nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒11‒28
forty-one papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Role of ICT in the innovation process based on firm-level evidence from four ASEAN economies: An SEM approach By Idota, Hiroki; Ueki, Yasushi; Bunno, Teruyuki; Shinohara, Sobee; Tsuji, Masatsugu
  2. High-growth firms and technological knowledge: do gazelles follow exploration or exploitation strategies? By Alessandra Colombelli; Jackie Krafft; Francesco Quatraro
  3. International R&D alliances by firms: Origins and development By Narula R.; Martinez-Noya A.
  4. Knowledge Exchange in Innovation Networks: How Networks Support open Innovation in Food SMEs By Kühne, Bianka; Lefebvre, Virginie; Gellynck, Xavier
  5. Asset recombination in international partnerships as a source of improved innovation capabilities in China By Collinson S.; Narula R.
  6. The viability of sustained growth by India's MNEs: India's dual economy and constraints from location assets By Narula R.
  7. Innovation and Economic Growth in European Union. Panel Data Analysis By Andrzej Kacprzyk; Wirginia Doryn; ;
  8. The determinants of spatial location of creative industries start-ups: Evidence from Portugal using a discrete choice model approach By Sara Cruz; Aurora A.C. Teixeira
  9. The persistence of firms' knowledge base: a quantile approach to Italian data By Alessandra Colombelli; Francesco Quatraro
  10. Estimating Direct and Indirect Effects of Foreign Direct Investment on Firm Productivity in the Presence of Interactions between Firms By Girma, Sourafel; Gong, Yundan; Görg, Holger; Lancheros, Sandra
  11. Import Competition, Domestic Regulation and Firm-Level Productivity Growth in the OECD By Sarah Ben Yahmed; Sean Dougherty
  12. Intangible Capital, Innovation, and Growth in China By Fleisher, Belton; McGuire, William; Smith, Adam; Zhou, Mi
  13. Sustainable management and performance in SMEs: A French case study By Berger-Douce, Sandrine
  14. The productivity paradox: A Meta-analysis By Petr Polák
  15. Endogenous timing decisions for product R&D investment competition with demand spillovers in a horizontally differentiated duopoly By Tsuyoshi Toshimitsu
  16. “What Do we Know about Entering Innovation Network by SMEs ?” By Minarelli, Francesca; Raggi, Meri; Viaggi, Davide
  17. Spectrum policy and innovation: A Japanese perspective By Bourna, Maria; Mitomo, Hitoshi
  18. Leaders and Followers: Perspectives on the Nordic Model and the Economics of Innovation By Joseph E. Stiglitz
  19. Where are innovation indicators, and their applications, going? By Gault F.
  20. The intellectual pillars of user innovation: a co-citation analysis By Herstatt, Cornelius; Schweisfurth, Tim
  21. Does land fragmentation increase the cost of cultivation ? evidence from India By Deininger, Klaus; Monchuk, Daniel; Nagarajan, Hari K; Singh, Sudhir K
  22. The Nature of Entrepreneurship and its Determinants: Opportunity or Necessity? By Gonçalo Brás; Elias Soukiazis
  23. Does the Technological Content of Government Demand Matter for Private R&D? Evidence from US States By Viktor Slavtchev; S. Wiederhold
  24. The role of telecommunications operators on smart home service platforms By Kuebel, Hannes; Zarnekow, Ruediger
  25. Does local public ownership matter for the efficiency of water utilities? Evidence from Italy By Meryem Duygun; Silvia Pazzi; Emili Tortosa-Ausina; Simona Zambelli
  26. Informing SMEs Better about Available Support Measures: Consideration of the case of micro businesses (Japanese) By YASUDA Takehiko
  27. Evolving intraday foreign exchange trading strategies utilizing multiple instruments price series By Simone Cirillo; Stefan Lloyd; Peter Nordin
  28. Innovation, competition, diversification: a tree form dynamics of long-term development By Shidong Wang; Cheng Wan
  29. CEO fitness and firm value By Limbach, Peter; Sonnenburg, Florian
  30. The curse of knowledge increases self-selection into competition: Experimental evidence By Danz, David
  31. Determinants of Operational Efficiency and Total Factor Productivity Change of Major Cambodian Financial Institutions : A Data Envelopment Analysis during the Period of 2006-2013 By OKUDA, Hidenobu; AIBA, Daiju
  32. Generating Business Referrals for SMEs: The Contingent Value of CEOs' Social Capital By Barthelemy Chollet; Mickaël Géraudel; Caroline Mothe
  33. Employee engagement of managerial staff in hospitals - An Indian pilot study By J, Swaminathan; S, Aramvalarthan
  34. The Impact of Public Investment in Medical Imaging Technology: An Interagency Collaboration in Evaluation By O'Connor, Alan C.; Link, Albert N.; Downs, Brandon M.; Hillier, Laura M.
