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on Economics of Strategic Management |
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Issue of 2014‒06‒14
29 papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Wintjes R.J.M.; Douglas D.; Fairburn J.; Hollanders H.J.G.M.; Pugh G. (UNU-MERIT) |
| Abstract: | Innovation support measures in the EU are mostly designed to support product innovation in RD intensive sectors. To increase the still considerable contribution to regional employment and competitiveness from SMEs in traditional manufacturing industries a broader innovation policy mix is more appropriate. This paper draws data from a survey of more than 300 SMEs from seven regions within the European Union, as well as case studies, to address the question How can innovation policy interventions be improved to support SMEs in traditional manufacturing industries more effectively We claim that innovation support should be sensitive to the way SMEs in traditional manufacturing sectors innovate and grow. We find that product innovation and support used for product innovation is less likely to generate growth, than support used for process innovation. Also support used for marketing innovations and organizational innovations are of particular importance - together with internationalization, design and cooperation. The increasingly selective application procedures applied are not the most efficient to generate impact, since those who are supported and those who are supported more frequently, are the ones who are most likely to take the same innovative steps anyhow, irrespective of policy support.Keywords Innovation, SMEs, traditional sectors, low-tech, policy evaluation, manufacturing, process innovation |
| Keywords: | Search; Learning; Information and Knowledge; Communication; Belief; Industry Studies: Manufacturing: General; Industrialization; Manufacturing and Service Industries; Choice of Technology; Innovation and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Technological Change: Choices and Consequences; Diffusion Processes; Technological Change: Government Policy; |
| JEL: | O38 O33 D83 L60 O14 O31 O32 O33 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014032&r=cse |
| By: | Radicic D.; Pugh G.; Hollanders H.J.G.M.; Wintjes R.J.M. (UNU-MERIT) |
| Abstract: | This study investigates the impact of innovation support programmes on SME innovation in traditional manufacturing industries in seven EU regions. Recent literature identifying sources of potential government failure in innovation policy suggests that the effects of public support measures to increase private innovation may be disappointing. Our results are consistent with this hypothesis, yet also suggest a direction for policy reform to overcome government failure and, thereby, to increase the potential additionality of innovation support programmes. Innovation support programmes in the EU typically adopt a cream skimming selection strategy namely, programme managers systematically select firms on the basis of observable characteristics conducive to innovation. The econometric analysis of a new survey database reported in this paper suggests that cream skimming leads to firms being selected for programme participation that benefit less than would randomly selected firms. The policy corollary is that, subject to due diligence checking, allocation of innovation support by lottery should give rise to greater programme additionality than does the prevalent cream skimming approach. We conclude with some practical guidelines for allocation by lottery, which were developed for a recently launched innovation support programme for SMEs. Key words innovation; SMEs; traditional manufacturing industry; public innovation support; government failure; evaluation |
| Keywords: | Semiparametric and Nonparametric Methods: General; Multiple or Simultaneous Equation Models: Truncated and Censored Models; Switching Regression Models; Management of Technological Innovation and R&D; Technological Change: Government Policy; |
| JEL: | O32 O38 C14 C34 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014033&r=cse |
| By: | Karlsson, Charlie (CESIS, Jönköping International Business School); Johansson, Börje (CESIS, Jönköping International Business School); Kobayashi, Kiyoshi (Kyoto University); Stough, Roger R. (George Mason University) |
| Abstract: | This paper provides an overview of relevant topics in contemporary research concerned with global, national, regional and local knowledge and innovation dynamics. In particular, we highlight how the global scene is changing in the contemporary world economy that we char-acterize as a knowledge economy. We show how knowledge and knowledge dynamics is driving innovation in the large urban agglomerations in the old and in new industrialized countries with their concentrations of abilities and resources and their superior intra-regional and international geographical proximities. In relation to the large urban agglomerations we stress the role of (i) density and proximity externalities, (ii) the physical and cultural resource base of large cities, and (iii) the interactive dynamics related to learning and creativity. |
