nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒09‒22
fifteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Making sense of innovation by R&D and non-R&D innovators in low technology contexts: a forgotten lesson for policymakers By José Albors-Garrigos; José L. Hervas-Oliver
  2. The Impact of Cultural Diversity on Innovation: Evidence from Dutch Firm-Level Data By Ceren Ozgen
  3. Technological Readiness in the Middle East and North Africa – Implications for Egypt By Juliane Brach
  4. Beyond Product Lifecycle and Flying Geese: International Competitiveness of East Asian Region and the Japanese Position within By KIKKAWA, TAKEO
  5. The convergence theories and the geographic concentration in the Portuguese manufactured industry By Martinho, Vítor João Pereira Domingues
  6. The convergence theories and the geographic concentration in the Portuguese manufactured industry. Another approach By Martinho, Vítor João Pereira Domingues
  7. Firms’ human capital, R&D and innovation: a study on French firms. By Gallié, Emilie-Pauline; Legros, Diego
  8. The role of extensive and intensive margins in explaining corporate R&D growth: Evidence from Spain By Juan Antonio Máñez Castillejo; Dolores Añón Higón; Juan Alberto Sanchis Llopis
  9. Impediments to Growth of the Garment and Food Industries in Cambodia: Exploring Potential Benefits of the ASEAN-PRC FTA By Chheang, Vannarith; Hamanaka, Shintaro
  10. A Cluster-Based Industrial Development Policy for Low-Income Countries By Keijiro Otsuka; Tetsushi Sonobe
  11. The Keynesian theory and the geographic concentration in the Portuguese manufactured industry By Martinho, Vítor João Pereira Domingues
  12. Innovation in China: the rise of Chinese inventors in the production of knowledge By Rachel Griffith; Helen Miller
  13. What do we actually mean by talent in business? Does it really matter? By Eva Gallardo-Gallardo
  14. European Cooperative R&D And Firm Performance By Luis Aguiar; Philippe Gagnepain
  15. Are health factors important for regional growth and convergence? An empirical analysis for the Portuguese districts By Ana Poças; Elias Soukiazis

  1. By: José Albors-Garrigos (Dpto. Organización de Empresas); José L. Hervas-Oliver (Dpto. Organización de Empresas)
    Abstract: This paper attempts to use an integrated theory based on a firm’s internal and external sources of knowledge framework to analyze how different are R&D from non-R&D activities to innovate, specially in a context of low and medium low tech (LMT) sectors where most of the firms are SMEs. Simultaneously, the paper also explores the key differences between R&D and non-R&D innovators. The empirical analysis is based on a representative panel of 2023 Spanish manufacturing firms for 2005 and 2006 from the Spanish Ministry of Industry. Innovation in product and process is explained using non-R&D variables such as in Marketing, Design or hiring tertiary degree employees. Only innovation in product is explained by R&D expenditures. Addressing innovation in process, R&D variables work in few cases and neither R&D expenditures but occasionally R&D employees and are specially relevant the non-R&D variables. The interaction (moderating) effect is specially negative and significant, addressing the substitution effect with different implications regarding product or process innovation. Therefore, innovation can be explained using non-R&D variables such as investments in Marketing, Design, and other routines linked to human resources, technology monitoring committees or the existence of a formal plan to innovate. The firms with more internal resources, those which conduct R&D activities present a better AC and it leads to engage in cooperation agreements and access to external flows of knowledge. The paper has important implications for policymakers due to the fact that most of policies for R&D are based on R&D programmes, while there are other realities: non-R&D factors which also explain innovation, specially when considering low tech sector contexts. El presente artículo usa la teoría de recursos y capacidades para, a través de los recursos internos y externos de las empresas, analizar las actividades de R&D y las actividades de no-R&D en su impacto sobre la performance de innovación de la empresa, en un contexto sectorial de baja y media tecnología. Asimismo, el artículo explora el rol innovador de las empresas que hacen R&D y las que no lo hacen. Con una muestra de 2023 empresas manufactureras españolas, obtenemos un comportamiento innovador para la innovación en producto y en proceso y, sobre todo, observando que las actividades de R&D tienen muy poco peso explicativo sobre el resultado de innovación. El artículo presenta implicaciones para la Academia y los policymakers, sobre todo por el hecho de que la mayoría de las políticas de innovación se basan en actividades de R&D.
    Keywords: fuentes de innovación, estrategias de búsqueda de conocimiento externo, cooperación tecnológica, capacidad de absorción. innovation sources, technology cooperation, absorptive capacity, search strategies.