  35. Education capability: a focus on gender and science. By Addabbo, Tindara; Di Tommaso, Maria Laura; Maccagnan, Anna
  36. The Comparative Advantage of Cities By Donald R. Davis; Jonathan I. Dingel
  37. Determinants of Financial Market Spillovers: The Role of Portfolio Diversification, Trade, Home Bias, and Concentration By Yoko Shinagawa
  38. Efficiency and competition in the Dutch non-life insurance industry: Effects of the 2006 health care reform By Jacob Bikker; Adelina Popescu
  39. What Drives Wine Expenditure in the United States? A Four-State Wine Market Segmentation and Consumer Behaviors Study By Deng, Xueting; Woods, Timothy
  40. An allocation rule for dynamic random network formation processes By Jean-François Caulier; Michel Grabisch; Agnieszka Rusinowska
  41. European High-End Products in International Competition By Lionel Fontagné; Sophie Hatte

  1. By: Idota, Hiroki; Ueki, Yasushi; Bunno, Teruyuki; Shinohara, Sobee; Tsuji, Masatsugu
    Abstract: Although the East Asian economies have been developing in the 21th century, innovation is indispensable for their further economic development. In order to achieve successful innovation, firms have to elevate their capability including technology, human resources, business organization, ICT use and so on by collaborating with outside organizations such as MNCs (Multi-national companies), universities, public organizations. The outside organizations are termed as external linkages. Based on authors' survey data of four ASEAN economies such as Vietnam, Indonesia, the Philippines, and Thailand from 2012 to 2013, this paper examines how factors such as organizational learning, ICT use, and technology enhance product and process innovation. These factors are used as latent variables in analysis and consist of the following variables: (i) technology such as capital goods, (ii) organizational learning including QC, cross-functional teams, (iii) ICT use such as B2B, B2C, EDI, SCM, ERP, CAD/CAM, groupware, SNS etc., and (iv) external linkages, such as MNCs, local and public organizations, and universities. This study employs SEM (Structural equation modeling) in order to analyze the causal relationships not only among the above four latent variables but also between these and innovation. The six hypotheses were postulated as follows: H1. External linkages enhance organizational learning; H2. External linkages improve capital goods; H3. External linkage improves ICT use; H4. Organizational learning improves capital goods; H5. Organizational learning improves ICT use; and H6. Organizational learning, ICT use, and capital goods enhance innovation. Estimation results on product innovation demonstrate that organization learning, technology (capital goods), and ICT use enhance product innovation. On the other hand, organization learning promotes technology (capital goods) and ICT use, which promotes process innovation. Accordingly, this study clarifies that ICT use, technology and innovation capability enhance product and process innovation.
    Keywords: ICT use,innovation, internal capability,external linkages,SEM (Structural equation modeling)
    Date: 2014
  2. By: Alessandra Colombelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS))
    Abstract: This article analyzes the contribution of high-growth firms (HGFs) to the process of knowledge creation. We articulate a demand-pull innovation framework in which knowledge creation is driven by sales growth, and knowledge stems from creative recombination. Building on the literature on HGFs and economic growth, we investigate whether "gazelles" follow patterns of knowledge creation dominated by exploration or exploitation strategies. We construct indicators for the structure of knowledge and identify firms' innovation strategies. The empirical results show that increasing growth rates are associated with exploration, supporting the idea that HGFs are key actors in the creation of new technological knowledge, and showing also that firms that achieve higher than average growth focus on exploration based on familiar technology. This suggests that exploration is less random than has been suggested. Our main result is that HGFs, especially gazelles, predominantly adopt exploration strategies that have the characteristics of organized search more often observed among firms following an exploitation strategy.
    Date: 2014–01–06
  3. By: Narula R.; Martinez-Noya A. (UNU-MERIT)
    Abstract: There has been a dramatic increase in all forms of international cooperation in science, technology and innovation over the last three decades. This chapter focuses on a specific subset of such cooperative agreements those that primarily but not exclusively involve firms that seek some commercial benefit from the outputs of inter-firm collaboration, known as strategic technology partnering STP. Special attention is given to clearly define the unique nature of these collaborative agreements, as well as the reasons and theories behind their growth. We focus on their international dimension, identifying international STP trends, and how the cross-border aspect of these alliances impinges on their formation and success. Finally, managerial challenges and policy implications related to STP are also discussed.
    Keywords: Contracting Out; Joint Ventures; Technology Licensing; Management of Technological Innovation and R&D;
    JEL: O32 L24
    Date: 2014
  4. By: Kühne, Bianka; Lefebvre, Virginie; Gellynck, Xavier
    Abstract: Knowledge exchange is a prerequisite for learning and consequently for innovation. Through open innovation, the innovating firms establish ties with other organizations, in order to innovate. At the baseline, open innovation is thus the exchange of knowledge through in- and out-flows of the knowledge at a company. Formal networks can provide access to other organizations and otherwise unavailable knowledge and resources and are seen as the locus of innovation. Four main categories of knowledge exchange can be distinguished: socialization, combination, articulation, and internalization. Within these categories, distinct but interdependent processes of knowledge exchange take place as described in the innovation production process (IPP) which consists of three main steps, knowledge accumulation, knowledge transformation, and knowledge exploitation (Roper et al., 2008). The objective of this paper is to explore how formal networks contribute to the categories of knowledge exchange and to each of the three steps of the IPP in order to conclude on how networks can facilitate open innovation among their members. Data are collected by means of three case-studies conducted in three Flemish formal networks which focus on enhancing the innovativeness and learning capabilities of micro, small and medium sized enterprises (SMEs). Our findings confirm the importance of networks in the process of knowledge exchange and innovation for SMEs in the food sector. The most important role of the networks is to create the appropriate environment according to the type of knowledge and the step(s) in the innovation production process focused on. Furthermore, it appears to be a very important task of the network to stimulate actively knowledge transformation into innovation outputs such as new or improved technology or product prototypes. Thereby, not only short-term effects should be aimed at, but also long-term effects e.g. for organizational innovation, should be taken into account. In conclusion, all three networks follow very different approaches in order to facilitate, stimulate and support knowledge exchange and innovation among their members. Based on the results, managerial as well as policy implications are posed towards network members, i.e. the SMEs, network coordinators and researchers.
