nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒12‒24
25 papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Does Connectivity Impact Innovation Performance in Rural Regions? By Pia Wassmann; Daniel Schiller; Stephan Thomsen
  2. R&D and Regional Regeneration. The Case of Alba Subregion in Romania By Zizi Goschin; Georgiana-Gloria Goschin
  3. The innovation and its territorial factors: An analysis in the micro-regions of São Paulo. By Suelene Mascarini
  4. ROSIS: A Regional Open Sectoral Innovation System By Igone Porto; Jose Ramón Otegi
  5. The Palestinian Information Technology Association of Companies : Moving Forward on Information and Communications Technology and Innovation By Ali H. Abukumail
  6. Innovation in creative cities: Evidence from British small firms By Lee, Neil; Rodriguez-Pose, Andres
  7. Radical or incremental: Where does R&D policy hit? By Beck, Mathias; Lopes-Bento, Cindy; Schenker-Wicki, Andrea
  8. What types of firms tend to be more innovative: A study on Germany By Stephan Brunow; Valentina Nafts
  9. Research intensive clusters and regional innovation systems: a case study of mechatronics in Apulia By Massimo Florio; Julie Pellegrin; Emanuela Sirtori
  10. European Cluster Networks ? Insights from 7th EU Framework Program By Mirko Titze; Matthias Brachert
  12. Firms’ Innovation, Constrains and Productivity: the Case of Peru By Mario Tello
  13. The institutional framework of Industrial policies By Sandrine Labory; Patrizio Bianchi
  14. Trade Liberalization and Optimal R&D policies with Process Innovation. By Thanh Le; Cuong Le Van
  15. Regulating the negative externalities of enterprise cluster innovations : Lessons from Vietnam By Voeten, J.; Naudé, Wim
  16. Exploring the international connectivity of Chinese inventors in the pharmaceutical industry By Alessandra Perri; Vittoria Giada Scalera; Ram Mudambi
  17. Does issuing equities help R&D activity? Evidence from unlisted Italian high-tech manufacturing firms By Silvia Magri
  18. Does Board Diversity Influence Firms' Innovative Activity? Evidence from the firm-level micro data in Japan (Japanese) By INUI Tomohiko; NAKAMURO Makiko; EDAMURA Kazuma; OZAWA Junko
  19. Will Europe’s industry survive the crisis? Competitiveness, employment and the need for an industrial policy By Valeria Cirillo; Dario Guarascio; Mario Pianta
  20. Cross-border relationships of Central-European higher education institutions By Andrea Uszkai; Zsolt Dános
  21. Science and Technology Parks in Italy: main features and analysis of their effects on the firms hosted By Danilo Liberati; Marco Marinucci; Giulia Martina Tanzi
  22. Closure in inter-regional knowledge networks: An application to the European co-publication network By Laurent Bergé
  23. The spillover effects of the ICT cluster support in Córdoba By Boneu, Franco; Giuliodori, David; Maffioli, Alessandro; Rodríguez, Alejandro; Stucchi, Rodolfo
  24. Regulations and Entrepreneurship: Evidence from Developed and Developing Countries By Claudia Alvarez; José Ernesto Amorós; David Urbano
  25. Does Management Matter in Schools? By Bloom, Nicholas; Lemos, Renata; Sadun, Raffaella; Van Reenen, John

  1. By: Pia Wassmann; Daniel Schiller; Stephan Thomsen
    Abstract: There is a broad consensus in the literature in that R&D is a precondition for innovation and in turn, for economic growth. On the regional level, this implies that regions with a high stock of R&D should reveal better results when it comes to economic performance. This presumption has lead policy-makers to focus especially on strengthening the regional stock of R&D as an instrument to foster the regional innovation performance. However, the relation between regional R&D and economic growth may not be as straightforward and an exclusive concentration on R&D may not be appropriate for stimulating regional innovation. Thus, empirical evidence shows that some regions perform well in economic terms, irrespective of their relatively low values of R&D. One of these regions is the German region of Lower Bavaria. This region performs well above the German average in terms of economic growth and employment. At the same time, the regional performance on the traditional R&D indicators as patents or the share of human resources in science and technology is below average. Yet, despite the disadvantageous values on the latter, a recent study of regional firms has indicated that over 60% have introduced either a technological or non-technological innovation in the past three years. One explanation for this contra-intuitive finding emerges from the potential connectivity of regional firms, enabling them to acquire R&D from external knowledge sources. This aspect is in focus of this paper. Thus, based on original firm-level data, we investigate how connectivity impacts innovation performance of firms in the low R&D region of Lower Bavaria. The idea that innovation is a result of an interactive process and that firms have to acquire external knowledge in order to innovate is certainly not new. However, despite the fact that regional connectivity especially of low R&D regions has gained considerable importance, not at least reflected by the current EU innovation policy debate, there are only a few studies that assess the association between cooperation and innovation in regions with low internal R&D in a systematic, quantitative manner. Rather, the majority of studies focus on high-tech regions with strong initial R&D. With the emphasis on a rural region with mainly low- and medium-tech industries, this paper aims to bridge this gap and to study the relation in a type of region that has not been comprehensively examined, yet. Moreover, by distinguishing between the geographical and functional dimension of cooperation as well as by the consideration of both, technological and non-technological forms of innovation, we provide a more encompassing view on how firms in this type of regions use cooperation to increase their innovation potential.
