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on Economics of Strategic Management |
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Issue of 2013‒03‒23
eighteen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Heike Belitz; Florian Mölders |
| Abstract: | The international transmission of knowledge through import spillovers, as a source of TFP growth, has received much attention in the literature. We investigate two additional direct channels through which R&D disseminates: the import of high-technology goods and the internationalization of business R&D. Building on an extensive dataset, covering both developing and industrial countries, we add foreign owned patents as a proxy for R&D activities of multinationals. While we confirm the significance of import spillovers for all countries included, we find additional spillovers for developing countries through the import of high-technology goods. Only developed economies seem to benefit from the diffusion of knowledge that originates through cross-border cooperation in R&D by multinationals. |
| Keywords: | Productivity growth, technology diffusion, multinational enterprise |
| JEL: | F14 F23 O47 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1276&r=cse |
| By: | Hou, Jun (UNU-MERIT/MGSoG); Mohnen, Pierre (UNU-MERIT/MGSoG, and Maastricht University) |
| Abstract: | In developing countries, innovation is to a large extent a matter of adoption of advanced technologies but also of conducting internal R&D to be able to better assimilate existing technologies. This paper, based on firm level data from 24 developing countries, examines the roles of internal R&D efforts (MAKE) and external technology sourcing (BUY) in fostering productivity in manufacturing firms. Is MAKE a substitute for BUY or are the two strategies complementary as evidenced in some developed countries? Our empirical investigation highlights the critical role of external technology acquisition in manufacturing industries in low-income countries and exhibits signs of complementarity only in middle-income countries. |
| Keywords: | innovation, make and buy, complementarity, developing countries |
| JEL: | O13 O33 D22 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013010&r=cse |
| By: | Evangelos I. Gkanas; Vasso MagkouKriticou; Sofoklis S. Makridis; Athanasios K. Stubos; Ioannis Bakouros |
| Abstract: | Nanotechnology is the first major worldwide research initiative of the 21st century and probably is the solution vector in the economic environment. Also, innovation is widely recognized as a key factor in the economic development of nations, and is essential for the competitiveness of the industrial firms as well. Policy and management of innovation are necessary in order to develop innovation and it involves processes. It is essential to develop new methods for nanotechnology development for better understanding of nanotechnology based innovation. Nanotechnologies reveal commercialization processes, from start ups to large firms in collaboration with public sector research. In the current paper, a study in the present status of innovation in nanotechnology and the affection of global economic crisis in this section is made and also the potential of increase the innovation via the presence of clusters in a small country like Greece which is in the eye of tornado from the global crisis is studied. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1303.5290&r=cse |
| By: | Alfons Palangkaraya (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Intellectual Property Research Institute of Australia, The University of Melbourne) |
| Abstract: | This paper investigates the link between innovation and export market participation using Australian small and medium enterprises (SMEs) data. The results show that export and innovation are positively linked. Depending on the industry and the type of innovation (process or product), innovation may lead to export and, to a lesser extent, export may lead to innovation. Firms in the primary sector (agriculture and mining) show the strongest evidence that innovation leads to export. From firms in the services sector, there is indication that only process innovation leads to export. Also, only in this sector, there is evidence that export may lead to (process) innovation. |
| Keywords: | Innovation, export, small and medium enterprises, propensity score matching |
| JEL: | F14 O12 O14 O31 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2013n04&r=cse |
| By: | Joëlle Noailly; Roger Smeets |
| Abstract: | This paper investigates the determinants of directed technical change in the electricity generation sector. We use firm-level data on patents filed in renewable (REN) and fossil fuel (FF) technologies by about 7,000 European firms over the period 1978-2006. We separately study specialized firms, that innovate in only one type of technology during the sample period, and mixed firms, that innovate in both technologies. We find that for specialized firms the main drivers of innovation are fossil-fuel prices, market size, and firms' past knowledge stocks. Also, prices and market size drive the entry of new REN firms into innovation. By contrast, we find that innovation by mixed firms is mainly driven by strong path-dependencies since for these firms past knowledge stock is the major driver of the direction of innovation. These results imply that generic environmental policies that affect prices and energy demand are mainly effective in directing innovation by small specialized firms. In order to direct innovation efforts of large mixed corporations with a long history of FF innovation, targeted R&D policies are likely to be more effective. |
