nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒05‒09
thirteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The Effects of Regional R&D Subsidies on Innovative SME: Evidence from Aquitaine SMEs By BEDU Nicolas; VANDERSTOCKEN Alexis
  2. Innovación y competitividad en una selección de los estados de México By Kurt Unger
  3. Are R&D investments by incumbents decreasing in the availability of complementary assets for start-ups? By Luca Stanca; Herbert Dawid; Mariacristina Piva; Marco Vivarelli
  4. Is Co-Invention Expediting Technological Catch Up? A Study of Collaboration between Emerging Country Firms and EU inventors By Elisa Giuliani; Arianna Martinelli; Roberta Rabellotti
  5. Innovative Asia: Advancing the Knowledge-Based Economy: The Next Policy Agenda By Asian Development Bank (ADB); ; ;
  6. Export Spillovers from Foreign Direct Investment: Evidence from Turkey By Başak Dalgıç; Burcu Fazlıoğlu; Michael Gasiorek
  7. Innovation budgeting over the business cycle and innovation performance By Hud, Martin; Rammer, Christian
  8. Does Related variety matter for Creative Industries? By Luciana Lazzeretti; Niccolò Innocenti; Francesco Capone
  9. Innovative Asia: Advancing the Knowledge-Based Economy: Country Case Studies for the PRC, India, Indonesia, and Kazakhstan By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  10. Learning to learn for innovation and sustainable development By van Kleef, J.A.G.
  11. La nueva política de innovación y competitividad Sectores, entidades y empresas líderes By Kurt Unger
  12. ICT Standardization and use of ICT standards: a firm level analysis By Riillo, Cesare Fabio Antonio
  13. Does Intelligence Affect Economic Diversification? By Oasis Kodila-Tedika; Simplice Asongu

  1. By: BEDU Nicolas; VANDERSTOCKEN Alexis
    Abstract: Many studies have looked at the effectiveness of public schemes supporting private R&D but few have highlighted the role regions play in R&D funding. The present article assesses the R&D support package developed in the Aquitaine, France’s number one region in terms of proportion of budget spent on innovation. Its findings show that regional subsidies have induced local SMEs to increase their R&D resources and accelerate their expansion. More broadly, the article enhances understanding of the determinants explaining the effectiveness of public actions supporting private R&D.
    Keywords: SME, R&D subsidies, regional Science and Technology policy, public policy evaluation.
    JEL: H71 O3 R11 R58
    Date: 2015
  2. By: Kurt Unger (Division of Economics, CIDE)
    Abstract: In this paper we outline the hypothesis that innovation is fundamental to develop and to maintain sustainable economic competitiveness. The underlying premise is that competitiveness of firms, sectors, states, and countries is closely linked to innovation actions as a source of competitive advantages. We found evidence suggesting the importance of innovation in the competitiveness of the Mexican states. This result is robust, despite the limitations of data availability. The conclusion is that differentiated sectoral policies are needed to promote the competitiveness of the states, recognizing the particular characteristics of each case.
    Keywords: competitiveness, innovation, states.
    Date: 2015–03
  3. By: Luca Stanca; Herbert Dawid; Mariacristina Piva; Marco Vivarelli
    Abstract: This paper investigates, both theoretically and empirically, the implications that complementary assets needed for the formation of start-ups -proxied by the ease of access to financial resources- have on the innovative efforts of incumbent firms. In particular, we develop a theoretical model, highlighting a strategic incentive effect by which the innovative efforts of incumbent firms are decreasing in the availability of the complementary assets needed for the creation of a startup. The empirical relevance of this effect is investigated by using firm level data drawn from the third Italian Community Innovation Survey covering the period 1998-2000. The results of our empirical analysis support our theory-based insights.
    Keywords: R&D, Innovation, Start-up, Complementary Assets
    Date: 2015–04–28
  4. By: Elisa Giuliani; Arianna Martinelli; Roberta Rabellotti
    Abstract: Firms from emerging countries such as Brazil, India, and China (BIC) are going global, and Europe is attracting around one-third of their direct outward investments. Growing internationalization constitutes an opportunity for technological catch up. In this paper we analyze BIC firms' cross-border inventions with European Union (EU-27) actors, during the period 1990-2012. Our results suggest that cross-border inventions represent an opportunity for BIC firms to accumulate technological capabilities, access frontier knowledge, and appropriate the property rights of co-inventions. This paper contributes to the understanding of the catching up process by emerging country firms, and offers some policy recommendations.
