nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒05‒09
twenty papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. High-growth firms and innovation: an empirical analysis for Spanish firms By Segarra Blasco, Agustí, 1958-; Teruel, Mercedes
  2. Fostering University‐Industry R&D Collaborations in European Union Countries By Cunningham, James; Link, Albert
  3. The Dynamics of Technical and Business Networks in Industrial Clusters: Embeddedness, status or proximity? By Pierre-Alexandre Balland; José Antonio Belso-Martínez; Andrea Morrison
  4. R&D employee's intention to exchange knowledge within open innovation projects By Nedon, Verena; Herstatt, Cornelius
  5. Service innovation in the Middle East. An analysis for Egypt, Turkey, Iran, Jordan and United Arab Emirates By Juan Luis Santos; Tomás Mancha; Jagoda Anna Kaszowska
  6. The impact of R&D subsidies on firm innovation By Raffaello Bronzini; Paolo Piselli
  7. Technology and costs in international competitiveness: from countries and sectors to firms By Giovanni Dosi; Marco Grazzi; Daniele Moschella
  8. What drives the volatility of firm level productivity in China ? By Luo, Xubei; Zhu, Nong
  9. What does (or does not) determine persistent corporate high-growth ? By Stefano Bianchini; Giulio Bottazzi; Federico Tamagni
  10. Economic Growth, Local Industrial Development and Inter-Regional Spillovers from Foreign Direct Investment: Evidence from China By Puman Ouyang; Shihe Fu
  11. Business incubators in Italy By Marta Auricchio; Marco Cantamessa; Alessandra Colombelli; Roberto Cullino; Andrea Orame; Emilio Paolucci
  12. Agglomeration of knowledge: A regional economic analysis for the German economy By Krenz, Astrid
  13. The Effect of Regional Entrepreneurship Culture on Economic Development - Evidence for Germany By Michael Fritsch; Michael Wyrwich
  14. Characteristics of technological base, pace of technological development, and growth of young technology-based firms By Tischler, Joachim
  15. Business environmental constraints for Egyptian firms By María Dolores Parra; Inmaculada Martínez-Zarzoso; Celestino Suarez-Burguet
  16. Learning about Learning in Games through Experimental Control of Strategic Interdependence By Jason Shachat; J. Todd Swarthout
  17. Learning about learning in games through experimental control of strategic interdependence By Jason Shachat; J. Todd Swarthout
  18. Efficiency and benchmarking with directional distances. A data driven approach By Cinzia Daraio; LŽopold Simar
  19. Globalization and local profiles of economic growth and industrial change By Dauth, Wolfgang; Suedekum, Jens
  20. A variance spillover analysis without covariances: what do we miss? By Fengler, Matthias R.; Gisler, Katja I. M.

  1. By: Segarra Blasco, Agustí, 1958-; Teruel, Mercedes
    Abstract: This paper analyses the effect of R&D investment on firm growth. We use an extensive sample of Spanish manufacturing and service firms. The database comprises diverse waves of Spanish Community Innovation Survey and covers the period 2004–2008. First, a probit model corrected for sample selection analyses the role of innovation on the probability of being a high-growth firm (HGF). Second, a quantile regression technique is applied to explore the determinants of firm growth. Our database shows that a small number of firms experience fast growth rates in terms of sales or employees. Our results reveal that R&D investments positively affect the probability of becoming a HGF. However, differences appear between manufacturing and service firms. Finally, when we study the impact of R&D investment on firm growth, quantile estimations show that internal R&D presents a significant positive impact for the upper quantiles, while external R&D shows a significant positive impact up to the median. Keywords : High-growth firms, Firm growth, Innovation activity. JEL Classifications : L11, L25, L26, O30
    Keywords: Empreses -- Creixement, Innovacions tecnològiques, Emprenedoria, Investigació industrial, 33 - Economia,
    Date: 2014
  2. By: Cunningham, James (National University of Ireland); Link, Albert (University of North Carolina at Greensboro, Department of Economics)
    Abstract: This paper advances our understanding of university-industry research and development (R&D) collaborations. These strategic relationships are a dimension of entrepreneurial activity, and they are thus important drivers of economic growth and development. Business collaboration with universities increases the efficiency and effectiveness of industrial investments. Previous studies have found that universities are more likely to collaborate with industry if the business is mature and large, is engaged in exploratory internal R&D, and there are not major intellectual property (IP) issues between both parties. Businesses gain from such collaborations through increased commercialisation probabilities and economies of technological scope. Based on publicly available data collected by the Science-to-Business Marketing Research Centre of Germany as part of a European Commission project, our paper focuses on two key questions. First, why are there cross-country differences in the extent to which universities collaborate with business in R&D? Second, are there covariates with these differences that might offer insight into policy prescriptions and policy levers for enhancing the extent to which such collaboration takes place? We find that access is positive and statistically significant in relation to fostering university business R&D collaborations. Our results, albeit that they are tempered by a small sample of data, have implications how national innovation systems support further harmonization of IP regimes across universities and how universities priorities its own investments and incentives.
