic timing of R&D agreements. By Marco Marini; Maria Luisa Petit; Roberta Sestini
  8. Romanian SME’s sector trough crisis: the effectiveness of government policies and the present situation By Visinescu, Sorin; Micuda, Dan
  9. The impact of science and technology parks on firms´ product innovation: empirical evidence from Spain By Vásquez Urriago, Ángela Rocio; Barge-Gil, Andrés; Modrego Rico, Aurelia; Paraskevopoulou, Evita
  10. Business Groups, Networks, And Embeddedness: Innovation And Implementation Alliances In Japanese Electronics, 1985-1998 By Lincoln, James R.; Guillot, Didier
  11. What drives economic specialization in Italian Regions? By Eleonora Cutrini, Enzo Valentini
  12. Public goods production and private sector productivity. By Norman, Eva Benedicte Danielsen
  13. Export performance of Chinese domestic firms: the role of foreign export spillovers By MAYNERIS, Florian; PONCET, Sandra
  14. Evidence on Productivity, Comparative Advantage, and Networks in the Export Performance of Firms By Federico Trionfetti; Luca Antonio Ricci
  15. Effectiveness of HRD for developing SMEs in South Asia By Ahmed, Vaqar; Wahab, Mohammad Abdul; Mahmood, Hamid
  16. Local Universities as Engines for Innovation and Regional Development in Southern Economies with Reference to MOROCCO By Driouchi, Ahmed; Zouag, Nada
  17. FDI entry modes, development and technological spillovers By Isabel Álvarez; Raquel Marín; Franciso J. Santos-Arteaga
  18. Models of Spatial Competition: a Critical Review By Ricardo Biscaia; Isabel Mota
  19. Does formal business networking contribute to SME growth? – An empirical examination By B. SCHOONJANS; P. VAN CAUWENBERGE; H. VANDER BAUWHEDE
  21. Factor-Biased Technical Change and Specialization Patterns By Jana Brandt; Jürgen Meckl; Ivan Savin
  22. Higher Education ‘Market’ in Portugal: a diagnosis By M. Conceição Rego; António Caleiro

  1. By: MOTHE Caroline; NGUYEN Thi Thuc Uyen; NGUYEN-VAN Phu
    Abstract: Organizational innovation has been shown to be favourable for technological innovation. However, the question of which organizational practices should be combined – and thus of their compatibility – remains unanswered. We here empirically investigate the complementarities between different organizational practices (business practices, knowledge management, workplace organization and external relations). Firm-level data were drawn from the Community Innovation Survey (CIS) carried out in 2008 in Luxembourg. Supermodularity tests provide evidence of the impact of complementary asset management to raise firms’ innovative performance. The organizational practices’ combinations differ according to whether the firm is in the first step of the innovation process (i.e. being innovative) or in a later step (i.e. performing as far as innovation is concerned). When adopting organizational practices, managers should therefore be aware of their effects on technological innovation. These results also have implications for public policies in terms of innovation support.
    Keywords: Complementarities; Organizational innovation; Technological innovations; Supermodularity; Innovative performance
    Date: 2011–05
  2. By: Taehyun Jung; John P. Walsh
    Abstract: This study examines the factors affecting modes of commercializing patented inventions using a novel dataset based on a survey of U.S. inventors. We find that technological uncertainty and possessing complementary assets raise the propensity for internal commercialization. We find that R&D collaboration with firms in a horizontal relationship is likely to increase the propensity to license the invention. In addition, the paper shows that macro-level environment conditions that affect exchange conditions, such as technology familiarity, influence the effects of capabilities on governance choice.
    Keywords: transaction cost economics; knowledge-based view; collaboration ties; commercialization; innovation; patent
    Date: 2011–04
  3. By: Lamia Ben Hamida (Institute of Management and Information Systems, University of Applied Sciences, Haute Ecole de Gestion ARC)
    Abstract: This paper examines the impact of the MNCs’ internationalisation of R&D activities on their performances/productivity at home. Specifically, using detailed firm-level data for Swiss manufacturing firms, we find that foreign R&D activity of Swiss MNCs is a valuable source of knowledge which improves their productivity performance at home, but only when firms invest in knowledge-seeking activities. Conversely, R&D activities conducted abroad with knowledge exploiting purposes seem to weaken the MNC’s productivity at home.
