nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒05‒04
twenty papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. University Knowledge Spillovers & Regional Start-up Rates: Supply and Demand Side Factors By Hellerstedt, Karin; Wennberg, Karl; Frederiksen, Lars
  2. On the R&D giants' shoulders: Do FDI help to stand on them? By Antonio Vezzani; Sandro Montresor
  3. Mapping the European ICT Poles of Excellence: The Atlas of ICT Acitvity in Europe By Giuditta de Prato; Daniel Nepelski
  4. Governing Knowledge for Development: Knowledge Clusters in Brunei Darussalam and Malaysia By Ariff, Syamimi; Hans-Dieter, Evers; Anthony Banyouko, Ngah; Farah, Purwaningrum
  5. Historical Trajectory and Knowledge Embeddedness: A Case Study in the French Perfume Cluster. By Dorota Leszczynska
  6. Technology Transfer and its effect on Innovation By Sen, Neelanjan
  7. La localisation d’une entreprise multinationale et le savoir enraciné. L’étude de cas d’un cluster industriel By Dorota Leszczynska; Erick Pruchnicki
  8. Capacité d’une communauté de pratique à créer des connaissances utiles pour le processus d’innovation: l’approche « située » de la communauté créative By Humbert Lesca; Dorota Leszczynska
  9. La trajectoire organisationnelle et l’enracinement du savoir. L’étude de cas d’un cluster. By Dorota Leszczynska
  10. What is the Real Role of Corporate Venture Capital ? By Jean-Sébastien Lantz; Jean-Michel Sahut; Frédéric Teulon
  11. Mapping and Analysing Prospective Technologies for Learning - Results from a Consultation with European Stakeholders and Roadmaps for Policy Action By Stefania Aceto; Spiros Borotis; Jim Devine; Thomas Fischer
  12. Structural Change and Innovation as Exit Strategies from the Middle Income Trap By Vivarelli, Marco
  13. Agglomeration effects of inter-firm backward and forward linkages: evidence from Japanese manufacturing investment in China By Nobuaki Yamashita; Toshiyuki Matsuura; Kentaro Nakajima
  14. Dynamics of Overlapping Clusters: Industrial and Institutional Revolution in the Industrial District of Aachen, 1800‐1860 By Reckendrees, Alfred
  15. Measuring the efficiency of banking systems: A relational two-stage window DEA approach By Halkos, George; Tzeremes, Nickolaos; Kourtzidis, Stavros
  16. From organizing for innovation to innovating for organization: how co-design fosters change in organizations By Louis-Etienne Dubois; Pascal Le Masson; Benoît Weil; Patrick Cohendet
  17. Chinese direct investment in Africa. A state strategy? By Thierry Pairault
  18. Formulating the Philippine Services Strategy for Inclusive Growth By Serafica, Ramonette B.
  19. Responsiveness of a franchising network: a resource-based view By Carole Poirel; Dominique BONET FERNANDEZ; Carolina Serrano Archimi
  20. Teaching (and learning) negotiation: is there still room for innovation ? By Claude Alavoine; Ferkan Kaplanseren; Frédéric Teulon

  1. By: Hellerstedt, Karin (Jönköping International Business School); Wennberg, Karl (The Ratio Institute and Stockholm School of Economics.); Frederiksen, Lars (Innovation Management Group, Department of Business Administration, Aarhus University,)
    Abstract: This paper investigates regional start-up rates in the knowledge intensive services and high-tech industries. Integrating insights from economic geography and population ecology into the literature on entrepreneurship, we develop a theoretical framework which captures how both supply- and demand-side factors mold the regional bedrock for start-ups in knowledge intensive industries. Using multi-level data of all knowledge intensive start-ups across 286 Swedish municipalities between 1994 and 2002 we demonstrate how characteristics of the economic and political milieu within each region influence the ratio of firm births. We find that economically affluent regions dominate entrepreneurial activity in terms of firm births, yet a number of much smaller rural regions also revealed high levels of start-ups. Knowledge spillovers from universities and firm R&D strongly affect the start-up rates for both knowledge intensive manufacturing and knowledge intensive services firms. However, the start-up rate of knowledge-intensive service firms is tied more strongly to the supply of highly educated individuals and the political regulatory regime within the municipality. This suggests that knowledge intensive service-start-ups are more susceptible to both demand-side and supply-side context than manufacturing start-ups. Our study contributes to the growing stream of research that explains entrepreneurial activity as shaped by contextual factors, most notably educational institutions that contribute to technology startups.
