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on Economics of Strategic Management |
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Issue of 2013‒11‒22
twenty-one papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Belderbos, Rene; Leten, Bart; Suzuki, Shinya |
| Abstract: | Despite an increasing internationalization of R&D activities by multinational firms, a major portion of corporate R&D still tends to be concentrated in firms’ home countries. We examine to what extent there exists a home country bias in the location of R&D activities of 156 major R&D intensive firms based in Europe, the US and Japan during 1995-2002 and develop hypotheses concerning the firm-level determinants of such home country bias. We define this bias as a share of global R&D activities conducted in the home country that is not proportional to the general attractiveness of the country for multinational firms' R&D activities. We find home bias to be the predominant pattern, but with substantial variation among firms. The extent of the bias increases with the degree of scale and scope economies in R&D, coordination costs of international R&D, and the embeddedness of firms’ R&D in home countries’ innovation systems. Technology leadership is associated with greater home bias if the home country provides relatively strong intellectual property rights protection and firms face potential knowledge dissipation abroad. Our findings imply that home country bias is to an important extent a response to the economics of R&D and centripetal forces favoring centralization of R&D. |
| Keywords: | R&D internationalization; location strategy; home country bias; innovation; |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/402579&r=cse |
| By: | Andrea Bonaccorsi (Department of Energy and Systems Engineering, University of Pisa, Italy); Cinzia Daraio (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza") |
| Abstract: | In this paper, we investigate a new approach for the measurement of spillovers. The concept of spillovers is central in many theories of geography, innovation and growth, particularly at the regional level. We evaluate the impact of size and intensity of knowledge production, as observed in publications and patents at the sub-regional level, on the efficiency of manufacturing activity. We employ nonparametric and robust conditional measures in efficiency analysis to a unique dataset at the subregional level (province) for Italy. We find that most Italian provinces are located in a region of absence or extremely low impact of knowledge spillovers. Nevertheless, a few provinces with maximum volume in both patents and publications and some medium-sized provinces with high knowledge intensity show knowledge spillovers. |
| Keywords: | knowledge spillovers, manufacturing industry, growth, efficiency analysis, conditional efficiency, robust nonparametric estimation |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:report:2013-13&r=cse |
| By: | Suzuki, Shinya |
| Date: | 2012–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/340794&r=cse |
| By: | Cappelli, Riccardo; Czarnitzki, Dirk; Kraft, Kornelius |
| Abstract: | We estimate the effect of R&D spillovers on sales realized by products new to the firm (imitation) and new to the market (innovation). It turns out that spillovers from rivals lead to more imitation, while inputs from customers and research institutions enhance original innovation. |
| Keywords: | innovation; imitation; spillovers; |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/415964&r=cse |
| By: | Hottenrott, Hanna; Lopes Bento, Cindy |
| Abstract: | This study analyses the effectiveness of targeted public support for R&D investment. In particular, we test whether the specific policy design aiming at incentivizing (international) collaboration and R&D in small and mediumsized firms achieves the desired objectives on input as well as output additionality. Our results show that the targeted R&D subsidies accelerate R&D spending in the private sector, and especially so in the targeted groups. Further, we differentiate between privately financed R&D and subsidyinduced R&D investment to evaluate their respective effects on innovation performance. The results confirm that the induced R&D is productive as it translates into marketable product innovations. While both types of R&D investments trigger significant output effects, we find that the effect of subsidy-induced R&D investment is higher for firms that collaborate internationally as well as for SMEs. |
| Keywords: | innovation policy; subsidies; R&D; SMEs; international collaboration; |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/376331&r=cse |
| By: | Kelchtermans, Stijn; Belderbos, Rene; Leten, Bart; Desair, Steven |
| Abstract: | This paper analyzes under which conditions joint basic research with academic ‘star’ scientists improves firms’ technological performance. Using data on 61 of the most R&D intensive firms in the biopharmaceutical sector in 1991-2003, we find that collaboration with academic stars for basic research increases inequality in technological performance across firms, with only the upper tail of the performance distribution benefiting from such partnerships. Further, we find that joint basic research with top academic scientists is more beneficial if the firm and the star also do joint applied work. Finally, we find a dual effect of firms’ exclusive access to academic stars, with a positive impact on technological performance for exclusive access to ‘translational’ stars versus a negative effect for exclusive access to ‘ivory tower’ stars. |
