nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒02‒02
sixteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Financing Patterns of Innovative SMEs and the Perception of Innovation Barriers in Germany By Heike Belitz; Anna Lejpras
  2. What is expected of higher education graduates in the 21st century? By Humburg M.; Velden R.K.W. van der
  3. Innovations and productivity: the shift during the 2008 crisis By Grigorii V. Teplykh
  4. In-house R&D and External Knowledge Acquisition What Makes Chinese Firms Productive? By Böing, Philipp; Müller, Elisabeth
  5. How Mergers A ffect Innovation: Theory and Evidence By Stiebale, Joel; Haucap, Justus
  6. Do eco-innovations need specific regional characteristics? By Horbach, Jens
  7. Firm R&D, Innovation, and Productivity in German Industry By Vuong, Van Anh; Peters, Bettina; Roberts, Mark J.; Fryges, Helmut
  8. Industry-Academe Collaboration for Research and Development By Vea, Reynaldo B.
  9. Industry Localization, Distance Decay, and Knowledge Spillovers: Following the Patent Paper Trail By Octávio Figueiredo; Paulo Guimarães; Douglas Woodward
  10. The impact of governance on management research By Dunbar, Roger L. M.; Bresser, Rudi K. F.
  11. Do university policies matter? Effects of Course Policies on Performance By Ostermaier, Andreas; Beltz, Philipp; Link, Susanne
  12. Supply Chains and the Internalization of SMEs: Evidence from Italy By Giorgia Giovannetti; Enrico Marvasi; Marco Sanfilippo
  13. Delegation, worker compensation, and strategic competition By Güth, Werner; Pull, Kerstin; Stadler, Manfred
  14. A dynamical countries-interaction model based on technology for the study of European growth and stability By Bernardo Maggi; Daniel Muro
  15. Growth and Welfare Effects of Health Care in Knowledge Based Economies By Kuhn, Michael; Prettner, Klaus
  16. The Impact of Managerial Change on Performance. The Role of Team Heterogeneity By Mühlheußer, Gerd; Sliwka, Dirk; Hentschel, Sandra

  1. By: Heike Belitz; Anna Lejpras
    Abstract: We analyze the role of public support in the financing pattern of R&D in German SMEs and their assessment of financing conditions in the context of other framework conditions for innovation. In Germany, there is a diversity of overall well-funded technology-neutral and technology-specific programs providing grants to R&D and innovation projects. Different types of SMEs access public funding for R&D and innovation activities to varying degrees. Using an extensive sample of 2,700 German SMEs that participated in public R&D promotion programs during the 2005-2010 period, we identify four groups of companies with different patterns of public and private sources of R&D finance, such as own capital, grants, private and subsidized loans. The firms in our sample are generally positive about public financing of R&D in Germany in 2010. Despite the different funding patterns, we find only slight variations in this assessment across the four groups of subsidized SMEs. Nevertheless, medium-sized R&D companies (often with external equity investment) that have to finance the market introduction of innovations without a track record, appear to suffer from deficiencies in the provision of loans. Further, the companies perceive obstacles to innovation primarily in the non-financial sphere, namely the supply of skilled personnel, market regulation and competition conditions. Therefore, future work on innovation policies for SMEs should put greater emphasis on the non-financial external framework conditions for firm R&D and innovative activities.
    Keywords: R&D promotion, financing of R&D, small and medium sized enterprises, barriers to innovation
    JEL: O14 O25 O38 L20
    Date: 2014
  2. By: Humburg M.; Velden R.K.W. van der (GSBE)
    Abstract: In this paper, we reflect on the skills higher education graduates are expected to have in todays economy and the role of higher education in equiping graduates with these skills. First, we identify 6 trends which form the basis of the changing role of graduates in economic life. These trends are the knowledge society, increasing uncertainty, the ICT revolution, high performance workplaces, globalization, and the change of the economic structure. By changing the nature and range of tasks graduates are expected to fulfil in todays economy, we argue that these trends generate new and intensify traditional skill demands, which we summarize as professional expertise, flexibility, innovation and knowledge management, mobilization of human resources, international orientation, and entrepreneurship. Second, we draw out some key issues concerning the role of higher education institutions in equiping graduates with these skills.