    Keywords: R&D collaborations; entrepreneurship; university-industry partnerships; European Union
    JEL: O31 O32 O33 O38
    Date: 2014–04–28
  3. By: Pierre-Alexandre Balland; José Antonio Belso-Martínez; Andrea Morrison
    Abstract: Although informal knowledge networks have often been regarded as a key ingredient behind the success of industrial clusters, the forces that shape their structure and dynamics remain largely unknown. Drawing on recent network dynamic models, we analyze the evolution of business and technical informal networks within a toy cluster in Spain. Empirical results suggest that the dynamics of the two networks differ to a large extent. We find that status drives the formation of business networks, proximity is more crucial for technical networks, while embeddedness plays an equally important role in the dynamics of business and technical networks.
    Keywords: Knowledge networks, industrial clusters, network dynamics, toy industry
    JEL: D85 B52 O18
    Date: 2014–04
  4. By: Nedon, Verena; Herstatt, Cornelius
    Abstract: The existing literature on open innovation strongly emphasizes on the organizational level, while neglecting the people side and especially the perspective of employees working in OIprojects. This study analyzes determinants of R&D employees' knowledge exchange in OIprojects by means of the theory of planned behavior (TPB) and a literature review regarding motivational factors influencing individuals' attitude toward knowledge exchange. An online survey amongst 133 R&D employees was conducted and data was analyzed through variancebased structural equation modeling (PLS). In our sample, subjective norm had by far the strongest impact on employees' intention to exchange their knowledge in OI-projects, although attitude and perceived behavioral control also showed highly significant and positive effects on intention. From all five identified motivational factors, enjoyment in helping was found to have the strongest influence on attitude, followed by intrinsic rewards and sense of self-worth. Extrinsic rewards and reciprocity did not show any effect on attitude. --
    Keywords: open innovation,interorganizational cooperation,R&D partnerships,knowledge exchange,knowledge sharing,R&D employees,theory of planned behavior,TPB,motivation,structural equation modeling
    Date: 2014
  5. By: Juan Luis Santos; Tomás Mancha; Jagoda Anna Kaszowska
    Abstract: In this work we analyze the importance of service innovation in the entrepreneurial and business activity in five countries that represent a 65 percent of the population of the Middle East. We study the characteristics of the owners of firms in the service sector according to the Standard Industrial Classification. We highlight the differences between services and industries with respect to innovation. Then we analyze the determinants of service innovation in this set of countries during the period 2001-2008 and the role of individual characteristics such as gender, age, skills and perception of business owners’ status. We estimate the most important factors for innovation in services sector and we compare them with the ones of manufacturing.
    Keywords: Middle East, Service innovation, Innovative entrepreneur, Service sector
    Date: 2014–03
  6. By: Raffaello Bronzini (Bank of Italy); Paolo Piselli (Bank of Italy)
    Abstract: This paper evaluates the impact of an R&D subsidy program implemented in a region of northern Italy on innovation by beneficiary firms. In order to verify whether the subsidies enabled firms to increase patenting activity, we exploit the mechanism used to allot the funds. Since only projects that scored above a certain threshold received the subsidy, we use a sharp regression discontinuity design to compare the number of patent applications, and the probability of submitting one, of subsidized firms with those of unsubsidized firms close to the cut-off. We find that the program had a significant impact on the number of patents, more markedly in the case of smaller firms. Our results show that the program was also successful in increasing the probability of applying for a patent, but only in the case of smaller firms.