| Keywords: | innovation; Pharmaceutical Industry; Industry-science links; Star scientists; |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/408222&r=cse |
| By: | Joan Crespo; Raphaël Suire; Jérôme Vicente |
| Abstract: | In a recent literature, the structural properties of knowledge networks have been pointed out as a critical factor for cluster structural changes and long run dynamics. Mixing evolutionary economic geography and network-based approach of clusters, this contribution aims at capturing and discussing the particular influence of hierarchy (degree distribution) and assortativity (degree correlation) in the innovative capabilities of clusters along the industry life cycle. We test our propositions in the field of the mobile phone industry in Europe from 1988 to 2008. We use EPO PATSTAT and OECD REGPAT to capture cluster trends, and R&D relations from European Framework Programs to capture knowledge networks and their evolving structural properties. Our findings provide new insights to understand the organization of clusters over time in order to perform along the industry life cycle. |
| Keywords: | smart specialization, constructing regional advantage, Regional Cohesion Policy |
| JEL: | D85 L63 O33 R11 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1323&r=cse |
| By: | Nabila Jawadi; Dominique Bonet-Fernandez |
| Abstract: | Recent research on virtual teams highlights the importance of high quality relationships to achieve high team performance. For research and development (R&D) virtual project teams, relationships characterized by cooperation and trust are expected to enhance creativity and innovation among team members. The purpose of this paper is to identify variables enabling high quality relationship building in virtual R&D teams and to analyze their influence on team performance. To this end, this study examines the effects of leadership, work organization and communication practices on the quality of the relationship between team members. The theoretical developments are illustrated through a case study of a car development project in a leading French car-making firm. Our findings show that dynamic and positive leadership plays an important role in enhancing relationships between team members. The results also highlight the importance of synchronous meetings and frequent and regular interaction to build cooperative and trusty relationships leading to high performance. |
| Keywords: | virtual R&D project teams, team performance, relationshipmanagement, leadership, communication. |
| Date: | 2013–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:40&r=cse |
| By: | Schmitt, Alexander; Van Biesebroeck, Jo |
| Abstract: | Trends towards international fragmentation of production and modular process technologies have increased the importance of proximity in the supply chain of sophisticated manufactured goods. Using a rich and novel data set for the European automotive industry, we simultaneously evaluate the relative importance of geographical, cultural and relational proximity in sourcing strategies. The estimates indicate that each dimension provides an independent benefit and also which measures have the largest relative importance. We also find that the positive effects attributed to some measures reflect past relationships rather than predict new ones. In particular, co-location and a low cultural distance should be interpreted as outcomes of a sourcing strategy, not as predictors for sourcing success. We investigate to what extent firms from different countries follow different strategies and which choices suppliers can make to boost their attractiveness as outsourcing partner. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/390851&r=cse |
| By: | Tannista Banerjee; Ralph Siebert |
| Abstract: | This study shows that R&D cooperation can be used as an instrument to coordinate drug development portfolios among participating firms, which has crucial implications on the number of drugs offered on the market. Our study puts special attention to the fact that R&D cooperation, formed at different stages throughout the drug development process, have different impacts on the technology and product markets. Using a comprehensive dataset on the pharmaceutical industry, our results show that R&D cooperation formed at the early stages increase the number of R&D projects and the number of drugs launched on the product market. Late stage R&D cooperation, however, have a positive impact on the drug development process and drug variety only in the short run. In the long run, late stage cooperation provoke that firms re-optimize their drug development portfolios which reduces the number of drugs offered on the market. |
| Keywords: | Drug development; Dynamics; Co-development; Pharmaceutical industry; Product variety; Product market competition; Research and Development cooperation |
| JEL: | L24 L25 L65 D22 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:abn:wpaper:auwp2013-20&r=cse |