| Keywords: | Knowledge; innovation; space; agglomeration; proximity; learning; creativity; social networks |
| JEL: | O30 R11 |
| Date: | 2014–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0367&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 Paris. |
| Keywords: | ICT, excellence, poles of excellence, Copenhagen |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc86910&r=cse |
| By: | Antonio Cubel; Vicente Esteve; Maria Teresa Sanchis; Juan A. Sanchis-Llopis |
| Abstract: | This paper analyses the relationship between total factor productivity (TFP) and innovation-related variables during the second half of the 20th century. We perform this analysis for several European countries (France, Germany, the United Kingdom, and Spain) and the U.S., extending Coe and Helpman’s (1995) empirical specification to include human capital. We use a new dataset of patents data for the past 150 years to calculate the stock of knowledge using the perpetual inventory method. Our time series empirical analysis confirms the heterogeneous relationship between innovation variables (domestic stock of knowledge, imports of knowledge, and human capital) and productivity. Our results reveal the extent to which observed differences in technology adoption patterns and the levels of endowment of such resources can explain differences in TFP dynamics across countries. The estimated coefficients confirm the considerable gap that still exists between the European countries and the U.S. in innovation-related variables. Furthermore, we obtain a finding that may have important implications for innovation policies: the higher the level of investment in human capital, the higher the level of investment in domestic innovation, and the higher the response of TFP to a 1% increase in any of the aforementioned variables. |
| Keywords: | OECD,international technology diffusion, patents, productivity, cointegration |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:uae:wpaper:0614&r=cse |
| By: | Martijn van den Berge; Anet Weterings |
| Abstract: | Within the smart specialisation programme, the European Commission urges regional policy-makers to assess their regional innovation potential and consider investing in the areas of eco-technologies taking into account the regions’ specific strengths and weaknesses. In evolutionary economic geography, several studies have shown that regional innovation is a path dependent process whereby new technologies develop out of the existing regional knowledge base. In this paper, we examine to what extent this is also the case for eco-innovation; if so, the existing technological structure of a region would be an important source of information for regional policymakers with respect to designing their eco-innovation policy agenda. Our results show that in EU-regions both the probability of developing eco-innovations and the number of patents in this field depends on the patents that have been developed in related fields in the region in prior years. |
| Keywords: | relatedness, technology space, regional branching, eco-technologies, EU |
| JEL: | C23 R11 Q55 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1413&r=cse |
| By: | Nour S. (UNU-MERIT) |
| Abstract: | This paper discusses the progress in transition to knowledge-based economy in Saudi Arabia. As for the methodology, this paper uses updated secondary data obtained from different sources. It uses both descriptive and comparative approaches and uses the OECD definition of knowledge-based economy and the World Bank Knowledge Index KI and Knowledge Economy Index KEI and other indicators often used in the international literature to examine progress in transition to a knowledge-based economy in Saudi Arabia. This paper is valuable because it adds to the existing studies in the regional and international literature and it fills the gap in Saudi Arabia literature by presenting a more comprehensive analysis and investigating recent progress in transition to knowledge-based economy in Saudi Arabia. Moreover, the results confirm the importance of supporting the efforts aimed at enhancing knowledge- based economy in Saudi Arabia. Our findings imply that over the period 2000-2012 Saudi Arabia has achieved significant improvement, rapid and fastest progress not only by regional standard but also by international standard, in the international rank Saudi Arabia has climbed 26 places compared to 2000, obtaining 50th place in 2012 ranking, compared to 76th place in 2000 ranking. Our findings support the hypothesis concerning some progress in transition towards knowledge-based economy in Saudi Arabia. The progress appears from improvement in terms of KI, KEI, ICT pillar, education pillar, economic incentive and institutional regime pillar, innovation efficiency index, knowledge creation index, knowledge impact index, knowledge diffusion index and technological infrastructure, despite deterioration in both innovation pillar and knowledge absorption index. Based on the findings the paper recommends that to improve transition to knowledge economy and achieve sustainable economic development, it is essential for Saudi Arabia to strengthen and improve knowledge by investing heavily in education, training, boosting knowledge absorption index and innovation through intensive spending on RD. Keywords Knowledge, Knowledge-based economy, Knowledge Index, Saudi Arabia. |