    Keywords: Start-ups; Spillovers; Universities; R&D; Political regime
    JEL: L26 M13 P25 R12
    Date: 2014–04–24
  2. By: Antonio Vezzani (JRC-IPTS); Sandro Montresor (University of Bologna)
    Abstract: The paper investigates the extent to which outward FDI affect the MNC's capacity of entering (and remaining in) the club of top R&D world investors, benefiting from performance gains in both financial and economic markets. By merging the European Industrial Research and Innovation Scoreboard with the fDi Markets dataset, we find supporting evidence. Increasing the number of FDI projects helps firms overcome the discontinuities that, in the distribution of R&D expenditures, separate the largest R&D investors from those below them. The same is true for the number of FDI projects in R&D, which are also more important than greater FDI portfolios in becoming a top R&D spender. Furthermore, unlike FDI in general, more FDI in R&D guarantee firms to remain in this top club of firms as it increases their capacity of competing among the top R&D spenders. Results at the extensive margin (i.e. the number of FDI projects) are confirmed with respect to the scale of FDI projects (i.e. at the intensive margin). However, increasing their size is not enough to become one of the highest ranking R&D firms. Policy implications about the support to R&D internationalisation are drawn accordingly.
    Keywords: Foreign Direct Investments (FDI), Multinational Corporations (MNC), Research & Development (R&D)
    JEL: O32 F23 O33
    Date: 2014–01
  3. By: Giuditta de Prato (European Commission – JRC - IPTS); Daniel Nepelski (European Commission – JRC - IPTS)
    Abstract: The EIPE project aims to identify ICT R&D&I-related activities which are geographically concentrated and which demonstrate high performance in ICT innovative activities: the European ICT Poles of Excellence. This is the third EIPE Report and it presents the results of an empirical mapping of ICT activity in Europe and the ranking of the top European NUTS 3 regions based on their performance in the EIPE Composite Indicator (EIPE CI). It also ranks the individual 42 indicators which contributed to the building of the EIPE composite indicator. This report offers a snapshot of the performance of regions that are identified as the main locations of ICT activity in Europe. It is meant to provide a comprehensive picture of how ICT activity is distributed across Europe and where its main locations are. This information is expected to give a better overview of the European ICT landscape.
    Keywords: ICT; information and communication technologies; innovation, R&D, ICT industry; region; Europe; Poles of Excellence; clusters; indicators; methods
    JEL: O32 O52 R12 R28
    Date: 2014–04
  4. By: Ariff, Syamimi; Hans-Dieter, Evers; Anthony Banyouko, Ngah; Farah, Purwaningrum
    Abstract: With the dwindling of natural resources, like oil and gas, even resource-rich countries like Brunei Darussalam and Malaysia have to re-adjust their development strategies. Governing knowledge for development (K4D) is seen as a way out of the dilemma of reduced revenues from natural resources. This paper analyses the attempts to create knowledge clusters as a strategy to move Brunei and Malaysia towards knowledge-based economies. Our study shows that several knowledge clusters have already been established in Peninsular Malaysia and are starting to emerge in Brunei Darussalam. The paper is structured as follows: the first section explains the dangers of falling into a “knowledge trap” and the strategies a country may adopt to govern knowledge. The second section looks at the epistemic landscapes in Peninsular Malaysia. Two knowledge clusters are the focal points of analysis, namely the North Corridor-Penang Knowledge Cluster and the Multimedia Super Corridor (MSC-Cyberjaya) Knowledge Cluster. We then provide empirical evidence of knowledge cluster formation in Brunei Darussalam as an effort to build up knowledge institutions and to diversify its economy. The paper ends with recommendations how to build the basis for a move towards a knowledge-based economy.
    Keywords: knowledge governance, knowledge cluster, development strategies, knowledge economy, Malaysia, Brunei Darussalam
    JEL: L2 L8 L86 L88 O2 O3 O53 R1 Z13 Z18
    Date: 2014–03–10
  5. By: Dorota Leszczynska
    Abstract: Much of the research on clusters refers to trajectories as a central feature of regional development. In this article, we explore changes within a French perfume cluster in order to show how a theory of cluster trajectory could be improved by an analysis of this specific case. Using central concepts from Mahoney’s theory, we analyse the historical sequences of the development trajectory of this regional cluster and put forward a conceptual model and a case study. In particular, we argue that embedded knowledge and innovation influence trajectory sequences in the long and discontinuous history of the cluster. Our research has also led us to identify some types of managerial behaviour that support embedded knowledge.
