|
on Economics of Strategic Management |
|
Issue of 2014‒06‒07
24 papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Daniel Nepelski (European Commission – JRC - IPTS); Giuditta de Prato (European Commission – JRC - IPTS) |
| Abstract: | The European ICT Poles of Excellence 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. It also aims to help map the dynamics of ICT-related innovation and economic geography in Europe, pointing to the presence and possibly the emergence of agglomerated and globally performing ICT activities. This policy brief offers a synthesis of the major findings of the EIPE study. It also provides some insights into the policy implications these findings indicate. The study found significant evidence to show that Europe hosts a small number of highly ICT intensive regions, i.e. EIPEs. Together they participate in a networked ecosystem made up of very strong hubs in the global ICT innovation system and a multifaceted periphery with local and global links. Despite the highly specific nature of each of these regions, including the European ICT Poles of Excellence, whose characteristics vary considerably, their identification and analysis offer some strong implications for policy. |
| 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: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc85408&r=cse |
| By: | Daniel Nepelski (European Commission – JRC - IPTS); Giuditta de Prato (European Commission – JRC - IPTS) |
| Abstract: | The EIPE project aims to identify activities related to ICT R&D and innovation which are geographically concentrated and which demonstrate high performance: the European ICT Poles of Excellence. Besides providing a comprehensive map of ICT-related activity in Europe, the project looks at five NUTS3 regions that can be considered as key elements of the European ICT landscape, i.e. Inner London East, Paris, Kreisfreie Stadt Darmstadt, Dublin and Byen Kobenhavn. The study identifies the strengths and weaknesses of each place and provides an overview of policy measures that were undertaken in each of them to facilitate the development of ICT R&D, innovation and business activities. |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc85354&r=cse |
| By: | Liu, Ju (CIRCLE, Lund University); Chaminade, Cristina (CIRCLE, Lund University) |
| Abstract: | The recent wave of globalisation has been characterised not only by an increased number of cross-border production networks but also by an increasing number of cross-border innovation networks. However, most literature treats global innovation networks (GINs) as an extension of global production networks (GPNs). Taking a network perspective and based on primary data, this paper explores the composition of and relations between the GPNs and GINs of two multinational companies (MNCs). It finds that the case firms’ GINs and GPNs interplay and the interplay is to a greater extent in the ICT case firm than in the automobile case firm. The case firms’ GINs have more diverse actors and are more centralised than their GPNs but the reason is different in two cases. Meanwhile, the GINs and GPNs share the same relational pattern in both case firms. The paper suggests that theoretically considering GPN and GIN as two different but interwoven layers of a MNCs’ global value creation network may provide better conceptual clarity and may generate more precise implications for practitioners and policymakers. |
| Keywords: | Global production network; Global innovation network; Multinational companies; Social network analysis; Sweden |
| JEL: | M16 O32 |
| Date: | 2014–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2014_007&r=cse |
| By: | Amit Basole |
| Abstract: | Artisanal industrial clusters, geographical agglomerations of small or micro, ‘flexibly-specialized’ enterprises, are an important component of the informal sector from employment generation, poverty alleviation, as well as export promotion perspectives. Two theoretical paradigms have commonly been employed to analyse such clusters: informality and flexible specialization. The first paradigm emphasizes precarious work, surplus labour, and low wages; the second, skilled labour, agglomeration economies, and fashion-sensitive products. This study brings these two perspectives together to address how informal institutions enable clusters to function and how they shape the distribution of risks and gains that accompany flexible specialization. Focusing on the artisanal weaving cluster in the city of Banaras, in North India, I examine the putting-out (subcontracting) system, the system of family-based apprenticeships, and the transfer of fabric designs between firms. In each case, I show how informality and flexible specialization complement and contradict each other. |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:mab:wpaper:2014_07&r=cse |
| By: | José García-Quevedo (Barcelona Institute of Economics, University of Barcelona, Barcelona); Gabriele Pellegrino (Barcelona Institute of Economics, University of Barcelona, Barcelona); Maria Savona (SPRU, University of Sussex, UK) |
| Keywords: | R&D strategy, Barriers to innovation, Demand uncertainty, Lack of demand, Innovative inputs, Panel data |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2014-09&r=cse |