    Keywords: Emerging Countries, Multinationals, Technological Catch Up, Patents, European Union
    Date: 2015–04–24
  5. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: This study outlines policy actions required in developing countries of Asia to advance as knowledge-based economies. The study uses the four pillars of the Knowledge Economy Index to benchmark the performance of developing economies in Asia against advanced economies of the world. It analyzes opportunities by which Asia’s middle and low income countries can tap new technology trends to move up global value chains and towards high-income levels.
    Keywords: economic incentive and institutional regime; education and training; innovation; ICT; jugaad; knowledge-based economy; technology; research and development; science
    Date: 2014–09
  6. By: Başak Dalgıç (Department of Public Finance, Hacettepe University , Turkey); Burcu Fazlıoğlu (Department of International Entrepreneurship, TOBB ETU University , Turkey); Michael Gasiorek (Department of Economics, University of Sussex, United Kingdom)
    Abstract: This paper explores export spillovers that arise from foreign direct investment generated linkages between domestic and foreign firms in Turkish manufacturing industry. By making use of a recent firm level dataset, we investigate how supplying to foreign affiliated firms, as proxied by their presence in downstream industries and foreign presence in firms’ own industry affects (i) extensive and intensive margins of domestic firms’ exporting, (ii) the quality of exports proxied by unit values, (iii) the decision of domestic firms to export or start exporting, (iv) firms’ export orientation towards destination markets with high income levels. The results of the study suggest that even after controlling for firm heterogeneity, stronger presence of foreign firms in downstream industries yields better export performance of domestic firms. We do not find any evidence on the effect of supplying to foreign affiliated firms on the quality of exporting. Furthermore, it is shown that foreign presence in downstream industries is associated with higher probability of exporting, while foreign presence in firms’ own industry is found to have a negative effect. Finally, we find evidence on the fact that supplying to multinationals in downstream industries is positively associated with firms’ both intensive and extensive margins of exports towards developed regions of the world.
    Date: 2015
  7. By: Hud, Martin; Rammer, Christian
    Abstract: The global economic crisis of 2008/2009 hit many firms hard. Faced with rapidly declining sales and highly uncertain economic prospects, firms had to cut costs and reconsider their business strategies. With respect to innovation, cost cutting often means to stop or underresource innovation projects which may harm a firm's long-term competitiveness. Firms may therefore refrain from reducing innovation budgets during crises but rather deliberately allocate more resources to innovation activities in order to update their product portfolio for the following recovery. Our analysis examines the effects of changes in innovation budgets during the most recent economic crisis on firms' post-crisis innovation performance. Based on firm-level panel data from the German Innovation Survey covering the period 2006 to 2012, we find a positive effect of crisis adjustment. Raising the ratio of innovation expenditure to sales does increase subsequent sales of market novelties, but not of product imitations. Our findings are dependent upon the way business cycle effects are measured, however. While the results hold for macroeconomic business cycle indicators (change in real GDP), they do not for demand changes in a firm's primary sales market. This may imply that lower opportunity costs of innovation during an economic crisis are transferred into higher post-crisis new product sales by firms in markets less strongly affected by the crisis.
    JEL: O31 O32 E32 L25 D22
    Date: 2015
  8. By: Luciana Lazzeretti; Niccolò Innocenti; Francesco Capone
    Abstract: Creative industries have become a priority sector for economic development and to exit from the actual economic crisis. Nevertheless, creative industries includes heterogeneous industries and it is not enough investigated how variety and diversity work to favour knowledge spillovers and cross-fertilization processes. The Related Variety approach aims to identify key factors of economic growth considering the need for a local system to have a certain degree of cognitive proximity, so as to promote innovation and development in the area. This work contributes to both these strands of research and it attempts to investigate the role and importance of related and unrelated variety within creative industries for local economic growth. The study focuses on employment growth at provincial level during a long run period 1991-2011 in Italy. Results suggests that the employment growth in creative industries depends on their variety and, even more, on their related variety, which make them able to promote interactions among industries and foster creativity.
