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on Economics of Strategic Management |
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Issue of 2013‒02‒08
eleven papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Nishimura, Junichi; Okamuro, Hiroyuki |
| Abstract: | R&D consortia (collaborative R&D projects among private firms, universities, and public research institutes) have been attracting increasing attention as an effective means of promoting innovation. Especially for SMEs, such collaboration provides important opportunities to access and obtain advanced scientific knowledge generated by universities and public research institutes. It is expected that not only the participants in R&D consortia will enhance their performance, through direct knowledge spillovers, but also that the business partners of consortia members may enjoy indirect effects (rent spillovers), through their business transactions. This paper empirically examines the spillover effects through government-sponsored R&D consortia using firm-level data and the propensity score method. Focusing on a major support program for R&D consortia in Japan, the “Consortium R&D Project for Regional Revitalization” by METI, we confirm that there are both direct (knowledge) spillover effects from firms’ participation in this program and indirect (rent) spillover effects on the customer firms of the consortia members. Moreover, by comparing SMEs and large firms, we find that only SMEs obtain knowledge spillovers in R&D consortia, whereas, among their customers, only large firms enjoy rent spillovers. |
| Keywords: | R&D consortia, business transaction, knowledge spillover, rent spillover, SME, policy evaluation |
| JEL: | H25 L53 O32 O38 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:hit:cinwps:24&r=cse |
| By: | Reinhilde Veugelers |
| Abstract: | Highlights â?¢ Research and development spending has risen rapidly in Asia, particularly in China, which is now the worldâ??s second R&D spender behind the United States.The increase in Korean and Chinese patent applications has been even more rapid, but Chinese patenting for exploitation on the main markets for innovation(the European Union, Japan and the US) is still marginal. â?¢ Asia's increased innovation spending is most prominently related to information and communication technologies. Overall, the Chinese and Korean economies are still not specialised in knowledge-intensive goods and services.Furthermore, China in particular is not (so far) capturing much value from its role as a manufacturer and exporter of high-tech goods; China remains mostly an assembler of goods, the value of which is created elsewhere. â?¢ It would be wrong to ignore China's innovation potential on the basis of its current performance. Its clear innovation ambitions are likely to drive its future growth. â?¢ Europe is struggling much more than the US to retain its place at the global innovation table. The EU should use Asiaâ??s capacity building in innovation as an opportunity for value capture. Reinhilde Veugelers (reinhilde.veugelers@bruegel.org) is a Senior Fellow at Bruegel. Research assistance from Francesca Barbiero is gratefully acknowledged. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polcon:766&r=cse |
| By: | Alessia LO TURCO (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); Daniela MAGGIONI (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali) |
| Abstract: | Making use of an original firm level dataset, we explore the causal impact of innovation on the manufacturing firm export activity in Turkey. We model process and product innovation as separately - through cost savings and product quality improvements, respectively - affecting the firm profitability and, consequently, the firm export propensity. This modeling choice highlights heterogeneous effects across high and low income destination markets. In a Multiple Propensity Score Matching framework, we, then, test the impact of each innovation activity and of their joint adoption. We find that only the latter fosters the first time entry into exporting, when the destination market is high income. Nevertheless, innovation positively affects the firmexport propensity. New product introduction is more rewarding than process innovation, especially for exporting to lowincome economies. Process innovation, though, strengthens the positive role of product innovation for exporting to more advanced markets. |
| Keywords: | Turkey, export, process innovation, product innovation |
| JEL: | D22 F10 F14 O31 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:388&r=cse |
| By: | Timo Hiller |
| Abstract: | This paper presents a simple model of strategic network formation with local com- plementarities in effort levels and positive local externalities. Equilibrium networks display - other than the complete and the empty network - a core-periphery structure, which is commonly observed in empirical studies. Ex-ante homogenous agents may obtain very different ex-post outcomes. These findings are relevant for a wide range of social and economic phenomena, such as educational attainment, criminal activity, labor market participation and R&D expenditures of rms. |
| Keywords: | Network formation, peer effects, strategic complements, positive externalities |
| JEL: | D62 D85 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:bri:uobdis:12/633&r=cse |
| By: | Ugur, Mehmet |
| Abstract: | We introduce new studies that argue in favour of: (i) according a central role to governance and regulation as potential determinants of innovation; and (ii) analysing the effects of governance and regulation on innovation in conjunction with the effects of the market structure. These studies were presented at an international conference at the University of Greenwich in September 2011 and will be published as an edited book titled Governance, Regulation and Innovation: Theory and Evidence on Firms and Countries (Edward-Elgar, 2013). The studies explore the relationship between governance and regulation widely defined and innovation, taking into account the interactions between governance and market structure as well as between different dimensions of governance. They contribute to existing literature by providing new empirical evidence and by pointing out to complementary and offsetting innovation effects that may result from interactions between economic governance institutions, corporate governance rules, regulation on the one hand and the market structure on the other. |
| Keywords: | Governance; corporate governance; regulation; innovation |
| JEL: | L5 E02 G3 O3 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:44151&r=cse |
| By: | Filomena Pietrovito (Universit… del Molise); Alberto Franco Pozzolo (University of Molise, Centro Studi Luca d'Agliano); Luca Salvatici (Universit… di Roma Tre, Dipartimento di Economia) |