| By: | Jean-Paul Simon (JPS Multimedia) |
| Abstract: | The European ICT Poles of Excellence (EIPE) project is a joint research project of DG CNECT and the JRC Institute for Prospective Technological Studies. It established the conditions for defining, identifying, analysing and monitoring the existence and progress of current and future European ICT Poles of Excellence (EIPE), in order to distinguish these among the many European ICT clusters, observe their dynamics and offer an analysis of their characteristics. A case study report investigates 5 selected EIPEs – Inner London East, Paris, Kreisfreie Stadt Darmstadt, Dublin and Byen Kobenhavn. It presents and interprets the data collected during the course of the project to understand the actual facts, context and story of each location, i.e. its R&D, innovation and business activity. The case study report is complemented by 4 short notes, which offer the summarised views of local experts on the role played by public policies in the emergence and the sustainability of ICT activity in their region. This note is about Byen Kobenhavn. |
| Keywords: | ICT, excellence, poles of excellence, Copenhagen |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc86911&r=cse |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Florian Noseleit; Yvonne Schindele |
| Abstract: | We investigate the role of industry and region-specific conditions for the survival of new businesses in innovative and in other manufacturing industries. The data comprises all German manufacturing start-ups of the 1992 to 2005 period. In contrast to studies for some other countries, we find that businesses in innovative industries have higher survival rates than businesses in other manufacturing industries. Moreover, the chances of survival for innovative industries are rather immune to changes, regarding regional and industry-specific conditions, whereas businesses in the other manufacturing industries are strongly affected. These findings highlight that resistance to adverse conditions is dependent on industry specific opportunities and technological conditions. |
| Keywords: | New business survival, hazard rates, duration analysis, entrepreneurship, location |
| JEL: | C41 L25 L26 L60 |
| Date: | 2014–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2014-017&r=cse |
| By: | David Audretsch (Indiana University); Taylor Aldridge (Indiana University) |
| Abstract: | This report explores how U.S. federal institutions fund and influence innovation in the knowledge economy context and if any agencies or particular policies could be replicated in other countries. Three key U.S. agencies are identified as having significantly contributed to innovation and growth: (1) the Small Business Innovative Research program (SBIR), (2) the Advanced Technology Program (ATP) and (3) the Defense Advanced Research Program Agency (DARPA). How these agencies have advanced US innovation is explained in detail. The beginning of the report offers a lens for understanding why and how research and development does not necessarily lead to innovation. The report explores how ideas must pass through a knowledge filter in order to become successful innovations. This filter, which may impede potential innovations, means that transfers from ideas to innovations are not linear, nor are they always successful even though conditions may be suitable. Therefore, U.S. agencies are needed to help firms pass through the Valley of Death from ideas to successful commercial innovations. The report identifies US policies which could conceivably be replicated in other countries. Most notably, the authors argue that spurring innovation from European universities, with the help of an SBIR-like institution, may offer considerable help in transforming European ideas into innovations. The report concludes that the SBIR offered significant aid to innovative firms in the US and its replication by Horizon 2020 could also offer significant advantages for commercialization of inventions and ideas. The report also points out potential problems in a adopting an SBIR-like program in other countries. |
| Keywords: | Innovation policies, SBIR, DARPA, ATP |
| JEL: | L2 L5 O3 O4 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc87894&r=cse |
| By: | Anna Bohnstedt |
| Abstract: | We develop a general equilibrium model with heterogeneous firms à la Melitz (2003), where both the government and firms can invest into R&D to improve the country’s technological potential. A higher technological potential raises the average productivity of firms, thus implying lower consumer prices, and eventually leads to a welfare gain. |
| Keywords: | Heterogeneous firms; public and private R&D investments; basic research; innovation |
| JEL: | O3 H4 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0485&r=cse |
| By: | Ramon L. Clarete (School of Economics, University of the Philippines Diliman); Ernesto M. Pernia (School of Economics, University of the Philippines Diliman); Ammielou Gaduena (School of Economics, University of the Philippines Diliman); Adrian Mendoza (School of Economics, University of the Philippines Diliman) |