    Keywords: internationalization, R&D, knowledge, seeking, exploiting, productivity
    JEL: F23
    Date: 2010–07
  4. By: Giulio Cainelli (University of Padova); Massimiliano Mazzanti (University of Ferrara); Sandro Montresor (University of Bologna)
    Abstract: This paper investigates the drivers of the environmental innovations (EI) introduced by firms in local production systems (LPS). The role of firm network relationships, agglomeration economies and internationalization strategies is analysed for a sample of 555 firms in the Emilia-Romagna region, North-East of Italy. Cooperating with ‘qualified’ local actors – i.e. universities and suppliers – is the most important driver of EI for most firms, along with their training policies and IT innovations. The role of agglomeration economies is less clear and seems to depend on the EI propensity of more locally oriented firms playing in district areas, which might even turn agglomeration into dis-economies. Networking effects and agglomeration economies are instead found to strongly promote the adoption of EI by multinational firms, thus highlighting the importance of local-global interactions. We provide some interesting findings for particular kinds of challenging EI in fields as CO2 abatement and ISO labelling, generally extending the analysis EI driver by joining local and international factors.
    Keywords: Eco-Innovation, Foreign Ownership, Networking, District, Agglomeration Economics, Local Production Systems
    JEL: C21 L60 O13 O30 Q20 Q58 F23
    Date: 2011–02
  5. By: Nicola Lacetera; Lorenzo Zirulia
    Abstract: Understanding the organization of R&D activities requires the simultaneous consideration of scientific workers' talent and tastes, companies' organizational choices, and the characteristics of the relevant industry. We develop a model of the provision of incentives to corporate scientists, in an environment where (1) scientists engage in multiple activities when performing research; (2) knowledge is not perfectly appropriable; (3) scientists are responsive to both monetary and non-monetary incentives; and (4) firms compete on the product market. We show that both the degree of knowledge spillovers and of market competition affect the incentives given to scientists, and these effects interact. First, high knowledge spillovers lead firms to soften incentives when product market competition is high, and to strengthen incentives when competition is low. Second, the relationship between the intensity of competition and the power of incentives is U-shaped, with the exact shape depending on the degree of knowledge spillovers. We also show that the performance-contingent pay for both applied and basic research increases with the non-pecuniary benefits that scientists obtain from research. We relate our findings to the existing empirical research, and also discuss their implications for management and public policy.
    JEL: L1 L22 M12 O31 O32
    Date: 2011–05
  6. By: Rachel Bocquet (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Christian Le Bas (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon); Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Nicolas Poussing (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes I - Université de Caen)
    Abstract: This paper explores the relationship between different Corporate Social Responsibility (CSR) strategies and innovation. Using a survey carried out on CSR behavior of Luxembourg firms, we found two types of firms as far as CSR practices are concerned. Cluster 1 firms adopted CSR practices to achieve economic goals without resorting to the formalization of these practices. In contrast, cluster 2 firms "learn CSR by doing" and by establishing CSR procedures and tools. Then  we match Community Innovation Survey (CIS) data and specific data collected on CSR clusters. We estimate Logit models to explain the different types of innovation (product, process, organizational). In comparison with the firms which don't adopt CSR, firms in Cluster 1 are more innovative in  terms of product and process once we control for firm characteristics and innovation drivers while firms in cluster 2 tend to reject innovation in process and adopt organizational innovation. These results, which show the link between the various CSR practices and innovation types, have important consequences in terms of managerial recommendations and public policy support for innovation.
    Keywords: Corporate Social Responsibility; Innovation; Organizational; Practices; Product; Process
    Date: 2011
  7. By: Marco Marini (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Maria Luisa Petit (Department of Computer and System Sciences "Antonio Ruberti", Università di Roma "La Sapienza"); Roberta Sestini (Department of Computer and System Sciences "Antonio Ruberti", Università di Roma "La Sapienza")
    Abstract: We present a model of endogenous formation of R&D agreements among firms in which also the timing of R&D investment is made endogenous. The purpose is to bridge two usually separate streams of literature, the noncooperative formation of R&D alliances and the endogenous timing literature. Our approach allows to consider the formation of R&D agreements over time. It is shown that, when both R&D spillovers and investment costs are sufficiently low, firms may find difficult to maintain a stable R&D agreement due to the strong incentive to invest noncooperatively as leaders. In such a case, to be stable a R&D agreement requires that the joint investment occurs at the initial stage, avoiding any delay. When instead R&D spillover rates are sufficiently high, the cooperation in R&D constitutes a profitable option, although firms also possess the incentive to sequence their investment over time. Finally, when spillovers are asymmetric and the knowledge leaks mainly from the leader to the follower, to invest as follower becomes extremely profitable, making R&D alliances hard to sustain unless firms strategically delay their joint investment in R&D.