| Keywords: | Economic Development: General; Macroeconomic Analyses of Economic Development; Technological Change; Research and Development; Intellectual Property Rights: General; |
| JEL: | O10 O11 O30 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014029&r=cse |
| By: | Chiara Criscuolo; Peter N. Gal; Carlo Menon |
| Abstract: | Motivated by the on-going interest of policy makers in the sources of job creation, this paper presents results from a new OECD project on the dynamics of employment (DynEmp) based on an innovative methodology using firm-level data (i.e. national business registers or similar sources). It demonstrates that among small and medium sized enterprises (SMEs), young firms play a central role in creating jobs, whereas old SMEs tend to destroy jobs. This pattern holds robustly across 17 OECD countries and Brazil, extending recent evidence found in the United States. The paper also shows that young firms are always net job creators throughout the business cycle, even during the financial crisis. During the crisis, entry and post-entry growth by young firms were affected most heavily, although downsizing by old firms was responsible for most job losses. The results also highlight large cross-country differences in the growth potential of young firms, pointing to the role played by national policies in enabling successful firms to create jobs. |
| Keywords: | Business dynamics, employment growth, small businesses, business demography, startups, great recession, job creation and destruction |
| JEL: | D22 L26 E24 L25 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1274&r=cse |
| By: | Edquist, Charles (CIRCLE, Lund University) |
| Abstract: | The concept of a holistic innovation policy is defined in this paper, and it is discussed what it is, why it is relevant and how it can be implemented. One of the main conclusions is that the innovation policies in European countries are still linear (and not holistic), in spite of the fact that the linear view has been completely abandoned by innovation researchers – and replaced by a systemic view on innovation processes. Why innovation policy is still linear is also discussed. Further it is noted that a considerable number of EU Member States have created public organizations (Councils) for innovation and/or research policy placed above ministries and usually chaired by the Prime Minister. The role and character of these bodies is discussed. The empirical results are based on a questionnaire sent to 23 EU Member States, out of which 19 (83%) responded. The work with this report was carried out for the European Research and Innovation Area Committee (ERAC) of the European Commission (DG RTD). |
| Keywords: | Innovation; Innovation Policy; Holistic innovation policy; Research policy; The linear view; Systems of innovation |
| JEL: | L38 M38 O25 O31 O32 O33 |
| Date: | 2014–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2014_008&r=cse |
| By: | Maemir H.; Ziesemer T.H.W. (UNU-MERIT) |
| Abstract: | This paper offers a unified framework to explore both the static and dynamic welfare effects of trade and multinational production MP in the presence of firm-specific productivity heterogeneity. The model captures the dynamic effects by allowing for RD spillovers between firms in a framework of Helpman et al. 2004 that generates endogenous growth without scale effects. We show that multinational presence improves average productivity by strengthening the selection process among heterogeneous firms, but leads to a lower growth rate of intermediate varieties along the transition path toward the new steady state. Thus the presence of multinationals has an ambiguous effect on overall welfare. We also compare the welfare implications of a change in trade cost in our model and in trade models without multinationals. We find that the gains from trade can be higher or lower than the gains obtained in the trade-only models, depending on the degree of firm heterogeneity, the size of trade and FDI costs, and the magnitude of technology spillover parameters. We further show that firm heterogeneity always magnifies average productivity, international spillovers and fixed costs of developing a new variety, which leads to ambiguous effects on overall welfare. Calibrating the model to the US economy suggests that aggregate welfare improves in response to a reduction in trade and FDI costs for empirically plausible parameter values.Keywords firm heterogeneity, endogenous growth, trade, multinational production, technology spillovers. |