| Abstract: | Starting with the premise that technological innovation and economic growth are interactive and mutually reinforcing, this paper argues that in order to have a fighting chance in the Asean Economic Community (AEC), let alone global, competition, the Philippines (PH) needs to appreciably ramp up investment spending in science, engineering, and research and development. To the extent that this is achieved – along with the other ongoing policy and institutional reforms – the economy could in time be on a stronger platform to face up to AEC challenges. The paper first revisits PH’s macro-economy, poverty, and economic sectors vis-à-vis its Asean and East Asian neighbors. Next, it examines PH’s regional and global competitiveness. Then, it looks into the country’s current human resource and intellectual capital investments, mainly in higher education and technical/vocational training, as well as in R&D and innovation. A more focused discussion on the University of the Philippines – the “national university” – vis-à-vis its comparators in AEC, including ways to improve its competitiveness, follows. The final section concludes with some recommendations. |
| Keywords: | Science and technology (S & T), Research and development (R & D), Economic development, Higher education institutions (HEIs), Economic integration, Asean, Philippines |
| JEL: | F15 J24 O O3 O31 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:phs:dpaper:201407&r=cse |
| By: | Block, Jörn (University of Trier); Kohn, Karsten (KfW Bankengruppe); Miller, Danny (HEC Montreal); Ullrich, Katrin (KfW Bankengruppe) |
| Abstract: | Many start-ups chose to compete with incumbent firms using one of two generic strategies: cost leadership or differentiation. Our study demonstrates how this choice depends on whether the startup was founded out of necessity. Our results, based on a representative data set of 4,568 German start-ups, show that necessity entrepreneurs are more likely than other entrepreneurs to pursue a cost leadership strategy, and less likely to pursue a differentiation strategy. Decomposition analyses further show that up to half of the difference in choice of strategy can be attributed to distinct endowments of human capital, socio-economic attributes, and start-up project characteristics that correlate with necessity entrepreneurship. |
| Keywords: | cost leadership, competitive strategy, new venture strategy, necessity entrepreneurship, product differentiation, decomposition analysis |
| JEL: | L10 L26 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8219&r=cse |
| By: | Kibae Kim (College of Engineering, Seoul National University); Jorn Altmann (College of Engineering, Seoul National University) |
| Abstract: | One of the notable trends in the software industry is that software vendors provide their software on a platform as a service. Software users consume those software services or compose new services by combining those existing software services. The software vendors, their services, software users, and the platform represent an open innovation system. Collective intelligence is the underlying mechanism for the cooperation between the users of the system, i.e. their continuous reuse of existing software services for the creation of new services. A successfully working software services system is a system that is continuously adapted by its users to meet their needs. The evolution of this software-as-a-service (SaaS) innovation system and the behavior of SaaS users within this system are still unknown. In this paper, we describe the evolution of a SaaS network. The SaaS network consists of nodes (i.e. software services with open interfaces) and links (i.e. the co-development relationships of software services with open interfaces). The results suggest that the SaaS network has gradually grown into a scale-free network with a slight concavity in its cumulative degree distribution. The results also suggest that the topology characteristics are invariant over time except for the early time periods. Furthermore, the results suggest that the SaaS network is not as open (i.e. inter-operable) as its technology let us expect. Considering these results, we imply that SaaS innovation is achieved by platform providers striving to capture users with a few, leading SaaS services. That means, SaaS innovation is not achieved through the possibilities of potential combinations between any kind of SaaS services as could be expected theoretically. These findings are expected to stir further research on the actual structure of open innovation systems that are driven by collective intelligence. |
| Keywords: | Software-as-a-Service, Service Composition, Composite Services, Mashup, Network Evolution, Scale-Free Network, Openness, Collective Intelligence, Software Industry, Software Platforms. |
| JEL: | D85 L14 L86 O31 O32 O33 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:2013108&r=cse |
| By: | Andrea Bellucci; Ilario Favaretto; Germana Giombini |
| Abstract: | In this paper we analyze the access to credit of innovative firms on the price and non-price dimensions of bank lending. Using information from two datasets, we use a propensity score matching procedure to estimate the impact of the innovative nature of firms on: (a) loan interest rates; (b) the probability of having to post collateral; and (c) the probability of overdrawing. Our analysis reveals that banks trade off higher interest rates and lower collateral requirements for firms involved in innovative processes. Further, innovative firms have a lower probability of being credit rationed than their non-innovative peers. |