    Keywords: R&D investment, Spillovers, Endogenous Timing.
    JEL: C72 D43 L11 L13 O30
    Date: 2011
  8. By: Visinescu, Sorin; Micuda, Dan
    Abstract: SMEs play a crucial role in modern societies; being regarded as the foundation of a global competitive economy. Entire economic concepts evolved based on the SMEs sector evolution like entrepreneurship, innovation, competitiveness, etc. The current paper is aimed at presenting the current state and role of the SME sector in Romanian economy, in light of the challenges imposed by the global financial and economic crisis and the reaction measures taken (or not taken) by the Romanian authorities.
    Keywords: financial crisis; government policies; SME’s
    JEL: L21 G38
    Date: 2011–05
  9. By: Vásquez Urriago, Ángela Rocio; Barge-Gil, Andrés; Modrego Rico, Aurelia; Paraskevopoulou, Evita
    Abstract: Science and Technology Parks (STP) are one of the most important and extensive innovation policy initiatives introduced in recent years. This work evaluates the impact of STP on firm product innovation in the Spanish context. Spain is less developed than most of the advanced countries, and regional and national governments are prioritizing STP initiatives. The large firm sample for our study is from the Spanish Technological Innovation Survey, provided by the National Statistical Institute. We focus on average treatment effects for firms located in 22 Spanish STP. Our results show that Spanish STP have a strong and positive impact on the probability and amount of product innovation achieved by STP located firms. These results hold for different assumptions about the mechanisms underlying location in a STP.
    Keywords: Science and Technology Parks; product innovation; treatment effects; regional development policies.
    JEL: R53 L25 O25 O18 L38 O30 H76
    Date: 2011–02–25
  10. By: Lincoln, James R.; Guillot, Didier
    Abstract: This paper examines the changing process of strategic alliance formation in the Japanese electronics industry between 1985 and 1998. With data on 123-135 Japanese electronics/electrical machinery makers, we use a dyad panel regression methodology to address a series of hypotheses drawn largely from embeddedness theory on how the firms’ horizontal and vertical keiretsu business group affiliations and prior alliance networks supported and constrained partner choice in new R&D (innovation) and nonR&D (implementation) domestic economy alliances. We find that in the first half of our series (1985-91; the “preburst†period) keiretsu served as infrastructure or platform for new strategic alliances that had both innovation and implementation goals. In the second half of our series (1992-98, the “postbubble†period) the keiretsu effects on innovation alliance formation were gone, but the groups’ role in nonR&D or implementation alliances, the purpose of which was often cost reduction, had expanded. Our results suggest that Japanese electronics firms over this interval of time adapted rationally to the heightened uncertainty and stringency of the Japanese domestic economic environment by searching outside their preexisting networks for innovation alliances while at the same time exploiting those networks for implementation alliances addressed to cost-reduction and other operational aims. The study speaks to embeddedness theory in showing that economic actors are not deterministically constrained by business group or other preexisting network ties but may in rational fashion exploit or abandon those ties with an eye to advancing corporate and alliance goals.