| Keywords: | Models of Trade with Imperfect Competition and Scale Economies; Multinational Firms; International Business; Economic Growth of Open Economies; Innovation and Invention: Processes and Incentives; One, Two, and Multisector Growth Models; |
| JEL: | F12 F23 F43 O31 O41 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014038&r=cse |
| By: | Giuliani, Elisa (Department of Economics and Management, University of Pisa and CIRCLE, Lund University) |
| Abstract: | A recent preoccupation in scholarly research is the capacity of firms in developing country industrial clusters to comply with international corporate social responsibility (CSR) policies and codes of conducts. This research is at an early stage and draws on several – often quite distinct - scholarly traditions. In this paper I contend that future studies in this area would benefit from more explicit examination of the connection between cluster firms and human rights defined according to the 1948 Universal Declaration of Human Rights and subsequent covenants and treaties. I argue that cluster firms’ adoption of CSR policies, often imposed indiscriminately on them by global buyers, should be differentiated from firms’ actual human rights practice. Based on this distinction, I elaborate a typology of industrial clusters (“low-road”, “window-dressing” “rights-oriented”) and identify a set of factors likely to influence their practice. Against this background, I discuss an agenda for future research and elaborate on the potential methodological intricacies related to research in this area. |
| Keywords: | Human Rights; Corporate Social Responsibility (CSR); Industrial Clusters; Developing Countries |
| JEL: | J83 M14 R11 R58 |
| Date: | 2014–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2014_009&r=cse |
| By: | Barattieri, Alessandro; Borchert, Ingo; Mattoo, Aaditya |
| Abstract: | This paper presents evidence on the determinants of cross-border mergers and acquisitions in services sectors. It develops a stylized model of mergers and acquisitions that predicts that the incidence of merger and acquisition deals depends, inter alia, on the target economy's size, industrial structure and investment policies, as well as on bilateral transactions costs. These predictions are examined with bilateral merger and acquisition flow data and detailed information on policy barriers from a new database of restrictions on services investment. The analysis finds that: (1) geographical factors affect mergers and acquisitions in services and manufacturing similarly but cultural factors affect mergers and acquisitions in services more than in manufacturing. (2) Controlling for these bilateral factors, restrictive investment policies reduce the probability of merger and acquisition inflows but this negative effect is mitigated in countries with relatively large shares of manufacturing and (to a lesser extent) services in gross domestic product. The same results hold for the number of merger and acquisition deals received. These findings suggest that the impact of policy is state-dependent and related to the composition of gross domestic product in the target economy. |
| Keywords: | Public Sector Corruption&Anticorruption Measures,E-Business,Economic Theory&Research,Emerging Markets,Debt Markets |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6905&r=cse |
| By: | Heyman, Fredrik (Research Institute of Industrial Economics (IFN)); Sjöholm, Fredrik (Lund University); Davidson, Carl (Michigan State University); Matusz, Steven (Michigan State University); Chun Zhu, Susan (Michigan State University) |
| Abstract: | Engagement in foreign markets can have an impact on firm organization and on the type of occupations that a firm needs. We examine the effect of globalization on the occupational mixes using detailed Swedish data that cover all firms and a representative sample of the labor force for 1997-2005. We find a robust relationship between a firm’s degree of international integration and its occupational mix. Multinationals, which are the most globally engaged firms, have a distribution of occupations skewed toward more skilled occupations. Non-multinational exporters have a distribution of occupations less skewed toward skilled compared to multinationals, but more skewed toward skilled occupations compared to Swedish non-exporters (which are the least globally engaged). Moreover, firms tend to have an even more skill intensive distribution of occupations when they mainly export to far away markets, or when they export differentiated goods. Our results are little changed (1) when we control for firm size, productivity, capital intensity, and firm age, (2) when we control for offshoring and R&D expenditures; (3) when we use alternative methods to rank occupations, or (4) when we conduct alternative robustness tests. In addition, the results are very similar for manufacturing and non-manufacturing, and for foreign and Swedish multinationals. We interpret our results using a decomposition motivated by recent theoretical models of selection into exporting and FDI. |