    Keywords: innovation; connectivity; low-tech industries; rural region; R&D; Germany;
    JEL: R11 O18 O31 L25
    Date: 2014–11
  2. By: Zizi Goschin; Georgiana-Gloria Goschin
    Abstract: Innovation and competitiveness are important factors for promoting economic growth not only nationally, but regionally as well. In Romania, research, development and innovation could be among the factors that are accountable for the increasing regional disparities, as the territorial distribution of R&D resources is very unbalanced. Romania is currently trying to define a regional strategy for R&D, as well as appropriate policies and priorities for innovation at regional level. In this context we address the issue of the regional intensity of R&D as one of the main determinants of economic growth in Alba county (subregion NUTS 3) in Romania. The Alba subregion can be considered an obvious example of a successful economic transformation since its GDP per capita increased more than 2 times in 10 years, based on a high rate of economic growth. We have analysed the regional intensity of R&D, measured as the share of total research and development expenditures in regional GDP, and have developed an economic growth model that aimed to capture the influence of R&D intensity alongside labour productivity, employment rate, human capital, the share of manufacturing in total economic activity, the extent of private entrepreneurship, and a dummy variable for economic crisis. The results point to a highly significant impact of research and development intensity on the long-run economic development of Alba county, as measured by GDP per capita. This positive effect of R&D on the economic performance in Alba county can be largely attributed to the creation and modernization of the business support infrastructure aimed at developing industrial parks, business incubators, industrial and scientific clusters, technological and logistic platforms, centers for research and transfer of technology, etc. These structures are designed to support business development in areas affected by industrial restructuring, but also economic activities in other areas with development potential in the county, providing favorable conditions for productive SME development, which can further contribute to economic development and job creation in both the underdeveloped and the rising areas in this subregion.
    Keywords: economic growth; regional regeneration; Alba county; Romania
    JEL: R11 R58
    Date: 2014–11
  3. By: Suelene Mascarini
    Abstract: This paper aims to examine empirically, through the application of the Knowledge Production Function, how the innovation in micro-region of São Paulo can be affected for some territorial factors. In the literature, and assumed here, the innovative results, measured by patents, are linked to the quantity and quality of innovative inputs and characteristics of the regions that are configured as an input. In this sense, stands the importance of positive externalities that are generated by the spatial concentration of producers and support institutions that are able to contribute to the efforts of innovative firms. In addition, this paper emphasizes the role of local production structures in the regions of São Paulo, since both the regional diversification and regional specialization are mentioned as important factors in the innovation process. The main results suggested that although the level of R&D investments were important for generating local innovation, ie, the generation of local patents, this relationship does not occur clearly in the regions of São Paulo. In addition, local productive structure or density linkages of firms that interacts are certainly important factors and compensatory for innovation process.
    Keywords: Geography and Innovation; Patents; Knowledge Production Function.