    Keywords: Creative industries, creativity, related variety, growth
    JEL: R11 O10
    Date: 2015–05
  9. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Regional and Sustainable Development Department, ADB); Asian Development Bank (ADB) (Regional and Sustainable Development Department, ADB); Asian Development Bank (ADB)
    Abstract: This report presents the case studies of the People’s Republic of China, India, Indonesia and Kazakhstan in their knowledge-based economy approaches. It identifies a range of policies and initiatives that these economies need to consider to strengthen innovation led growth and make a transition from middle income to high income levels.
    Keywords: PRC; IND; INO; KAZ; economic incentive and institutional regime; education and training; innovation; ICT; jugaad; knowledge-based economy; technology; research and development; science
    Date: 2014–09
  10. By: van Kleef, J.A.G. (Tilburg University, School of Economics and Management)
    Abstract: Since the 1960s, the attention paid by policy makers and scientists to the negative environmental and social effects of economic development has grown steadily. However, although some progress has been made in a number of areas, unsustainable trends in the patterns of our systems of production and consumption have not changed to any significant degree. <br/>This research is based on the observation that innovation to improve sustainable development requires learning at societal, organizational and individual levels. Business practices influence the development of systems of production and consumption, and in order to move towards sustainable development there is a need for innovation in the way businesses learn and innovate. <br/>The research focuses on innovation processes and uses case studies of four innovation projects in the paper and board producing industry in The Netherlands. Three main aspects of innovation projects are identified: the development of innovation processes, the development of inter-organizational learning systems, and the development of capabilities that enable the innovation processes and the management of learning systems. On the basis of these aspects, a conceptual model is built that demonstrates the dynamics of inter-organizational learning for innovation. The conclusions drawn, with respect to learning for innovation and sustainable development, cover the fields of team diversity, learning from the past, joint decision-making, guidance by experienced senior managers, and dealing with the complexity of social issues and the dynamics of innovation projects.
    Date: 2014
  11. By: Kurt Unger (Division of Economics, CIDE)
    Abstract: In this work, we analize the new innovation policy that Conacyt (National Council of Science and Technology) has developed to underpin the competitiveness of Mexican companies. In order to have a foresight scenario to justify the viability of this policy and the use of public resources, we propose, as a starting point, a differentiated policy, by sectors and states taking into account elements such as importance, priority and level of competitive success or backwardness.
    Keywords: competitiveness, innovation policy, firms, sectors, states.
    Date: 2015–03
  12. By: Riillo, Cesare Fabio Antonio
    Abstract: Standards perform some fundamental economic functions and their relevance for ICT is acknowledged by firms, researchers and policy-makers. This paper investigates the driving forces of formal ICT standards setting (i.e. standardization). Previous quantitative studies have neglected that ICT standards use and engagement in ICT standardization are related activities. Leveraging upon a unique module of the ICT usage survey 2013 for Luxembourg, the analysis explicitly takes into account the use of formal ICT standards on a large representative sample of firm. While previous analyses find that larger firms are more likely to participate in standardization, the results of the analysis suggest that size has a complex pattern. Small firms for whom ICT standards are particularly relevant could overcome the barriers that prevent other firms to benefit from standardization. Additionally, the paper investigates the relationship between the professional use of social network and ICT standards and standardization. The use of social networks is positively correlated with the adoption of ICT standards but not with the participation.
    Keywords: ICT Standardization, ICT standards, social networks, size, recursive bivariate probit
    JEL: L80 L86 O39
    Date: 2014–09–08
  13. By: Oasis Kodila-Tedika (Université de Kinshasa Département d’Eco); Simplice Asongu (Yaoundé/Cameroun)
    Abstract: This paper extends the growing literature on knowledge economy by investigating the effect of intelligence on economic diversification. Using a battery of estimation techniques that are robust to endogeneity, we find that human capital has positive correlations with export diversification, manufactured added value and export manufactures. This empirical evidence is based on a world sample for the year 2010. The findings have significant implications for the fight against the Dutch disease. In essence, investing in human capital could bring economic diversity and therefore dampen negative external shocks related to resource-dependence. Other knowledge-economy implications are discussed.
    Keywords: Intelligence; Economic Diversification
    JEL: O1 O4 O55 I32 I2
    Date: 2014–08

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