    Date: 2011–07
    URL: http://d.repec.org/n?u=RePEc:ivi:wpasec:2011-06&r=cse
  2. By: Ceren Ozgen (Department of Spatial Economics, VU University Amsterdam)
    Abstract: Due to the growth in international migration in recent decades, the workforce of firms in host countries has become considerably more diverse, both demographically and culturally. It is an important question for firms and for governments to ask whether there are some productivity-enhancing externalities gained from this growing diversity within firms. In recent years migration research has demonstrated positive economic impacts of cultural diversity on productivity and innovation at the regional level. However, there is a dearth of research on the links between innovation and migrant diversity at the firm level. In this paper we construct and analyse a unique linked employer-employee micro-dataset of 4582 firms, based on survey and administrative data obtained from Statistics Netherlands. Excluding firms in the hospitality industry and other industries that employ low-skilled migrants, we use the local number of restaurants with foreign cuisines and the historical presence of migrant communities as valid instruments of endogenous migrant settlement. We find that firms in which foreigners account for a relatively large share of employment are somewhat less innovative. However, there is strong evidence that firms that employ a more diverse foreign workforce are more innovative, particularly in terms of product innovations.
    Keywords: immigration, innovation, cultural diversity, knowledge spillovers, linked employer-employee data, Netherlands
    JEL: F22 O31
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:nor:wpaper:2011013&r=cse
  3. By: Juliane Brach (GIGA Institute of Middle East Studies)
    Abstract: Innovation is widely recognized as a key driver of sustainable economic development. Governments, international organizations, donors and investors are increasingly interested in evaluating the technological capabilities and innovative capacities in developing countries, but often lack appropriate approaches for such measurement. This paper focuses on innovation and technological progress in the MENA region and discusses the challenges of understanding, expanding and fostering innovative potential in Egypt.
    Keywords: Egypt, Middle East, North Africa, Technology, Developing countries
    Date: 2010–12
    URL: http://d.repec.org/n?u=RePEc:gig:wpaper:155&r=cse
  4. By: KIKKAWA, TAKEO
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:hit:hjbswp:131&r=cse
  5. By: Martinho, Vítor João Pereira Domingues
    Abstract: The aim of this paper is to present a further contribution to the analysis of absolute convergence, associated with the neoclassical theory, of the manufactured industry productivity at regional level and for the period from 1986 to 1994 (1)(Martinho, 2011a). This paper pretends, also, to analyze the importance which the natural advantages and local resources are in the manufacturing industry location, in relation with the "spillovers" effects and industrial policies. To this, we estimate the Rybczynski equation matrix for the various manufacturing industries in Portugal, at regional level (NUTS II) and for the period 1986 to 1994 (2)(Martinho, 2011b).
    Keywords: convergence; geographic concentration; panel data; manufactured industries; Portuguese regions
    JEL: O18 C23 R11 L60
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:33411&r=cse
  6. By: Martinho, Vítor João Pereira Domingues
    Abstract: The aim of this paper is to present a further contribution to the analysis of absolute convergence, associated with the neoclassical theory, of the manufactured industry productivity at regional level and for the period from 1995 to 1999 (1)(Martinho, 2011a). This paper pretends, also, to analyze the importance which the natural advantages and local resources are in the manufacturing industry location, in relation with the "spillovers" effects and industrial policies. To this, we estimate the Rybczynski equation matrix for the various manufacturing industries in Portugal, at regional level (NUTS II) and for the period 1995 to 1999 (2)(Martinho, 2011b).
    Keywords: convergence; geographic concentration; panel data; manufactured industries; Portuguese regions
    JEL: O18 C23 R11 L60
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:33407&r=cse
  7. By: Gallié, Emilie-Pauline; Legros, Diego
    Abstract: This article investigates the effects of human capital and technological capital on innovation. While the role of technological capital as measured by research and development (R&D) expenditure has been intensively investigated, few studies have been made on the effect of employee training on innovation. This article explores the relationship between innovation and firm employee training. Our methodological approach contributes to the literature in three ways. We propose various indicators of firm employee training. We build a count data panel with a long time-data series to deal with the issue of firms’ heterogeneity. We propose a dynamic analysis. Using dynamic count data models on French industrial firms over the period 1986–1992, we find positive and significant effects of R&D intensity and training on patenting activity. Whatever the indicators of training our results show that the firm employee training has a positive impact on technological innovation.