    JEL: O31 R12 R15
    Date: 2014–11
  4. By: Igone Porto; Jose Ramón Otegi
    Abstract: A review of the types of Innovation System identified in the literature points to different models. Besides the very well-known National, Regional, Local, sectorial, and technological innovation systems, combinations of the previous can be identified, proposing sub-models such as National Open Innovation Systems, Regional Open Innovation System, as well as Regional Sectorial Innovation System. Innovation systems are generally formed by 3 subsystems: Productive, Knowledge and Institutional. The interaction among the actors embedded in these subsystems fosters the development of cooperative and innovative attitudes. The literature settles differences between innovation systems disposing, in situ, policy making players or those being supported by collaborations with supra-territorial institutions. In this case, institutional subsystems are viewed as common regional values and culture promoters and diffusers. Another point is the openness of the innovation systems. Some authors consider this is already included in the IS concept while others reinforce the idea of the need of aperture. The previously mentioned types of Innovation System help explain the performance of different kind of regions. But, what happens in micro-regions that require sectorial, market, technological and geographical openness? What happens if the analyzed territory is sectorially specialized but does not have final clients, universities, research centers or policy makers? Would in that case be possible to consider an innovation system in the region? In order to contrast the ROSIS ?Regional Open Sectorial Innovation System-, a qualitative interview is performed with inner players of a micro-region (productive firms, knowledge actors and socio-political institutions). The found openness is not only productive, but also technological, sectorial and market-oriented one. Apart from inner players, external ones are also interviewed (regional policy researchers, policy makers, etc.) to academically validate the ROSIS model. Combining external and internal views of the region, the existence of the ROSIS can be analyzed from a policy sight. The scope of this research is the conceptualization and modeling of the ROSIS. This proposed Innovation System subtype is tested in a county located in the Basque Country (Spain) which counts with a strong productive specialization in the metal industry. The result of the analysis is the modeling of a multilevel IS considering the productive, sectorial, market, and technological openness to outside players, but also inner openness cooperation with all the existing players of the region, in order to consider all the knowledge diffusion chances.
    Keywords: Innovation System; Sector; Opennes
    JEL: L14 O18 O31 O32 R58
    Date: 2014–11
  5. By: Ali H. Abukumail
    Keywords: Macroeconomics and Economic Growth - Knowledge Economy Information and Communication Technologies - ICT Policy and Strategies Technology Industry Education - Education for the Knowledge Economy Private Sector Development - E-Business Industry
    Date: 2013–01
  6. By: Lee, Neil; Rodriguez-Pose, Andres
    Abstract: Creative cities are seen as important sites for the generation of new ideas, products and processes. Yet, beyond case studies of a few high-profile cities, there is little empirical evidence on the link between local creative industries concentration and innovation. This paper addresses this gap with an analysis of around 1,300 UK SMEs. The results suggest that firms in local economies with high shares of creative industries employment are significantly more likely to introduce entirely new products and processes than firms elsewhere, but not innovations which are simply new to the firm. This effect is not exclusive to creative industries firms and seems to be largely due to firms in medium sized, rather than large, cities. The results imply that creative cities may have functional specialisations in new content creation and so firms are more innovative in them.
    Keywords: cities; creative cities; creative industries; creativity; innovation
    JEL: O31 O38 R11 R58
    Date: 2014–11
  7. By: Beck, Mathias; Lopes-Bento, Cindy; Schenker-Wicki, Andrea
    Abstract: This study investigates the efficacy of public R&D support. Compared to most existing studies, we do not stop at substitution effects or general innovation outcome measures, but we are interested in knowing where the policy effect is highest: on innovation close to the market (i.e. incremental innovation) or on innovation that is still far from the market and hence more risky and radical. Using firm level data from the period 1999 to 2011, we find that the policy hits where the market failure is highest, that is, for radical innovation. Taking into account that the Swiss funding agency encourages collaboration, we find no evidence that the impact of the policy is positively effected by various R&D collaboration patterns.
    Keywords: R&D subsidies,collaborative innovation,diversity,innovation performance,radical innovation,incremental innovation,policy evaluation,treatment effects
    JEL: C14 C30 H23 O31 O38
    Date: 2014
  8. By: Stephan Brunow; Valentina Nafts
    Abstract: Innovation is a key driver of technological progress and growth in a knowledge-based economy. There are various motives for individual firms to innovate: improving quality secures market leadership, introducing new products leads the firm into new markets, adopting new technologies could be seen as a catch-up strategy within an industry or an improvement of the firm's own products when the technology adopted is based on ideas from other industries. Firms can perform innovation activities in one or more of these areas or in none of them. We therefore raise the question of what types of firms tend to be more innovative, i.e. which firms innovate in more of these areas. For this purpose we employ firm-level survey data and combine it with administrative data from Germany's social security system. An ordered logit model is estimated using a variety of characteristics which describe the workforce employed and other firm-related variables, the regional environment where the firm is located, as well as industry and region fixed effects.
