nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒06‒13
24 papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. A New Approach to Estimation of the R&D-Innovation-Productivity Relationship By Christopher F Baum; Hans Lööf; Pardis Nabavi; Andreas Stephan
  2. R&D policies for young SMEs: Input and output effects By Czarnitzki, Dirk; Delanote, Julie
  3. National or international public funding? Subsidies or loans? Evaluating the innovation impact of R&D support programmes By Huergo, Elena; Moreno, Lourdes
  4. Macro-Economic Models for R&D and Innovation Policies By Francesco Di Comite; d’Artis Kancs
  5. Business Cycles, Technology and Exports By Dario Guarascio; Mario Pianta; Matteo Pugliese; Francesco Bogliacino
  6. Technological learning in MNC subsidiaries operating in regional integration processes: a case study on an automotive company in MERCOSUR By Martín Obaya
  7. Multinationality, R&D and Productivity Evidence from the top R&D investors worldwide By Davide Castellani; Sandro Montresor; Torben Schubert; Antonio Vezzani
  8. The role of diversification profiles and dyadic characteristics in the formation of technological alliances: Differences between exploitation and exploration in a low-tech industry By Krammer, Sorin M.S.
  9. Foreign direct investment and firm performance: an empirical analysis of Italian firms By Alessandro Borin; Michele Mancini
  10. Establishing Relationships with New Suppliers Having Distant Knowledge to Target Discontinuous Innovation By Jouini, Sihem Ben Mahmoud; Charue-Duboc, Florence
  11. How Do Native and Migrant Workers Contribute to Innovation? By Fassio, Claudio; Montobbio, Fabio; Venturini, Alessandra
  12. Business Cycles, Technology and Exports By Francesco Bogliacino; Dario Guarascio; Mario Pianta; Matteo Lucchese
  13. The regulated firm: Effects of regulation on competence development and sustainable competitive advantage By Frohwein, Torsten
  14. Mandates and the Incentive for Environmental Innovation By Matthew S. Clancy; GianCarlo Moschini
  15. Women Entrepreneurs in Chile: Three decades of Challenges and Lessons on Innovation and Business Sustainability By Mandakovic Vesna; María Teresa Lepelev; Olga Pizarro
  16. University entrepreneurship education experiences: enhancing the entrepreneurial ecosystems in a UK By Fumi Kitagawa; Don J. Webber; Anthony Plumridge; Susan Robertson
  17. Micro-foundations of dynamic capabilities. The diverse roles of boundary spanners in sensing/shaping and seizing opportunities By Haas, Aurore
  18. Dynamics of innovation and efficiency in banking system: An application of SFA and meta-frontier method By Sanatkhani, Mahboobeh; Vasaf, Esmaeil
  19. Integration of coopetition paradox by individuals. A case study within the French banking industry By Bez, Sea Matilda; Fernandez, Anne-Sophie; Le Roy, Frédéric; Dameron, Stéphanie
  20. Networks and the dynamics of firms’ export portfolio By Juan de Lucio; Raúl Mínguez; Asier Minondo; Francisco Requena
  21. Review of international practices for determining medium-term resource needs of spending agencies By Di Francesco,Michael; Barroso,Rafael Chelles
  22. Intellectual Property Rights and Innovation: Evidence from Health Care Markets By Heidi L. Williams
  23. Capital humano, instituciones e ideas: los factores centrales del desarrollo By Luis Alfredo Sarmiento Gómez
  24. The Necessities of HR practices in RMG Sector of Bangladesh By Chowdhury, Sabbir Hassan

  1. By: Christopher F Baum (Boston College; DIW Berlin); Hans Lööf (Royal Institute of Technology, Stockholm); Pardis Nabavi (Royal Institute of Technology, Stockholm); Andreas Stephan (Jönkoping International Business School)
    Abstract: We evaluate a Generalized Structural Equation Model (GSEM) approach to the estimation of the relationship between R&D, innovation and productivity that focuses on the potentially crucial heterogeneity across technology and knowledge levels. The model accounts for selectivity and handles the endogeneity of this relationship in a recursive framework. Employing a panel of Swedish firms observed in three consecutive Community Innovation Surveys, our maximum likelihood estimates show that many key channels of inuence among the model's components differ meaningfully in their statistical significance and magnitude across sectors defined by different technology levels.