| Abstract: | Trade theory traces back different patterns of internationalization to heterogeneity between firms, measured both through differences in productivity levels and size. In this paper we analyze the link between heterogeneity within sectors and internationalization choices, namely trade and foreign direct investments (FDI) for a large sample of countries and industries between 1994 and 2004. The focus of our paper is on the role played by average productivity level and the distribution of firms by size in explaining differences across sectors and countries in the extensive margin of internationalization (i.e., the number of foreign nations where firms from a given sector and country have expanded abroad). By performing an ordered probit analysis, and controlling for other factors affecting the patterns of internationalization, we confirm that industries with higher productivity levels and with a distribution of firms shifted toward large firms are more prone to internationalize in foreign markets through both trade and FDI. Moreover, the relative impact of average productivity and firm size on FDI is larger than that on trade. These results are robust to different measures of productivity and the distribution of firms. |
| Keywords: | distribution of firms, exports, foreign direct investments, mergers and acquisitions, ordered probit, productivity |
| JEL: | D24 F10 F14 F20 F23 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wmofir:77&r=cse |
| By: | Ugur, Mehmet |
| Abstract: | The aim of this paper is to investigate the relationship between market power, governance and patenting activity in a sample of 25 OECD countries from 1988-2007. Controlling for a wide range of innovation predictors, we report that governance quality is related positively with patenting activity in the full sample and in samples of countries with higher-than-average per-capita GDP, governance scores and economic openness. Secondly, the relationship between market power and innovation has a U-shape in the full sample, but inverted-U shape in split samples. Third, when interacted with governance, market power tends to have an offsetting effect that weakens the positive relationship between governance and innovation. These findings are robust to a range of control variables such as per-capita GDP, income inequality, depth of equity markets, labour share in national income, economic globalization and military expenditures. Our findings indicate that governance is a significant factor that explain innovation and that blanket statements about the relationship between competition and innovation as well as the kind of reforms necessary to foster innovation can be misleading. |
| Keywords: | Economic governance; innovation; patenting; market power |
| JEL: | E02 B52 O3 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:44141&r=cse |
| By: | Paola Conconi; André Sapir; Maurizio Zanardi |
| Abstract: | This paper shows that uncertainty can lead firms to follow a gradual internationalizationprocess. We describe a model in which firms are uncertain abouttheir ability to earn profits in a foreign market and must decide whether or notto serve it, and whether to do so through exports or foreign affiliate sales. Weshow that a firm may first test the foreign market via exports, before engagingin foreign direct investment (FDI). To assess the evidence, we exploit a uniquedataset of firm-level exports and FDI in individual destination countries, coveringall Belgian companies over the 1998-2008 period. We show that a firm's FDI entryin a foreign market is almost always preceded by its export entry. More uncertainforeign market conditions lead new exporters to delay FDI entry decisions. Ouranalysis suggests that exports and FDI, although substitutes from a static perspective,may be complements over time, since the knowledge acquired throughexport experimentation can lead firms to start investing abroad. |
| Keywords: | uncertainty; experimentation; exports; FDI |
| JEL: | F10 D21 F13 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/139596&r=cse |
| By: | G. Bottazzi; M. Grazzi |
| Abstract: | This paper studies the impact of size on labor cost and productivity for Italian manufacturing firms. The distributions of both labor cost and productivity display a wide support, even when disaggregated by sector of industrial activity. Further, both labor cost and productivity, when considered alone, are growing with the size of the firm. We investigate this relationship on a new set of data and we are able to show that once accounted for productivity differences among firms, size still retains a positive effect on cost of labor in most of the sectors considered. |
| JEL: | D21 J31 L11 L60 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp865&r=cse |
| By: | Sylvie Blasco (CREST); Barbara Pertold-Gebicka (Aarhus Université) |
| Abstract: | In this paper we investigate how active labour market policy programmes affect firms' hiring strategies and, eventually, firms' performance. We focus on counseling and monitoring which may reduce search costs for employers, but which may have ambiguous effect on the employer- employee matching quality and thus on firms' performance. Using a large scale experiment which was conducted in Denmark in 2005-2006 and induced a greater provision of activation, we find that small firms hiring in the districts where the social experiment was conducted changed their hiring practices in favor of unemployed workers and experienced greater turnover than the other firms. Treated firms also experienced no change or a marginal reduction in value added and total factor productivity during the first years after the experiment. These results are consistent with the idea that monitoring creates compulsion effects which counteract the possible improvement in the matching process expected from job search assistance. |
| Keywords: | active labour market programmes, counseling and monitoring,hiring decisions,firms performance |
| JEL: | C21 J63 J68 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2012-27&r=cse |
| By: | Bouzahzah, Mohamed; El Menyari, Younesse |
| Abstract: | This study proposes to examine the impact of tourism activity on the economic growth of Morocco and Tunisia. We contribute here to the empirical literature on the tourism-led growth (TLG) hypothesis, by adopting the error correction model framework, the cointegration and Granger Causality tests between real tourism receipts, real effective exchange rate and economic growth in Morocco and Tunisia, for the annual period 1980-2010; two main results emerge from this analysis. First, contrary to the predictions of the TLG hypothesis, the Granger test results show that this hypothesis is only valid for short-term in the two countries of Maghreb. Second, the results show that in the long term, there is a strong unidirectional causality from economic growth to international tourism receipts. |
| Keywords: | TLG hypothesis; tourism receipts; economic growth; cointegration; Granger causality; Morocco and Tunisia |
| JEL: | C32 O57 L83 E01 F43 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:44102&r=cse |