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on Economics of Strategic Management |
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Issue of 2014‒07‒13
24 papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Matthias Siller; Christoph Hauser; Janette Walde; Gottfried Tappeiner |
| Abstract: | Measuring innovation activities involves critical decisions in selecting appropriate indicators and levels of observation. The present article contributes to the literature on this subject by addressing innovation measurement on the regional level. The dimensionality of regional innovation is examined by applying a principal component analysis on seven innovation output indicators in European regions from the Community Innovation Survey and two traditional indicators, i.e. patent applications and R&D expenses. The analysis reveals that regional innovation indeed needs to be regarded as a multidimensional concept involving technological, commercial and service innovation. These distinct innovation activities exhibit clear regional patterns with both technological and service innovation concentrated in highly developed territories and urban areas displaying particularly strong innovation performance in services. In addition, commercially successful innovation appears clustered in backward regions and may thus be seen as imitation efforts and technology transfers from areas at the innovation frontier. Overall, the elaborated findings suggest that the selection of innovation indicators in empirical analyses demands appropriate motivation and theoretical guidance. |
| Keywords: | regional innovation, innovation dimensions, Principal Component Analysis, patent applications, Community Innovation Survey |
| JEL: | R11 O31 O33 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2014-19&r=cse |
| By: | Cardamone, Paola; Pupo, Valeria; Ricotta, Fernanda |
| Abstract: | The aim of this paper is to assess the effect on firm total factor productivity of the university research. Since the impact of universities on firms’ performance is subtle and complex, we verify whether territorial context, sector and firm size may influence this relationship. Results show that university R&D does not seem to affect Italian firm productivity. However, if we consider geographical location and sector, we find that university activities have a positive effect on the performance of firms located in the North of Italy or operating in the specialised supplier sector. Several robustness checks confirm the significant role played by universities above all in the North of Italy. The policy implications of these findings are discussed. |
| Keywords: | University, R&D, Total Factor Productivity |
| JEL: | C21 D24 O30 |
| Date: | 2014–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57034&r=cse |
| By: | Cardamone, Paola |
| Abstract: | The aim of this paper is to evaluate the effect of research and development (R&D) on productivity by taking into account productivity spillovers. To this end, by using a sample of Italian manufacturing firms provided by the Xth UniCredit-Capitalia survey (2008), which covers the period 2004-2006, we have analyzed the role of R&D in firm productivity by using a spatial autoregressive model. In so doing, we have allowed the total factor productivity (TFP) of each firm to be affected by the TFP of nearby firms. Results show that R&D play an important role in Italian firm productivity. Moreover, we find evidence in favor of productivity spillovers across firms due to spatial proximity. In addition, intrasectoral R&D spillovers seem to have a relevant effect on firm productivity, while intersectoral R&D spillovers do not have a significant effect. |
| Keywords: | R&D, TFP, spillovers, spatial econometrics, Italian manufacturing firms |
| JEL: | C21 D24 O33 |
| Date: | 2014–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57149&r=cse |
| By: | Joel Stiebale |
| Abstract: | This paper analyzes the effects of cross-border mergers and acquisitions (M&As) on the innovation of European firms. The results indicate a considerable increase in post-acquisition innovation in the merged entity. This is mainly driven by inventors based in the acquirer's country, while innovation in the target's country tends to decline. The asymmetry of effects between acquiring and target firms increases with pre-acquisition differences in knowledge stocks, indicating a relocation of innovative activities to more efficient usage within multinational firms. Instrumental variable techniques as well as a propensity-score matching approach indicate that the effect of cross-border M&As on innovation is causal. |
| Keywords: | Multinational Enterprises, Mergers and Acquisitions, Innovation |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:14/06&r=cse |
| By: | Iza Lejárraga; Humberto López Rizzo; Harald Oberhofer; Susan Stone; Ben Shepherd |
