nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2012‒02‒20
25 papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Technological innovation persistence: Literature survey and exploration of the role of organizational innovation By LE BAS Christian; MOTHE Caroline; NGUYEN Thi Thuc Uyen
  2. External technology supply and client-side innovation By Peukert, Christian
  3. The Innovation and Imitation Dichotomy in Spanish firms: do absorptive capacity and the technological frontier matter? By Gombau, Verònica; Segarra Blasco, Agustí
  4. R&D cooperation between Spanish firms and scientific partners: what is the role of tertiary education? By Segarra Blasco, Agustí
  5. Innovation and absorptive capacity: What is the role of technological frontier? By Gombau, Verònica; Segarra Blasco, Agustí
  6. Patents, secret innovations and firm's rate of return : differential effects of the innovation leader By Alvaro Escribano; Szabolcs Blazsek
  7. The Importance of Clusters for Sustainable Innovation Processes: The Context of Small and Medium Sized Regions By Pedro Valadas Monteiro; Teresa de Noronha; Paulo Neto
  8. High Growth Firms and Innovation: an empirical analysis for Spanish firms By Segarra Blasco, Agustí; Teruel Carrizosa, Mercedes
  9. Innovation or Imitation? The effect of spillovers and competitive pressure on firms’ R&D strategy choice By Slivko, Olga; Theilen, Bernd
  10. An 'integrated' framework for the comparative analysis of the territorial innovation dynamics of developed and emerging countries By Riccardo Crescenzi; Andrés Rodríguez-Pose
  11. The Governance of Knowledge in Academic Spin-Offs. The Case of Emilia-Romagna. By Ugo Rizzo
  12. Industrial Districts and the City: Relationships in the Knowledge Age. Evidence from the Italian Case By Fabiano COMPAGNUCCI; Augusto CUSINATO
  13. The Innovation Public Policies and the Firms’ adoption of Innovative Processes - A New Methodological Approach for Evaluation By Maria Manuel Serrano; Paulo Neto
  14. Market structures, strategy and innovation in services A study applied to the tourism sector By Luisa Carvalho
  15. The Optimal Level and Impact of Internal Factors on Growth By Li, Kui-Wai
  16. Cluster development and cluster life cycle By Bode, Alexander; Alig, Simon
  17. Determinants of high-growth firms:why do some countries have more high-growth firms than others? By Teruel Carrizosa, Mercedes; De Wit, Gerrit
  18. The economic performance of Portuguese and Spanish regions: A network dynamic approach By João Carlos Lopes; Tanya Araujo
  19. Regional variety and employment growth in Italian labour market areas: services versus manufacturing industries By Francesca Mameli; Simona Iammarino; Ron Boschma
  20. Why are Some Regions More Innovative than Others? The Role of Firm Size Diversity By Ajay K. Agrawal; Iain M. Cockburn; Alberto Galasso; Alexander Oettl
  21. On the Role of Imports in Enhancing Manufacturing Exports By Alessia LO TURCO; Daniela MAGGIONI
  22. Role of "Lead Market" factors in globalization of innovation: Emerging evidence from India & its implications By Tiwari, Rajnish; Herstatt, Cornelius
  23. Innovation, Employment and Skills in Advanced and Developing Countries: A Survey of the Literature By Vivarelli, Marco
  24. The Impact of International Research Joint Ventures on SMEs Performance By Barajas, A.; Huergo , E.; Moreno, L.
  25. Working Paper 144 - An Analysis of the Impact of Financial Integration on Economic Activity and Macroeconomic Volatility in Africa within the Financial Globalization Context By AfDB

  1. By: LE BAS Christian; MOTHE Caroline; NGUYEN Thi Thuc Uyen
    Abstract: In this paper, we will review the literature on technological innovation persistence and provide a general theoretical framework to analyze the main determinants of this innovative behavior. Moreover, no previous empirical study has taken into account organizational innovation practices as possible determinants of innovation persistence. We will therefore include them, as previous studies have shown the interaction effects between the two types of innovation, and produce empirical results on technical innovation persistence. A multinomial probit model was used to estimate the likelihood of belonging to each of the three longitudinal innovation profiles. Results confirm the differentiated impact of determinants on process and technological innovation persistence, and the effect of R&D intensity, R&D cooperation and competition intensity. As hypothesized, we also found that organizational innovation is a determinant factor for innovation persistence and, more generally speaking, for technological innovation, in particular organizational practices such as knowledge management and external partnerships.