    Keywords: Patents; R&D; Employee training; Count panel data; Linear feedback model;
    JEL: C23 C25 J24 L60 O31
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/6962&r=cse
  8. By: Juan Antonio Máñez Castillejo (Universitat de València); Dolores Añón Higón (Dpto. Estructura Económica); Juan Alberto Sanchis Llopis (Dpto. Estructura Económica)
    Abstract: We analyse the growth of corporate R&D in the Spanish manufacturing sector through its decomposition into the extensive and intensive margins. These margins are decomposed into three distinct components: starting new R&D activities; R&D activities that survive or persist; and deepening existing R&D efforts. The data used is a panel of Spanish manufacturing firms drawn from the Encuesta sobre Estrategias Empresariales, for the period 1990-2006. We show that despite having experienced a substantial increase in R&D, the relative importance of each component differs for small and largefirms. We find that small firms would have had a significant higher R&D growth should they be able to improve their performance with respect to the survival component of the intensive margin. For large firms, deepening appears to be the most important component explaining R&D in the long run. Este trabajo estudia el crecimiento del gasto privado en I+D de las empresas manufactureras españolas a través de su descomposición en dos componentes: el margen extensivo y el margen intensivo. Estos márgenes se descomponen en 3 sub-componentes: iniciarse en la realización de nuevas actividades de I+D; supervivencia o persistencia en la realización de actividades de I+D; e, intensificación de las actividades de I+D ya existentes. Los datos que utilizamos en este trabajo han sido extraídos de laEncuesta sobre Estrategias Empresariales, para el periodo 1990-2006. Nuestros resultados indican que a pesar de que las empresas manufactureras españolas han experimentado un importante aumento en el gasto en I+D, la importancia relativa de cada componente es distinta para las empresas pequeñas respecto de las empresas grandes. Así, las empresas pequeñas hubieran experimentado un mayor aumento en el crecimiento del gasto en I+D si hubieran sido capaces de mejorar el componente depersistencia en la realización de actividades de I+D, dentro del margen intensivo. Para las empresas grandes, la intensificación en la realización de actividades de I+D constituye el principal componente a la hora de explicar la evolución de largo plazo del gasto en I+D.
    Keywords: I+D; Margen extensivo; Margen intensivo. R&D; Extensive margins; Intensive margin.
    JEL: O3
    Date: 2011–07
    URL: http://d.repec.org/n?u=RePEc:ivi:wpasec:2011-05&r=cse
  9. By: Chheang, Vannarith (Cambodian Institute for Cooperaiton and Peace); Hamanaka, Shintaro (Asian Development Bank)
    Abstract: This paper attempts to identify structural constraints to growth and exports within Cambodia’s key industries and to consider the policy actions needed to reduce obstacles to trade. The paper places special emphasis on Cambodia’s exports to the People’s Republic of China (PRC), given the major export opportunities arising from the free trade agreement (FTA) between the Association of Southeast Asian Nations (ASEAN) and the PRC, known as the ASEAN–[People’s Republic of] China FTA (ACFTA). A qualitative case study method was applied at the firm-level by conducting face-to-face interviews to identify the impediments to the growth and exports of key industries in Cambodia, and to examine the opportunities and challenges presented by the ACFTA. This study covers the garment and food industries, which are critical to the economic development of Cambodia in the context of regional and global economic integration. The food industry, with its large number of small and medium-sized enterprises, has great potential for contributing to pro-poor growth in Cambodia, while the textile industry is the largest employer in the Cambodian labor force and is critical for poverty reduction efforts through export-led growth. The study also provides policy recommendations at both the industry and government levels.
    Keywords: Cambodian economy; garment industry; food industry; ASEAN-[People’s Republic of] China FTA; firm-level analysis; bribery
    JEL: F13 F14 F15
    Date: 2011–09–01
    URL: http://d.repec.org/n?u=RePEc:ris:adbrei:0086&r=cse
  10. By: Keijiro Otsuka (National Graduate Institute for Policy Studies); Tetsushi Sonobe (National Graduate Institute for Policy Studies)
    Abstract: The need to construct an effective strategy for industrial development in low-income countries has been largely ignored by development economists because industrial policies have failed in many developing countries. This does not imply, however, that industrial development cannot be promoted. This paper attempts to synthesize the conventional wisdom in development economics with recent advancements in various fields of economics (such as theories of endogenous growth and agglomeration economies) to provide a useful framework to design a strategy for industrial development, which consists of investments in managerial human capital followed by the provision of credit and the construction of industrial zones.