| By: | Jose Claudio Pires (Office of Evaluation and Oversight, Inter-American Development Bank, Washington, USA); Tulio Cravo (Office of Evaluation and Oversight, Inter-American Development Bank, Washington, USA); Simon Lodato (Office of Evaluation and Oversight, Inter-American Development Bank, Washington, USA); Caio Piza (Development Impact Evaluation Unit, The World Bank) |
| Abstract: | Industrial clusters are commonly targeted to receive financial support allocated to local-based development projects. Cluster promotion is seen as an effective industrial policy tool aimed at improving productivity and employment generation. Nevertheless, despite its popularity as a regional development policy, identifying and assessing the economic performance of clusters is still a challenge for policy makers. The objective of this paper is twofold: identify the location of clusters in Brazil; and provide some insights of its effect on employment generation. This paper uses three measures of identification to test whether the correlation between clusters and economic performance depends on the way clusters are identified. Noticeably, the existing literature on clusters’ identification in Brazil ignores possible spatial dependence. To address this gap in the literature, this paper draws on Carroll et al. (2008) and uses Location Quotient (LQ) and Local Indicator of Spatial Association (LISA) simultaneously to identify potential clusters in Brazil in 27 industrial sectors and using a comprehensive census data of the formal sector covering 5564 Brazilian municipalities. In addition, the paper uses an annual municipal panel data for the period 2006-2009 to assess whether the presence of clusters is correlated to superior economic performance, particularly employment generation. The results show that potential clusters are correlated with better economic performance, however, different types of agglomerations present different association with economic performance. Firstly, municipalities in specialized clusters (SR) perform poorly in terms of employment generation. Secondly, the results suggest that clusters of municipalities with neighbors with similar industrial structure (Periphery Regions and Potential Cluster Region) perform much better than those that only present industry specialization (SR) and are not close to similar municipalities. |
| Keywords: | Industrial cluster, regional economic development, spatial dependence |
| JEL: | C0 R11 R12 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:idb:ovewps:0213&r=cse |
| By: | Stephan Brunow (Institute for Employment Research (IAB)); Valentina Nafts (Institute for Employment Research (IAB)) |
| Abstract: | Innovation is a key driver of technological progress and growth in a knowledge-based economy. There are various motives for individual firms to innovate: improving quality secures market leadership, introducing new products leads the firm into new markets, adopting new technologies could be seen as a catch-up strategy within an industry or an improvement of the firm’s own products when the technology adopted is based on ideas from other industries. Firms can perform innovation activities in one or more of these areas or in none of them. We therefore raise the question of what types of firms tend to be more innovative, i.e. which firms innovate in more of these areas. For this purpose we employ firm-level survey data and combine it with administrative data from Germany’s social security system. An ordered logit model is estimated using a variety of characteristics which describe the workforce employed and other firm-related variables, the regional environment where the firm is located, as well as industry and region fixed effects. |
| Keywords: | firm innovation, labor diversity, ordered logit |
| JEL: | J44 O31 R12 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:nor:wpaper:2013021&r=cse |
| By: | Ṧaljanin, Salem; Thorwarth, Susanne |
| Abstract: | Corporate basic research is of great economic relevance. However, since potential payoffs of basic research activities are so long-term, firms facing competitive pressure may focus on more near-term, hence more applied research and development projects. This paper addresses the effect of market competition on firms’ in-house R&D investment and on its components basic research as well as applied research and development. We use the stated number of competitors as an indicator for competitive pressure. Our results indicate that increasing competitive pressure leads to a reduction of basic research activities and boosts firms’ expenditures in applied research and development. |
| Keywords: | basic research; R&D; competition; |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/398652&r=cse |
| By: | Sébastien Gand (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Mathias Béjean (Université Paris-Est - Université Paris-Est) |