    Keywords: Persistence; Innovation; Technological innovation; Organizational innovation; R&D
    Date: 2011–11
  2. By: Peukert, Christian
    Abstract: Flexibility in response to competitive pressure from globalized markets and increasingly individualized customer desires has become vital for firms. A common strategy to address this challenge is to employ a dynamic concept of organization and reach beyond the boundaries of the firm. Accordingly, technology transfer from providers of knowledge intensive business services attracts more and more attention. In this context we focus on external supply of information technology and client-side innovation. The aim of this paper is to contribute to resolving an empirical puzzle arising from the prior literature. Some authors find beneficial effects of IT outsourcing, others underline that firms often fail to achieve expected strategic goals. Our stylized theoretical model combines a knowledge production function framework and transaction cost economics. We hypothesize that the right balance between internal and external knowledge is critical for innovation. The empirical application is German firm-level data covering a wide range of industries from 2003 to 2006. Our results largely support the theoretical arguments and suggest a positive linear relationship between the level of outsourcing and process innovation. For product innovation we find a hump-shape. --
    Keywords: knowledge production function,transaction cost economics,product innovation,process innovation,KIBS,IT outsourcing,ZEW ICT survey
    JEL: L24 D23 O31
    Date: 2011
  3. By: Gombau, Verònica; Segarra Blasco, Agustí
    Abstract: This paper analyses whether a firm’s absorptive capacity and its distance from the technological frontier affect the choice between innovation and imitation in innovative Spanish firms. From an extensive survey of 5,575 firms during the 2004-2009 period, we found two significant results. With regard to the role of absorptive capacity, the empirical evidence shows that when innovative firms have difficulties in accessing external information and hire skilled workers, their innovative capacity is reduced. Meanwhile, with regard to distance from the technological frontier, the firms that reduce this gap manage to increase their innovative capacity at the expense of imitation. To summarise, when we studied firms’ absorptive capacity and their relative position to the technological frontier in tandem, we found that the two factors directly affected firms' ability to innovate or imitate. Key words: R&D sources, innovation and imitation strategies, absorptive capacity, technological frontier, ordered probit.
    Keywords: Empreses -- Innovacions tecnològiques -- Espanya, 33 - Economia, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses,
    Date: 2011
  4. By: Segarra Blasco, Agustí
    Abstract: This paper explores the factors that determine firm’s R&D cooperation with different partners, paying special attention on the role of tertiary education (degree and PhDs level) in facilitating the connection between the firms and the to scientific bodies (technology centres, public research centres and universities). Here, we attempt to answer two questions. First, are innovative firms that carry out internal and external R&D activities more likely to cooperate on R&D projects with other partners? Second, do Spanish innovative firms with a high participation of researchers with degrees or PhDs tend to cooperate more with scientific partners? To answer both questions we apply a three-dimensional approach on a firm level Panel Data with a sample of 4.998 manufacturing and services Spanish firms. First, we run a complementary test between external R&D acquisition and skilled research workers and find that firms which carry out external R&D activities obtain a greater return on R&D cooperation when they have skilled workers in R&D, especially in high-tech manufactures and KIS services. Second, we carry out a 2-step tobit model to estimate, in the first stage, the determinants that explain whether Spanish innovative firms cooperate or not; and in the second stage the factors that affect the choice of partners. And third, we apply an ordered probit model to test the marginal effects of explanatory variables on the different partners. Here we contrast some of the most interesting empirical hypotheses of previous studies, and which emphasize the role of employees with degrees and PhDs in facilitating cooperative R&D between firms and scientific partners. JEL classification: O31, O33, O38. Key words: Determinants R&D cooperation, industry-university flows, PhD research workers.