| Keywords: | Occupational mix; Globalization; Multinational Enterprises |
| JEL: | F10 F20 |
| Date: | 2014–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1026&r=cse |
| By: | Nour S. (UNU-MERIT) |
| Abstract: | This paper uses the descriptive and comparative approaches and uses the OECD 1996 definition of knowledge-based economy, the World Bank Knowledge Index and Knowledge Economy Index and other indicators to examine progress and challenges in transition to knowledge-based economies in Arab Gulf countries. We fill the gap in the Gulf literature and present more comprehensive analysis of progress and challenges impedes transition to knowledge-based economies in Arab Gulf countries. Our findings support the first hypothesis concerning relative progress in transition to knowledge-based economies in Arab Gulf countries. Our results corroborate the second hypothesis that transition to knowledge-based economies faces several challenges in Arab Gulf countries. Our findings support the third hypothesis concerning variation in transition to knowledge based economies across Arab Gulf countries. Therefore, it is essential for Arab Gulf countries to implement sound and coherent policies to enhance transition to knowledge based economy in Arab Gulf countries. Keywords Knowledge, knowledge index, knowledge-based economy, Arab Gulf countries |
| Keywords: | Economic Development: General; Macroeconomic Analyses of Economic Development; Technological Change; Research and Development; Intellectual Property Rights: General; |
| JEL: | O10 O11 O30 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014030&r=cse |
| By: | Louise KEMPTON (Newcastle University); John Goddard (Newcastle University); John Edwards (European Commission – JRC - IPTS); Fatime B. Hegyi (European Commission – JRC - IPTS); Susana Elena-Pérez (European Commission – JRC - IPTS) |
| Abstract: | Universities have a potentially pivotal role to play in the social and economic development of their regions. They are a critical ‘asset’ of the region; even more so in less favoured regions where the private sector may be weak or relatively small, and has low levels of research and development activity. Evidence shows that the successful mobilisation of the resources of a university can have a disproportionately positive effect on regional economies and achievement of comprehensive regional strategies. Universities can therefore play a key role by contributing to the design and implementation of S3 in a local learning and capacity building process. However there are some key underpinning principles that make smart specialisation distinctive from previous iterations of regional innovation strategy development, and it will be necessary to understand the implications of these for the actors in the process, including universities. |
| Keywords: | European Universities, European cohesion policy, Structural Funds, Smart Specialisation |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc85508&r=cse |
| By: | Andres RODRIGUEZ-POSE (London School of Economics); Marco DI CATALDO (London School of Economics); Alessandro RAINOLDI (European Commission – JRC - IPTS) |
| Abstract: | Research and innovation strategies for smart specialisation (RIS3) are trying to introduce a new vision of innovation policy in European regions. However, the success of RIS3 policy measures is closely dependent on the capacity of regional government institutions to act as coordinators or facilitators of the interventions. The way in which institutional mechanisms govern innovation processes and provide incentives for the interaction between regional actors remains a largely unexplored area of scientific research. This policy note discusses the importance of sound institutional frameworks for the effectiveness of smart specialisation, presenting an econometric study that investigates the link between government institutions and innovation. The empirical results confirm the key role played by governance structures for technological advances at the regional level, suggesting that the greatest gains in innovative capacity from institutional reforms would be obtained in peripheral territories where the initial level of government quality is lower. This analysis has important implications for the identification of the necessary pre-requisites for successful RIS3 strategies in EU regions. |
| Keywords: | European cohesion policy, Structural Funds, smart specialisation, Innovation Union, Regional Policy, Institutional Framework, Coordination, Governance Structures |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc88935&r=cse |
| By: | Jan Hagemejer (National Bank of Poland; Faculty of Economic Sciences, University of Warsaw); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland); Jan Svejnar (Columbia University) |