| Abstract: | This study empirically investigates key restrictions to the internationalisation of small and medium-sized enterprises (SMEs) in manufacturing and across different types of services. The study explores the extent to which binding constraints faced by SMEs producing goods may differ from small firms operating in services sectors and takes stock of how existing policy initiatives address some of these differences. Our results suggest that while firm size clearly influences the trade performance of SMEs in manufacturing, it is an ambiguous predictor of export performance in the case of small-sized services firms. The findings show that firm size influences the choice of export channel and that small firms rely more on indirect and agglomeration networks. Finally, the results point to a strong degree of firm-level heterogeneity across services activities and enterprise size. It would seem that incorporating sectoral and size heterogeneity into existing policies might be desirable to address key constraints for SMEs. |
| Keywords: | trade, services, small and medium-sized enterprises, internationalisation, SMEs, trade in services |
| JEL: | F14 L8 |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:165-en&r=cse |
| By: | Caroline Mothe; Uyen T. Nguyen-Thi; Phu Nguyen-Van |
| Abstract: | We empirically investigate the pattern of complementarity between four organizational practices. Firm-level data were drawn from the Community Innovation Survey (CIS) carried out in 2008 in Luxembourg. Supermodularity tests confirm the crucial role of organizational innovation in raising firms’ technological innovation. The pattern of complementarity between organizational practices differs according to the type of innovation, i.e. product or process innovation, but also according to whether the firm is in the first stage of the innovation process (i.e. being innovative or not) or in a later stage (i.e. innovation performance in terms of sales of new products). |
| Keywords: | Complementarity, Organizational innovation, Substitution, Supermodularity, Technological innovation. |
| JEL: | D22 O32 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2014-12&r=cse |
| By: | Flach, Lisandra; Irlacher, Michael |
| Abstract: | This paper studies the innovation strategies of multi-product firms in industries with different scope for product differentiation. In a simple model of multi-product firms, we show that returns to product versus process innovation are industry-specific. Demand and cost linkages induce a natural distinction between the returns to product and process innovation. In highly differentiated industries, the cannibalization effect is lower and, therefore, firms invest more in product innovation. In homogeneous industries, firms internalize intra-firm spillover effects and invest more in process innovation. We test the predictions from the model using Brazilian firm-level data, with information on investment efforts over time. Following a major exchange rate devaluation, firms have better access to foreign markets and exploit economies of scale in innovation. However, detailed information on product and process innovation allows us to evaluate differential effects across industries. We con.rm the predictions from the theoretical model and show that the type of innovation depends on the industry scope for differentiation. |
| Keywords: | Multi-Product Firms; Innovation; Product Differentiation; Cannibalization Effect; Spillovers; Globalization |
| JEL: | F12 F14 L25 |
| Date: | 2014–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:21022&r=cse |
| By: | Antonelli, Cristiano; Fassio, Claudio (University of Turin) |
| Abstract: | The paper implements the Schumpeterian notion of creative reaction to articulate and test the hypothesis that the shift to the knowledge economy in advanced economies is the result of the creative reaction of firms, caught in out - of - equilibrium conditions by the fast globalization of product and factor markets since the last decades of the XX century. Advanced countries specialized in the generation and exploitation of knowledge because of its relative abundance stemming from their sophisticated knowledge governance mechanisms and the larges tock of knowledg. On its turn this had strong ositive effects on TFP . The empirical analysis confirms that in advanced economies the specialization in knowledge - based activities substituted the previous specialization in mass-manufacturing activities supporting the increase of TFP. The new specialization in knowledge intensive activities has been stronger the larger was the exposition to international trade, the intensity of patent activities and the revenue per capita. |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201407&r=cse |
| By: | Andrew Tiffin |
| Abstract: | In Italy, price-based competitiveness measures are not always an accurate predictor of trade outcomes. This paper offers a more comprehensive assessment of Italian competitiveness, focusing on the role of innovation and the evolution of Italy’s export market share. Overall, Italy maintains a high-quality export mix, and the adaptability of small-scale specialized firms is still a source of strength. But, small firm size is becoming less of an asset, and even the most innovative sectors are weighed down by the structural barriers that have depressed productivity more broadly. Italy’s future competitiveness will depend on full implementation of a comprehensive structural-reform agenda. |
