|
on Economics of Strategic Management |
|
Issue of 2013‒03‒09
eleven papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Arvanitis, Spyros (KOF, ETH Zürich); Lokshin, Boris (School of Business and Economics, Maastricht University); Mohnen, Pierre (UNU-MERIT/MGSoG); Wörter, Martin (KOF, ETH Zürich) |
| Abstract: | There is growing evidence that firms increasingly adopt open innovation practices. In this paper we investigate the impact of two such external knowledge acquisition strategies, 'buy' and 'cooperate', on firm's product innovation performance. Taking a direct (productivity) approach, we test for complementarity effects in the simultaneous use of the two strategies, and in the intensity of their use. Our results based on large panels of Dutch and Swiss innovating firms, suggest that while both 'buy' and 'cooperate' have a positive effect on innovation, there is little statistical evidence that using them simultaneously leads to higher innovation performance. Results from the Dutch sample provide some indication, that there are positive economies of scope in doing external and cooperative R&D simultaneously conditional on doing internal R&D. |
| Keywords: | Innovation, Open innovation, R&D collaboration, make, buy strategies |
| JEL: | O31 O32 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013003&r=cse |
| By: | Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Nabavi, Pardis (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper is concerned with the productivity and growth of Swedish exporting firms. Using data on 9,580 manufacturing firms with 10 or more employees for the period 1997-2008, it estimates a dynamic GMM model that captures both the impact of recurrent knowledge investment through innovation and potential spillovers from the local milieu. The majority of the exporting firms are non-innovative. The data reveal that patent applicants located in knowledge intense milieus account for almost 40 percent of total Swedish exports, but only 2 percent of the firms. From the regressions it is shown that, relative to a firm that does not engage in innovation and has scarce access to external knowledge, the level of productivity is 2-12 percent higher for an innovative firm, depending on how innovation is defined and where the innovator is located. The annual long-run growth rate is 0.2-0.7 higher for innovative firms. Moreover, the performance gap between innovative and non-innovative exporters increases with accessibility to external knowledge for the former. |
| Keywords: | Productivity; exports; innovation; geographical knowledge spillovers; panel data |
| JEL: | C23 F14 L25 O31 R32 |
| Date: | 2013–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0296&r=cse |
| By: | Dietmar Harhoff; Elisabeth Mueller; John Van Reenen |
| Abstract: | Innovation processes within corporations increasingly tap into international technology sources, yet little is known about the relative contribution of different types of innovation channels. We investigate the effectiveness of different types of international technology sourcing activities using survey information on German companies complemented with information from the European Patent Office. German firms with inventors based in the US disproportionately benefit from R&D knowledge located in the US. The positive influence on total factor productivity is larger if the research of the inventors results in co-applications of patents with US companies. Moreover, research cooperation with American suppliers also enables German firms to better tap into US R&D, but cooperation with customers and competitors does not appear to aid technology sourcing. The results suggest that the "brain drain" to the US can have upsides for corporations tapping into American know-how. |
| Keywords: | technology sourcing, knowledge spillovers, productivity, open innovation |
| JEL: | O32 O33 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1193&r=cse |
| By: | Noronha, Teresa (University of Algarve) |
| Abstract: | Firms, in general, have an absorptive capacity that permits them to recognize the value of new, external information, assimilate it, and apply it to commercial goals. This capacity results from their level of prior related knowledge and they can become creators of innovation in a context of micro and small sized young firms, coming up with innovative outputs. The first goal of this paper is to pursue this discussion in the context of KIBS (Knowledge Intensive Business Services) which are non-material firms, providing intangible and highly personalized services submitted to the general market rules. Also, the geography of KIBS will be emphasized by pointing out the restrictions related to its major role in the peripheral areas of the world. Therefore, this paper presents an analysis of cross country experiences, identifying bottlenecks and common results to demonstrate the major role of KIBS in such environments. The conclusion of the research is twofold: For peripheries, the innovation capacity of KIBS depends on their internal capacity to innovate (as pushing forces), but for KIBS, their main function depends on the readiness of their clients to use their skills to innovate (as pulling forces). This last determinant varies with the readiness of their clients to network and innovate and with their labor force to learn. |