| JEL: | Q4 Q55 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:237&r=cse |
| By: | Jin, Hua |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hjbswp:166&r=cse |
| By: | Max Nathan |
| Abstract: | High levels of net migration to the UK have contributed to growing cultural diversity, and researchers are turning their attention to the long-term effects of diversity on productivity. Yet little is known about these issues. This paper asks: what are the links between the composition of firms' top teams and business performance? What role do ethnic diversity and co-ethnic networks play? And do cities amplify or dampen these channels? I explore using a rich dataset of over 6,000 English firms. Owners, partners and directors set firms' strategic direction. Top team demography might generate production externalities through diversity (a wider range of ideas/ experiences, helping problem solving) and/or 'sameness' (via specialist knowledge or better access to international markets). These channels may be balanced by internal downsides (lower trust) and external barriers (discrimination), so that overall effects on business performance are unclear. In addition, urban locations (particularly big cities) may amplify any demographics-performance effects. I create a repeat cross-section of firms from the RDA National Business Survey. I construct measures of diversity and sameness across ethnicity and gender 'bases', alongside information on revenues, product and process innovation. I then regress these measures of business performance on top team demographics, plus firm level controls, area, year and detailed industry fixed effects. My results suggest a non-linear link between diversity and business performance, which is net positive for process innovation and net negative for turnover. Further tests on diverse and minority/female-headed firms find positive links for diverse top teams, negative for minority and female-only top teams. This implies that while diversity has internal and external benefits, penalties from being 'too diverse' probably result from external constraints. Further tests for intervening effects of capital cities, metropolitan hierarchies and urban form find some evidence of amplifying and dampening effects - which are generally stronger in London and larger cities. |
| Keywords: | Cities, innovation, entrepreneurship, cultural diversity, migration, gender |
| JEL: | J61 L21 M13 O11 O31 R23 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0129&r=cse |
| By: | Cozza, Claudio; Schettino, Francesco |
| Abstract: | The aim of this paper is to study empirically the patenting propensity at the European regional level. To do that we use the OECD-REGPAT dataset, that includes patent applications made by European inventors and applicants to EPO in the time-span 1978-2011. Explanatory variables on R&D and human capital are extracted from EUROSTAT and OECD databases. In order to reduce biases we use patent applications by region of the inventor, as its linkage to the territory is stronger than using the region of the applicant. Analyzing the data, we sketch out the existence of a deep uneven distribution both in patent applications and R&D expenditure. Richer regions in terms of GDP – generally those of central-western Europe – show higher level of both private and public R&D expenditure as well as a consistent share of the whole European patent applications in last decades. As a consequence, eastern (and to a minor extent southern) European regions report harmful outcomes in terms of both variables. Thus, following the approach of Cincera (1997, 2005) we explain the determinants of patenting propensity using a regional panel data. Our main results substantially confirm the key role of R&D expenditure on patenting activity: mainly the business-enterprises component, but also the government sector one. Moreover, human capital variables – such as the share of human resources employed in high tech industries, and the number of highly qualified workers in science and technology occupations – show a positive relationship with patenting propensity. On the other side, average enterprise size seems not to play a determinant role on patent applications. |
| Keywords: | Patents, Intellectual Property Rights, Innovation, EPO, R&D |
| JEL: | K29 O34 O4 |
| Date: | 2013–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:45084&r=cse |
| By: | Burak Dindaroglu (Department of Economics, Izmir University of Economics) |
| Abstract: | I study the effects of basic and applied innovation on a firm's market value and total factor productivity for a panel of U.S. manufacturing firms. Basicness of innovation is measured by the index of generality proposed by Trajtenberg, Henderson and Jaffe (1997), and basic and applied innovation stocks are proxied by the stocks of patents that score at the relevant tails of the generality distribution. I find that the market valuation and productivity effects of basic and applied innovation are drastically different. Market value is positively associated with a firm's applied innovation stock, but it exhibits no association with its basic innovation stock. On the other hand, patents at the higher (resp. lower) quartiles of the generality distribution are positively (resp. negatively) associated with total factor productivity and productivity growth. Therefore, complementing previous studies on basic research, I find that the basicness of innovation is associated with a productivity premium. |