    Keywords: knowledge exchange, learning, triple helix networks, SMEs, food industry, Agribusiness, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods,
    Date: 2013–09
  5. By: Collinson S.; Narula R. (UNU-MERIT)
    Abstract: This paper examines how multinational enterprises MNEs and local partners, including suppliers, customers and competitors in China, improve their innovation capabilities through collaboration. We analyse this collaboration as a three-way interaction between the ownership-specific O advantages or firm-specific assets FSAs of the MNE subsidiary, the FSAs of the local partner, and the location-specific assets of the host location. Our propositions are examined through a survey of 320 firms, supplemented with 30 in-depth case studies. We find that the recombination of asset-type Oa FSAs and transaction-type Ot FSAs from both partners leads to new innovation-related ownership advantages, or recombinant advantages. The study reveals important patterns of reciprocal transfer, sharing and integration for different asset categories tacit, codified and different forms of FSA and explicitly links these to different innovation performance outcomes. Ot FSAs, in the form of access to local suppliers, customers or government networks are particularly important for reducing the liability of foreignness for MNEs.
    Keywords: Multinational Firms; International Business; Globalization: Policy; Management of Technological Innovation and R&D;
    JEL: F23 O32
    Date: 2014
  6. By: Narula R. (UNU-MERIT)
    Abstract: This paper considers the longer-term viability of the internationalization and success of Indian MNEs. We apply the dual economy concept Lewis 1954, to reconcile the contradictions of the typical emerging economy, where a modern knowledge-intensive economy exists alongside a traditional resource-intensive economy. Each type of economy generates firms with different types of ownership advantages, and hence different types of MNEs and internationalization patterns. We also highlight the vulnerabilities of a growth-by-acquisitions approach. The potential for Indian MNEs to grow requires an understanding of Indias dual economy and the constraints from the home countrys location advantages, particularly those in its knowledge infrastructure.
    Keywords: Multinational Firms; International Business; Globalization: Policy; Management of Technological Innovation and R&D;
    JEL: F23 O32
    Date: 2014
  7. By: Andrzej Kacprzyk (University of Lodz, Faculty of Economics and Sociology); Wirginia Doryn (University of Lodz, Faculty of Economics and Sociology); ;
    Abstract: There seems to be a growing consensus among economists and policy makers that investment in knowledge, which is at the center of the endogenous growth process, is a precondition for achieving permanently high economic growth. This paper examines relationship between economic growth and the various indicators of innovative activity that contribute to new knowledge creation. Our study differs from previous analyses, which mainly employed data from OECD countries. To the best of our knowledge, this is the first attempt to test whether the impact of innovative activity on growth differs between old and new European Union member states. Based on the panel data regression model we examine the interaction between economic growth and innovation, the latter proxied by R&D expenditures and patent statistics. We distinguish between publicly and privately-funded R&D and try to answer the question whether private and public R&D investments differ in terms of fostering economic growth. The results are sensitive to the sample analyzed and indicate that the relationship between innovation efforts and growth is more complex and ambiguous than expected.
    Keywords: Economic growth, innovation, R&D, patents, panel data
    JEL: O33 O30 O47
    Date: 2014–10
  8. By: Sara Cruz (CEF.UP, Faculdade de Economia, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC TEC; OBEGEF)
    Abstract: This paper assesses the location determinants of the newly created firms in the creative sector within the framework of Discrete Choice Models. Estimations using a conditional logit model, which incorporate spatial effects of neighbouring regions in the location choices of firms, yield the following results: i) the concentration of creative and knowledge-based activities, due to agglomeration economies, play an important role in location decisions of new creative establishments; ii) in contrast, the concentration of service-business activities has a negative impact on location choices, which may be due to the fact that creative firms privilege interdependencies with other activity sectors, such as innovation/ knowledge-based activities; iii) creative firms tend to favour a diversified industrial tissue and related variety, in order to enjoy from inter-sectorial synergies; iv) higher education at a regional level has a highly significant, positive effect on location decisions, while lower educational levels of human capital negatively affect those decisions, explained by the specific requirements that creative firms usually have of a highly skilled labour force; v) tolerant/ open environments attract creative activities; vi) creative firms tend to favour municipalities where the stock of knowledge and conditions for innovative activity are higher. Location decisions of creative firms also vary according to the creative sector they belong to and to their own characteristics, firm’s educational level or technology-intensity. Finally, municipality attributes are more important in terms of firms’ location decisions than the characteristics of nearby regions.
    Keywords: Spatial economics; industrial location; econometric models; creative industries.
    JEL: C01 R12 R30
    Date: 2014–10
  9. By: Alessandra Colombelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS))
    Abstract: The paper investigates the patterns of persistence of innovation and of the properties of firms' knowledge base (KB) across a sample of Italian firms in the period 1998-2006. The analysis draws upon a theoretical representation of knowledge as a collective good, stemming from the recombination of knowledge bits that are fragmented and dispersed across economic agents. On this basis, we derived properties of the KB like the coherence, the cognitive distance and the variety, and investigated their patterns of persistence over time. The empirical analysis is implemented by exploring the autocorrelation structure of such properties within a quantile regression framework. The results suggest that the properties of knowledge are featured by somewhat peculiar patterns as compared with knowledge stock, and that such evidence is also heterogeneous across firms in different quantiles.
    Keywords: persistence, innovation, knowledge coherence, variety, cognitive distance, quantile regression, autocorrelation
    Date: 2014–04–23
  10. By: Girma, Sourafel (University of Nottingham); Gong, Yundan (Aston University); Görg, Holger (Kiel Institute for the World Economy); Lancheros, Sandra (University of Nottingham)
    Abstract: We implement a method to estimate the direct effects of foreign-ownership on foreign firms' productivity and the indirect effects (or spillovers) from the presence of foreign-owned firms on other foreign and domestic firms' productivity in a unifying framework, taking interactions between firms into account. To do so, we relax a fundamental assumption made in empirical studies examining a direct causal effect of foreign ownership on firm productivity, namely that of no interactions between firms. Based on our approach, we are able to combine direct and indirect effects of foreign ownership and calculate the total effect of foreign firms on local productivity. Our results show that all these effects vary with the level of foreign presence within a cluster, an important finding for the academic literature and policy debate on the benefits of attracting foreign owned firms.