| Keywords: | KIBS; Business services; Knowledge management; Peripheries |
| JEL: | L22 L25 O32 |
| Date: | 2013–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_004&r=cse |
| By: | Porath, Amiram (CREST Expert Group) |
| Abstract: | Collaborative Research (CR) is usually regarded as a way to overcome several R&D barriers: the limitations of specific R&D projects resulting from lack of finance required for research infrastructure investment; the lack of expertise in industry (while it exists in academic institutes); and successful knowledge transfer. CR can be regarded as a strategic Open Innovation tool. In a book published in 2010 (Porath, 2010) I discussed CR on various aspects, analyzing it from the academic point of view and in the later part of the book on the practical aspects of participants and policy makers. Two recent books have been published, in which I have one chapter each. In the first one I presented a model (Porath, 2012a); and in the second a case study (Porath 2012b) regarding Open Innovation. These chapters have not dealt with CR as Open Innovation but rather presented another tool that has made Open Innovation a strategy for companies with little other choice. In this chapter I will combine the three sources into a more comprehensive picture. |
| Keywords: | Collaborative research; Open innovation; Knowledge management |
| JEL: | L14 L17 O32 |
| Date: | 2013–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_001&r=cse |
| By: | Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Sara (CESIS and CEnSE at Jönköping International Business School); Wallin, Tina (CESIS and CEnSE at Jönköping International Business School) |
| Abstract: | Firms in local industries maintain their capability to generate innovations by simultaneously exploiting internal and external knowledge resources. The paper introduces the notion variety triplet to distinguish individual export varieties, where a triplet is a unique combination of a firm, a product code and a destination country. For each date the set of variety triplets in each local industry records all remaining past product innovations. In view of this the paper examines how internal and external knowledge of local industries influence the industry’s scope and value of export varieties. The paper contributes to existing knowledge firstly by introducing variables that measure a local industry’s access to external supply of knowledge, divided into local and extra-local supply. Secondly, the paper sheds light on how internal and external knowledge influence the scope of product innovations in local industries, with firm-level data from Sweden. Thirdly, the paper compares the influence of knowledge on the entire set of variety triplets and on a separate set of recently introduced varieties. |
| Keywords: | Product varieties; innovation; internal knowledge; external knowledge; KIBS |
| JEL: | F12 F14 R12 R32 |
| Date: | 2013–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0297&r=cse |
| By: | Iizuka, Michiko (UNU-MERIT/MGSoG) |
| Abstract: | The innovation systems approach has proven useful in explaining the reasons behind varying economic performance in developing countries. The systemic understanding of the innovation process, which pays attention to the knowledge flow among interactive actors, serves as a useful 'focusing device' for elaborating effective policy to accelerate the innovation process and to contribute to economic development. The existing use of the innovation system may need to change substantially to address present-day societal challenges. The emerging types of innovation-such as user innovation, public sector innovation, social innovation and innovation for inclusive development-have different features from those of existing types. This paper examines the features of emerging types of innovation to assess whether and how the current innovation system can be remodelled to explain emerging social agendas, with particular focus on developing countries. |
| Keywords: | innovation system, user innovation, public sector innovation, social innovation, innovation for inclusive development, developing countries |
| JEL: | O20 O21 O31 O32 O33 O38 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013005&r=cse |
| By: | Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Scott, John T. (Dartmouth College) |