| Abstract: | In a period of economic and legitimacy crises for firms, there is a current appeal on alternative firms to the conventional capitalist and hierarchical one, especially ones with a democratic form such as cooperatives. But for a long time the "degeneration" pattern of democratic firms, namely their economic failure or the abandonment of democratic functioning, has been pointed out. Even if such a deterministic rationale has been contested, the main difficulty for democratic firms remains their capacity to overcome degeneration crises. This paper investigates this question through the case of a 400-member democratic professional service firm, studied during three years with an intervention research method. It shows how such a firm designed organizational outcomes to a twofold crisis of performance and governance. It contributes to a better understanding of the conditions of sustainability of democratic firms by emphasizing the possibility of designing new models of cooperation, which integrate various constraints and do not compromise between antagonist logics within the firm. |
| Keywords: | Corporate Democracy; Cooperation |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00881721&r=cse |
| By: | Meyer, M.; Libaers, D.; Thijs, Bart; Grant, K.; Glänzel, Wolfgang; Debackere, Koenraad |
| Abstract: | This paper seeks to map out the emergence and evolution of entrepreneurship as an independent field in the social science literature from the early 1990’s to 2009. Our analysis indicates that entrepreneurship has grown steadily during the 1990’s but has truly emerged as a legitimate academic discipline in the latter part of the 00’s. The field has been dominated by researchers from Anglo-Saxon countries over the past twenty years, with particularly strong representations from the US, UK, and Canada. The results from our structural analysis, which is based on a core document approach, point to five large knowledge clusters and further 16 sub-clusters. We characterize the clusters from their cognitive structure and assess the strength of the relationships between these clusters. In addition, a list of most cited articles is presented and discussed. |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/397032&r=cse |
| By: | Antonio R. Andrés (Eastern Mediterranean University); Asongu Simplice (Yaoundé/Cameroun); Voxi S. H. Amavilah (Glendale College, Economics, USA) |
| Abstract: | Using Kauffman, Kraay, and Mastruzzi governance indicators, this article analyzes the impact of formal institutions on the knowledge economy- by assessing how the enforcement of Intellectual Property Rights (IPRs) through good governance mechanisms affects the knowledge economy. The article also employs the World Bank’s four components of the knowledge economy index characteristic of its knowledge for development (K4D) framework. We estimate panel data models for 22 Middle East & North African and Sub-Sahara African countries over the period 1996-2010. The results show that for this group of countries the enforcement of IPR laws (treaties), although necessary, is not a sufficient condition for a knowledge economy. The results also suggest that other factors are more likely to determine the knowledge economies of these nations. Overall these findings have important implications for both policy and further research. |
| Keywords: | Formal institutions; Knowledge economy; Panel data; Principal component analysis (PCA) |
| JEL: | O10 O34 O38 P00 P48 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:13/025&r=cse |
| By: | Belderbos, Rene; Gilsing, Victor; Jacob, Jojo |
| Abstract: | We analyse patterns and determinants of technology alliance formation with partner firms from emerging economies, with a focus on European firms' alliance strategies. We examine to what extent European firms' alliance formation with partners based in emerging economies is persistent, that is: to what extent prior collaborative experience determines new alliance formation, and we compare this pattern with alliance formation with developed country partners. Second, we examine to what extent prior engagement in international alliances with partners from developed countries increases the propensity to form technology alliances with partners based in emerging economies and vice versa (interrelation). We find that both persistence and interrelation effects are present, and that they are generally not weaker for emerging economy alliances. Alliance formation with Indian and Chinese firms is significantly more likely if firms have prior alliance experience with Japanese firms. The findings suggest that firms extend their alliance portfolio from developed to emerging economies, increasing the geographic diversity of their alliance portfolio and building on their prior international alliance experience. |
| Keywords: | alliances; persistence; interrelation; emerging economies; |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/402467&r=cse |
| By: | Jose Claudio Pires; Tulio Cravo; Simon Lodato; Caio Piza |
| Abstract: | Industrial clusters, which are commonly targeted to receive financial support allocated to locally based development projects, are seen as an effective industrial policy tool for improving productivity and generating employment. Nevertheless, identifying clusters and assessing their economic performance is a challenge for policymakers. This paper aims to address this challenge by identifying the location of clusters based on neighbor relationships and specialization in Brazil and providing some insights on their effects on employment generation. The paper uses both Location Quotient and Local Indicator of Spatial Association to identify potential clusters in 27 industrial sectors in 5564 Brazilian municipalities. In addition, it uses annual municipal panel data for 2006-2009 to assess whether the presence of potential clusters is correlated with employment generation. The results show that clusters located in municipalities whose neighbors have similar industrial structures perform better than those that present industry specialization only. |