    Keywords: propensity score matching, SUTVA, foreign direct investment, interactions
    JEL: F23
    Date: 2014–09
  11. By: Sarah Ben Yahmed (IEP Aix-en-Provence - Sciences Po Aix - Institut d'études politiques d'Aix-en-Provence - Institut d'Études Politiques [IEP] - Aix-en-Provence - Aix Marseille Université - Fondation Nationale des Sciences Politiques [FNSP], GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - École des Hautes Études en Sciences Sociales (EHESS) - CNRS : UMR7316); Sean Dougherty (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, OCDE - Organisation de coopération et de développement économiques - OCDE)
    Abstract: This paper examines how import penetration affects firms' productivity growth taking into account the heterogeneity in firms' distance to the efficiency frontier and country differences in product market regulation.
    Keywords: Firm productivity growth ; Behind-the-border regulatory barriers ; Product market regulation ; Import competition, international trade
    Date: 2014–03–14
  12. By: Fleisher, Belton; McGuire, William; Smith, Adam; Zhou, Mi
    Abstract: We study the relationship between industry-level investments in intangible capital (IC) and three key economic indicators in China. We find that investments in IC are productivity-enhancing among Chinese enterprises—more so in domestically owned than in foreign invested enterprises. Consistent with other research, we find that China’s IC generates new patents, but fewer than in major industrialized economies. Among domestically owned enterprises, we find that IC growth has been associated with increasing export-competitiveness, while among foreign invested enterprises, it has been oriented more toward improving domestic sales.
    Keywords: Intangible capital, technology, economic growth, intellectual property, Asia, China, International Development, International Relations/Trade, Production Economics, O31, O33, O34, O43, P33,
    Date: 2014
  13. By: Berger-Douce, Sandrine
    Abstract: Nowadays, sustainable management seems more likely to be a guarantee of competitiveness for companies, regardless of their size. Besides offering those strategic opportunities, sustainable management practices also play a significant role in gaining acceptance and legitimacy in the marketplace. Moreover, SMEs are continually researching ways to improve their performance. The relationship between sustainability and company performance has interested researchers for twenty years, even if the academic results are mostly focused on bigger companies. The purpose of this paper is to provide an understanding of how sustainable management practices help in achieving global performance for small and medium-sized enterprises (SMEs). The analysis of this case study shows how the transition from risk management to sustainable management allows an improvement in global company performance. Global performance considers social, environmental and societal issues in addition to economic performance. The first part of the paper looks at the relationship between sustainability and performance in the context of SMEs. The second part uses a French case study to illustrate how an industrial SME can implement sustainable management and translate this into improved performance. To resume, this paper illustrates that sustainable management can be a catalyst for innovation in industrial SMEs.
    Keywords: case study,(global) performance,sustainability,small and medium-sized enterprises (SMEs)
    JEL: M10 M14
    Date: 2014
  14. By: Petr Polák (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic)
    Abstract: The impact of ICT (information and communication technology) on economic performance has been the subject of academic research for several decades, and despite the remarkable and significant innovation in computer technology, usage, and investments, only a small growth in productivity was observed. This observations has been coined the productivity paradox. This paper meta-analytical methods to examine publication bias and size of ICT elasticity. The empirical part is based on a collection of more than 800 estimates of IT payoff effects from almost 70 studies written in the last 20 years. The metaanalysis reveals strong presence of publication bias within ICT productivity literature and using mixed effect multilevel model estimates the ICT elasticity to be only 0.3%, which is more than ten times smaller than what was reported by previous meta-analysis 10 years ago.
    Keywords: meta-analysis, meta-regression analysis, publication bias, productivity paradox, Solow paradox, productivity, firm, ICT elasticity, IT payoff, information technology
    JEL: C83 O12 O32 D24
    Date: 2014–09
  15. By: Tsuyoshi Toshimitsu (School of Economics, Kwansei Gakuin University)
    Abstract: By focusing on the constructive and combative spillover effects of the firms’ investment in research and development (R&D), we develop a horizontally differentiated duopoly model in which R&D investment used to improve product quality influences consumer preferences and the choice of consumption goods. Applying the framework of endogenous timing decisions to the model, we examine the mutually beneficial timing of product R&D investment and demonstrate that, if there are asymmetric demand spillovers between the firms, a natural Stackelberg equilibrium persists in noncooperative product R&D investment competition in which the firm producing the product with weaker (stronger) demand spillovers moves first (second) to commit to the investment, regardless of the mode of competition. We consider the outcome of the endogenous timing decisions, based on the view of “endogenous sunk costs (i.e., The Sutton Approach)”. Furthermore, we address process R&D investment competition with technology spillovers under endogenous timing.
    Keywords: endogenous timing, natural Stackelberg equilibrium, product R&D investment, demand spillovers, horizontally differentiated Cournot duopoly, endogenous sunk cost
    JEL: L13 L15
    Date: 2014–10
  16. By: Minarelli, Francesca; Raggi, Meri; Viaggi, Davide
    Abstract: The importance of networking as a way to enhance innovation has been pointed out in many scientific papers, in particular for SMEs. A great number of scientific studies clearly establish the significant role of SMEs in economic growth, promoting flexibility and innovation in an economy. The process of successfully engage in a network represents a key for enhancing competitiveness. In order to improve effectiveness of network is pivotal the achievement of a better understanding of SME behavior. The presented work aims to identify factors that characterize food SMEs entering in innovation networks by integrating findings from the literature review with a survey of food SMEs.