| Keywords: | innovative firms, interest rate, firm’s financing, relationship lending |
| JEL: | D82 E43 D40 G21 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:iaw:iawdip:104&r=cse |
| By: | Bastien Bernela (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers); Rachel Levy (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - Université des Sciences Sociales - Toulouse I : EA4212 - École Nationale de Formation Agronomique - ENFA - Institut d'Études Politiques [IEP] - Toulouse - Université Toulouse le Mirail - Toulouse II) |
| Abstract: | We discuss the common hypothesis that, in collaborative projects, all partners interact with each other in homogeneous ways. More precisely, this research aims to determine the existence and frequency of Partner interactions in a collaborative project. From a survey of participants involved in innovation projects approved by a cluster, we collect information about 754 collaboration ties. We then test the impact of several determinants on the existence and frequency of their observed interactions. |
| Keywords: | Collaboration tie, interaction, inter-organizational networks, cluster, complete graph |
| Date: | 2014–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00995175&r=cse |
| By: | Semih Akçomak (TEKPOL, Science and Technology Policy Studies, Middle East Technical University); Hanna Müller-Zick (Maastricht University) |
| Abstract: | This paper investigates the effect of trust on innovation. In addition to generalised trust we use a range of other indicators that could measure trust and investigate which trust related variables could explain innovation in 20 European countries divided into 135 regions. We specifically look at causal, non-linear and spatial forces. Our findings indicate that only generalised trust and non-egoistic fairness have robust effects on innovation in Europe. Using historical data on the extent and existence of universities and an instrumental variable strategy we set up a causal relationship between trust and innovation. Even after controlling for causal, spatial and non-linear forces there is a significant direct impact of trust on innovation. |
| Keywords: | trust, social capital, innovation, EU |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1304&r=cse |
| By: | Dorota Leszczynska; Maryline Thenot |
| Abstract: | In this article we investigate the changes undergone by an agricultural cooperative group, in order to contribute to the new orientations of institutional theory by analyzing this specific case. Taking the fundamental concepts of institutional logics as our starting point, we propose a conceptual model and a case study. We use the Delphi method to analyze the responses of 42 administrators to a questionnaire. By focusing on the actors and on organizational heterogeneousness, we highlight the impact of practice variation on the performance of this newly created cooperative group. |
| Keywords: | Institutional logics, creation of new practices, performance, cooperative, Delphi method |
| Date: | 2014–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-325&r=cse |
| By: | Serdar Türkeli (UNU-MERIT, Maastricht University) |
| Abstract: | In this paper, we re-construct the sphere of European Neighbourhood Policy (ENP) with respect to empirical evidence collected from Web of Science and systematically meta-analysed. This analysis provides us the dynamics of the ENP knowledge asset in terms of stock and flow in temporal, spatial (geographical), organisational and contextual dimensions. The same meta-analysis is applied to Quality of Local Governance (QoLG) and dynamics of the re-constructed sphere of Quality of Local Governance is analysed, with cross-comparison to the ENP sphere. The main result indicates the sphere of Environment, Energy and Ecology (EEE) form the main sectoral gateway between the ENP and QoLG in a multi-level (international, national, regional) setting. We constructed our conceptual framework based on these evidence bases that gathered from spheres of the ENP and QoLG with comparison to analysis of temporal evolution of governance studies, and checked for theoretical debates of Bureaucratic Planning, Public Choice Theory and Structuralist Critiques, which are shown that incomplete to grasp this emerging EEE sphere. Although promising, New Regionalism concept is discussed with the condition of those current or potentially future developmentalist tendencies in the European Neighbourhood with respect to triangulated tensions between economic, social and environmental development. We listed and concluded that technological and social innovation are the vital enablers to activate this EEE Bridge in the governance of a foursquare quality of life agenda, with enhanced information and finance-based intelligent instruments interactive between i) European Neighbourhood Policy, ii) Open Method of ‘’Neighbourhoods’’ Coordination, iii) Smart ‘’Cross-Continental Regions’’ Specialisation, and iv) European ‘’Adaptive, Synchronous’’ Strategic Energy Technology Plan (ASSET-Plan). |