    Keywords: Analysis of Education; Education and Economic Development; Education: Government Policy; Human Capital; Skills; Occupational Choice; Labor Productivity;
    JEL: I21 I25 I28 J24
    Date: 2013
  3. By: Grigorii V. Teplykh (National Research University Higher School of Economics)
    Abstract: Innovations and related knowledge are important drivers of corporate success in modern economies. However the crisis of 2008 strongly influenced investment decisions including R&D expenditure. This may be explained by the fact that the crisis has changed a transformation of corporate resources into economic benefit. Innovation activity is found to be a survival factor during the downturn. The aim of this study is to investigate how the crisis has changed relations between innovation and firm performance in western Europe. We apply a structural framework of the CDM model which takes into account endogeneity and selection bias. The study is based on new balanced panel data of 429 western European manufacturing firms.
    Keywords: innovations, economic crisis, CDM model
    JEL: O31 O32 D22 D24
    Date: 2014
  4. By: Böing, Philipp; Müller, Elisabeth
    Abstract: This paper analyses the influence of in-house R&D and external knowledge acquisition on the total factor productivity (TFP) of listed Chinese firms for the time period 2001-2010. We find a quantitatively important positive effect of in-house R&D. The achieved level of technological sophistication of Chinese firms is sufficient to benefit from R&D collaboration with domestic partners. We do not find a significant effect for employing inventors with access to international knowledge or for collaborating with international partners. International knowledge acquisition is only effective if conducted via joint ventures, i.e. if it is supported by a deep organizational relationship. --
    JEL: O32 O33 O39
    Date: 2013
  5. By: Stiebale, Joel; Haucap, Justus
    Abstract: This papers analyses how horizontal mergers affect innovation activities of the merged entity and its non-merging competitors. We develop an oligopoly model with heterogeneous firms to derive empirically testable implications. Our model predicts that a merger is more likely to be profitable in an innovation intensive industry. For a high degree of firm heterogeneity a merger reduces innovation in both the merged entity and in non-merging competitors in an industry with high R\&D intensity. Using data on horizontal mergers among pharmaceutical firms in Europe, we find that our econometric results are consistent with many predictions of the theoretical model. Our main result is that after a merger patenting and R\&D of the merged entity and its non-merging rivals declines substantially. The results are robust towards alternative specifications and using an instrumental variable strategy. --
    JEL: D22 D43 O31
    Date: 2013
  6. By: Horbach, Jens
    Abstract: The theoretical and empirical innovation literature stresses the importance of regional fac-tors and locational conditions for location choice of firms and their innovation success. Innovation activities are not equally distributed in space because agglomeration effects and specific regional infrastructures may promote innovation success. Concerning environmentally oriented innovations, the so-called eco-innovations, there is a widespread empirical literature analyzing their determinants but - because of the lack of adequate data - the inclusion of regional and locational factors has been neglected. This paper tries to close this gap by using the establishment panel of the German Institute for Employment Research in Nuremberg combined with data at the regional level. To explore specific regional determinants of eco-innovations compared to other innovations including variables at the firm and the regional level, a two-level mixed effects logistic regression has been applied. Our econometric results show that external knowledge sources such as the regional proximity to research centers and universities are more important for eco-innovations compared to other innovations. Eco-innovations seem to be a chance for under-developed, disadvantaged regions because especially regions characterized by a high unemployment rate are more likely to adopt eco-innovations. Furthermore, eco-innovations need more effort concerning R&D inputs, further education measures within a firm and the qualifi-cation of the personnel. --
    JEL: Q55 R11 C25
    Date: 2013
  7. By: Vuong, Van Anh; Peters, Bettina; Roberts, Mark J.; Fryges, Helmut
    Abstract: This paper investigates empirically rm investment behavior in research and development (R&D). Firms make investments in R&D in order to produce innovations. These innovations in turn improve the rm s future productivity level, pro tability and incentives to invest in R&D. Using German rm-level data from the manufacturing sector, we estimate a dynamic, structural model of the rm s choice to invest in R&D and quantify the bene t and cost of engaging in R&D. We nd that among rms that engage in R&D, process and product innovations create a signi cant improvement in their productivity. The cost for performing R&D differs across rms based on their size and R&D history. We compute the bene ts of R&D investment to the rm and nd that by taking the dynamic nature of the investment into account the real return to R&D is several times higher than the one time gain in rm productivity. --