    Keywords: trajectory, regional development, embedded knowledge, cluster, historical sequences
    Date: 2014–04–29
  6. By: Sen, Neelanjan
    Abstract: This paper analyses technology transfer and innovation activities by the high cost firm in a Cournot duopoly framework, where technology transfer between the firms may occur after the innovation decision. The two effects of innovation are to access the superior technology of the low cost firm if higher cost prohibits technology transfer and to affect the pricing rule of technology transfer via higher bargaining power. The incentive for innovation is more in fixed-fee licensing than in two-part tariff (royalty) licensing if cost difference between firms is low. The possibility of licensing, irrespective of the licensing scheme, encourages innovation if the cost difference between the firms is high.
    Keywords: Technology licensing; Innovation; Welfare
    JEL: D45 L24
    Date: 2014–04–26
  7. By: Dorota Leszczynska; Erick Pruchnicki
    Abstract: Research works haven’t yet shed much light on the performance of the location choice of multinational companies. The aim of this publication is to highlight the link between geographically embedded knowledge, the location of a multinational company and its consequential performance. We put forward a conceptual approach allowing to formulate the bases of a mathematical modelisation. A case-study is carried out within the industrial cluster in Grasse. Our research has led us to highlight some types of managerial behaviours which will ensure the location performance within a cluster.
    Keywords: mathematical modelisation, embedded knowledge, cluster, location, performance
    Date: 2014–04–29
  8. By: Humbert Lesca; Dorota Leszczynska
    Abstract: This publication presents theoretical documents dealing with the capacity of a community of practice to create useful knowledge favouring the innovative process in its emerging stage. This research aims at a better understanding of innovative communities, and deals with the 2 situated dimension of these communities. This research also raises the question of the potential means to support the activity of a community of practice with innovative projects. The main line of investigation concerns the modes of communicational regulation chosen by innovative communities in order to match the specific features of the environment of their activity. The case study followed by a process of research / intervention favours an empirical questioning of the situated conceptualization of the communities of creators. The case of a long-standing innovative community, widely acknowledged by several generations, is compared to the cases of two firms attempting, ex nihilo, to set up a community of creative practitioners with innovative aims. These examples highlight some aspects of creative exchanges, such as human sensorial knowledge, emotional environment, shared emotions, tacit communication, etc.
    Keywords: innovative community, situated approach, communicational regulation, tacit knowledge, sensorial.
    Date: 2014–04–29
  9. By: Dorota Leszczynska
    Abstract: Research works haven’t yet shed much light on the performance of organizational trajectory, which is considered a crucial competitive asset for businesses. The aim of this publication is to highlight the link between knowledge embeddedness, the longitudinal evolution of a cluster, and the performance of its consequential trajectory. Embedded knowledge may very well influence the performance of the trajectory. We put forward a conceptual model and a case-study carried out with a regional cluster. Our research has led us to highlight some types of managerial behaviour supporting the embedded knowledge which will ensure a long-lasting performance of the cluster.
    Keywords: organizational trajectory, embedded knowledge, cluster, performance
    Date: 2014–04–29
  10. By: Jean-Sébastien Lantz; Jean-Michel Sahut; Frédéric Teulon
    Abstract: Technological innovation is not exclusive to great industrial groups. Sometimes, innovative and dynamic companies emerge in high-tech sectors and constitute a serious threat for some industry giants. However, the high reactivity of these small companies is generally impaired by problems of financing. Larger firms which want to achieve financial profits and control the most recent innovations often have recourse to corporate venture capital (CVC) as strategic mode of financing. The advantages it brings to every stage of the project (launch, refinancing and project output) compared to financing by venture capital funds will be key factors for future development. In order to gain a better understanding of the role of CVC in the financing of innovating firms, we propose in this article to analyze the various types of CVC on the basis of former studies as well as concrete examples, then to assess what boosts value creation for CVC projects.