    Keywords: Network, food SMEs, innovation, Agribusiness, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods,
    Date: 2013–09
  17. By: Bourna, Maria; Mitomo, Hitoshi
    Abstract: This paper investigates how spectrum policy affects the diffusion of innovation in the telecommunications sector, and is part of a general discussion on expanding spectrum policy aims to address sector innovativeness. We argue that innovation can be analytically depicted not only as the appearance of new technology, but also as physical network expansion of said technology, and adoption by end users. This definition is used in contrast with previous work on spectrum policy and innovation, which tends to use R&D or infrastructure investment as proxies for innovation, resulting in a more limited understanding of the innovation process. The study surveys the telecommunications industry in Japan over a period of 13 years (2001-2013), and discusses the effect of spectrum allocations and other regulatory acts on the expansion of the 3G mobile network. We found that spectrum policies excluding allocations had a negative effect on the expansion of the physical network, while the growth of said network correlated strongly with 3G penetration. This may suggest that the effect that spectrum policy has on innovation is most likely mediated by the role of competition in the infrastructure layer and is more pronounced in the contraction stage of the innovation life cycle. These results provide a preliminary basis for gaining a better understanding of the ways in which the policy environment relates to the evolutionary processes behind innovation.
    Keywords: Radio spectrum,Innovation,Japan,Telecommunications
    Date: 2014
  18. By: Joseph E. Stiglitz
    Abstract: This paper is an exercise in comparative institutional analysis, asking what kinds of arrangements most facilitate innovation. After identifying pervasive market failures in innovation, it explains why those associated with the Nordic model may be particularly conducive to innovation, and demonstrates that, in general, the optimal policies of the leader should differ from that of followers, but that both leaders and followers can benefit from active government policies (like industrial policies, public investments, and systems of social protection), not only leading to more innovation, but ensuring that more innovative activity is directed in ways that lead to the enhancement of living standards. It concludes by constructing a simple model in which knowledge flows slowly across national borders but moves easily within borders. We show there is a leadership-followership equilibrium, in which some countries are leaders, others are followers. Contrary to Solow's analysis, there need not be convergence. Focusing on technological progress that is a result of learning by doing, where learning occurs within the industrial sector but spills over to other sectors, we demonstrate the optimality of policies to expand the industrial sector beyond that which prevails in competitive equilibrium.
    JEL: E61 O3 O31 O32 O33 O34 O38 O51 O52
    Date: 2014–09
  19. By: Gault F. (UNU-MERIT)
    Abstract: This paper reviews the current state of indicators of the activity of innovation and how they are presented for use in the policy process leading to a discussion of the development of new indicators, some outside of the business sector, which raises questions about the definition of innovation. This is followed by a review of plans for the evolution of innovation indicators and their use over the next few years. These plans, national and international, are diverse and this leads to a discussion of international organizations and forums which could facilitate progress towards new indicators and a better understanding of innovation systems.
    Keywords: Technological Change; Research and Development; Intellectual Property Rights: General; Innovation and Invention: Processes and Incentives; Technological Change: Government Policy; Cultural Economics: Public Policy;
    JEL: O30 O31 O38 Z18
    Date: 2014
  20. By: Herstatt, Cornelius; Schweisfurth, Tim
    Date: 2014
  21. By: Deininger, Klaus; Monchuk, Daniel; Nagarajan, Hari K; Singh, Sudhir K
    Abstract: Although a large literature discusses the productivity effects of land fragmentation, measurement and potential endogeneity issues are often overlooked. This paper uses several measures of fragmentation and controls for endogeneity and crop choice by looking at inherited paddy and wheat plots to show that these issues matter empirically. While crop choice can mitigate effects, fragmentation as measured by the Simpson index increases production cost and fosters substitution of labor for machinery, especially for small and medium farmers. Greater distances between fragments have a smaller effect. Creating opportunities for market-based consolidation could be one step to limit fragmentation-induced cost increases.
    Keywords: Rural Development Knowledge&Information Systems,Crops and Crop Management Systems,Labor Policies,Economic Theory&Research,Regional Economic Development
    Date: 2014–11–01
  22. By: Gonçalo Brás (Faculty of Economics, University of Coimbra, Portugal); Elias Soukiazis (Faculty of Economics, University of Coimbra and GEMF, Portugal)
    Abstract: Within the institutional theory of North (1990, 2005), the objective of this study is to analyse the impact of economic and institutional factors, formal and informal, in the entrepreneurial activity of nations, particularly in Total Entrepreneurial Activity (TEA). In order to evaluate the simultaneous influence of economic and institutional factors on the entrepreneurial activity, a multiple regression approach is used with cross-country data sets. The results show that TEA is negatively related to infrastructural capacity and political stability of a country, and positively related to government spending and freedom of expression and corporate associations (Voice & Accountability) at a country level. It is also tested the relationship between TEA and GDP per capita. Our results confirm a convex relationship between the two variables giving evidence that the entrepreneurial activity is mostly necessity driven rather than motivated by opportunity.
    Keywords: Entrepreneurship by necessity, Entrepreneurship by opportunity, Cross-country regression models, convexity hypothesis, threshold level.
    JEL: L26 M13 C31
    Date: 2014–11
  23. By: Viktor Slavtchev; S. Wiederhold
    Abstract: Governments purchase everything from airplanes to zucchini. This paper investigates the role of the technological content of government procurement in innovation. We theoretically show that a shift in the composition of public purchases toward high-tech products translates into higher economy-wide returns to innovation, leading to an increase in the aggregate level of private research and development (R&D). Collecting unique panel data on federal procurement in US states, we find that reshuffling procurement toward high-tech industries has an economically and statistically significant positive effect on private R&D, even after extensively controlling for other R&D determinants. Instrumental-variable estimations support a causal interpretation of our findings.