    Keywords: research and development, investment incentives, regression discontinuity design, patents
    JEL: R0 H2 L10
    Date: 2014–04
  7. By: Giovanni Dosi; Marco Grazzi; Daniele Moschella
    Abstract: This paper examines the determinants of international competitiveness at the level of sectors and firms. First, we address the relation between cost-related and technological competition in a sample of fifteen OECD countries. Results suggest that the countries' sectoral market shares are indeed mainly shaped by technological factors (proxied by investment intensity and patents) while cost advantages/disadvantages do not seem to be play any significant role. Next, we attempt to identify the underlying dynamics at the firm level. We do that for a single country, Italy, using a large panel of Italian firms, over nearly two decades. Results show that also at micro level in most sectors investments and patents correlate positively both with the probability of being an exporter and with the capacity to acquire and to increase export market shares. The evidence on costs is more mixed. A simple measure like total labour compensation is positively correlated with the probability of being an exporter, while unit labour costs show a negative correlation only in some manufacturing sectors.
    Keywords: Trade Competitiveness, Technological Innovation, Input Costs, Firm behaviour, Technology Gap Theories of Trade
    Date: 2014–04–23
  8. By: Luo, Xubei; Zhu, Nong
    Abstract: The enterprise reforms of the 1990s profoundly changed the structure of the economy in China. With the deepening of market economy, the share of the state-owned and collective enterprises declined. Expansion and contraction, as well as establishment and closure, of firms became a common phenomenon. The level and volatility of firm productivity have become increasingly important aspects of the micro performance of the economy. This paper uses a firm-level data set collected annually by the National Bureau of Statistics of China in 1998-2007 to examine the role of different firm characteristics in productivity volatility. The paper measures productivity volatility at the firm level as the standard deviation of the annual growth rate of productivity. The main objectives are twofold: first, it examines the variation of productivity volatility across firms of different characteristics and their evolution over time; second, it investigates the sources of productivity volatility at the firm level in China. The results suggest that in general, productivity volatility at the firm level has declined over time in China. Among firms with different characteristics, large firms, old firms, foreign firms, and firms located in the coastal provinces are less volatile. Firm size and location are the two major factors that drive changes in productivity volatility, one in a positive way and one in a negative way. Although the gaps of volatility between smaller firms and larger firms declined, the gaps between firms located in the coastal provinces and inland provinces increased.
    Keywords: Emerging Markets,Economic Conditions and Volatility,Economic Theory&Research,Microfinance,Labor Policies
    Date: 2014–04–01
  9. By: Stefano Bianchini; Giulio Bottazzi; Federico Tamagni
    Abstract: Theoretical and empirical studies of industry dynamics have extensively focused on the process of growth. Theory predicts that production efficiency, profitability and financial status are central channels through which some firms can survive, grow and eventually achieve outstanding growth performance. Is the same conceptual framework a convincing explanation to account for persistent corporate high growth? Exploiting panels of Italian, Spanish, and French firms we find no evidence that this is the case: companies experiencing persistent high growth are not more productive nor more profitable, and do not display peculiarly sounder financial conditions than firms that only exhibit high, but not persistent, growth performance. The finding is robust across countries, across sectors displaying different innovation patterns, and also controlling for demographic characteristics such as age and size.
    Keywords: High-growth firms, Persistent high-growth, Productivity, Firm age, Firm size
    Date: 2014–04–05
  10. By: Puman Ouyang; Shihe Fu
    Abstract: In many countries inward foreign direct investment (FDI) typically concentrates in a few regions. However, there is little empirical evidence on whether spatially concentrated FDI boosts economic growth in other regions within the same country. We use a dataset that covers 96% of Chinese cities from 1996–2004 and find that “inter-regional spillovers†from FDI concentrated in China’s coastal cities have a positive and significant effect on the growth of inland cities. In addition, an inland city’s industrial development affects its absorptive capacity to gain such interregional spillovers from coastal FDI.