    JEL: L60 O31 O32
    Date: 2013
  8. By: Vea, Reynaldo B.
    Abstract: Four forms of industry-academe linkage activities involve the sharing of economic value arising out of the generation of intellectual property: collaborative research and development (R&D), commissioned research, technology licensing, and the creation of spin-off companies. The Philippines is still in an emergent stage in all these forms. It has concerns that are the same as or similar to those of some other developing ASEAN countries. While there are particular government regulations that can hinder R&D initiatives, the Philippine legal environment, in general, can be considered enabling for the development of R&D capability in both academe and industry and for technology commercialization. The scales of S&T manpower-building programs and R&D expenditures, however, fall short of the potential enabled by legislation. The scales are at least an order of magnitude below those of countries that have successfully embarked on R&D capacity building in the past decades. As a manifestation of this overall weakness, industry-academe collaboration in R&D is also feeble. This paper recommends the implementation of a massive S&T manpower-building program employing the existing systems of science high schools and public and private higher education institutions (HEIs), the creation of a university of science and technology if total current HEI capacity proves inadequate, and the transformation of some existing public universities into research universities. With an overall improvement in R&D capability, R&D collaboration and technology commercialization will also be enhanced.
    Keywords: commercialization, research and development (R&D), industry-academe, university-industry, collaboration
    Date: 2014
  9. By: Octávio Figueiredo (Universidade do Porto); Paulo Guimarães (American University of Sharjah); Douglas Woodward (University of South Carolina)
    Abstract: This paper investigates the hypothesis that knowledge spillovers increase where industries are localized. At the same time, we take a fresh look at the role of distance in knowledge diffusion. Our unique database combines U.S. county-level patent citation data with county-level establishment and employment data. Relying on a cited-citing gravity equation with high-dimensional fixed effects that control for multiple sources of observed and non-observed heterogeneity, we implement a Poisson pseudo-maximum-likelihood estimator. Our results confirm the negative role of distance uncovered in Jaffe, Trajtenberg & Henderson's (1993) pioneering work. We also find that knowledge spillovers correlate positively with industry localization and that the agglomeration of an industry can offset the effect of distance. Our approach to estimate the Poisson regression with two high-dimensional fixed effects may prove equally useful in applications to a variety of other problems in economics.
    Keywords: Knowledge Spillovers, Agglomeration, Gravity Equation, High-Dimensional Fixed Effects, Poisson Regression.
    JEL: R12 R39 C13 C21
    Date: 2014–01
  10. By: Dunbar, Roger L. M.; Bresser, Rudi K. F.
    Abstract: The rigor versus relevance debate of management research is ongoing. We contribute to this discussion by contrasting alternative assumptions about generating management knowledge and linking knowledge generation to academic governance. Specifically, we show that knowledge-by-representation dominates the field and is reinforced by the governance structures and processes guiding our academic management journals, peer review, and business school practices. We propose governance changes in academic publishing to encourage innovative research that may also generate knowledge-by-exemplification with strong ties to management practice. --
    Date: 2013
  11. By: Ostermaier, Andreas; Beltz, Philipp; Link, Susanne
    Abstract: We benefit from the Bologna reform to show how course and program policies affect academic achievement. We examine two similar programs at the business school of a major European university, which were both reformed. Time lags in the reforms allow us to estimate the difference in the differences of student performance in a compulsory second-year course. Performance fell as the impact of the course on the graduation certificate decreased and the time until students received the certificate increased. More students failed as they were allowed to resit the exam more often. Both effects depend on ability. We conclude that program policies matter and universities should be aware of their effects. --
    JEL: I21 I23 I28
    Date: 2013
  12. By: Giorgia Giovannetti (Dipartimento di Scienza per l'Economia e l'Impresa); Enrico Marvasi (Dipartimento di Scienza per l'Economia e l'Impresa); Marco Sanfilippo
    Abstract: This paper explores the relevance of supply chains participation on firms’ probability to internationalize. It studies whether being part of a supply chains and/or of an international network increases the likelihood to enter international markets also for smaller and less productive firms. Our results support the view that belonging to a supply chain increases small firms’ probability of exporting as well as the intensive margin of trade. However, supply chain participation does not seem to affect the extensive margin, computed as the number of foreign markets served, coherently with the view that structural limits given by the size matter. The paper also explores the possibly differential effect of the supply chain for subcontractors and firms that produce their own-branded products and shows that the latter benefit more from integration.