    Keywords: firm innovation; labor diversity; ordered logit; regional economic environment
    JEL: J O R
    Date: 2014–11
  9. By: Massimo Florio (DEAS, Universita' di Milano); Julie Pellegrin (CSIL Centre for Industrial Studies); Emanuela Sirtori (CSIL Centre for Industrial Studies)
    Abstract: This paper discusses some conditions under which the Cohesion Policy of the European Union can effectively contribute to enhance R&I in Europe and the extent to which it offers a relevant framework for devising Research & Innovation policies at regional level overcoming possible tensions and maximising potentials for synergy. To do so, the paper mainly relies on an in-depth illustrative case study of an Italian Southern region, Apulia. The paper describes the regional innovation system put in place by the Apulia Region and analyses the value added that can be attributed to such a system as far as innovation and economic development promotion are concerned; on this basis, findings from the case study are generalised in a set of lessons learned with hopefully more general relevance: these are discussed in Section 4.
    Keywords: Research intensive clusters; regional innovation systems; mechatronics
    JEL: L26 L62 R58
    Date: 2014–11–07
  10. By: Mirko Titze; Matthias Brachert
    Abstract: The EU Framework Programme (FP) belongs to the most important instruments promoting transnational collaborative R&D projects in Europe. Its main objective is to initiate cross-border complementarities in order to exploit knowledge resources and to conduct large scale research. Within the EU FPs the applicants are free to choose partners from all over Europe. The key question of our paper is: Which determinants affect the emergence of intra- and interregional collaborations within EU Framework Programmes? One might assume that geographical factors do not matter since trade barriers have been eliminated in the Single European Market. Though, there is a controversial debate on the importance of geographical proximity for the exchange of knowledge. Our paper relies on two theoretical concepts. First, we apply the global cluster networks conception developed by Bathelt and Li (2013). Within this concept it is argued that clustered organizations are more likely to set up collaborative R&D efforts with other similar clustered organizations to keep up with wider industry developments. Conversely, non-cluster organizations are less likely to get integrated cluster destinations. Second, we tie in with the proximity debate discussed in Boschma (2005). According to this concept geographical proximity addresses only one facet. Beyond physical distance other forms of proximity are existent such as social, cognitive, organisational and institutional proximity. It is argued that physical distance is neither a necessary nor a sufficient condition for interactive learning processes. Though, it may facilitate the other dimensions of proximity. In line with these strands of research we investigate the determinants of the number of cross-region collaborations within EU FPs. The analysis is focused on regional level (NUTS 2). Moreover, we differentiate between two technology fields, biotechnology and aerospace. In doing so, we are capable to capture technology specific characteristics. We apply a spatial interaction modelling framework that bases on a gravity type (Scherngell and Barber 2009). The empirical analysis is carried out using a negative binomial specification. We found evidence that geographical factors still matter ? but technological proximity seems to be more importantly. Moreover, we prove that the mere size in terms of employment and establishments is not necessarily required to establish cross-region collaborations. Also small actors have been chosen as partners in collaborative R&D networks across Europe.
    JEL: D85 L14 R12 R15
    Date: 2014–11
  11. By: Marta Zaleska; Zbigniew Mogi£A; Joanna Knap
    Abstract: The economic crisis and the declining competitiveness of Europe, led to the orientation of cohesion policy for smart growth based on knowledge and innovation. Poland and its regions are in a specific socio-economical position characterized by a low share of higher value-added products and high technology-intensive ones in total export. They still need to bridge the gap towards the more developed EU countries and regions by shaping their competitive advantage. The only way to develop and maintain a competitive advantage is to trigger knowledge- and innovation-based entrepreneurship. Cohesion policy funds open up great opportunities for innovation. Nowadays, when the programming period 2007 - 2013 came to an end, it is increasingly important to assess effectiveness of the EU intervention in the context of innovation. The main aim of this study is to present the methodology that allows to assess the role of the EU operational programs in determining the long-term development based on pro-innovative business sector. To present methodology clearly, it will be presented on the example of the Innovative Economy Operational Programme 2007 - 2013 (IE OP) for Lower Silesia region. The first stage of the study will contain a review of literature and a proposition of typology of innovations in the context of their impact on the long-term development. The detailed analysis of more than 100 projects under the IE OP in Lower Silesia will be done to assess effectiveness of the implementation of co-financed research & development projects. The aim of this stage is to deepen the knowledge about the positive and negative factors affecting the implementation of the results of R&D in practice. On the base of the typology and results from previous stages, projects will be classified to created categories of innovation (e.g. imitative, product-oriented, process-oriented etc.). The results will verify whether in the analyzed projects dominates imitative type of innovation, which is typical of regions that are still shortening the distance towards the centers of socio-economic development. This, however, can lead to an "average income trap" that does not guarantee non-cost competitiveness. The results of the study may be used in future analysis as a contribution to the macroeconomic quantitative studies of the cohesion policy impact.