    Keywords: Venture capital; CVC; Capital structure; Start-up; Entrepreneurship; Performance
    JEL: G24 G32
    Date: 2014–04–29
  11. By: Stefania Aceto (MENON Network); Spiros Borotis (MENON Network); Jim Devine (DEVINE Policy|Projects|Innovation (and former President, IADT)); Thomas Fischer (MENON Network)
    Abstract: EU policies call for the strengthening of Europe’s innovative capacity and it is considered that the modernisation of Education and Training systems and technologies for learning will be a key enabler of educational innovation and change. This report brings evidence to the debate about the technologies that are expected to play a decisive role in shaping future learning strategies in the short to medium term (5-10 years from now) in three main learning domains: formal education and training; work-place and work-related learning; re-skilling and up-skilling strategies in a lifelong-learning continuum. This is the final report of the study ‘Mapping and analysing prospective technologies for learning (MATEL)' carried out by the MENON Network EEIG on behalf of the European Commission, Joint Research Centre, Institute for Prospective Technological Studies. The report synthesises the main messages gathered from the three phases of the study: online consultation, state-of-the-art analysis and a roadmapping workshop. Eight technology clusters and a set of related key technologies that can enable learning innovation and educational change were identified. A number of these technologies were analysed to highlight their current and potential use in education, the relevant market trends and ongoing policy initiatives. Three roadmaps, one for each learning domain, were developed. These identified long-term goals and specific objectives for educational change, which in turn led to recommendations on the immediate strategies and actions to be undertaken by policy and decision makers.
    Keywords: Prospective technologies for learning, Formal education and training, work-place and work-related learning, Re-skilling and up-skilling strategies in lifelong-learning continuum, Europe 2020 Strategy, educational change, Innovation & Creativity in Education and Training, ICT-enabled innovation for learning, roadmapping
    JEL: I20 I21 I28 I29
    Date: 2014–01
  12. By: Vivarelli, Marco (Università Cattolica del Sacro Cuore)
    Abstract: This paper is intended to provide an updated discussion on a series of issues that the relevant literature suggests to be crucial in dealing with the challenges a middle income country may encounter in its attempts to further catch-up a higher income status. In particular, the conventional economic wisdom – ranging from the Lewis-Kuznets model to the endogenous growth approach – will be contrasted with the Schumpeterian and evolutionary views pointing to the role of capabilities and knowledge, considered as key inputs to foster economic growth. Then, attention will be turned to structural change and innovation, trying to map – using the taxonomies put forward by the innovation literature – the concrete ways through which a middle income country can engage a technological catching-up, having in mind that developing countries are deeply involved into globalized markets where domestic innovation has to be complemented by the role played by international technological transfer. Among the ways how a middle income country can foster domestic innovation and structural change in terms of sectoral diversification and product differentiation, a recent stream of literature underscores the potentials of local innovative entrepreneurship, that will also be discussed bridging entrepreneurial studies with the development literature. Finally, the possible consequences of catching-up in terms of jobs and skills will be discussed.
    Keywords: catching-up, structural change, globalization, capabilities, innovation, entrepreneurship
    JEL: O14 O33
    Date: 2014–04
  13. By: Nobuaki Yamashita; Toshiyuki Matsuura; Kentaro Nakajima
    Abstract: This paper examines the agglomeration effects of multinational firms on the location decisions of first-time Japanese manufacturing investors in China for the period 1995–2007. This is accomplished by exploiting newly constructed measures of inter-firm backward and forward linkages formed in a home country. The conditional and mixed logit estimates reveal that agglomeration by first-tier suppliers and customers draws subsequent investment into a location. However, such agglomeration effects are not pervasive and do not extend to the second and third tiers. Instead, we find that agglomeration by third-tier suppliers generates a countervailing force, making a location relatively unattractive.
    Keywords: Agglomeration, Backward and forward linkages, Location choice of multinational enterprises
    JEL: F23 L22 R3
    Date: 2014
  14. By: Reckendrees, Alfred
    Abstract: The economic transition characterizing the process of European industrialization in the 19th century was concentrated on regions rather than on states. In the first half of the 19th century, the region of Aachen (in the west of Prussia) pioneered on the territory of the German states and developed to a powerful industrial district. The implementation and diffusion of the factory system and the economic impact of adapted and new institutions make the core of this paper. Reciprocal interconnections between firms of different clusters shaped the region and created economic dynamics. Investments transgressed the boundaries of single industries and new industries emerged. One important feature of the regional production system was cross-sectional knowledge transfer; a second was institutions supportive to this process.
    Keywords: Germany, Industrialization, Factory System, Joint-Stock-Companies, Development
    JEL: N63 N94 O14
    Date: 2014–04
  15. By: Halkos, George; Tzeremes, Nickolaos; Kourtzidis, Stavros
    Abstract: This study examines the efficiency of banking systems in seventeen OECD countries over the period 1999-2009. For the purpose of our analysis we introduce a window-based version of two relational two-stage DEA models. Furthermore, we apply different versions of the additive and the multiplicative decomposition approaches in order to capture the trends of the efficiencies over the examined period. The robust version of the proposed models enables us to treat deposits as an intermediate variable and therefore be able to link the “value added activity” stage with the “profitability” stage over time. Our findings reveal similarities among the results of the two models. Finally, the estimated efficiencies appear to have minor fluctuations indicating a stability of the examined banking systems over time.