    Keywords: Empreses -- Innovacions tecnològiques, Col·laboracio empresa-universitat, 378 - Ensenyament superior. Universitats, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses,
    Date: 2011
  5. By: Gombau, Verònica; Segarra Blasco, Agustí
    Abstract: This paper explores how absorptive capacity affects the innovative performance and productivity dynamics of Spanish firms. A firm’s efficiency levels are measured using two variables: the labour productivity and the Total Factor Productivity (TFP). The theoretical framework is based on the seminal contributions of Cohen and Levinthal (1989, 1990) regarding absorptive capacity; and the applied framework is based on the four-stage structural model proposed by Crépon, Duguet and Mairesse (1998) for setting the determinants of R&D, the effects of R&D activities on innovation outputs, and the impacts of innovation on firm productivity. The present study uses a twostage structural model. In the first stage, a probit estimation is used to investigate how the sources of R&D, the absorptive capacity and a vector of the firm’s individual features influence the firm’s likelihood of developing innovations in products or processes. In the second phase, a quantile regression is used to analyze the effect of R&D sources, absorptive capacity and firm characteristics on productivity. This method shows the elasticity of each exogenous variable on productivity according to the firms’ levels of efficiency, and thus allows us to distinguish between firms that are close to the technological frontier and those that are further away from it. We used extensive firm-level panel data from 5,575 firms for the 2004-2009 period. The results show that the internal absorptive capacity has a strong impact on the productivity of firms, whereas the role of external absorptive capacity differs according to nature of the each industry and according the distance of firms from the technological frontier. Key words: R&D sources, innovation strategies, absorptive capacity, technological distance, quantile regression.
    Keywords: Empreses -- Innovacions tecnològiques, Productivitat industrial, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses,
    Date: 2011
  6. By: Alvaro Escribano; Szabolcs Blazsek
    Abstract: This paper studies the dynamic interactions and the spillovers that exist among patent application intensity, secret innovation intensity and stock returns of a well-defined technological cluster of firms. We study the differential behavior when there is an Innovation Leader (IL) and the rest of the firms are Innovation Followers (IFs). The leader and the followers of the technological cluster are defined according to their patent innovation activity (stock of knowledge). We use data on stock returns and patent applications of a panel of technologically related firms of the United States (US) economy over the period 1979 to 2000. Most firms of the technological cluster are from the pharmaceutical-products industry. Interaction effects and spillovers are quantified by applying several Panel Vector Autoregressive (PVAR) market value models. Impulse Response Functions (IRFs) and dynamic interaction multipliers of the PVAR models are estimated. Secret patent innovations are estimated by using a recent Poisson-type patent count data model, which includes a set of dynamic latent variables. We show that firms’ stock returns, observable patent intensities and secret patent intensities have significant dynamic interaction effects for technologically related firms. The predictive absorptive capacity of the IL is the highest and this type of absorptive capacity is positively correlated with good firm performance measures. The innovation spillover effects that exist among firms, due to the imperfect appropriability of the returns of the investment in R&D, are specially important for secret innovations and less relevant for observed innovations. The flow of spillovers between followers and the leader is not symmetric being higher from the IL to the IFs.
    Keywords: Patent count data model, Stock market value, Secret innovations, Absorptive capacity, Technological proximity, Panel Vector Autoregression (PVAR), Impulse Response Function (IRF), Efficient Importance Sampling (EIS)
    JEL: C15 C31 C32 C33 C41
    Date: 2012–01
  7. By: Pedro Valadas Monteiro (Directorate of Agriculture and Fisheries for Algarve region and Research Centre for Spatial and Organizational Dynamics, University of Algarve); Teresa de Noronha (Faculty of Economics and Research Centre for Spatial and Organizational Dynamics, University of Algarve); Paulo Neto (Economics Department and Center for Advanced Studies in Management and Economics, University of Évora)
    Abstract: The purpose of the current paper is to provide a critical state-of-the-art review of current research on clusters and its correlation to innovation dynamics in small and medium-sized regions. In particular, we focus on the systematization of the main concepts and theoretical insights that are tributary to the cluster overview in terms of its relevance for the sustainability of the innovation processes, knowledge production and diffusion, which take place inside small and medium-sized regions. The present working paper takes into account the initial studies on English industrial districts (in the nineteenth century), passing through the Italian industrial districts (in the 70s and 80s of the twentieth century), until the modern theories of business clusters and innovation systems. These frameworks constitute the basis of an approach to endogenous development, which gives a central role to the interaction between economic actors, the society and the institutions and to the identification, mobilization and combination of potential resources within a particular geographical area.