    Keywords: government demand, private R&D, endogenous growth, innovation policy
    JEL: E60 H57 O31 O33 O38
    Date: 2014–09
  24. By: Kuebel, Hannes; Zarnekow, Ruediger
    Abstract: The formation and evolution of digital service platforms is changing the balance of powers in the ICT industry. In particular, telecommunications operators feel the need to gain more control over the creation and provision of new services and to revise their roles in different service ecosystems. Therefore, both researchers and practitioners call for a better understanding of emerging digital services, such as smart home services, and corresponding platform strategies. Therefore, we assess the roles of leading telecommunications operators on smart home service platforms based on data gathered from in-depth desk research. Drawing on platform theory and the industry perspective on the smart home market, we identify how operators control technological and organizational assets to act as system integrator, enabler, broker and neutral platforms. Further, we discuss operators' strategies and major challenges in establishing common service platforms in a varied smart home ecosystem. Additionally, we point out aspects of interest for further research.
    Keywords: smart home,service platforms,business strategy,telecommunications industry
    Date: 2014
  25. By: Meryem Duygun (Business School, Hull University, UK); Silvia Pazzi (School of Management, University of Leicester, UK); Emili Tortosa-Ausina (IVIE, Valencia and Department of Economics, Universidad Jaume I, Castellón, Spain); Simona Zambelli (Dipartimento di Scienze Aziendali, Università di Bologna, Italy)
    Abstract: This study explores the impact of ownership types on efficiency of Italian water utilities. Theories and evidence have shown a puzzling relationship between ownership and performance. Moreover, a recent study argues that this relationship can be further complicated by the effect of organisational and environmental variables. The current study aims to contribute to the debate about the impact of ownership structure on efficiency by including the effect of size and geographical location combining efficiency (obtained via nonparametric methods) with cluster analysis. The results show that ownership does not have a significant effect on efficiency per se; however the combination of size and geographical location provides interesting insights on the difference observed in the efficiency. Therefore, the paper argues that administrative reforms for institutional settings should consider a set of variables that characterise each organisation.
    Keywords: efficiency, water utilities, ownership, size, geographical location
    JEL: H4 H7 H83
    Date: 2014
  26. By: YASUDA Takehiko
    Abstract: The Japanese government has been offering meticulously designed policy measures to support small and medium enterprises (SMEs). This paper examines to what extent SMEs are actually aware of those measures based on findings from our original online survey, and attempts to identify and analyze the factors that determine the degree of policy penetration.<br />Our survey found that SMEs are, all in all, poorly informed about key SME policy measures implemented in the 2000s. It was also found that the degree of awareness—or policy penetration—differs depending on the attributes of each SME such as firm size and the type of management as well as on the type of policy measure.<br />Furthermore, this study considers the following two possible reasons for the low degree of policy penetration: 1) SMEs believe they do not need to be informed about government policies, and 2) SME managers do not have enough time to learn about government policies. An empirical analysis reveals that the latter is the primary factor for the low penetration rate.<br />These results point to the need for the government to consider ways to make policy information more readily accessible to SMEs rather than just printing and distributing more explanatory brochures.
    Date: 2014–11
  27. By: Simone Cirillo; Stefan Lloyd; Peter Nordin
    Abstract: We propose a Genetic Programming architecture for the generation of foreign exchange trading strategies. The system's principal features are the evolution of free-form strategies which do not rely on any prior models and the utilization of price series from multiple instruments as input data. This latter feature constitutes an innovation with respect to previous works documented in literature. In this article we utilize Open, High, Low, Close bar data at a 5 minutes frequency for the AUD.USD, EUR.USD, GBP.USD and USD.JPY currency pairs. We will test the implementation analyzing the in-sample and out-of-sample performance of strategies for trading the USD.JPY obtained across multiple algorithm runs. We will also evaluate the differences between strategies selected according to two different criteria: one relies on the fitness obtained on the training set only, the second one makes use of an additional validation dataset. Strategy activity and trade accuracy are remarkably stable between in and out of sample results. From a profitability aspect, the two criteria both result in strategies successful on out-of-sample data but exhibiting different characteristics. The overall best performing out-of-sample strategy achieves a yearly return of 19%.
    Date: 2014–11
  28. By: Shidong Wang; Cheng Wan
    Abstract: This paper provides an individual-based foundation for the logistic and Lotka-Volterra equations which describe the diffusion of an innovation or the competition between old and new alternatives, then presents two extensions of this basic model. First, it extends the short-term competition to a long-term process characterized by a sequence of innovations and substitutions. Next, by allowing the substitutions to be incomplete, it extends the unidimensional process to a tree-form multidimensional one featuring diversification throughout the long-term development.
    Date: 2014–11
  29. By: Limbach, Peter; Sonnenburg, Florian
    Abstract: This study finds a positive relation between CEO fitness and firm value. For each of the years 2001 to 2011, we define CEOs of S&P 1500 companies as being fit if they finish a marathon. The literature suggests that fitness moderates stress and positively affects cognitive functions and performance. Accordingly, we find the strongest effects on firm value in subsamples where fitness is most important, i.e., for CEOs with high workload, above median age, and above median tenure. Fit CEOs are further associated with significantly higher abnormal announcement returns in M&A bids for large, public, and cross-border targets, concomitant with high stress. Our findings can explain the importance of CEO fitness in the managerial labor market and the trend among CEOs to stay fit.
    Keywords: CEO characteristics,CEO fitness,CEO work load,firm value,mergers and acquisitions
    JEL: G32 G34 J24
    Date: 2014
  30. By: Danz, David
    Abstract: The psychology literature provides ample evidence that people have difficulties taking the perspective of less-informed others. This paper presents a controlled experiment showing that this "curse of knowledge" can cause comparative overconfidence and overentry into competition. In a broader context, the results provide an explanation for the overconfidence of nascent entrepreneurs and the substantial rate of failure among new businesses.