| Keywords: | Basic innovation; Applied innovation; Patents; Citations; Generality; Market value; Tobin's q; Productivity. |
| JEL: | O31 O33 L60 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:izm:wpaper:1301&r=cse |
| By: | Backman, Mikaela (Jönköping International Business School) |
| Abstract: | It is natural to assume that the characteristics of the bank sector are important factors for new firm formation when external capital is needed for establishing new firms. The local bank sector acts as the main provider of financial funds in Sweden since other sources of external capital are limited. In addition, the banking services needed in the start-up process tend to be sensitive to distance and are mainly supplied locally. Thus, the structure of the local bank sector is an important factor that determines the conditions for start-ups. The finding in this paper supports the hypothesis that new firm formation is positively influenced by (1) the average size of the bank branches, (2) number of independent banks and bank branches per capita, and (3) the intensity of competition level. Access to independent banks and bank branches has a stronger influence on start-ups in more rural locations. |
| Keywords: | New firm formation; local bank sector; competition; Sweden |
| JEL: | G21 L26 R11 |
| Date: | 2013–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0301&r=cse |
| By: | Shirokova Galina; Knatko Dmitri; Vega Gina |
| Abstract: | Recent research emphasizes the importance of the separation of ownership and control for growing threshold firms. Demand for specialized management knowledge by growing owner-run SMEs is usually resolved through the separation of ownership and control, using top management labor market and agency contracts. Under certain environmental institutional conditions, owners of SMEs from emerging markets face difficulties separating ownership and control. For example, the majority of Russian companies are run by their primary owners. In rare situations when separation of ownership and control formally occurs, high risk of economic fraud and owner’s fear often revert management succession to a default owner-control scenario. These conditions pose a threat for a growing threshold firm needing professional management knowledge assets. Using a dataset of 500 entrepreneurial companies from fast growing industries in St. Petersburg and Moscow, this study defines and studies threshold firms and also analyzes how various perceived characteristics of the institutional environment are influencing the probability of separation of ownership and control in threshold firms. According to the estimation results institutional factors such as poor security of ownership rights and misfit of company with formal regulatory norms have a negative impact on the probability of separation of ownership and control in threshold firms. As a result, threshold firms limit their growth possibilities since their access to specialized knowledge is limited to the knowledge base of the owner. |
| Date: | 2013–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:eer:wpalle:13/01e&r=cse |
| By: | Ana Paula Faria (Universidade do Minho - NIPE); Natália Barbosa (Universidade do Minho - NIPE) |
| Abstract: | Using panel data of 17 European Union countries, we find robust empirical support for a positive impact of venture capital on innovation. After controlling for the potential endogenous relationship between venture capital and innovation, the results indicate that venture capital fosters innovation but mainly on a later stage. |
| Keywords: | venture capital; innovation; dynamic panel data |
| JEL: | O31 G30 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:03/2013&r=cse |
| By: | Andrea Beltramello; Linda Haie-Fayle; Dirk Pilat |
| Abstract: | New business models can make an important contribution to the transition to green growth. While some new business models involve large firms, others are small start-up firms that seek to exploit technological or commercial opportunities that have been neglected or not yet explored by more established firms. New firms tend to engage in more radical innovation than existing firms, and scaling up new business models can therefore help reduce environmental pollution, optimise the use of natural resources, increase productivity and energy efficiency, and provide a new source of economic growth. Although the market for green goods and services is growing, the development of new business models is affected by a range of barriers, many of which can be addressed by well-designed policies. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envddd:2013/1-en&r=cse |
| By: | Lucia Orszaghova (European Central Bank; Národná banka Slovenska); Li Savelin (European Central Bank); Willem Schudel (European Central Bank) |