    Keywords: Organizational Behavior and Theory
    Date: 2011–05–02
  11. By: Eleonora Cutrini, Enzo Valentini (University of Macerata)
    Abstract: <div style="text-align: justify;">It is well-known that Italy has two distinguishing characteristics closely intertwined with each other and unusual for an advanced country: a persisting specialization in traditional industries and deep internal disparities. The Italian "anomaly" is rooted in the predominance of clusters of small firms producing and exporting low-skilled labour-intensive goods. Some authors have suggested that marked regional variations in manufacturing structures underpin Italy’s perpetual North-South divide, with northern regions more oriented to capital (and knowledge) intensive industries than the rest of the country. Whatever the remote causes of the Italian "anomaly" may be, we provide evidence of a new tendency whereby capital- and knowledge intensive regional structural change has occurred. The literature to date may provide some descriptive and indirect evidence on the dynamics of regional specialization in high-tech industries during the past decades, but previous studies have not addressed the issue of what determines such specialization. The aim of the article is to fill this gap. Our main research question can be summarized as follows: What are the structural characteristics that may explain the regional high-tech share in manufacturing? The methodology is based on a panel analysis (GLS with dummies to account for regional fixed effects) over the period 2004-2007. We control for panel level heteroskedasticity, autocorrelation and endogeneity. The results suggest that various factors such as labour force composition, firms borrowing capacity, accessibility, R&D, private and public expenditure and a good cultural environment significantly and positively influence regional high-tech specialization. We also find that a high prevalence of industrial districts may lock-in regional structures away from capital-intensive and high-tech manufacturing activities.</div>
    Keywords: manufacturing structure,GLS panel analysis,High-tech specialization, Italy
    JEL: C33 O18 R11
    Date: 2011–05
  12. By: Norman, Eva Benedicte Danielsen (Samfunns- og Næringslivsforskning)
    Abstract: In this paper we study how the use of resources in the public sector affects industrial structure, the size and the productivity in knowledge-intensive clusters in local communities. We also discuss how these considerations should be implemented in costbenefit assessments of local public goods supply. The topics are studied in a setting where there are gains from agglomeration in knowledge-intensive industries, creating clusters of firms in such industries. We find that the primary effect is a Rybczynski effect: If production in the public sector is knowledge-intensive, the size of the knowledge-intensive private industry declines when the public sector increases its production. If, on the other hand, public sector production uses relatively much unskilled labour, increased public goods production leads to higher production in the knowledge-intensive private industries. Private sector productivity is affected in the same way as production: If production in the knowledgeintensive industry increases, so does its productivity due to agglomeration effects; leading to higher wages for highly skilled labour.
    Keywords: Agglomeration; external economies of scale; firm location; production cost; regional government policies.
    JEL: D24 H00 R00
    Date: 2010–08–17
  13. By: MAYNERIS, Florian (Université catholique de Louvain, CORE and IRES, B-1348 Louvain-la-Neuve, Belgium); PONCET, Sandra (Paris School of Economics, Université Paris 1 Panthéon-Sorbonne and CEPII, France)
    Abstract: We investigate how the proximity to multinational exporters influences the creation of new export linkages (extensive margin of trade) by domestic firms in China. Using panel data from Chinese customs for 1997-2007, we show that domestic firms’ capacity to start exporting new varieties to new markets positively responds to the export activity of neighboring foreign firms for that same product-country pair. We find that foreign export spillovers are limited to ordinary trade activities. No foreign export spillovers are found for processing trade. More, export spillovers are stronger for sophisticated products indicating that proximity to foreign exporters may help domestic exporters to upgrade their exports. However we observe that foreign export spillovers are weaker when the technology gap between foreign and domestic firms is large, suggesting that upgrading may not occur when foreign firms have already a strong edge.
    Keywords: export performance, spillovers, FDI, sophistication
    JEL: F1 L12
    Date: 2011–02–01
  14. By: Federico Trionfetti; Luca Antonio Ricci
    Abstract: This paper tests the effect of comparative advantage, size, and networking on the firm probability of exporting. The closest theoretical framework is the one of Bernard, Redding, and Schott (2007), with firm heterogeneity across countries and industries. We use a recently assembled multi-country multi-industry firm level dataset, and construct original measures of comparative advantage. The results show that firms are more likely to export if they belong to the comparative advantage industry, if they enjoy a higher productivity, or if they benefit from foreign, domestic, or communication networks.
    Keywords: Economic models , Export performance , Exports , Industrial sector , International trade , Productivity ,
    Date: 2011–04–05
  15. By: Ahmed, Vaqar; Wahab, Mohammad Abdul; Mahmood, Hamid
    Abstract: Today South Asia is host to a large youth bulge which is entering the labor market every year posing challenging questions for the national governments in the context of employable skills, space for entrepreneurship, innovation and economic freedom. SME sector provides an opportunity for the young to exercise their ideas and ideals. However a prerequisite for the young to be innovate is the how countries produce and retain a high end human capital. This study provides a review of national socio-economic policies in South Asian region - which answer such challenges.