    Keywords: curse of knowledge,hindsight bias,information projection,overconfidence,sorting,incentive schemes,competition,beliefs,experiments
    JEL: C91 D80 D82 D83 D84
    Date: 2014
  31. By: OKUDA, Hidenobu; AIBA, Daiju
    Abstract: This study is the first attempt to estimate the determinants of the operational efficiency and total factor productivity (TFP) change of major financial institutions in Cambodia during the period 2006 to 2013. The technical efficiency score and the TFP change were measured using conventional data envelopment analysis (DEA) and the Malmquist index, and these obtained indexes were then regressed to find their determinants. The empirical results obtained reveal that the efficiency of large institutions is higher and more stable than that of small institutions, and the efficiency of domestic institutions is better than that of their foreign counterparts. Furthermore, institutions that are more resilient and operationally stable can generate profits more efficiently, and institutions that are more diversified are more efficient. It was also observed that sound and diversified institutions tend to increase their total factor productivity, and some exogenous factors, such as increased household reserves of financial assets and improved economic infrastructure, contributed to the improvement of productivity change. These observations suggest that further improvement of Cambodian financial institutions requires an increase in operational capacity, appropriate selection of foreign ownership, enhanced soundness of management, and greater diversification.
    Keywords: Cambodia, DEA, Commercial banks, Operational efficiency, Total factor productivity
    JEL: G21
    Date: 2014–11–05
  32. By: Barthelemy Chollet (GEM - Grenoble Ecole de Management - Grenoble École de Management (GEM)); Mickaël Géraudel (CEROM - Centre d'Etudes et de Recherche sur les Organisations et le Management - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School); Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie - Institut d'Administration des Entreprises (IAE) - Savoie Mont-Blanc)
    Abstract: We examine how small and medium-sized enterprise (SME) chief executive officers' (CEOs) social capital (as measured by strength of ties and structural holes) can help them bring business to their firms through the spread of positive referrals. Based on a sample of 408 French SME CEOs, we find a direct effect of social capital. Such effect is contingent on the CEO's personality, with social capital being most beneficial to CEOs with low levels of conscientiousness. CEOs' social ties facilitate the distortion of information, thereby leading personal contacts to give referrals to and endorse a focal CEO, even in the presence of negative signals, such as low conscientiousness.
    Date: 2013
  33. By: J, Swaminathan; S, Aramvalarthan
    Abstract: Employee engagement is a state of emotional and intellectual involvement that employees have in an organization. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. It is a positive attitude held by the employees towards the organization and its values. This study focused on how employee engagement is an antecedent of job involvement and what should the management of hospitals do to make their managers engaged. This study conducted was to find out the levels of employee engagement, the drivers of it, which includes Employee Empowerment, Communication, Team Work, Training and Development,Recognition, Leadership Quality, and Work Life Balance to analyze their impact and to offer suggestions to improve the same. The study adopted non-probability sampling using systematic method to collect primary data. The samples of the study constituted 100 managerial staff from various hospitals in Nagapattinam District, Tamil Nadu, India. Anova,Chi square and Paired t test were employed in the analysis of data. The results of the study indicated that the Employee Engagement of Managerial Staff in Hospitals of Nagapattinam District is moderate and Recognition helps to attain Employee Engagement.. The hospitals should concentrate on dimensions like Recognition and Team work to improve Employee Engagement of the hospitals.
    Keywords: Employee empowerment, Team work, Recognition, Communication, Work life Balance
    JEL: I19
    Date: 2013–01
  34. By: O'Connor, Alan C. (RTI International); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Downs, Brandon M. (Canada Foundation for Innovation); Hillier, Laura M. (Canada Foundation for Innovation)
    Abstract: The Canada Foundation for Innovation (CFI) and the Canadian Institutes of Health Research (CIHR) allied to analyze the impact of their investments in medical imaging research. The CFI funds capital and operating programs for research infrastructure, and CIHR’s mandate concentrates its funding on research activity. It happens that CIHR-funded research consumes CFI-funded infrastructure as an input in the innovation process. Apart from a few partnered programs, by design there is no coordination between CFI and CIHR funding decisions. Together, these agencies invested $916 million over a 14 year period. In this paper we evaluate the economic and health benefits from advancements in one funded area, namely computed tomography perfusion (CTP). CTP is an imaging technique that uses computed tomography to measure blood flow in organs and tissues. It is most used to assess acute ischemic stroke. The net social benefits attributable to these investments are substantially positive: the benefit-to-cost ratio is estimated to be between 6.66-to-1 and 9.99-to-1. We review how public investments from multiple funders comingle in the innovation process to deliver social value and improved health outcomes.
    Keywords: cost-benefit analysis; innovation; technology; medical imaging research; innovation; CT perfusion; stroke; Canada
    JEL: H43 O31 O33
    Date: 2014–11–11
  35. By: Addabbo, Tindara; Di Tommaso, Maria Laura; Maccagnan, Anna (University of Turin)
    Abstract: The focus of the paper is on the measurement of science education capability with a gender perspective. Measuring science education capability implies going beyond the measurement of children test scores. In the capability approach, we aim at the real opportunities that children can develop later in life and therefore it is important to include some measures of non-cognitive skills. We utilize, therefore, different indicators in addition to test scores in science: enjoyment in science, interest in science, general and personal values of science, self - confidence in performing science related tasks, awareness and perception of environmental issues, and responsibility for sustainable development. We utilize the 2006 PISA survey for Italian 15 year old children because it contains a particular focus on science and we estimate a Structural Equation Model to take into account that capabilities are latent constructs of which we only observe some indicators. We also investigate the determinants of children’s science education capability in Italy taking into account household, individual and school factors. Results confirm that boys outperform girls in science education capability. Our theoretical construct for the science education capability confirms that all the indicators are relevant to measure this capability. School activities to promote sciences improve girls’ capability and interactive methods of teaching improve both girls and boys capability. The household educational resources and the household educational possession are also positively correlated with girls’ and boys’ science education capability.