| Keywords: | European Neighbourhood policy, governance, regional policy |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1302&r=cse |
| By: | Barbara Bre?ko (JRC/IPTS); Panagiotis Kampylis (JRC/IPTS); Yves Punie (JRC/IPTS) |
| Abstract: | Technologies for learning are considered as key enablers of educational innovation. However, their full potential is not being realised in formal education settings and major questions are being asked about the sustainability, systemic impact and mainstreaming of ICT-enabled learning innovations (ICT-ELI) in Europe. This report presents 60 recommendations for immediate strategies and actions to be undertaken by policy-makers at local, regional, national, and EU level to further develop and mainstream ICT-ELI with systemic impact, contributing to the modernisation of Education and Training systems in Europe. The recommendations were developed in the context of the 'Up scaling Creative Classrooms in Europe (SCALE CCR) project, carried out by JRC-IPTS on behalf of the European Commission, DG Education and Culture, based on desk research; case reports from Europe and Asia; continuous stakeholders consultations; and in-depth expert interviews. The final set of recommendations was further validated and prioritised through an online consultation with 149 educational stakeholders. The recommendations were clustered into seven areas presenting a holistic agenda to guide the further development and mainstreaming of ICT-ELI: Content and Curricula; Assessment; School Staff Professional Development; Research; Organisation and Leadership; Connectedness; and Infrastructure. The number and variety of the recommendations provided depict the complexity of ICT-ELI and the systemic approach needed for their mainstreaming across Education and Training systems in Europe. |
| Keywords: | ICT-enabled innovation for learning, Creative Classrooms, conditions for sustainability and scalability of educational innovation, recommendations for policy actions |
| JEL: | I20 I21 I28 I29 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc83502&r=cse |
| By: | Amit Basole |
| Abstract: | There are two divergent perspectives on the impact of subcontracting on firms in the informal sector. According to the benign view, formal sector firms prefer linkages with relatively modern firms in the informal sector, and subcontracting enables capital accumulation and technological improvement in the latter. According to the exploitation view, formal sector firms extract surplus from stagnant, asset-poor informal sector firms that use cheap family labour in home-based production. However, direct, firm-level evidence on the determinants and impact of subcontracting is thus far lacking in the literature. We apply a modified Heckman selection model to Indian National Sample Survey data on informal manufacturing enterprises (2005{06). We find that home-based, relatively asset-poor, and female-owned firms are more likely to be in a subcontracting relationship. Further, we perform selectivity-corrected Oaxaca-Blinder Decomposition and calculate treatment effects to show that subcontracting benefits smaller firms, firms in industrially backward states and rural firms; it is harmful for larger firms, firms in industrially advanced states, and urban firms. Our results suggest that the effects of subcontracting are more complex than those predicted by the divergent perspectives. Policy-makers need to engage with this complexity. |
| Keywords: | sub-contracting, informal sector, Heckman sample selection, Blinder-Oaxaca decomposition |
| JEL: | C31 O17 O53 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:mab:wpaper:2014_08&r=cse |
| By: | Igor Gurkov (National Research University Higher School of Economics) |
| Abstract: | The paper provides a summary of the existing typologies of corporate parenting styles and discovers the missing elements in the theoretical constructs. New theoretical constructs fill the gaps. The paper presents a new typology of corporate parenting style by combining “adding value to subsidiaries by their corporate parent(s)” and “extracting value from subsidiaries by their corporate parent(s).” The four-type typology of corporate styles outlines the different levels of value addition and value extraction and various degree of reciprocity of both processes. This paper determines the most important factors that affect the selection of corporate parenting styles. It postulates that the multinational corporation should simultaneously exhibit different parenting styles towards their subsidiaries and should be ready to swiftly amend their parenting styles to reflect the changes in a subsidiary’s strategy and its motives for corporate ownership. |
| Keywords: | Corporate strategy, Corporate parenting style, International business, Strategic orientation, Motives for international expansion |
| JEL: | F23 L21 L22 L23 L60 M11 O31 O32 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:20man2014&r=cse |
| By: | Germà Bel (Faculty of Economics, University of Barcelona); Jordi Rosell (Faculty of Economics, University of Barcelona) |