| Abstract: | In the aftermath of the passage of the American Recovery and Reinvestment Act of 2009, the employment effects of public subsidies have been scrutinized because of new emphasis on public accountability and transparency. In this paper we investigate conditions in which public subsidies of research and development (R&D) in small firms stimulate employment growth. We find, based on an empirical analysis of employment growth induced by U.S. Department of Defense Small Business Innovation Research (SBIR) program awards, that the stimulated employment growth is greater under two conditions: one, the presence of outside investors providing additional funding for the R&D, and two, when an exceptional amount of intellectual property is created by the publicly subsidized R&D. In addition to outside investors, other firms that make commercial agreements with the subsidized firm appear important for the employment growth of the subsidized firm. Cooperation between the small business doing the R&D and other firms is an important determinant of the commercial success of the technologies created with the support of public funds. |
| Keywords: | Public subsidy of R&D; Intellectual property; Employment growth; Entrepreneurship; Cooperation |
| JEL: | J21 L26 O31 O38 |
| Date: | 2013–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2013_001&r=cse |
| By: | Ahmad Reza Saboori Memar (University of Giessen); Georg Götz (University of Applied Science) |
| Abstract: | This paper focuses on incentives to invest in research and development (R&D) in vertically related markets. In a bilateral duopoly setup, we consider how process R&D incentives of the firms in both upstream and downstream market depend on the intensity of simultaneous interbrand and intrabrand competition. Among the results: both interbrand and intrabrand competition have twofold effects on R&D incentives. Existence of a vertically related market with imperfect competition lowers both the incentives to invest in process R&D and the competitive advantage through the R&D investment. We will show how the impact of a firm's R&D investments in either market on consumer surplus as well as on the profits of all firms in both markets depends on exogenous parameters. |
| Keywords: | research and development, vertical relations, bilateral oligopoly, product differentiation, process innovation, interbrand and intrabrand competition |
| JEL: | L13 D43 O30 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201307&r=cse |
| By: | Elsa Vaz (Economics Department of University of Évora and CEFAGE); Maria Paula Fontoura (ISEG - School of Economics and Management / Technical University of Lisbon, and UECE – Research Unit on Complexity and Economics) |
| Abstract: | The purpose of this paper is to analyse, for the case of Portugal, the effectiveness of wage reduction - a current proposal since 2011 ??to help the country to reverse the high public and external debt - in promoting the efficiency and international competitiveness of the economy. A static multi-sector and single-country general equilibrium model is used and data is collected from the GTAP7 Database. The model allows the measurement of changes by sector. The simulations performed show that extending the reduction of wages already deployed by the government in the public sector to the private sector leads to a positive impact on employment (both skilled and unskilled labour), production and volume of exports in all sectors except those that are R&D intensive, the latter having a low weight in the Portuguese economy. However, it is possible that the positive results in terms of external competitiveness are not sustainable, as the impact on productivity is negative, albeit small, for most sectors. There are also reasons for concern regarding the observed deterioration of the trade balance of most sectors, the exception being the traditional labour intensive sectors, which show good prospects in this respect. |
| Keywords: | Competitiveness; Wages; Stability and Growth Pact; General Equilibrium Model; Portugal. |
| JEL: | D58 J38 D24 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2013_04&r=cse |
| By: | Marco Grazzi; Nadia Jacoby; Tania Treibich |
| Abstract: | If the relation between investment and economic growth is well established in the macroeconomic literature, the existence of a similar link at the level of the firm has been challenged by empirical work. This paper investigates the channels linking investment and firm performance in the French and Italian manufacturing industries. It does so by putting forth a novel methodology to identify investment spikes that corrects for size dependence. While maintaining the desired properties of a spike measure, our chosen proxy retrieves the expected relation between investment and firm performance. Ex-ante, more efficient and fast growing firms display a higher probability to invest; in turn, after an investment spike has taken place the group of investing firms shows further gains in performance. Finally, expansionary investment episodes, as proxied by the opening of new plants, have a negative effect on profitability while they are associated with higher sales and employment levels. |
| Keywords: | Firm heterogeneity, investment spike, industrial dynamics, corporate performance, capital accumulation, technical change |
| Date: | 2013–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2013/06&r=cse |