    Keywords: D124Foreign direct investment, Regional inequality, Inter-regional spillovers, Absorptive capacity, Growth
    JEL: F21 R12 O40 O14 O18
    Date: 2013–10–14
  11. By: Marta Auricchio (Bank of Italy); Marco Cantamessa (Polytechnic of Turin); Alessandra Colombelli (Polytechnic of Turin); Roberto Cullino (Bank of Italy); Andrea Orame (Bank of Italy); Emilio Paolucci (Polytechnic of Turin)
    Abstract: The Italian economy has suffered from structural problems for the last fifteen years, which have weakened its competitiveness. The innovation gap, by international standards, is one of those problems. Business incubators are one of the solutions proposed in the economic literature and put into practice in many countries in order to increase the birth and survival rates of extremely innovative firms. With the help of an empirical survey of a highly representative sample of Italian business incubators and a significant subset of incubated start-ups, this paper draws an institutional and functional map of business incubators in Italy. Italian incubators are mostly small and heavily dependent on public funding. They mainly provide logistical services, less frequently higher value added ones like consulting and networking. According to the firms interviewed, the role played by incubators is on average useful but not essential for the success of the start-up.
    Keywords: innovation, start-up, public policy
    JEL: M13 G28 O31
    Date: 2014–04
  12. By: Krenz, Astrid
    Abstract: We investigate the effects of job-specific knowledge for individual labor earnings of workers in the German economy. The results indicate a positive effect for earnings stemming in particular from high-knowledge in the areas of sales and marketing, computers and electronics, mathematics, biology and law and government. Investigating the geographical concentration of employment reveals, for example, that workers with highknowledge in the field of communication and media are concentrated in just a few places whereas workers with high-knowledge in law and government and administration and management are far more dispersed over the regions. These patterns of geographical localization of employment give evidence for differences in the dissemination of knowledge across peers and customers. --
    Keywords: agglomeration,knowledge,growth,German regional planning units,wages,Heckman selection,Krugman index
    JEL: J31 J61 R11
    Date: 2014
  13. By: Michael Fritsch; Michael Wyrwich
    Abstract: We use the historical self-employment rate as an indicator of a regional culture of entrepreneurship and link this measure to economic growth in recent periods. The results indicate that German regions with a high level of entrepreneurship in the mid-1920s have higher start-up rates about 80 years later. Furthermore, we find that the effect of current start-up activity on regional employment is significantly higher in regions with a pronounced entrepreneurial culture. We conclude that a regional culture of entrepreneurship is an important resource for regional growth.
    Keywords: Entrepreneurship, economic development, self-employment, new business formation, entrepreneurship culture, institutions
    JEL: L26 R11 O11
    Date: 2014–04
  14. By: Tischler, Joachim
    Abstract: Young technology ventures are strongly affected by technological environmental conditions. In the light of opportunity theory, this study focuses on the interaction of a young firm’s technological base and the pace of technological development in its field. It distinguishes three technological characteristics: radicalness, scope, and the degree of collaborative development. Empirical results support the hypothesis that young technology-based firms commercializing radical technologies grow faster in rapidly developing technology fields. By contrast, young firms commercializing technologies that are developed through research collaborations with established firms outperform others when the pace of technological progress is relatively slow. This study provides empirical evidence of a beneficial interplay between technological characteristics and technological environment and offers a modified patent-citation-based criterion for measuring the pace of technological development in different technology fields. --
    Keywords: academic spin-off,technology venture,pace of technological progress,patent data,technological base
    JEL: L25 L26 M13 O33
    Date: 2014–04–18
  15. By: María Dolores Parra; Inmaculada Martínez-Zarzoso; Celestino Suarez-Burguet
    Abstract: This paper evaluates the main obstacles that Egyptian enterprises face to do business in their country and investigates to what extent the constraints affect firm performance. Firm’s performance is measured as Total Factor Productivity (TFP), which is obtained using Levinsohn and Petrin (2003) methodology. Our analysis evaluates the effects of the different business indicators obtained from the World Bank Enterprise Survey using firm level data from manufacturing firms on TFP. A number of control variables commonly used in the empirical literature are also included in the model. To check the robustness of our result alternative measures of firm performance are used, namely total sales and the average number of workers. The main results indicate that access and cost to finance, tax rates, regulatory policy uncertainty, the price of land and basic infrastructures, such as access to water and electricity, are among the most relevant factors. These findings have important policy implications, in particular for policy makers and will help them decide what sort of specific actions can be taken to reduce the main obstacles and consequently to pave the way for manufacturing Egyptian firms to become more competitive.