| Keywords: | Industrial cluster, regional economic development, spatial independence |
| JEL: | C0 R11 R12 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:ovewps:0513&r=cse |
| By: | Adama Tahirou Younoussi (LACEME - Laboratoire d'études sur la compétitivité économique et le management de l'entreprise - Faculté des sciences juridiques, économiques et sociales de Rabat Souissi); Jamila Jouali (LACEME - Laboratoire d'études sur la compétitivité économique et le management de l'entreprise - Faculté des sciences juridiques, économiques et sociales de Rabat Souissi); Salah Baba Arwata (LACEME - Laboratoire d'études sur la compétitivité économique et le management de l'entreprise - Faculté des sciences juridiques, économiques et sociales de Rabat Souissi) |
| Abstract: | With the unpredictable business environment, unstable economic conditions and worldwide integration of markets, internationalization activities have become an important way to Moroccan SMEs development and a big challenge for the national agency for SMEs promotion (NAPSME). Despite the implementation of policies aimed at increasing the internationalization capacity of these companies prior to the entry of new players in the domestic market, obstacles remain. By using a data of 64 recognized people working in the field and considered as experts because of their qualifications, experience and positions, we examines the factors influencing Moroccan SMEs internationalization. The results show that various factors including contingency, networking, information and external factors are critical for these organizations internationalization. They also reveal that government support, manager's motivational aspects,industry, geographic proximity, language similarity with other Maghreb countries and their impact on the completion of a transaction have influence on Moroccan SMEs internationalization process. |
| Keywords: | Influencing factors ; internationalization ; Moroccan SMEs ; Experts |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00880353&r=cse |
| By: | Julia Darby (Department of Economics, University of strathclyde); Ben Ferrett (Loughborough University); Ian Wooton (Department of Economics, University of Strathclyde) |
| Abstract: | We set up a trade model where three countries compete for an exogenous number of firms. Our innovation lies in the geography of the model. Of the three countries, one is the hub through which all trade takes place. First, we establish the natural geography of the region, which is given by the equilibrium distribution of industrial activity in the absence of taxes or subsidies. We then examine the implications for corporate taxes when the countries compete with each other to attract firms. We find that, even when all countries are the same size, the centrality of the hub gives it an advantage in tax setting, such that its equilibrium tax can be larger than that of the spokes and yet it still attracts a disproportionate share of industry. Thus geographic advantage in tax competition has a second dimension, centrality in addition to size. |
| Keywords: | Corporate taxes, devolution, trade costs |
| JEL: | F15 F23 H25 H73 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:str:wpaper:1327&r=cse |
| By: | Bögenhold, Dieter; Heinonen, Jarna; Akola, Elisa |
| Abstract: | The study discusses myths of entrepreneurship by looking at the overlapping areas of entrepreneurship, self-employment and professions. The study argues that professions are part of the category of self-employment. Additionally, the study presents empirical findings drawn from a unique empirical data set from Finland: a survey (N=733) including freelance journalists, translators, interpreters and artists at the blurred boundaries between waged work and entrepreneurship. Findings reveal that the professions are clearly different and the manifestations of entrepreneurship vary, reflecting the work and the labour market situation within the profession. The life and work situations of those in the liberal professions cannot be interpreted in simple black and white schemes or as winners and looser. Instead, many different socio-economic situations can be found ‘in between’, which are driven by different social logics. For entrepreneurship researchers the study opens up new avenues by taking us beyond the push-pull-dichotomy, which over-simplifies the decision to enter self-employment. The term entrepreneurship is often used in an undifferentiated way, and it therefore easily generates myths and stereotypes, which are challenged by the study. A narrower and more realistic view shows that there are diverse agents under the flag of entrepreneurship, who are usually not regarded as core entrepreneurs although they exist in everyday life. |
| Keywords: | Entrepreneurship, Professions, Self-employment, Occupational Careers, Waged Work, Transitions, Labour Market |
| JEL: | A14 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51529&r=cse |