    Keywords: regional development; innovation; cohesion policy
    Date: 2014–11
  12. By: Mario Tello (Departamento de Economía - Pontificia Universidad Católica del Perú)
    Abstract: Based upon a standard Crepon, Duguet and Mairesse (1998), CDM, model and data at firms’ level, this paper analyzes the interrelationship between firms’ science, technology and innovation (STI) activities and their labor productivity in Peru for the year 2004. The effects of some constraints (i.e., investment innovation risks, market structure distortions and financial constraints) on firms’ decision and amount of investment on STI (or STI investment intensity) are also estimated. Subject to data limitations, the analysis suggests that firms’ size is an important factor in their decision to invest upon STI activities. In the same way, firms’ market share is a key factor in the determination of the level of investment on STI. On the other hand, investment risks and financial restriction seem to affect negatively to firms decision and amount of investment on STI respectively. However, their statistical effects vary among the six ISIC branches considered. The effects of market structure or anticompetitive practices were not clear in sign and statistical significance. Regarding the factors that foster innovation outputs or outcomes (such as new products, processes, commercial and organizational innovations) firms STI investment intensity, their degree of cooperation (collaboration) with other entities and the endowment of STI infrastructure are important factors that promote innovation outputs. Finally, although capital-labor ratio and human capital were determinants factors of firms’ labor productivity the effects of innovation outputs on labor productivity were not statistically significant or robust. JEL Classification-JEL: L6, O31
    Keywords: Science, technology and innovation, labor productivity and technological innovation, CDM model.
    Date: 2014
  13. By: Sandrine Labory; Patrizio Bianchi
    Abstract: This paper argues that the institutional framework of industrial policies derives from the analysis of industries as systems. Industries are embedded in specific institutional frameworks with which they co-evolve. However, industrial systems are primarily organised at local level: industries may be global but in the sense that they constitute global networks of local systems. The institutional framework of industrial policy derives from this result: industrial policy acts at different levels, primarily the local one with regional policies, but also national and supranational. The paper argues that regional industrial policies are key policies to favour industrial development, and performing regions are those that combine dynamic capabilities (pool of resources: raw materials, infrastructure, competencies and knowledge, human capital) and an institutional system characterised by governance and leadership. This is illustrated with the case of the Emilia Romagna region in Italy. Dynamic capabilities both favour the development of local firms and attract firms and resources (financial, human) from outside the region. Governance is taken in the sense of Stoker (1998) of a collective decision-making process, involving all stakeholders. We add that leadership is also essential in such a framework. Finally, the success of industrial policy depends not only on the local institutions but also on their relationship with the wider institutional framework.
    Keywords: industrial policy; institutional framework; regions; Emilia-Romagna
    JEL: L52 O25 O18
    Date: 2014–12–05
  14. By: Thanh Le (University of Queensland); Cuong Le Van (Centre d'Economie de la Sorbonne - Paris School of Economics, IPAG and VCREME)
    Abstract: We set up a theoretical framework to discuss the impact of trade liberalization and R&D policies on domestic exporting firms' incentive to innovate and social welfare. In this framework, exporting firms invest in R&D to reduce their production costs and, in return, receive R&D subsidies from the government. While firms target at maximizing their profits, the government aims to maximize the social welfare. We consider different settings of firm competition to explore their strategic behaviors as well as the government's strategic behavior at the policy stage. We find that trade liberalization in the foreign market always increases firms' output sales and social welfare and, in most cases, leads to higher R&D investments and productivity at firms as well as industry level. When firms are independent monopolies in the overseas market, it is optimal for the government not to provide any R&D subsidy. When goods are close substitutes, the social optimum can be achieved as a Nash equilibrium by applying an optimal R&D tax. Trade liberalization induces a higher R&D tax rate to be levied on firms. When firms also conduct business in the home market, it is always optimal for the government to provide firms with a financial support to their R&D activity. While this R&D subsidy is decreasing in the trade cost when firms are independent monopolies, its monotonicity in the trade costs is determined by the convexity of the R&D cost function when firms produce close substitutes.