    Keywords: firms, total factor productivity, business environment constraints, Egypt, investment climate
    Date: 2014–03
  16. By: Jason Shachat; J. Todd Swarthout
    Abstract: We report results from an experiment in which humans repeatedly play one of two games against a computer program that follows either a reinforcement or an experience weighted attraction learning algorithm. Our experiment shows these learning algo- rithms detect exploitable opportunities more sensitively than humans. Also, learning algorithms respond to detected payoff-increasing opportunities systematically; how- ever, the responses are too weak to improve the algorithms’ payoffs. Human play against various decision maker types does not vary significantly. These factors lead to a strong linear relationship between the humans’ and algorithms’ action choice propor- tions that is suggestive of the algorithms’ best response correspondences.
    Keywords: Learning, �Repeated games, �Experiments, �Simulation
    JEL: C72 C92 C81
    Date: 2013–10–14
  17. By: Jason Shachat; J. Todd Swarthout
    Abstract: We report results from an experiment in which humans repeatedly play one of two games against a computer program that follows either a reinforcement or an experience weighted attraction learning algorithm. Our experiment shows these learning algorithms detect exploitable opportunities more sensitively than humans. Also, learning algorithms respond to detected payoff-increasing opportunities systematically; however, the responses are too weak to improve the algorithms' payoffs. Human play against various decision maker types doesn't vary significantly. These factors lead to a strong linear relationship between the humans' and algorithms' action choice proportions that is suggestive of the algorithms' best response correspondences.
    Keywords: Learning, Repeated games, Experiments, Simulation
    JEL: C72 C92 C81
    Date: 2013–10–14
  18. By: Cinzia Daraio (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza"); LŽopold Simar (Institute of Statistics, Biostatistics et Actuarial Sciences, Universite' Catholique de Louvain, Louvain-la-Neuve, Belgium)
    Abstract: In efficiency analysis the assessment of the performance of Decision Making Units (DMUs) relays on the selection of the direction along which the distance from the efficient frontier is measured. Directional Distance Functions (DDFs) represent a flexible way to gauge the inefficiency of DMUs. Permitting the selection of a direction towards the efficient frontier is often useful in empirical applications. As a matter of fact, many papers in the literature have proposed specific DDFs suitable for different contexts of application. Nevertheless, the selection of a direction implies the choice of an efficiency target which is imposed to all the analyzed DMUs. Moreover, there exist many situations in which there is no a priori economic or managerial rationale to impose a subjective efficiency target. In this paper we propose a data-driven approach to find out an ÒobjectiveÓ direction along which to gauge the inefficiency of each DMU. Our approach permits to take into account for the heterogeneity of DMUs and their diverse contexts that may influence their input and/or output mixes. Our method is also a data driven technique for benchmarking each DMU. We describe how to implement our framework and illustrate its usefulness with simulated and real datasets.
    Keywords: DEA, benchmarking, directional distance functions, nonparametric estimation, heterogeneity, performance, productivity, organizational studies
    Date: 2014
  19. By: Dauth, Wolfgang; Suedekum, Jens
    Abstract: We analyze how globalization has affected the sectoral anatomy of regional growth in Germany over the period 1978-2008. The aggregate German economy is characterized by a secular decline of manufacturing and a rise of modern service industries. This trend - also known as Petty's law - is not uniform across space, however. Some regions exhibit it at an even accelerated pace, while other regions have reinforced their manufacturing specializations. We first categorize all German regions into one of three groups, with protrend, anti-trend or featureless growth. Afterwards we propose an explanation why a particular region ended up in one of those groups: We argue that the regional profiles of growth and change are systematically related to the initial sizes, and the import and export exposures of the local manufacturing sectors. --
    Keywords: structural change,local industry compositions,trade exposure,local employment growth
    JEL: R11 O14 F16
    Date: 2014
  20. By: Fengler, Matthias R.; Gisler, Katja I. M.
    Abstract: We evaluate the relevance of covariances in the transmission mechanism of variance spillovers across the US stock, US bond and gold markets from July 2003 to December 2012. For that purpose, we perform a comparative spillover analysis between a model that considers covariances and a model that considers only variances. Our results emphasise the importance of covariances. Including covariances leads to an overall increase of the spillover level and detects the beginnings of the financial crisis and of the US debt ceiling crisis earlier than the spillover measure that considers only variances. Even for the low-dimensional system that we consider, one misses important variance spillover channels when covariances are excluded.
    Keywords: Covariance spillovers, financial crisis, sovereign debt crisis, spillover index, variance decomposition, vector autoregression, variance spillovers
    JEL: C01 C32 G01 G15
    Date: 2014–04

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