    JEL: F12 F24 F21
    Date: 2013
  13. By: Güth, Werner; Pull, Kerstin; Stadler, Manfred
    Abstract: We study interfirm competition on a product market where effort decisions are delegated to the firms' workers. Intrafirm organization is captured by a principal-multiagent framework where firm owners implement alternative compensation schemes for the workers. We show that the value of delegation as well as the optimal design of the compensation scheme crucially depend on the intensity of competition. In particular, our model explains why piece rates and performance-based revenue sharing may be observed in different markets at the same time. --
    Keywords: delegation,agency theory,compensation schemes
    JEL: C72 L22 M52
    Date: 2014
  14. By: Bernardo Maggi (Sapienza Universita' di Roma); Daniel Muro (Universita' di Roma III)
    Abstract: With this study we intend to define a methodology capable to deal with the task of evaluating and planning the interdependent dynamics of growth for some European countries together with their foreign partners. To that aim we employ a nonlinear differential equations system representing a disequilibrium model based on a Schumpeterian evolutionary context with endogenous technology. We use such a model in order to disentangle the interrelationships occurring among countries for the critical variables considered. That is, we succeed in evaluating the contribution to growth of a country with respect to another one in terms of the variables involved. We address and corroborate the validity of our conjectures on the importance of the business services in the innovation and production processes by presenting also a minimal model. Further, we provide an evaluation of the convolution integral of our differential system to determine the necessary initial conditions of the critical variables for policy purposes. We then perform a sensitivity analysis to assess per each country the effectiveness of some possible efforts in order to gain stability.
    Keywords: Continuous Time Panel Econometrics, Distance, Programming, Growth, Stability, Sensitivity, Technology, Business Services.
    JEL: C33 C62 C61 O11 O33 O34
    Date: 2014–01
  15. By: Kuhn, Michael; Prettner, Klaus
    Abstract: We study the effects of a labor-intensive health care sector within an R&D-driven growth model with overlapping generations. Health care increases longevity and labor participation/productivity. We examine under which conditions expanding health care enhances growth and welfare. Even if the provision of health care diverts labor from productive activities, it may still fuel R&D and economic growth if the additional wealth that comes with expanding longevity translates into a more capital/machine-intensive final goods production and, thereby, raises the return to developing new machines. We establish mild conditions under which an expansion of health care beyond the growth-maximizing level is Pareto-improving. --
    JEL: I11 O41 O11
    Date: 2013
  16. By: Mühlheußer, Gerd; Sliwka, Dirk; Hentschel, Sandra
    Abstract: When a key responsibility of a manager is to allocate more or less attractive tasks to subordinates, these subordinates have an incentive to work hard and demonstrate their talents. As a new manager is less well acquainted with these talents this incentive mechanism is reinvigorated after a management change but only when the team is sufficiently homogenous. Otherwise, a new manager quickly makes similar choices as the old one did. We investigate this hypothesis using a large data set on coach dismissals in the German football league where the selection of players is indeed a key task of the coach. Indeed, we find substantial evidence that coach replacements enhance team performance (only) in homogenous teams. Moreover, from a methodological point of view, we argue that there is typically a negative selection bias when evaluating succession effects, which might reconcile previous findings of no (or even negative) effects with the vast number of dismissals observed in reality. --
    JEL: D22 J44 J63
    Date: 2013

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