    Keywords: Trade, R&D, subsidies, welfare, process innovation.
    JEL: F12 F13 F15 O31
    Date: 2014–10
  15. By: Voeten, J. (Tilburg University, School of Economics and Management); Naudé, Wim
    Abstract: Innovation has been acknowledged as contributing to development, in particularly inclusive innovations that involve and benefit poorer groups in developing countries. However, such innovation may have negative externalities. Most often external regulation is required to reduce these effects. However, it is often not enough, and in many developing countries the required institutional context is not present to enable external regulation. Hence a case may be made for internal regulation of inclusive innovation. Helping to fill the gap in our knowledge on internal regulation of innovation externalities in developing countries, we explore four cases of innovation in informally-organised small producers’ clusters Vietnam. From this we propose a model of internal regulation as a societal process.
    Date: 2014
  16. By: Alessandra Perri (Dept. of Management, Università Ca' Foscari Venice); Vittoria Giada Scalera (Dept. of Management, Economics and Industrial Engineering, Politecnico di Milano); Ram Mudambi (Dept. of Strategia Management, Temple University)
    Abstract: This paper explores the integration of emerging countries into the global system of innovation, as a channel for their technological catch-up. Using data on the innovative activity in the Chinese pharmaceutical industry, we analyze the geographic dispersion of inventor networks linked to China, as a function of the characteristics of the innovative actors that coordinate their inventive work.
    Keywords: Emerging Countries, Technological Catch-Up, FDI
    JEL: M16
    Date: 2014–12
  17. By: Silvia Magri (Bank of Italy)
    Abstract: This paper evaluates the causal effect of issuing equities on the probability that a firm will engage in R&D activity. Equity is a preferable source of external finance for innovation than debt. It does not require collateral, does not exacerbate moral hazard problems connected with the substitution of high-risk for low-risk projects, quite common when using debt, and, unlike debt, does not increase the probability of bankruptcy; equity also allows investors to reap the entire benefit of returns on successful innovative projects. The paper focuses on high-tech firms for which asymmetric information problems are more pervasive. Implementing an instrumental variable estimation, we find that issuing equity increases the probability of the firm making R&D expenditure by 30-40 per cent. We detect considerable heterogeneity across firms: the impact of issuing equity is significant only for small, young, and more highly leveraged firms. We also find interesting evidence that issuing equity increases R&D expenditure in relation to sales.
    Keywords: R&D, innovation, equity issues, high-tech firms
    JEL: G21 G32 O31 O32
    Date: 2014–10
  18. By: INUI Tomohiko; NAKAMURO Makiko; EDAMURA Kazuma; OZAWA Junko
    Abstract: This paper empirically examines the impact of board diversity on firms' innovative activity, taking advantage of the unique firm-level dataset in the period 2000-2011 in Japan. We constructed measurements of the degree of board diversity by using various characteristics of board members such as gender, age, tenure, and education, and found no significant impacts on firm innovative activity after controlling for the firms' fixed effects. However, when we restricted the sample to a group of firms with a high foreign ownership ratio or globalized firms, we found the presence of female board members is positively associated with promoting firms' innovative activity as measured by research and development (R&D) intensity. Our finding suggests that board diversity is not associated with the innovation across firms in general, but if a firm has already accumulated the management skills to handle the diversified voices and opinions from board members, this helps it to become more innovative.