    Keywords: R&D, Innovation, Productivity, Generalized Structural Equation Model, Community Innovation Survey
    JEL: C23 L6 O32 O52
    Date: 2015–05–29
  2. By: Czarnitzki, Dirk; Delanote, Julie
    Abstract: This paper evaluates the current focus of EU policy makers on small and medium-sized, young independent firms in high-tech sectors. Therefore, the effect of subsidies on both R&D input and R&D output is compared between independent high-tech young firms (NTBFs), independent low-tech young firms (LTBFs) and their non-independent counterparts. A treatment effects analysis reveals that full crowding-out with regard to public funding is rejected for all firm types. However, the treatment effect is highest for independent high-tech firms. The indirect effect of subsidies on R&D output is evaluated within a patent production framework. These results show that independent high-tech firms have no lower output effects than other firms and thus suggest that the current policy focus on certain firm types is not ineffective.
    Keywords: R&D,subsidies,NTBFs,policy evaluation,treatment effects,patents
    JEL: H25 M13 O31 O38
    Date: 2015
  3. By: Huergo, Elena; Moreno, Lourdes
    Abstract: The objective of this study is to compare the effect of different types of public support for R&D projects on firms’ technological capabilities. We distinguish be-tween low-interest loans and subsidies and between national and European sup-port. Using data on 4,407 Spanish firms during the period 2002-2005, we estimate a multivariate probit to analyse the determinants of firms’ participation in public R&D programmes and, later, the impact of this participation on firms’ technologi-cal capabilities using different indicators. The results provide evidence of the ef-fectiveness of all treatments for improving firms’ innovative performance. With respect to innovation outputs, apart from the indirect effect of public support by stimulating R&D intensity, we also find evidence of a direct effect of participation in the CDTI credit system and in the European subsidy programme on the probability of obtaining innovations and applying for patents.
    Keywords: Soft loans, R&D subsidies, impact assessment
    JEL: H81 L2 L52 O3
    Date: 2014–03–07
  4. By: Francesco Di Comite (European Commission JRC-IPTS); d’Artis Kancs (European Commission JRC-IPTS)
    Abstract: This report compares R&D modelling approaches in four macroeconomic models used by the European Commission for ex-ante policy impact assessment: one Dynamic Stochastic General Equilibrium (DSGE) model – QUEST; one Spatial Computable General Equilibrium (SCGE) model – RHOMOLO; one Computable General Equilibrium (CGE) model – GEM-E3; and one macro-econometric model – NEMESIS. The report critically compares particularly those parts of the four models that are relevant to R&D transmission mechanisms and interfaces for implementing policy shocks. Given that R&D investment decisions are inherently dynamic, QUEST appears to be the most suitable model for assessing the impact of R&D and innovation policies over time, as it is the only model with inter-temporal optimisation of economic agents. In order to address questions related to geographic concentration of innovative activities and spatial knowledge spillovers, RHOMOLO has a comparative advantage, as it is the only one which models regional economies and spatial interactions between them explicitly. Due to its detailed treatment of energy sectors and environmental issues, GEM-E3 appears to be the most suitable model for assessing the impact of innovation in clean energy. For a more detailed modelling of different types of innovation measures, NEMESIS can provide valuable insights thanks to its richness in estimating and accounting for specific channels of innovation. We also identify avenues for future research, which in our view could improve the modelling of R&D and innovation policies both from a conceptual and empirical perspective.