| Keywords: | Global competitiveness;Italy;Exports;Productivity;Labor costs;Italy, competitiveness, exports, shift share analysis, CMSA |
| Date: | 2014–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:14/79&r=cse |
| By: | Mickael Benaim; Jean-Alain Héraud; Valérie Mérindol; Jean-Paul Villette |
| Abstract: | The diversity of European regions in terms of R&D and of absorptive capacities has been extensively investigated but without taking into account all dimensions of the regional innovation systems. Even though the variety of connections is a source of constraints and opportunities for the development of territories, few analytical contributions have been devoted so far to this subject and to the implications for regional public policies. This article aims at contributing to the analysis of regional research and innovation systems. It focuses on the different types of scientific connectivity present at local to global levels, and proposes a typology of European regions based on co-publication statistics. It links this characterization of European regions with regional policy issues and discusses the relevance of these measures. The typology of scientific connectivity produces new maps of European regions, and challenges the classical R&D point of view about regional systems. |
| Keywords: | European regions, global-local connectivity, regional public policy, absorptive capacity, scientific activities. |
| JEL: | O18 O31 R11 R58 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2014-13&r=cse |
| By: | Bartha, Zoltán; S. Gubik, Andrea |
| Abstract: | The chapter offers an institutional approach to the issue of international business competitiveness. It is assumed that the micro-level, business-oriented factors of competitiveness are influenced by macro-level and institutional factors. These institutional factors can be analysed with the FOI model developed at the University of Miskolc by the Institute of Economic Theory. |
| Keywords: | FOI model, Visegrad countries, institutional factors |
| JEL: | E61 O21 P52 |
| Date: | 2014–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57211&r=cse |
| By: | Anabel Marin (Centro de Investigaciones para la Transformación (Cenit), Argentina); Lilia Stubrin (Centro de Investigaciones para la Transformación (Cenit), Argentina); Patrick van Zwanenberg (Centro de Investigaciones para la Transformación (Cenit), Argentina) |
| Keywords: | Agricultural biology, seed industry, technological capabilities, directions of innovation, catch up, Argentina |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2014-12&r=cse |
| By: | Corrado, Carol (The Conference Board); Haskel, Jonathan (Imperial College London); Jona-Lasinio, Cecilia (ISTAT, Rome) |
| Abstract: | This paper looks at the channels through which intangible assets affect productivity. The econometric analysis exploits a new dataset on intangible investment (INTAN-Invest) in conjunction with EUKLEMS productivity estimates for 10 EU member states from 1998 to 2007. We find that (a) the marginal impact of ICT capital is higher when it is complemented with intangible capital, and (b) non-R&D intangible capital has a higher estimated output elasticity than its conventionally-calculated factor share. These findings suggest investments in knowledge-based capital, i.e., intangible capital, produce productivity growth spillovers via mechanisms beyond those previously established for R&D. |
| Keywords: | productivity growth, economic growth, intangible capital, intangible assets, ICT, spillovers |
| JEL: | O47 E22 E01 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8274&r=cse |
| By: | Keiichi Kishi (Graduate School of Economics, Osaka University) |
| Abstract: | In this paper, we introduce into a Schumpeterian growth model an inventive step: a minimum innovation size required for patents, which is a patentability requirement. We show that each R&D firm targets only the industries that the incumbentfs technology is sufficiently obsolete in order to satisfy an inventive step requirement. This is because a technological gap between innovator and incumbent is larger in the industries that use older technology. Under the circumstance, strengthening an inventive step requirement reduces the industries targeted by R&D, on the other hand, increases R&D investments to the targeted industries. Consequently, we find a nonmonotonic effect of the inventive step on the aggregate flow of innovations. |
| Keywords: | Technological progress, Innovations, Intellectual property rights |
| JEL: | O31 O34 O41 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:1427&r=cse |
| By: | Antonelli, Cristiano; Scellato, Giuseppe (University of Turin) |