    Keywords: Cluster; Innovation; Endogenous development; Territory.
    JEL: E23 D23 R12
    Date: 2011
  8. By: Segarra Blasco, Agustí; Teruel Carrizosa, Mercedes
    Abstract: This paper analyzes the effect of firms’ innovation activities on their growth performance. In particular, we observe how important innovation is for high-growth firms (HGFs) for an extensive sample of Spanish manufacturing and services firms. The panel data used comprises diverse waves of Spanish CIS over the the period 2004-2008. First, a probit analysis determines whether innovation affects the probability of being a high-growth firm. And second, a quantile regression technique is applied to explore the determinants and characteristics of specific groups of firms (manufacturing versus service firms and high-tech versus low-tech firms). It is revealed that R&D plays a significant role in the probability of becoming a HGF. Investment in internal and external R&D per employee has a positive impact on firm growth (although internal R&D presents a significant impact in the last quantiles, external R&D is significant up to the median). Furthermore, we show evidence that there is a positive impact of employment (sales) growth on the sales (employment) growth. Keywords: high-growth firms, firm growth, innovation activity JEL Classifications: L11, L25, O30
    Keywords: Empreses -- Innovacions tecnològiques -- Espanya, Empreses -- Creixement, 33 - Economia, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses,
    Date: 2011
  9. By: Slivko, Olga; Theilen, Bernd
    Abstract: This article provides a theoretical and empirical analysis of a firm's optimal R&D strategy choice. In this paper a firm's R&D strategy is assumed to be endogenous and allowed to depend on both internal firms. characteristics and external factors. Firms choose between two strategies, either they engage in R&D or abstain from own R&D and imitate the outcomes of innovators. In the theoretical model this yields three types of equilibria in which either all firms innovate, some firms innovate and others imitate, or no firm innovates. Firms'equilibrium strategies crucially depend on external factors. We find that the efficiency of intellectual property rights protection positively affects firms'incentives to engage in R&D, while competitive pressure has a negative effect. In addition, smaller firms are found to be more likely to become imitators when the product is homogeneous and the level of spillovers is high. These results are supported by empirical evidence for German .rms from manufacturing and services sectors. Regarding social welfare our results indicate that strengthening intellectual property protection can have an ambiguous effect. In markets characterized by a high rate of innovation a reduction of intellectual property rights protection can discourage innovative performance substantially. However, a reduction of patent protection can also increase social welfare because it may induce imitation. This indicates that policy issues such as the optimal length and breadth of patent protection cannot be resolved without taking into account specific market and firm characteristics. Journal of Economic Literature Classification Numbers: C35, D43, L13, L22, O31. Keywords: Innovation; imitation; spillovers; product differentiation; market competition; intellectual property rights protection.
    Keywords: Empreses -- Innovacions tecnològiques, Diferenciació de productes, Propietat intel·lectual, 33 - Economia, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses,
    Date: 2011–09
  10. By: Riccardo Crescenzi (London School of Economics); Andrés Rodríguez-Pose (IMDEA Social Sciences)
    Abstract: This paper discusses recent developments in the literature on local and regional innovative performance in order to show how an 'integrated' conceptual framework based on the cross-fertilisation of different theories can serve as a foundation for the comparative analysis of territorial innovation dynamics in both developed and developing countries. The paper outlines a conceptual framework to explain the differences between innovation systems and their geography by drawing on elements of endogenous growth, new economic geography and regional innovation systems. This framework forms the basis of the subsequent analysis of the differences in innovative capacity between the European Union, the Unites States – as the leader system to be challenged – and China and India as emerging competitors for international technological leadership. The systematic analysis of a large body of empirical literature shows important differences between the spatial patterning of 'emerging' (China and India) and 'mature' (EU and US) innovation systems.
