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on Economics of Strategic Management |
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Issue of 2011‒08‒15
ten papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Marina van Geenhuizen (Delft University of Technology, Delft); Peter Nijkamp (VU University Amsterdam) |
| Abstract: | Smart high-tech companies are characterized by knowledge intensity and open innovation. Even when these companies emerge in spatial clusters or dense urban places, they may utilize knowledge networks on a global scale. However, there is not much insight into the factors that shape knowledge networks, the role of virtualization herein and the impact of on global knowledge sourcing on local connectedness. This paper seeks to fill these gaps in understanding, by drawing on a selected sample of young high-technology companies in the Netherlands and application of rough set analysis to identify homogeneous categories of companies in the highly differentiated segment of young high-tech companies. The outcomes suggest that employing mainly local and employing mainly global knowledge networks coexist in city-regions, and that only part of the globalized companies are losing local connectedness, particularly those involved in co-creation with global customers and those acting as learning partners of multinational corporations ('reverse' knowledge transfer). Factors counteracting a weakening of local connectedness are specific local knowledge relationships and the strategy of developing local/regional customer markets. |
| Keywords: | high-technology companies; open innovation; knowledge networks; strategic focus; dynamic capabilities; virtualization; local connectedness; rough set analysis |
| JEL: | D21 |
| Date: | 2011–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20110119&r=cse |
| By: | Andrea Caragliu (Politecnico di Milano); Peter Nijkamp (VU University Amsterdam) |
| Abstract: | Knowledge triggers regional growth. Evidence suggests that skilled labour force concentrates in islands of innovation, determining an advantage for innovative regions and a challenge for lagging ones. We address the role of knowledge in shaping effective markets for skilled labour. Estimates are based on the Lucas (1988) model, with EVS and EUROSTAT data. The externality driving growth in the model is cognitive capital. Empirical tests show that a higher endowment of cognitive capital generates increasing returns to knowledge, favouring the emergence of islands of innovation; regions with a high endowment of cognitive capital attract knowledge spillovers from neighbours. |
| Keywords: | human capital; cognitive capital; knowledge spillovers; islands of innovation |
| JEL: | C21 E24 R11 |
| Date: | 2011–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20110116&r=cse |
| By: | Pami Dua (Department of Economics, Delhi School of Economics, Delhi, India); B. N. GOLDAR (V.K.R.V. Rao Centre for Studies in Globalization Institute of Economic Growth Delhi); SMRUTI RANJAN BEHERA (Department of Economics Shyamlal College, University of Delhi,Delhi) |
| Abstract: | The paper attempts to explore the technology spillover effects of Foreign Direct Investment (FDI) in Indian manufacturing industries across different selected clusters in India. To measure the spillover effect to domestic firms in a particular cluster, a model is used that combines an innovative production function with a conventional production function. The model parameter estimates provide an evaluation of the technology spillovers in a cluster and the inter-cluster spillovers taking place in various regions. The empirical findings reveal significant variations across clusters in regard to spillovers. While some clusters benefit from foreign firm presence and technological stock within the cluster, a more commonly observed pattern is that domestic firms in a cluster gain from the presence of foreign firms in other clusters of the region and spillovers from technological stock in the regions. In some clusters, productivity enhancing effects of investment climates is visible, but in several others there is no such effect. |
| Keywords: | Foreign Direct Investment; Technology Spillover; Clusters; Firm location |
| JEL: | O41 O1 L6 R12 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:cde:cdewps:200&r=cse |
| By: | Mario Tello (Departamento de Economía - Pontificia Universidad Católica del Perú) |
| Abstract: | This paper presents a set of indicators of science, technology, innovation (SCTeI), technologic coordination (cooperation or collaboration) and use of ICT at the level (1998-2009) of Peru and firms (2004-2007). Further and based upon an enterprise model, it presents evidence of the impact of those technologic factors on 339 manufacturing firms’ profitability. The set of indicators SCTeI, TIC and technological coordination support the usual thesis of the weak development and low priority granted to SCTeI activities in Peru. On other hand, the statistical evidence shows a significant impact of the set of technological resources on the profitability of manufacturing firms. In addition, the evidence shows (although not conclusively) that the impact of such resources is through its effects on firms’ innovation process. |
| Keywords: | Tecnologías de Información y Comunicaciones / Teoría de Recursos y Capacidades / Ciencia / Tecnología y Cooperación tecnológica |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pcp:pucwps:wp00311&r=cse |
| By: | Pierre-Alexandre Balland; Mathijs de Vaan; Ron Boschma |
| Abstract: | In this paper, we study the formation of network ties between firms along the life cycle of a creative industry. We focus on three drivers of network formation: i) network endogeneity which stresses a path-dependent change originating from previous network structures, ii) five forms of proximity (e.g. geographical proximity) which ascribe tie formation to the similarity of actors' attributes; and (iii) individual characteristics which refer to the heterogeneity in actors capabilities to exploit external knowledge. The paper employs a stochastic actor-oriented model to estimate the - changing - effects of these drivers on inter-firm network formation in the global video game industry from 1987 to 2007. Our findings indicate that the effects of the drivers of network formation change with the degree of maturity of the industry. To an increasing extent, video game firms tend to partner over shorter distances and with more cognitively similar firms as the industry evolves. |
| Keywords: | network dynamics, industry life cycle, proximity, creative industry, video game industry, stochastic actor-oriented model |
| JEL: | D85 B52 O18 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1114&r=cse |
| By: | Hunjra, Ahmed Imran; Ahmad, H. Mushtaq; Rehman, Kashif-Ur-; Safwan, Nadeem |