| Abstract: | The analysis of the characteristics of firms helps understanding the causes and the consequences of the direction of technological change. Firms differ substantially with respect to the type of technological knowledge they can generate and exploit with the introduction of technological innovations. This in turn has major effects on the direction of technological change they are able to introduce. Large firms able to command the recombinant generation of codified knowledge with a strong scientific base are more likely to introduce neutral technological changes that consist in a shift effect of production functions. Small firms that rely more on tacit and external knowledge are more likely to rely on technologies directed towards the most intensive use of locally abundant production factors. The effects of this difference in terms of the resulting total factor productivity growth are important and can be grasped only when the changes of output elasticity of production factors in growth accounting are properly appreciated. The empirical evidence for a sample of 6600 Italian firms observed during the years 1996 - 2005 confirms that large firms introduced mainly neutral technological changes while small firms with lower levels of profitability introduced biased technological changes. |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201417&r=cse |
| By: | Irlacher, Michael |
| Abstract: | In this paper, I investigate welfare gains associated with trade induced intra-firm adjustments of multi-product firms. To disentangle the welfare gains, I split up the R&D portfolio of a multi-product firm into three different channels: i) product innovation, ii) investments in the degree of product differentiation, and iii) process innovation. Trade integration enables firms to exploit economies of scale as innovation requires upfront development costs and encourages firms to spend more on R&D. I derive the indirect utility function and show that consumers bene.t from this behavior through a larger product range (love of variety) which is also more differentiated (love of diversity). Furthermore, a larger market is associated with technology upgrading. The resulting cost savings are passed on to consumers, leading to welfare gains from lower prices. |
| Keywords: | International Trade; Multi-Product Firms; Gains from Trade; R&D; Cannibalization Effect; Product Differentiation |
| JEL: | F12 L25 |
| Date: | 2014–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:21023&r=cse |
| By: | Ken Warwick; Alistair Nolan |
| Abstract: | Industrial policy, broadly defined, covers a multitude of policy instruments and approaches. While there has been a recent revival of interest in industrial policy around the world, systematic evidence of efficacy is relatively scarce. This report brings together the work of an OECD expert group that has considered recent evidence from the evaluation of industrial policy. The report focuses on three specific policy areas, namely: support for R&D; capital market interventions (with a focus on risk capital); and public procurement for innovation. The report also examines three areas where packages of industrial policy measures are generally applied: sector approaches including public-private partnerships; policies towards clusters and business networks; and national industrial strategies. In many areas of industrial policy, evaluation faces particular methodological challenges. These challenges are outlined in the report, which concludes by drawing together the main policy lessons from the available evaluation evidence. |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:16-en&r=cse |
| By: | Gabor Hunya (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Summary The paper compares three countries (Hungary, Poland and Romania) in terms of the number of greenfield FDI projects and of GDP by NUTS-2 sub-country regions. We discuss whether the particular regions received a smaller or larger share of projects than their share in GDP. Then we outline the regional and investment policy tools applied in each of the countries, looking at their possible impact on the location choice of investors. The investigation reveals significant regional gaps in attracting new FDI projects and a dominance of the capital cities. Regional discrepancies between NUTS-2 regions in terms of per capita GDP have become marginally smaller in recent years but were mainly unrelated to the location of new foreign investments. State aid for large investments, industrial parks and special economic zones has been among the most powerful tools directing the location choice of new FDI projects. |
| Keywords: | FDI, industrial location, regional policy, FDI policy |
| JEL: | F21 F23 R30 R38 R58 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:wii:rpaper:rr:393&r=cse |
| By: | Rubina Shaheen (Pakistan Institute of Development Economics, Islamabad); Attiya Yasmin Javid (Pakistan Institute of Development Economics, Islamabad) |