    Keywords: innovation systems; geography; endogenous growth; new economic geography; Europe; United States; China; India
    Date: 2012–02–10
  11. By: Ugo Rizzo
    Abstract: The phenomenon of academic spin-offs (ASOs) has been widely studied in recent times. Scholars have mainly concentrated on identifying the factors that favours the phenomenon and the incentive alignments of the parties involved in the process. These works tend to remain static in nature by solely investigating the ex ante determinants of the process, that is the elements that favoured a context to be more profitable than others, usually in terms of the number of ASOs generated. More recently scholars have also acknowledged that ASOs are heterogeneous firms and have started investigating the development process of such firms. It has been highlighted that ASOs need to overcome certain defined stage of growth in order to become established firms in the market. Our work continues this line of investigation and aims to gives evidence that the paths of ASO development are heterogeneous themselves. We investigate the flows of knowledge taking place within and across the firm in a dynamic manner, at various stage of the development process of the firm: we study the governance of knowledge in a sub-population of ASOs and give evidence of the variety of possible ways the firm can develop.
    Keywords: governance of knowledge; academic spin-off; theory of the firm; technology development
    JEL: D21 D23 D83 L23 L26 O31 O32
    Date: 2012–02–11
  12. By: Fabiano COMPAGNUCCI (IUAV - Venezia); Augusto CUSINATO (IUAV - Venezia)
    Abstract: The spatial implications of fordist and district-based patterns of development have had a profound effect on the debate about the role of the city. While the city is reputed to be the crucial provider of fixed social capital within the fordist model, its role seems more nuanced, if not disputable, when the district model prevails. This disregard for the city is probably due to (a) the fact that the revival of the debate on marshallian industrial districts (IDs) has placed strong emphasis on the agglomeration economies internal to the districts themselves, when not emphasising the burden of urban diseconomies; and (b) the countryside roots of most district pioneers. The quarrel was further fuelled with the advent of ICTs, and the feasibility of displacing productive phases at a global level. The paper argues that this is only the early part of the history. The advent of ICTs has had not only functional consequences but also an important impact on the internal organisation of firms and industry and on economic geography as a whole. It has also made knowledge and innovation the crucial drivers of the competitiveness of firms and local economic systems. The notion of knowledge has profoundly changed too, and the main change consists in the shift that is occurring within the industry itself from the ontological to the hermeneutical approach. According to this view, the main hypothesis is that the city is a crucial socio-spatial device for knowledge generation. The paper investigates this issue on both the theoretical and the empirical level by introducing a new analytical category - "Knowledge-creating services (KCS)". With reference to the Italian case, the outcomes corroborate the above hypothesis and open an original perspective on the relationships between the city and IDs in the knowledge age: the city is shown to be not only the gateway for functionally connecting IDs with the global market but also a true Knowledge-creating District. Within this new situation, a reassessment is needed of the relationships between IDs and the city, due to the misalignment that is likely to occur between competences in "producing" manufactured goods and knowledge.
    Keywords: city, industrial districts, knowledge economy
    JEL: O18 R11
    Date: 2011–10
  13. By: Maria Manuel Serrano (University of Évora, Department of Sociology and SOCIUS – ISEG/UTL); Paulo Neto (University of Évora, Department of Economics and CEFAGE-UE)
    Abstract: Today, innovation is present in the discourse of politicians and business leaders. They see innovation as a positive value and as a solution to solve social problems and company’s competitiveness, so organizations are encouraged to adopt innovative practices through incentives and innovation policies. Several economic and sociological studies have shown that Portuguese companies adopt more easily technological innovations (with short-term effects) then organizational and social innovations. In this sense, we will consider innovation public policies effects at Portuguese companies and how they take available opportunities for innovation. The aim is to know if the concept of innovation spread by these policies is multidimensional (eg social, economic and technological) or restricted. We propose to study the factors (internal and external) that affect innovation processes in enterprises through case studies methodology. This research strategy will show us the processes of innovation from within the organizations and analyze the socio-economic context in which organizations operate through a new methodological approach for evaluation.