| Abstract: | Despite an apparent consensus in the literature that privatization leads to increased productivity and profitability of firms, the problem of endogeneity bias is profound and has been emphasized in a number of meta-analyses. We propose a new method to address the endogeneity bias and apply it to a universe of Polish medium and large firms over 1995-2009. Unlike some previous studies we find that improvement in firm performance is a rare phenomenon, which suggests that the endogeneity bias could have been indeed large. |
| Keywords: | privatization, firm performance, endogeneity bias |
| JEL: | P45 P52 C14 O16 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2014-14&r=cse |
| By: | Rexhäuser, Sascha; Löschel, Andreas |
| Abstract: | Many countries, especially in Europe, have ambitious goals to transform their national energy systems towards renewable energies. Technological change in both renewable production and efficient use of energy can help to make these targets come true. Using a panel of German firms linked to the PATSTAT patent data, we study invention in both types of energy technologies and how their inventors differ in terms of central firm-specific characteristics. More importantly, we study the relation between conventional (i.e. non-energy) invention and energy invention within the firms. The results from dynamic count data models point to a stimulating effect of conventional inventions for energy efficiency technologies but have no effect on inventions in renewable energies. -- |
| Keywords: | innovation,invention,renewable energy,energy efficiency,dynamic count data |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14036&r=cse |
| By: | Christoph Rheinberger (Economie des Ressources Naturelles, INRA) |
| Abstract: | Avalanche warning services (AWS) are operated to protect communities and traffic lines in avalanche-prone regions of the Alps and other mountain ranges. In times of high avalanche danger, these services may decide to close roads or to evacuate settlements. Closing decisions are based on field observations, avalanche release statistics, and snow forecasts issued by weather services. Because of the spatial variability in the snowpack and the insufficient understanding of avalanche triggering mechanisms, closing decisions are characterized by large uncertainties and the information based on which AWS have to decide is always incomplete. In this paper, we illustrate how signal detection theory can be applied to make better use of the information at hand. The proposed framework allows the evaluation of past road closures and points to how the decision performance of AWS could be improved. To illustrate the proposed framework, we evaluate the decision performance of two AWS in Switzerland and discuss the advantages of such a formalized decisionmaking approach. |
| Keywords: | statistical performance measures, discriminating ability, signal detection theory, avalanche warning services, Performance statistiquesavalancheservice d'alerte |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:inr:wpaper:207833&r=cse |
| By: | Thomas Gries (University of Paderborn); Ha van Dung (University of Paderborn) |
| Abstract: | In this paper, we investigate the impacts of the institutional environment and the entrepreneur’s education on firm growth in Vietnam. Using a firm-level dataset, we obtain a balanced panel data from 2006 to 2009 for 37,788 registered enterprises from a unique data set. We analyze the effects of the institutional factors on the growth of firms using the system GMM analysis. We find that in accordance to recent theoretical literature, higher level of institutional factors such as business support service, land access, time costs, and informal charges will promote firm growth in both employment and capital. Furthermore the impacts of institutional factors are more significant in capital growth of firms. In addition to the insight, we look at the impacts of entrepreneur’s education on firm growth. We use the fixed effects estimation method and obtain the results supporting the hypothesis that higher level of entrepreneur’s education will associate with a higher growth of firms. |
| Keywords: | firm growth, institutional factors, human capital, entrepreneurship, capital structure. |
| JEL: | O12 O16 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pdn:ciepap:83&r=cse |
| By: | Åge Mariussen (University of Vaasa, Finland); Inger Midtkandal (European Commission – JRC - IPTS); Ruslan Rakhmatullin (European Commission – JRC - IPTS) |
| Abstract: | Smart Specialisation (S3) is a new framework for research and innovation strategies which together with other instruments, such as Horizon 2020 is designed to pull Europe out of its current economic problems. Successful RIS3 strategies are improving and sometimes changing conditions promoting innovation, competitiveness and growth. In order to do so, RIS3 operates with six steps of planning, outlined in the S3 Guide. In discovering, promoting and implementing these improvements, transnational learning is a promising and potentially powerful tool. However, attempts to organize transnational learning may easily fail. This brief explains how it can succeed, with reference to the six steps of the S3 Guide. |