    Keywords: human resource development; small and medium enterprises; economic growth; competitiveness
    JEL: J08 J24
    Date: 2011–03–01
  16. By: Driouchi, Ahmed; Zouag, Nada
    Abstract: Abstract: The objective of this paper is to show that universities can be engines for local development in Southern economies. Previous contributions to the literature on this subject have already shown the positive effects of regional sources of tacit knowledge on local development. Using data on developed, developing and emerging countries, regression analysis is pursued with the available data. The attained results show that developing economies do have room for local development as this can be further provided by regional universities and schools. These potential gains have been expressed to be higher for developing and emerging countries. These results imply that developing and emerging countries can enhance their local and overall development through the promotion of local universities and schools but these sources of skills and knowledge need to be tied with the local needs of the population as in developed countries. The case of Morocco illustrates the potential and positive effects of regional universities on local development. The transmission channel includes encouragement of skills, access to patents and intellectual property rights protection besides enterprise creation and implementation. These trends are likely to be accelerated within the regionalization process and the role of regional knowledge centers.
    Keywords: universities-innovations-local development-Southern countries-Morocco
    JEL: R10 O18 O31
    Date: 2011–04–29
  17. By: Isabel Álvarez (Instituto Complutense de Estudios Internacionales, Universidad Complutense de Madrid/Grupo de Investigación en Economía y Política de la Innovación (GRINEI)); Raquel Marín (Instituto Complutense de Estudios Internacionales, Universidad Complutense de Madrid); Franciso J. Santos-Arteaga (Instituto Complutense de Estudios Internacionales, Universidad Complutense de Madrid)
    Abstract: La literatura económica sobre inversión directa extranjera (IDE) en países en desarrollo se centra fundamentalmente en los incentivos que llevan a los productores locales a incurrir en los costes de desarrollo tecnológico requeridos para poder formar parte de la red de proveedores de las empresas multinacionales (EMN). Sin embargo, se ha prestado hasta ahora poca atención a las interacciones estratégicas que se derivan de los potenciales derrames tecnológicos (recíprocos) entre las empresas locales y las subsidiarias de las EMN, exceptuando el reciente trabajo teórico de Sanna-Randaccio y Veugelers (2007). Este vacío en la literatura se justifica mediante las diferencias tecnológicas que existen entre las empresas locales y las EMN, asumiéndose que estos dos tipos de empresas producen para mercados independientes y no compiten directamente. Si ese fuera el caso, la forma de entrada de las EMN en países en desarrollo sería independiente del nivel de desarrollo de los mismos. Este trabajo rechaza dicha simplificación e ilustra de manera empírica cómo las formas de entrada dependen del nivel de desarrollo de los países receptores de la IDE. Asimismo, este resultado empírico se justifica mediante una propuesta teórica que generaliza el modelo de Sanna- Randaccio y Veugelers (2007). Nuestra extensión tiene en cuenta todos los posibles equilibrios definidos conjuntamente por las estrategias de las EMN y las empresas locales, lo cual permite analizar los equilibrios no derivados en un análisis parcial al tiempo que proporciona una explicación de equilibrio general a la evidencia obtenida previamente.
    Abstract: Most of the literature related to foreign direct investment in developing countries focuses on the incentives of local producers to incur in the technological development costs required to act as suppliers of multinational companies (MNC). Scarce attention has been paid to the strategic interactions derived from the potential (reciprocal) technological spillovers between local firms and MNC subsidiaries, with the recent exception of the theoretical model by Sanna-Randaccio and Veugelers (2007). Such a void in the literature is justified on the technological differences between MNC and local firms, assuming that both of them produce for totally independent markets under no direct competition conditions. If this were the case, MNC entry modes in underdeveloped countries should be independent of their level of development. We reject such a simplification illustrating empirically how entry modes depend on the development level of a given host country. Besides, this finding is justified with a theoretical proposal that generalizes the Sanna-Randaccio and Veugelers (2007) model. Our extension accounts for all the possible equilibrium scenarios jointly defined by the strategies of both the MNC and the local firms, which allows us to consider the equilibria ignored in a partial analysis and to provide a general equilibrium explanation for the evidence presented.