    Keywords: Innovation, Innovation Systems, Public Policies, Enterprises, Territory.
    JEL: J58 O31 O38
    Date: 2011
  14. By: Luisa Carvalho (ESCE/Polytechnic Institute of Setúbal and CEFAGE-UE)
    Abstract: The objectives of this paper are twofold – first we discuss innovation in the service sector, especially in tourism. Secondly, we apply the diagnostic test of the integrated model of innovation (Sarkar 2005, 2007) to present the results of an empirical study applied to tourism in a small open economy. The study applies multivariate analysis using a data set consisting of survey responses from 158 Portuguese firms. The study uses an archetype and the market outcome resulting from the innovation strategies pursued to compare similarities and differences according to the geographical localizations of the firms in order to identify innovative patterns in tourism firms. The study identifies the linkage between service, market structures and innovation strategies considering geographical agglomeration of firms in a small economy. The identification of different innovation trajectories and positions in the model could justify different public politics to incentivise and promote innovation in tourism firms.
    Keywords: Market structures; Strategy; Innovation.
    Date: 2011
  15. By: Li, Kui-Wai
    Abstract: This paper empirically uses data from the world economy to show that performance of domestic factors are equally important to external factors when comes to growth. Various external and domestic factors are used to construct two separate indices and the principal component method is applied in the analysis. The empirical results show that given a different level of performance in the economy’s external factors, a higher performance in the internal factors will produce a higher growth rate. When the performance of an economy’s internal factors is extremely low, it would be appropriate for that economy first to improve its internal factors.
    Keywords: Growth; external factors; domestic factors
    JEL: O11
    Date: 2011–07
  16. By: Bode, Alexander; Alig, Simon
    Keywords: Cluster development, cluster life cycle, cluster management
    Date: 2011–11–28
  17. By: Teruel Carrizosa, Mercedes; De Wit, Gerrit
    Abstract: High-growth firms have been shown to be a key factor for economic growth and structural change. This paper analyses the determinants of the number of high-growth firms in a country for 17 OECD countries between 1999 and 2005, using the Amadeus data set, the GEM data set, and others. The first contribution of this paper is that it is – as far as we know – the first empirical analysis of high-growth firms at the country level on the basis of actual measured growth. Second, we find indicative empirical evidence for three driving forces of high growth, viz. entrepreneurship, institutional settings, and opportunities for growth, all in accordance with theory and empirical findings in related fields of research. Third, the paper gives a tentative explanation of the differences in the average percentage of high-growth firms between countries. Finally, the paper gives some clues for policy makers how to promote high-growth firms. Keywords: high-growth firms, fast growing firms, entrepreneurship, institutional obstacles, opportunities for growth
    Keywords: Empreses -- Creixement, Emprenedoria, 33 - Economia, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses,
    Date: 2011
  18. By: João Carlos Lopes; Tanya Araujo
    Abstract: This paper contributes to further understanding the economic performance of Portuguese and Spanish regions, using a stochastic network approach. The empirical analysis is made at the territorial level of NUT 3 regions and covers the period 1995-2008. The performance of regions is based on GDP per capita at Purchasing Power Standards. The network analysis is based on a metric space built from the correlation coefficients between the log-difference of annual growth rates. The metric space and the corresponding topological coefficients are compared with the independent performance of randomly generated data. The metric space is graphically represented along the 3 dominant eigenvalues and the strongest connections are selected and represented in a network of Iberian regions. The main purpose of this research is to find the most relevant geographical and demographic determinants of regional development, namely a “border effect”, an “interiority (without border) effect”, a “coastal effect”, a “metropolitan effect” and an “ultra periphery effect”.
    Date: 2012–01
  19. By: Francesca Mameli; Simona Iammarino; Ron Boschma
    Abstract: This paper investigates the impact of regional sectoral diversity on regional employment growth in Italy over the period 1991-2001. Assuming that externalities may be stronger between industries selling similar products or sharing the same skills and technology (i.e. related industries), we analyze the role of different forms of sectoral variety at the Local Labour System (LLS) level. Our results show strong evidence of a general beneficial effect of a diversified sectoral structure but suggest also the need to differentiate the analysis between manufacturing and services. In particular, overall local employment growth seems to be favoured by the presence of a higher variety of related service industries, while no role is played by related variety in manufacturing. When looking at diversity externalities between macro-aggregates, the service industry is affected by related variety in manufacturing, while no evidence of externalities is found from tertiary sectors to manufacturing.