    Date: 2014–12
  19. By: Valeria Cirillo (Department of Statistical Sciences, Sapienza University of Rome); Dario Guarascio (Sapienza University of Rome); Mario Pianta (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: This paper examines the state of Europe’s industry and competitiveness in the current crisis and provides the rationale for a new industrial policy at the European level. Section 1 documents the decline of EU industry and the losses in outpud resulting from the crisis started in 2008. Section 2 investigates the issue of competitiveness, an issue at the top of the EU Commission policy agenda. Competitiveness is seen at the heart of economic growth and in the current crisis much of the policy advice from Brussels has focused on ways to restore the competitiveness of weaker countries. Mainstream notions of wage-driven price competitiveness as a determinant of export success of EU countries are not convincing. Rather it is technology, product quality, immaterial capabilities and the characteristics of goods and sectors that are crucial factors explaining the dynamics of productivity and competitiveness in Europe. Section 3 is devoted to the employment dimension. During the recession the job creating potential of product innovation has been lost leaving space to process innovations and job losses that have hit hardest craft and manual workers. A process of skill, job and wage polarisation has characterised the European employment structure leading to increasing inequality and poverty. Not all European countries have been affected in the same way, leading to a cntre-periphery polarisation in terms of unemployment and productivity. Section 4 concludes with a specific proposal for a new European industrial policy that could orient structural change towards enironmental sustainability, ICT applications and health and welfare systems. In these fields the employment impact is likely to be significant also in terms of skills and wages of the workforce.
    Keywords: Competitiveness, Employment, Industrial Policy, Europe
    JEL: J3 L60 O25
    Date: 2014
  20. By: Andrea Uszkai; Zsolt Dános
    Abstract: This paper focuses on the Central-European (so called „centrope") region. This region was created by a co-operation project 10 years ago, and also functions today including Vienna and other Austrian provinces such as Lower Austria and Burgenland, the region of South-Moravia in the Czech Republic, the region of Bratislava and Trnava in Slovakia, Gyõr-Moson-Sopron and Vas counties in Hungary, and cities of Eisenstadt, St. Pölten, Brno, Bratislava and Trnava. The main objective of this study is to examine the implementing sectoral co-operation projects of R&D and tertiary education activities between the higher education institutions of the region and the intensity of these relations. Furthermore, we also concentrate on the depth of regional integration and networking from the point of view of the relationships in higher education, particularly the strength and the weaknesses of bilateral and multilateral relations, and also the absence of co-operation in different areas. Recent mobility surveys found that the rate of student mobility is low between the institutions in the region and there are no mutual exchange programs. The language barriers and the deficiency of the institutions' attractiveness were defined as the main reasons of the low mobility besides the lack of frequent relations. Although sectoral clusters were established inside the region with the membership of higher education institutions, the demand of regional co-operation in the institutions' strategies is unknown, and there are no available pieces of information about data sharing and long-term co-operation between the institutions in the functioning clusters (i.e. automotive industry). It must be examined what the main criteria are in the election of partners for current projects and how extended is the mutual partnership in the projects of the regional institutions. It is an essential analysis viewpoint whether there is a difference between higher education institutions with regard to the above depending on the location of the institution (including the relationships between the HEI's in own countries) and how this affects cross-border regional relationships. To sum up, the study intends to provide answers to how and in what areas does sectoral co-operation exist in the region among the higher education institutions and what is the rate of these projects comparing all projects of the institution, as well as to define the leading sectors of the co-operations.
    Keywords: university; Central-Europe; relationships; co-operation; project
    JEL: I23 R11
    Date: 2014–11
  21. By: Danilo Liberati (Bank of Italy); Marco Marinucci (Bank of Italy); Giulia Martina Tanzi (Bank of Italy)
    Abstract: We analyse the results of a survey conducted by the Bank of Italy in the spring of 2012 on Italian science and technology parks. First we describe the main features of science parks in Italy. Then we investigate whether they have been effective in improving the economic performance and innovative capacity of the firms located within them. We find a pronounced heterogeneity between science and technology parks, whose cooperation with public research institutions is characterized by physical proximity. Although the business situation of firms located in science and technology parks tends on average to be better than that of similar �non-park� firms, a difference-in-differences estimation shows that entering a science and technology park did not generally improve firms� business performance and their propensity to innovate compared with external counterparts.