| Abstract: | The purpose of this paper is to investigate the factors that are influencing the young graduates for intention to create new venture. The study further highlights how the attraction, networking support, entrepreneurial capabilities, self-independence and self-reliance influence the young students to initiate their new businesses. The sample size of this study was 255 final semester students of various disciplines in different universities from Islamabad and Rawalpindi. The survey based questionnaire was used for data collection. Based on findings this study concludes that all variables, included in the study, play a vital role in new venture creation. Therefore, on the basis of findings this study concludes that young students are more motivated towards new venture creation and start their own businesses. |
| Keywords: | Influencing factors; new venture creation; different disciplines; young graduates; motivation |
| JEL: | A20 A23 |
| Date: | 2011–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32679&r=cse |
| By: | Cerulli Giovanni (Ceris - Institute for Economic Research on Firms and Growth, Rome, Italy) |
| Abstract: | By means of a simulated funding-agency/supported-firm stochastic dynamic game, this paper firstly shows that not only the level of R&D performed by firms is underprovided (as maintained by traditional literature on the subject), but also the level of the subsidy provided by the funding (public) agency (used to correct exactly for the corporate R&D shortage). This event is due to externalities generated by the agency-firm strategic relationship. Two versions of the model are simulated and compared: one assuming rival behaviors between companies and agency, and one associated to the Social-planner (or cooperative) strategy. Secondly, the paper looks at what “welfare” implications are associated to different degree of funding effect’s persistency. Three main conclusions are drawn: (i) the relative quota of subsidy to R&D is undersized in the rival compared to the Social-planner model; (2) the rivalry strategy generates distortions that favor the agency compared to firms; (3) when passing from less persistent to more persistent R&D additionality/crowding-out effect, the lower the bias the greater the variance is and vice versa. As for the management of R&D funding policies, all the elements favouring greater collaboration between agency and firm objectives can help current R&D support to reach its social optimum. |
| Keywords: | R&D subsidies, Rivalry vs. cooperation, Dynamic-stochastic games, Simulations |
| JEL: | O38 H2 C73 C63 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:csc:cerisp:201011&r=cse |
| By: | A. Arrighetti; F.Landini; A. Lasagni |
| Abstract: | The positive impact of intangible assets on several measures of economic performance is well documented in the literature. Less clear is what leads firms to invest in intangible assets in the first place. The latter is particularly important since, at least for the Italian manufacturing sector, firms exhibit a very strong heterogeneity in their level of intangible asset investments. In line with the capability-based theory of the firm we argue that the firm’s propensity to invest in intangible assets can be explained by factors that are internal and specific to the firm. Making use of a rich dataset we test and provide support for our hypotheses. In particular we find that the propensity to invest in intangible assets increases with the firm’s size, human capital and organizational complexity and with the past level of intangible assets. This points toward the existence of a cumulative dynamics in the process of intangible assets accumulation that may account for most of the heterogeneity observed in the data. The paper adds to the previous literature in two ways: first it highlights the existence of a strong intra-industry heterogeneity in intangible assets investments; and second, it offers an explanation for such heterogeneity. |
| Keywords: | : intangible assets, human capital, firms heterogeneity, organizational complexity, complementarity, knowledge economy, organizational capabilities |
| JEL: | L21 L25 O32 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:par:dipeco:2011-ep02&r=cse |
| By: | Ceren Ozgen (VU University Amsterdam); Peter Nijkamp (VU University Amsterdam); Jacques Poot (National Institute of Demographic and Economic Analysis (NIDEA), University of Waikato, Hamilton, New Zealand) |
| Abstract: | The concentration of people with diverse socio-cultural backgrounds in particular geographic areas may boost the creation of new ideas, knowledge spillovers, entrepreneurship, and economic growth. In this paper we measure the impact of the size, skills, and diversity of immigration on the innovativeness of host regions. For this purpose we construct a panel of data on 170 regions in Europe (NUTS 2 level) for the periods 1991-1995 and 2001-2005. Innovation outcomes are measured by means of the number of patent applications per million inhabitants. Given the geographical concentration and subsequent diffusion of innovation activity, and the spatial selectivity of immigrants' location choices, we take account of spatial dependence and of the endogeneity of immigrant settlement in our econometric modelling. We use the location of McDonald's restaurants as a novel instrument for immigration. The results confirm that innovation is clearly a function of regio nal accessibility, industrial structure, human capital, and GDP growth. In addition, patent applications are positively affected by the diversity of the immigrant community beyond a critical minimum level. An increase in the fractionalization index by 0.1 from the regional mean of 0.5 increases patent applications per million inhabitants by about 0.2 percent. Moreover, the average skill level of immigrants (proxied by global regions of origin) also affects patent applications. In contrast, an increasing share of foreigners in the population does not conclusively impact on patent applications. Therefore, a distinct composition of immigrants from different backgrounds is a more important driving force for innovation than the sheer size of the immigrant population in a certain locality. |
| Keywords: | immigration; cultural diversity; economic growth; innovation; spatial autocorrelation |
| JEL: | J61 O31 R23 |
| Date: | 2011–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20110112&r=cse |
| By: | Stacie Beck (Department of Economics,University of Delaware); Alexis Chaves (Bureau of Economic Analysis) |
| Abstract: | Few macroeconomic studies exist on the effects of taxes on international trade. Our hypothesis is that higher tax rates raise a country’s production costs, leading to a decrease in exports in the long run. With panel data for 25 OECD countries, we use average effective tax rates on consumption, labor income and capital income to examine their impact on bilateral trade. We find that that all three types of taxes reduce the flow of international trade. |
| Keywords: | tax ratio, average effective tax rate, international trade |
| JEL: | H20 F10 C23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dlw:wpaper:11-09.&r=cse |