    Keywords: Competitive market environments, comparative advantage, industrial cluster, managerial training, provision of credit, construction of industrial zones
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:ngi:dpaper:11-09&r=cse
  11. By: Martinho, Vítor João Pereira Domingues
    Abstract: This work aims to test the Verdoorn Law, with the alternative specifications of (1)Kaldor (1966), for the five Portuguese regions (NUTS II), from 1986 to 1994. It is intended to test, yet in this work, the alternative interpretation of (2)Rowthorn (1975) about the Verdoorn's Law for the same regions and period. The results of this study are about each one of the manufactured industries operating in the Portuguese regions. This paper pretends, also, to analyze the importance which the natural advantages and local resources are in the manufacturing industry location, in relation with the "spillovers" effects and industrial policies. To this, we estimate the Rybczynski equation matrix for the various manufacturing industries in Portugal, at regional level (NUTS II) and for the period 1986 to 1994.
    Keywords: Verdoorn law; geographic concentration; panel data; manufactured industries; Portuguese regions
    JEL: O18 C23 R11 L60
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:33404&r=cse
  12. By: Rachel Griffith (Institute for Fiscal Studies and University of Manchester); Helen Miller (Institute for Fiscal Studies)
    Abstract: <p><p><p>In 2010 China was the world's fourth largest filer of patent applications. This followed a decade of unprecedented increases in investment in skills and Research and Development. If current trends continue China could rank first in the very near future. We provide evidence that the growth in Chinese patenting activity has been accompanied by a growth in Chinese inventors creating technologies that are near to the science base. </p><p></p><p></p><p>Part of the success of China has been to attract the investment of foreign multinationals. This is also true for a number of other Emerging Economies. Europe's largest multinational firms increasingly file patent applications that are based on inventor activities located in emerging economies, often working alongside inventors from the firm's home country. </p></p></p>
    Keywords: China; innovation; offshoring; patents.
    JEL: F21 F23 O3
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:ifs:ifsewp:11/15&r=cse
  13. By: Eva Gallardo-Gallardo (Universitat de Barcelona)
    Abstract: The conceptualization of talent has become increasingly relevant for scholars and practitioners as they seek to advance the study of talent management (TM). Indeed, confusion about the meaning of talent within the business field hinders consensus on the concept and practice of TM. In this theoretical study we review the talent concept in business to summarize what we have learned and to discuss the pros and cons of different approaches. We conclude by formulating an overall definition of this term, since an acknowledged interpretation of talent managementnot to mention the successful management of talent will depend on having a clear understanding of what is meant by talent in an organizational context. Moreover, with our definition of talent, we delimit the talent concept while avoiding problems uncovered in previous definitions (e.g. generality and tautology) and highlighting important variables that affect it and can make it more manageable.
    Keywords: talent management, competencies, talent
    JEL: M12 M59 M50
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:bar:bedcje:2011258&r=cse
  14. By: Luis Aguiar (Departamento de Economía - Universidad Carlos III de Madrid); Philippe Gagnepain (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: The goal of this paper is to assess the impact on the performance of firms that participate in Research Joint Ventures (RJVs) funded by the Fifth European Framework Programme for Research and Technological Development (EU-FP5). A special emphasis is made on the User-friendly Information Society (IST) programme, one of the most important thematic programmes of the EU-FP5. We use the funding available to the firms as an instrumental variable to account for self-selection and estimate the Local Average Treatment Effect (LATE) of participation by considering labor productivity and profit margin as performance measures. Our results show a large and positive impact of participation on the labor productivity of the firms, whereas the effect on profit margin is weaker. When taking into account the size of the RJV, we find that the positive impact on labor productivity comes mainly from participation in large projects and that participation in smaller RJVs has a negative effect on the profit margin.
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:hal:cesptp:hal-00622969&r=cse
  15. By: Ana Poças (Polytechnic Institute of Guarda and UDI); Elias Soukiazis (Faculdade de Economia/GEMF, Universidade de Coimbra)
    Abstract: The aim of this study is to analyze the impact of health factors on economic growth and convergence across the Portuguese regions at the district level. Like education, health factors could be important for explaining the growth performance of regions through the increase in labour productivity. Therefore, human capital can be seen in a broader perspective encompassing not only educational qualifications but also health conditions. Although this is not a new idea, empirical evidence at a regional level is not robust supporting this issue, with few exceptions. With this study we try to fill this gap and bring additional evidence of the relevance of health on regional growth considering the Portuguese districts. We employ a panel data approach for the period 1996-2006 taking into account specific regional differences. We also analyze whether there are differences between the littoral (coastal) and the interior (in-land) districts in what concerns health conditions and how they affect their convergence process.
    Keywords: : Regional growth, health and human capital, panel data.
    JEL: R11 O18
    Date: 2011–08
    URL: http://d.repec.org/n?u=RePEc:gmf:wpaper:2011-14&r=cse

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