    Date: 2014–10
  36. By: Donald R. Davis; Jonathan I. Dingel
    Abstract: What determines the distributions of skills, occupations, and industries across cities? We develop a theory to jointly address these fundamental questions about the spatial organization of economies. Our model incorporates a system of cities, their internal urban structures, and a high-dimensional theory of factor-driven comparative advantage. It predicts that larger cities will be skill-abundant and specialize in skill-intensive activities according to the monotone likelihood ratio property. We test the model using data on 270 US metropolitan areas, 3 to 9 educational categories, 22 occupations, and 21 manufacturing industries. The results provide support for our theory's predictions.
    JEL: F11 F14 R12 R13
    Date: 2014–10
  37. By: Yoko Shinagawa
    Abstract: This paper defines financial market spillovers as the comovement between two countries’ financial markets and analyzes financial market spillovers over the period 2001-12 through four channels: bilateral portfolio investment, bilateral trade, home bias, and country concentration. The paper finds that, if a country has a large amount of bilateral portfolio exposure in another country, these two countries’ comovement of bond yields are large. Also, countries’ geographical preferences impact financial spillovers; if a country has a stronger home bias, the country could have less spillovers from foreign financial markets. A policy implication from this result is that, if countries become less home-biased and have a greater amount of portfolio investment assets, they should strengthen prudential regulations to mitigate against rising risks of financial spillovers (or risk greater volatility owing to comovement with foreign markets).
    Keywords: Financial markets;Negative spillovers;Investment;Bilateral trade;Interconnectedness;Financial Spillover, Coordinated Portfolio Investment Survey (CPIS), Home Bias
    Date: 2014–10–17
  38. By: Jacob Bikker; Adelina Popescu
    Abstract: This paper investigates the cost efficiency and competitive behaviour of the non-life - or property and casualty - insurance market in the Netherlands over the period 1995-2012. We focus on the 2006 health care reform, where public health care insurance has been included in the non-life insurance sector. We start with estimating unused scale economies and find that after the health care reform in 2006, unused scale economies are, at 21%, much higher than before the reform (4%), pointing to a relative increase of fixed costs. Scale inefficiencies are generally higher for smaller insurance and lower for large insurance companies. As a benchmark, we also estimate scale economies for non-health lines of business (LOB), which range from 5% to 10%. To measure competition directly, we apply a novel approach that estimates the impact of marginal costs as indicator of inefficiency on either market shares or profits. Over time, competition in health insurance has increased significantly, but the inclusion of the (non-competitive) public health care funds in the health insurance sector in 2006 caused a fall in the average level of competitive pressure. After the reform, competition continued to improve. In the non-health LOB non-life insurance, we find similar significant effects of efficiency on both market shares. The non-life effects are weaker than in life insurance, banking and non-financial sectors, suggesting less heavy competition.
    Keywords: competition; concentration; efficiency; non-life insurance; health care insurance; performance-conduct-structure model; scale economies; scope economies
    JEL: G22 H51 L11 L12 L13
    Date: 2014–09
  39. By: Deng, Xueting; Woods, Timothy
    Abstract: This study explores wine expenditure driven factors for consumers in the United States by employing a four-state consumer behaviors study. A market segmentation method is applied to investigate spending patterns of 1,609 wine consumers in Pennsylvania, Ohio, Kentucky, and Tennessee. Determinants including wine consumption frequency, preference of differently priced wines, wine knowledge, past wine experience, and “local” involvement are investigated and compared for their significance in driving expenditure on wine in general, as well as on locally produced wine specifically. This study also investigated the effect of the determinants on local wine to total wine expenditure ratio. Finally, this study recommends market strategic insights for wine business in general and local wine in specific.
    Keywords: local wine, market segmentation, wine expenditure, wine knowledge, Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2014
  40. By: Jean-François Caulier (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne); Michel Grabisch (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Agnieszka Rusinowska (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: Most allocation rules for network games presented in the literature assume that the network structure is fixed. We put explicit emphasis on the construction of networks and examine the dynamic formation of networks whose evolution across time periods is stochastic. Time-series of networks are studied that describe processes of network formation where links may appear or disappear at any period. Moreover, convergence to an efficient network is not necessarily prescribed. Transitions from one network to another are random and yield a Markov chain. We propose the link-based allocation rule for such dynamic random network formation processes and provide its axiomatic characterization. By considering a monotone game and a particular (natural) network formation process we recover the link-based flexible network allocation rule of Jackson.
    Keywords: Dynamic networks; network game; link-based allocation rule; Markov chain; characterization
    Date: 2013–08
  41. By: Lionel Fontagné (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Sophie Hatte (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, Université de Rouen - Université de Rouen)
    Abstract: We study international competition in high-end products for 416 detailed HS6 product categories marketed by leading French luxury brands. We construct a world database of trade flows for these products in the period 1994-2009, computing unit values of related bilateral trade flows and analyzing competition among the main exporters. We use the observed distribution of unit values to define a high-end market segment. In 2009, Europe's market share (EU27 plus Switzerland) despite suffering some erosion since 1994, represented three-quarters of the world market. Exports of high-end products are shown to be less sensitive to distance than other products, and found more sensitive to destination country wealth than other products, but only in relation to countries already producing a large range of luxury brands.
    Keywords: Product differentiation ; Market shares ; Unit values
    Date: 2013–11

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