| Keywords: | European cohesion policy, Structural Funds, smart specialisation, transnational learning |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc88429&r=cse |
| By: | Franckx, Laurent |
| Abstract: | This paper reviews the available evidence on the relevance of the Porter hypothesis for automotive emission standards. It focuses on two channels through which the Porter effect may operate. First, there is evidence that emission standards for cars have had important effects on innovation at different levels in the supply chain (the “weak” form of the Porter hypothesis), without discernible long-run negative effects in industry performance. However, there is no strong evidence either that regulations lead to an overall increase in productivity (the “strong” version of the Porter hypothesis). Second, there is relatively strong evidence that countries are more likely to have more stringent domestic vehicular emission standards if they export more automobiles and automobile components to countries which themselves have more stringent vehicular standards. There is also (mixed) evidence that countries which receive more inward foreign direct investment in the automotive sector are more likely to have more stringent domestic emission standards. This suggests that imposing strict emission standards may bring some “first mover advantages” to the leading countries, in line with the Porter hypothesis. |
| Keywords: | Porter hypothesis, automotive emission standards, disruptive innovation, first-mover advantages, pollution control technology |
| JEL: | O3 Q52 Q55 Q56 R4 R48 |
| Date: | 2014–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56448&r=cse |
| By: | Karl Aiginger |
| Abstract: | Industrial policy is back on the agenda and the consensus is that it must be different 'this time' from the past. We redefine industrial policy for industrialised countries as a strategy to promote 'high-road competitiveness', understood as the ability of an economy to achieve 'Beyond-GDP' Goals. 'High-road strategies' are based on advanced skills, innovation, supporting institutions, ecological ambition and an activating social policy. This 'new industrial policy' is systemic, working in alignment with other policy strands and supporting social and environmental goals; it affects the structure of the economy as the whole not only the manufacturing sector. Short-term actions, such as protecting employment in unviable companies, low prices for fossil fuels, or reducing wages in high-income economies are counterproductive. To pursue an industrial policy that targets society's ultimate goals without public micromanagement will be challenging. It could be achieved (i) by setting incentives, particularly those impacting on technical progress (e.g. to make it less labour-saving and more energy-saving), (ii) by the use of the important role governments have in the education and research sectors, (iii) by greater public awareness and (iv) if consumer preferences will call for socio-ecological transition. |
| Keywords: | New industrial policy, climate change, competitiveness, innovation strategy |
| JEL: | H50 L16 L50 O20 O32 O38 O40 Q30 Q40 Q50 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfeppr:y:2014:m:6:d:0:i:13&r=cse |
| By: | Hirsch, Boris (University of Erlangen-Nuremberg); Merkl, Christian (University of Erlangen-Nuremberg); Müller, Steffen (University of Erlangen-Nuremberg); Schnabel, Claus (University of Erlangen-Nuremberg) |
| Abstract: | This paper is the first to show theoretically and empirically how firms' production technology affects the choice of their preferred wage formation regime. Our theoretical framework predicts, first, that the larger the total factor productivity of a firm, the more likely it is to opt for centralized wage formation where it can hide behind less productive firms. Second, the larger a firm's scale elasticity, the higher its incentive to choose centralized rather than decentralized wage setting due to labor cost and straitjacket effects. As firms in Germany are allowed to choose their wage formation regime, we test these two hypotheses with representative establishment data for West Germany. We find that establishments with centralized bargaining agreements indeed have economically and statistically significantly larger total factor productivities and scale elasticities than comparable establishments outside the centralized bargaining regime. |
| Keywords: | collective bargaining, bargaining coverage, Germany |
| JEL: | J50 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8242&r=cse |
| By: | KIYOTA Kozo |