| Abstract: | As the current financial crisis has shown, macroeconomic imbalances such as persistent current account and trade deficits, can seriously undermine a country’s resilience to economic shocks. Maintaining and enhancing external competitiveness has thus become of increasing concern, particularly to European Union (EU) candidate countries whose economic growth models have been challenged in recent years. Drawing on previous studies, this paper assesses developments in the external competitiveness of EU candidate countries between 1999 and 2011. Taking a broad approach to the issue of competitiveness, the paper considers various indicators of both short and long-term competitiveness, including those related to domestic prices and costs, export performance, and institutional and structural issues. In the context of EU integration, comparisons are drawn with developments in the EU12. We find that, during the pre-crisis period, all candidate countries experienced robust export market growth, but also suffered losses in price and cost competitiveness. In terms of export characteristics, progress has been heterogeneous and also fairly slow when compared with the EU12. All candidate countries have increased their number of export products and trading partners, but only a few have been able to export more complex products. As regards structural issues such as corruption and bureaucratic efficiency, all countries have performed quite poorly with the exception of Iceland. JEL Classification: F1, F43, O52, P22 |
| Keywords: | EU candidate countries, external competitiveness, export growth, export specialisation, export product complexity, extensive and intensive margins, intra-industry trade, foreign direct investment, structural characteristics |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:20130141&r=cse |
| By: | Nour, Samia Satti Osman Mohamed (Faculty of Economic and Social Studies, Khartoum University, and UNU-MERIT/MGSoG) |
| Abstract: | This paper employs both the descriptive and comparative approaches and uses the definition of knowledge and knowledge indicators used in the literature to examine the existence and development of the knowledge economy in the Arab region. We fill the gap in the Arab literature and present a more comprehensive analysis of the development of knowledge indicators in the Arab region. Our findings support the first hypothesis that the knowledge economy exists in the Arab region and coincides with a substantial knowledge gap compared to other world regions. Our results corroborate the second hypothesis concerning the variation in knowledge indicators, according to the structure of the economy in the Arab region, and support the third hypothesis concerning the poor and slow progress in the trend of knowledge - related indicators in the Arab region. Therefore, it is essential for the Arab region to enhance the knowledge economy and indicators to achieve economic development in the Arab region. |
| Keywords: | Knowledge economy, tacit knowledge, codified knowledge, knowledge index, Arab region |
| JEL: | O10 O11 O30 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013015&r=cse |
| By: | Elsa Cristina Vaz; Maria Paula Fontoura |
| 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. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp032013&r=cse |
| By: | Van camp, J.; Braet, J. |
| Abstract: | Failures of business performance measurement (BPM) systems are dispersedly discussed in the abundance of literature written. Due to the multi-disciplinarity of stakeholders and researchers involved, the basis of literature is expanding but not converging. The added value of this paper is twofold. Firstly, the nomenclature used in the BPM eld is aligned and represented visually. Secondly, this paper compiles and discusses 36 identied failures of performance measurement systems (PMS), thereby proposing an easy taxonomy. The classication draws upon three layers: metric level, framework level and management level, with respectively 13, 9 and 14 failures. This paper holds information for both academics and business people. The former can employ the literature overview for further referencing and can use it as a guideline to construct new BPM frameworks or systems, or adjust old ones. By reading this paper, people from the eld create an awareness of risks involved when implementing a PMS. Alternatively, they can use it as a checklist in their current situation or tool for easy communication. Further research is necessary, both for tackling the problems listed and for looking into the correlation of the presented failures. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2013004&r=cse |
| By: | Saskia Vossenberg (Maastricht School of Management, PO Box 1203, 6201 BE Maastricht, The Netherlands) |
| Abstract: | Despite the growing number of women-led business and a significant increase of initiatives, policies and resources designed to promote and develop women’s entrepreneurship, the gender gap in entrepreneurship persist. This paper addresses two questions: Why does the gender gap in entrepreneurship persist? And, what does the literature suggest to us about the best ways to promote women’s entrepreneurship? Based on a feminist perspective this paper argues that current women entrepreneurship promotion policies undoubtedly benefit individual women but when the gender bias in the context in which entrepreneurship is embedded, is left intact, efforts may remain in vain and without any significant macroeconomic or social impact. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:msm:wpaper:2013/08&r=cse |