| Abstract: | Academics and policy makers are increasingly shifting the debate concerning the best form of public service provision beyond the traditional dilemma between pure public and pure private delivery modes, because, among other reasons, there is a growing body of evidence that casts doubt on the existence of systematic cost savings from privatization, while any competition seems to be eroded over time. In this paper we compare the relative merits of public and private delivery within a mixed delivery system. We study the role played by ownership, transaction costs, and competition on local public service delivery within the same jurisdiction. Using a stochastic cost frontier, we analyze the public-private urban bus system in the Barcelona Metropolitan Area. Our results suggest that private firms tendering the service have higher delivery costs than those incurred by the public firm, especially when transaction costs are taken into account. Tenders, therefore, do not help to reduce delivery costs. Our results suggest that under a mixed delivery scheme, which permits the co-existence of public and private production, the metropolitan government and the regulator can use private delivery to contain costs in the public firm and, at the same time, benefit from the greater flexibility of private firms for dealing with events not provided for under contract. |
| Keywords: | costs, transaction costs, mixed delivery, local governments JEL classification: H0, H7, K00, L33 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201418&r=cse |
| By: | Nobuyoshi Yamori (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan) |
| Abstract: | This paper provides a brief explanation of the Japanese public credit guarantee system and analyzes what role it played during the global financial crisis. The author conducted a questionnaire survey of small and medium-sized enterprises (SMEs) in Aichi Prefecture, the prefecture most seriously hit by the crisis, in collaboration with the Aichi-ken Credit Guarantee Corporation. Using the survey, which provides valuable information about the usage of the credit guarantee program, this paper finds that the credit guarantee system was effective in protecting the economy from collapsing. The system was so generous that now all SMEs want it to remain unchanged. However, as the generous system brings heavy financial burdens on the government and, more seriously, discourages firms and banks from improving their efficiencies, the author insists that reforms, such as limiting the target and the guarantee coverage, are inevitable. |
| Keywords: | Credit Guarantee System, Japan; Financial Crisis, Questionnaire, Small and Medium-sized Enterprises |
| JEL: | G01 G21 G28 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2014-26&r=cse |
| By: | Nicolo Musmeci; Tomaso Aste; Tiziana Di Matteo |
| Abstract: | We present a set of analyses aiming at quantifying the amount of information filtered by different hierarchical clustering methods on correlations between stock returns. In particular we apply, for the first time to financial data, a novel hierarchical clustering approach, the Directed Bubble Hierarchical Tree (DBHT), and we compare it with other methods including the Linkage and k-medoids. In particular by taking the industrial sector classification of stocks as a benchmark partition we evaluate how the different methods retrieve this classification. The results show that the Directed Bubble Hierarchical Tree outperforms the other methods, being able to retrieve more information with fewer clusters. Moreover, we show that the economic information is hidden at different levels of the hierarchical structures depending on the clustering method. The dynamical analysis also reveals that the different methods show different degrees of sensitivity to financial events, like crises. These results can be of interest for all the applications of clustering methods to portfolio optimization and risk hedging. |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1406.0496&r=cse |
| By: | Lorenzo Caliendo; Fernando Parro; Esteban Rossi-Hansberg; Pierre-Daniel Sarte |
| Abstract: | We study the impact of regional and sectoral productivity changes on the U.S. economy. To that end, we consider an environment that captures the effects of interregional and intersectoral trade in propagating disaggregated productivity changes at the level of a sector in a given U.S. state to the rest of the economy. The quantitative model we develop features pairwise interregional trade across all 50 U.S. states, 26 traded and non-traded industries, labor as a mobile factor, and structures and land as an immobile factor. We allow for sectoral linkages in the form of an intermediate input structure that matches the U.S. input-output matrix. Using data on trade flows by industry between states, as well as other regional and industry data, we obtain the aggregate, regional and sectoral elasticities of measured TFP, GDP, and employment to regional and sectoral productivity changes. We find that such elasticities can vary significantly depending on the sectors and regions affected and are importantly determined by the spatial structure of the US economy. |
| JEL: | E0 F1 F16 R12 R13 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20168&r=cse |