    Keywords: Relational two-stage DEA; Window analysis; Banking systems.
    JEL: C61 C67 G21
    Date: 2014–05–01
  16. By: Louis-Etienne Dubois (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris, HEC Montréal - HEC MONTRÉAL); Pascal Le Masson (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Benoît Weil (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Patrick Cohendet (HEC Montréal - HEC MONTRÉAL)
    Abstract: Amongst the plethora of methods that have been developed over the years to involve users, suppliers, buyers or other stakeholders in the design of new objects, co-design has been advertised as a way to generate innovation in a more efficient and more inclusive manner. Yet, empirical evidence that demonstrates its innovativeness is still hard to come by. Moreover, the fact that co-design workshops are gatherings of participants with little design credentials and often no prior relationships raises serious doubts on its potential to generate novelty. In this paper1, we study the contextual elements of 21 workshops in order to better understand what codesign really yields in terms of design outputs and relational outcomes. Our data suggest that codesign emerges in crisis situations and that it is best used as a two-time intervention. We also suggest using collaborative design activities as a way to bring about change through innovation.
    Keywords: co-design, design, innovation, collaboration, change management
    Date: 2014–05
  17. By: Thierry Pairault (CCJ - Chine, Corée, Japon - CNRS : UMR8173 - École des Hautes Études en Sciences Sociales (EHESS) - Université Paris VII - Paris Diderot)
    Abstract: The purpose of this paper is to review available statistical and in-formational databases in order to understand the actual importance of Chinese direct investment in Africa and to infer its strategic significance. Hence, I shall successively present three main data and information sources, then summarize some observations they allow, and finally question the role and strategies of those Chinese enterprises investing in Africa which are under the direct super-vision of the Chinese government.
    Keywords: China;Afrique;investissement direct étranger;IDE;entreprises publiques
    Date: 2014
  18. By: Serafica, Ramonette B.
    Abstract: The paper looks at the role of services in the economy and discusses why competitive services are necessary for achieving inclusive growth. An overview of Philippine services sectors is first presented highlighting their economic contribution as well as performance. This is followed by a discussion of the country`s record in services trade particularly in exports. It suggests that a comprehensive and high profile services export initiative is needed to establish the Philippines as the heart of services trade in the Asia-Pacific region. Restrictions on the supply of services are then examined to have a better understanding of the general environment under which services are provided. Because regulatory and nonregulatory measures undermine the efficient supply of services, it is recommended that a trade-related audit of the laws and regulations affecting services be conducted with the view of removing those laws and regulations whose policy objective is no longer relevant or could be achieved by a less restrictive measure. In addition to improving the trade and investment environment, other policy areas are also important and these are suggested in the concluding section which presents the elements of a strategic framework to harness services for inclusive growth.
    Keywords: services sector, Philippines, services trade, inclusive growth, services
    Date: 2014
  19. By: Carole Poirel; Dominique BONET FERNANDEZ; Carolina Serrano Archimi
    Abstract: This article analyzes the responsiveness of the franchising networks during the period of economic crisis. The study is conducted within the resource-based theory. The results of the study involve both the definition of the construct of interorganizational responsiveness, and the identification of the major competencies that lead to the networks' responsiveness as well. They are based on the report conducted in 2010 for the French Franchising Federation.
    Date: 2014–04–28
  20. By: Claude Alavoine; Ferkan Kaplanseren; Frédéric Teulon
    Abstract: Negotiation is often considered as an art requiring specific skills and competencies that can only be practiced by talented or gifted people. Therefore learning about negotiation could be considered useless as it necessitates a certain aptitude revealed in situations that are always different, depending on many conditional aspects like the actors, interests, context or nature of conflict. Most practitioners and future negotiators are looking for prescriptive advices on how to lead effective negotiation. Training comes frequently as an answer to the question and simulation exercises can be, in that sense, adequate and powerful pedagogical tools. Our intention in this paper is to explore several paths based on some of the most fundamental elements and driving forces of negotiation: trust, stakes and power.
    Keywords: Negotiation; Pedagogy; Trust; Stakes; Power.
    Date: 2014–04–22

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