    Keywords: Multinacional companies, technological spillovers, developing countries, entry modes.
    Date: 2011
  18. By: Ricardo Biscaia (CIPES and Faculdade de Economia, Universidade do Porto); Isabel Mota (CEF.UP and Faculdade de Economia, Universidade do Porto)
    Abstract: This critical review focuses on the development of spatial competition models in which the location choice by firms plays a major role. Therefore, after a brief review of the roots of spatial competition modeling, this paper intends to offer a critical analysis over its recent developments. The starting point is the recognition of the increased importance of this topic through the quantification of the research in this field by using some bibliometric tools. After that, this study proceeds by identifying the main research paths within spatial competition modeling. Specifically, the type of strategy (Bertrand vs. Cournot competition) and its implications over location equilibria are discussed. Additionally, it is presented a comparison of the effects on the location equilibria of the most typical assumptions in literature, that respect to the market (linear vs. circular), production costs, transportation costs, as well as the number of firms. Finally, the type of information (complete vs. incomplete) and its effects over the equilibria are also discussed.
    Keywords: spatial competition, review, Hotelling, game theory
    JEL: L13 R10 D82
    Date: 2011–04
    Abstract: This paper provides new empirical evidence on the impact of formal business networking on SME growth. More specifically, using a large, unbalanced panel data set of Flemish SMEs over the period 1992-2008, we examine whether participation in a government-supported program aimed at intense guidance for small business managers affects SME growth. We find that this objective measure of formal business networking is significantly positively correlated with net asset and value added growth. These results confirm that formal business networking contributes to company success.
    Date: 2011–02
  20. By: Ummu Kolsome Farouk (Faculty of Management, Multimedia University)
    Abstract: The purpose of this paper is to review current literature relating to corporate entrepreneurship and to discern the issues that have arisen in this area of research. Issues of concern are: conceptualization of entrepreneurship (ES) and corporate entrepreneurship (CE), whether ES and CE can be taught and lastly factors facilitating CE. In addition, it will disclose the findings of a qualitative study relating to a woman entrepreneur in Malaysia. The latter study would shed light on how a woman entrepreneur in Malaysia learns to act entrepreneurially and how the findings converge or diverge from past research in this area.
    Keywords: Entrepreneurship, Corporate Entrepreneurship, Entrepreneurship Behavior
    JEL: M
    Date: 2010–10
  21. By: Jana Brandt (University of Giessen); Jürgen Meckl (University of Giessen); Ivan Savin (University of Giessen)
    Abstract: We analyze the medium- and long-run effects of international integration of capital markets on specialization patterns of countries. For that purpose, we incorporate induced technical change into a Heckscher-Ohlin model with a continuum of final goods. This provides a comprehensive theory that explains the dynamics of comparative advantages based on differences in effective factor endowments. Our model constitutes an appropriate framework for understanding the changes in industrial structure of foreign trade observed, e.g., in the CEE countries over the last two decades. In addition, our approach provides a theoretical foundation for the empirical prospective comparative advantage index (Savin and Winker 2009) with new insights into the future dynamics of comparative advantages. Eventually, the model may serve as a basis to set development priorities in countries being in the period of transition.
    Keywords: Factor-biased technical change, continuum of goods, comparative advantage, factor mobility, innovation, knowledge spillovers
    JEL: F17 F21 F43 O33
    Date: 2011
  22. By: M. Conceição Rego (Departamento de Economia & CEFAGE-UE, Universidade de Évora); António Caleiro (Departamento de Economia & CEFAGE-UE, Universidade de Évora)
    Abstract: The higher education system in Portugal, in recent decades, experienced profound structural changes, including a substantial increase in the number of higher education institutions, scattered throughout the country, with a growing number of students and teachers. The subject of this study is to examine the characteristics of current supply and demand within the higher education subsystem, in Portugal. The methodological approach includes two steps: first, making a characterization of key variables that shape demand and supply of higher education in Portugal and, second, using spatial econometric analysis, particularly multidimensional scaling, in order to estimate the location of universities.
    Keywords: Higher education, Multidimensional scaling, Spatial location.
    Date: 2011

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