    Keywords: Scientific and Technology Parks, Matching, Difference in Differences
    JEL: C31 L25 O31
    Date: 2014–10
  22. By: Laurent Bergé
    Abstract: The question of the determinants of inter-regional knowledge flows has received a growing interest in the recent past. Particularly, the question of the relationship between geography and networks has been debated. Yet, at the inter-regional level, there is no study assessing the effect of networks on the the value of knowledge flows. This may come from the fact that methodological tools assessing network characteristics at the dyadic level are lacking for aggregated networks (such as the network of inter-regional knowledge flows). This paper aims to fill this gap and contribute to the debate on the determinants of knowledge flows. To do so we first define a new measure to assess 'network proximity' at the level of the regional dyad, based on the concept of inter-regional bridging path. Here a bridging path is a path at the micro-level between two regions via a third one. For instance, if an agent from region B has collaborated with an agent from region A and an agent from region C, then there is a bridging path between A and C via B. By using the information at the aggregated level, and assuming a 'random matching process' of the agents at the micro level, we are able to derive a closed form of the total expected number of bridging paths between two given regions. By the concept of triadic closure at the micro-level, the regional pairs having a high number of bridging paths should be more prone to collaborate. We then illustrate the measure theoretically defined by making use of co-publications data from chemistry journals for the period 2001-2005, within the five largest European countries (France, Germany, Italy, Spain, the United Kingdom). The studied network is then composed of all the regional pairs among 386 active NUTS3 regions. Using a zero-inflated negative binomial regression model along gravity equations, we then assess the effect of geographical distance, spatial contiguity and national borders. We also assess the effect of 'network proximity' by using the expected number of bridging paths as a proxy. As in previous studies, the effects of the geographical distance or the national borders are negative. But we show that the measure of 'network proximity' has a positive and significant effect. All the more, it also significantly alleviates the impeding effect of national borders on cross-countries collaborations, then suggesting that 'network proximity' is a channel favored for international collaborations.
    Keywords: network formation; gravity model; regional closure; aggregated networks; spatial proximity; network proximity; co-publication; research collaboration
    JEL: D85 O31 R12
    Date: 2014–11
  23. By: Boneu, Franco; Giuliodori, David; Maffioli, Alessandro; Rodríguez, Alejandro; Stucchi, Rodolfo
    Abstract: This paper presents evidence on the spillover effect associated with the support received by firms located in a City of Argentina, between 2003 and 2007. The rationale for the cluster development program was the presence of agglomeration economies and coordination failures that generated spillovers and therefore to a suboptimal allocation of resources. We use a panel of firms in the ICT sector for the period 2003-2011 that allowed us to control for the dynamics of firms’ sales and fixed-effect applying the System GMM estimator. We find that one additional participant in the program increases the sales of non-participants in the City of Córdoba by 0.7%.
    Keywords: Cluster Development Program, Information and Communication Technologies, Spillovers, System GMM.
    JEL: D2 L8 O25 O29
    Date: 2014–11–29
  24. By: Claudia Alvarez; José Ernesto Amorós; David Urbano (School of Business and Economics, Universidad del Desarrollo)
    Abstract: This paper uses an institutional approach to examine the effect of regulations on entrepreneurial activity, comparing developed and developing countries. Through an unbalanced panel data set of 49 countries over the period 2001-2010 and using a combination of international databases we find a positive influence of government spending and entrepreneurship legislation on entrepreneurial activity. It was also found that regulations may have different impacts on entrepreneurship according to the country’s economic development. Thus, in developed economies unemployment legislation is positively related to entrepreneurship, while this relationship is negative in other cases. This paper offers new insights both from a conceptual perspective (advancing theory concerning the factors that influence entrepreneurial activity) and a practical viewpoint (for the design of government policies to foster entrepreneurship).
    Keywords: Entrepreneurship, entrepreneurial activity, regulations, institutional economics, developed and developing economies, GEM.
    JEL: L26 D02 E02
    Date: 2014–11
  25. By: Bloom, Nicholas (Stanford University); Lemos, Renata (University of Cambridge); Sadun, Raffaella (Harvard Business School); Van Reenen, John (CEP, London School of Economics)
    Abstract: We collect data on operations, targets and human resources management practices in over 1,800 schools educating 15-year-olds in eight countries. Overall, we show that higher management quality is strongly associated with better educational outcomes. The UK, Sweden, Canada and the US obtain the highest management scores closely followed by Germany, with a gap to Italy, Brazil and then finally India. We also show that autonomous government schools (i.e. government funded but with substantial independence like UK academies and US charters) have significantly higher management scores than regular government schools and private schools. Almost half of the difference between the management scores of autonomous government schools and regular government schools is accounted for by differences in leadership of the principal and better governance.
    Keywords: management, pupil achievement, autonomy, principals
    JEL: L2 M2 I2
    Date: 2014–11

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