    Keywords: related variety, knowledge spillovers, agglomeration economies, regional growth, Italy
    JEL: D62 O18 O52 R11
    Date: 2012–02
  20. By: Ajay K. Agrawal; Iain M. Cockburn; Alberto Galasso; Alexander Oettl
    Abstract: Large labs may spawn spin-outs caused by innovations deemed unrelated to the firm's overall business. Small labs generate demand for specialized services that lower entry costs for others. We develop a theoretical framework to study the interplay of these two localized externalities and their impact on regional innovation. We examine MSA-level patent data during the period 1975-2000 and find that innovation output is higher where large and small labs coexist. The finding is robust to across-region as well as within-region analysis, IV analysis, and the effect is stronger in certain subsamples consistent with our explanation but not the plausible alternatives.
    JEL: O31 R11
    Date: 2012–01
  21. By: Alessia LO TURCO (Universita' Politecnica delle Marche, Dipartimento di Economia); Daniela MAGGIONI (Universita' Politecnica delle Marche, Dipartimento di Economia)
    Abstract: Making use of a large panel dataset on Italian manufacturing rms, we provide evidence on the effect of imports on the firm export performance. We distinguish imports of intermediates according to their origin and we find that inputs sourced from low labour cost countries promote the firms' export activity. Imports from high-income countries do not significantly contribute to the export orientation of firms, especially when persistence in export is considered and the possible endogeneity of the import measures is accounted for via System GMM estimation of a linear probability model. Our evidence suggests that the impact of imports on the firms' entry in export markets works through the cost saving channel rather than the technology channel.
    Keywords: cheap labour countries, exporters, importers
    JEL: D22 F14
    Date: 2011–06
  22. By: Tiwari, Rajnish; Herstatt, Cornelius
    Abstract: Access to lead markets is generally regarded as an important driver of the increasing globalization of innovation since these are considered to be early indicators for emerging customer needs. They are traditionally thought to exist in economies with high per capita income, sophisticated markets and high international visibility. We, however, propose that there is an increasing evidence of lead market tendencies in some emerging economies, e.g. India. We undertake a literature review to crystallize the need for an update/extension of the existing model to better reflect the changed ground realities and propose that factors such as voluminous markets, strong technological capabilities, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies of developing economies. Engaging a developing country lead market may be useful for firms in securing better access to markets at the bottom of the economic pyramid, worldwide. --
    Keywords: Lead Markets,India,Globalization of Innovation,Internationalization of R&D,Frugal Innovations
    Date: 2011
  23. By: Vivarelli, Marco (Università Cattolica del Sacro Cuore)
    Abstract: This paper critically discusses the theoretical and empirical literature on the quantitative and qualitative employment impact of technological change, compares the relative explanatory power of the competing theories, and explains in detail the macro and micro evidence on the issue, with reference both to the advanced economies and the developing countries (DCs).
    Keywords: technology, innovation, employment, skill, skill-biased technological change
    JEL: O33
    Date: 2012–01
  24. By: Barajas, A.; Huergo , E.; Moreno, L.
    Abstract: The objective of the present study is to analyse the effect of technological cooperation on SMEs performance consideringtwo dimensions: technological and economic results. For that purpose, we use a data set containing information about participants in research joint ventures supported by the SME-specific measures of the sixth Framework Programme. Empirical evidence corroborates a direct and positive impact on technological assets of participants. On the part of the economic indicators, EBITDA per employee and sales are positively influenced by the improvement of technological background. The same results are found for productivity. All those effects are effective in the medium term, confirming that SMEs use to be involved in market-oriented R&D projects.
    Keywords: research joint ventures; SMEs; impact assessment
    JEL: L2 H81 O3
    Date: 2012–01–30
  25. By: AfDB
    Date: 2012–02–16

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