| Abstract: | This paper surveys the recent literature that empirically examines foreign direct investment (FDI) in Japan. This paper focuses on the quantitative evidence on the following questions: 1) Did FDI in Japan accelerate economic growth? 2) What are limiting factors for FDI in Japan? 3) Are there any differences between foreign-owned firms and Japanese-owned firms? 4) Why is the productivity of foreign-owned firms high? 5) Do foreign-owned firms undergo massive restructuring? 6) Does the entry of foreign-owned firms cause severe competition? 8) Are there any spillover effects from foreign-owned firms to domestic firms? This paper summarizes the facts and issues on FDI in Japan. |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:14036&r=cse |
| By: | Adam P. Balcerzak (Nicolaus Copernicus University, Poland) |
| Abstract: | The article is devoted to measuring the effectiveness of institutional systems of developed countries in terms of their relevance to the requirements of the global knowledge-based economy. The aim of the article is to evaluate the results obtained by Visegrád Group in relations to OECD countries. In the first part of the article the most important factors determining the ability of a country to use the development potential of the knowledge-based economy was discussed. This analysis was based on the principals of institutional economics. Then taxonomic examination for OECD countries covering the period 1995-2010 was made. The empirical analysis utilized linear ordering, a procedure based on the Hellwig’s method of pattern development. Data form Fraser Institute base created for Economic Freedom of the World Raptor was used. |
| Keywords: | institutional system, multivariate analysis, global knowledge-based economy |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2014:no1&r=cse |
| By: | Akpan Uduak (SPIDER Solutions, Nigeria); Isihak Salisu (SPIDER Solutions, Nigeria); Asongu Simplice (Yaoundé/Cameroun) |
| Abstract: | This study employs panel analysis to examine the determinants of foreign direct investment (FDI) in Brazil, Russia, India, China, and South Africa (BRICS) and Mexico, Indonesia, Nigeria, and Turkey (MINT) using data for eleven years i.e. 2001 – 2011. First, it uses pooled time-series cross sectional analysis to estimate the model on determinants of FDI for three samples: BRICS only, MINT only, and BRICS and MINT combined; then, random effects model is also employed to estimate the model for BRICS and MINT combined. The results show that market size, infrastructure availability, and trade openness play the most significant roles in attracting FDI to BRICS and MINT while the roles of availability of natural resources and institutional quality are insignificant. Given that FDI inflow to a country has the potential of being mutually beneficial to the investing entity and host government, the challenge is on how BRICS and MINT can sustain the level of FDI inflow and ensure it results in economic growth and socio-economic transformation. To sustain the level of FDI inflow, governments of BRICS and MINT need to ensure that their countries remain attractive for investment. BRICS and MINT also need to ensure that their economies absorb substantial skills and technology spillovers from FDI inflow to promote sustainable long-term economic growth by investing more in their human capital. The study is significant because it contributes to literature on determinants of FDI by extending the scope of previous studies which often focus only on BRICS. |
| Keywords: | FDI, determinants, fast-growing economies, BRICS, MINT |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:14/002&r=cse |
| By: | Brian Gill; Brandon Coffee-Borden; Kristin Hallgren |
| Keywords: | Conceptual Framework, Data Driven Decision Making, Education |
| JEL: | I |
| Date: | 2014–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:8142&r=cse |
| By: | Celbis M.G.; Nijkamp P.; Poot J. (UNU-MERIT) |
| Abstract: | We estimate the Anderson and van Wincoop model of trade by using the data on the bilateral export flows from 26 Turkish regions to 180 countries for the years 2002 through to 2010. Regional transportation and communication infrastructure capacity, the positioning of point infrastructure in a region, and geography are explicitly accounted for. Our results highlight that land infrastructure, air transport capacity, and private maritime infrastructure presence, together with the distance of regional economies to exit nodes such as ports and airports, are important determinants of export performance. Based on our preferred regression where multilateral resistance terms are accounted for, we estimate that increases in the current land infrastructure, air transport capacity, and number of private ports of 1 per cent increases exports approximately by 0.38 per cent, 0.14 per cent, and 0.045 per cent respectively. Keywords Infrastructure; trade; regions; transportation costs |
| Keywords: | Empirical Studies of Trade; Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure; Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy; General Regional Economics (includes Regional Data); Transportation Systems: General; Regional Development Planning and Policy; |
| JEL: | F14 O18 O24 R10 R40 R58 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014021&r=cse |