| Abstract: | This study investigates the determinants of credit ratings of firms and the impact of credit rating on firms’ performance and stock return for listed firms in Pakistan. For empirical analysis of this study, panel data of 63 financial and nonfinancial firms rated by Pakistan Credit Rating Agency (PACRA) and Karachi Stock Exchange covering period from 2007-2011 is used on the basis of availability of data. The results are obtained by applying two estimation techniques. First, to estimate the determinants of credit rating Ordered Probit approach is used. Second, the generalised method of moments (GMM) technique is applied on panel data to estimate the relationship between credit rating and firm performance and also for credit ratings and stock returns. The results illustrate that firm specific factors (leverage, firm size, profitability, and growth opportunities dividend per share) and corporate governance attributes (board size, block holders, shareholder’s rights and CEO duality) are important factors in predicting firms’ credit rating in Pakistan. The analysis further suggests that firms with higher credit ratings have higher corporate performance and firms with higher credit ratings tend to have higher stock returns. The analysis of this study might facilitate debt holders, investors, shareholders and other stake holders to understand the significance of credit ratings and its influence on performance and stock returns of firms. |
| Keywords: | Credit Ratings, Financial Attributes, Corporate Governance Attributes, Business Conditions, Stock Returns, Ordered Probit Model, PACRA |
| JEL: | G10 G11 G30 G32 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:2014:104&r=cse |
| By: | Emanuele Brancati (LUISS University of Rome) |
| Abstract: | Financial frictions represent a severe obstacle to firmsÕ innovativeness. This paper shows the existence and quantifies the effects of financial barriers to the innovation propensity of Italian SMEs. Employing direct measures of financial constraints and a credit-score estimated ad hoc, I find financially-constrained firms have a probability of innovating that is significantly lower than sound companies (-30%). Results document the existence of a feedback-effect of innovation on firmsÕ financial position, resulting into an additional reduction in firmsÕ propensity to innovate. The paper also highlights the role of soft information in mitigating financial obstacles to innovation by improving the financial condition of more opaque (small) borrowers. |
| Keywords: | Innovation, financial constraints, relationship lending, SMEs. |
| JEL: | O31 L25 G21 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:lui:casmef:1403&r=cse |
| By: | Mario Pianta (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo") |
| Abstract: | After Europe’s long stagnation, a debate is emerging on how industrial capacity could be reconstructed. The paper reviews current EU policies and provides the rationale for a new industrial policy at the European level. Such public action could help address current macroeconomic, industrial, innovation, cohesion and environmental problems and would be crucial for the recovery of countries of the “periphery” that have been hit hardest by the crisis. A range of proposals for organising, implementing and funding a new industrial policy – focusing on selected economic activities - are presented, combining action at the European, national and local levels. |
| Keywords: | Industrial policy, Public policy, Europe. |
| JEL: | E6 L5 O4 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:14_01&r=cse |
| By: | Cuong Le Van (Centre d'Economie de la Sorbonne - Paris School of Economics, IPAG and VCREME); Anh-Ngoc Nguyen (Development and Policies Research Center (DEPOCEN) - Vietnam); Ngoc-Minh Nguyen (Development and Policies Research Center (DEPOCEN) - Vietnam) |
| Abstract: | We study the impact of social capital in both simple theoretical and empirical model with the main assumption is the price of physical capital is a decreasing function of social capital. In our theoretical model, there exists a critical value such that firm will not invest in social capital if its saving is lower than the critical value and otherwise. Moreover, the output depends positively and non-linearly on the social capital. Our empirical model that captures the impact of physical capital, human capital, and social capital using the database from Survey of Small and Medium Scale Manufacturing Enterprises (SMEs) in Vietnam 2011, confirms the conclusions of the theoretical model. |
| Keywords: | Social Capital, Optimal Growth. |
| JEL: | Z1 E2 O00 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:14045&r=cse |
| By: | Mouna JEGHAM; Jean-Michel SAHUT |
| Abstract: | The implementation of Information and Communication Technology (ICT) project constitutes a major change for any organization, the actual implementation appears to be very heavily biased toward the technological aspects while paying little attention to man |
| Date: | 2014–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-356&r=cse |
| By: | Carole Poirel; Virginie Noireaux |
| Abstract: | This paper has focused on the development of collective strategies to find better balance of power within the distribution channel. The French industrial waste sector was particularly well-suited to this approach: with, on one hand dominated actors (compa |
| Date: | 2014–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-372&r=cse |