    Keywords: RHOMOLO, QUEST, GEM-E3, NEMESIS, Macro-Economic Models, General Equilibrium, R&D Policies
    JEL: C68 D24 D58 H50 O31 O32
    Date: 2015
  5. By: Dario Guarascio; Mario Pianta; Matteo Pugliese; Francesco Bogliacino
    Abstract: This article shows -on both conceptual and empirical grounds- the importance of business cycles in affecting key relationships between innovation and international performance. While periods of upswing are characterised by a well documented "virtuous circle" between innovation inputs, new products and export success, during downswings most of the positive relationships and feedbacks tend to break down. The findings of Guarascio et al. (2014) on the long-term relationships between R&D, new products and exports are confirmed and qualified with major novelties. But when the period of analysis is split between periods of upswing and downswing -following Lucchese and Pianta (2012)- significantly different relationships emerge. These results are obtained through an approach that combines several complementary perspectives. A Schumpeterian view on the diversity of technological change allows to disentangle the specificities and effects of innovation inputs and outputs, and of new products and new processes. A structural change perspective on the role of demand as a driver of innovation and on the importance of open economies allows to link industries' dynamics with international competitiveness. A business cycle perspective crossing the two previous appraoches sheds new light on the fragility of key economic relationships and on the long term damage that recessions may cause to the "virtuous circle" of innovation and performance. The model we propose links exports, R&D and innovation success in a system of three simultaneous equations allowing for the presence of feedbacks loops among key variables. The empirical test is carried out for the period 1995-2010 at the industry level, on 21 manufacturing and 17 service sectors; country coverage includes Germany, France, Italy, Spain, the Netherlands and the United Kingdom, representing a very large part of the European economy.
    Keywords: Business cycles, Innovation, Export, Three Stage Least Squares
    Date: 2015–03–06
  6. By: Martín Obaya
    Abstract: In the last three decades, multinational corporations (MNC) have undergone a far-reaching reorganisation that resulted, firstly, in a reorganisation of their business activities around regional areas, and secondly, in an increasing decentralisation of their knowledge-creating activities. As a result of this evolution, some subsidiaries in developing countries have benefited from this process and been able to accumulate technological capabilities. Through the examination of an automotive MNC operating in MERCOSUR, this article examines how innovation activities are organised among subsidiaries operating in a regional integration agreement among developing countries, and what are the driving forces shaping this process. Empirical findings show that a highly hierarchical division between the subsidiaries has been established by the parent company and that knowledge-creating activities are geographically concentrated in one single country.
    Keywords: Automotive industry; Product development, MERCOSUR; Innovation management
    Date: 2015
  7. By: Davide Castellani (University of Perugia); Sandro Montresor (Kore University of Enna); Torben Schubert (Fraunhofer Institute); Antonio Vezzani (European Commission JRC-IPTS)
    Abstract: The paper investigates the impact that the multinational scope of firms' activities can have on their productivity. First, we argue that such an impact is both direct and indirect, and that the latter is channelled through higher incentives to invest in R&D. Second, we posit that the composition of these direct and indirect effects is different if multinationality is measured at the intensive margin (higher share of multinational on total activities) rather than at the extensive margin (greater geographical dispersion of multinational activities). Using a large sample of top R&D investors in the world, we propose an econometric model based on an R&D and a productivity equation, which are both allowed to depend on multinationality. With this model we can disentangle the direct and indirect effects of multinationality on productivity appropriately. We find: i) a positive direct impact of multinational intensity on productivity, while the geographical dispersion of multinationality is negatively correlated with productivity; ii) multinationality (along both dimensions) has a positive indirect impact through higher investments in R&D; iii) this positive indirect effect is however not large enough to compensate the negative direct one at the extensive margin. Results are largely consistent with a theoretical approach that combines transaction cost theory with an economic analysis of how incentives to invest in R&D depend on multinationality.
    Keywords: Multinationality; R&D; Productivity; Europe
    JEL: F23 O32
    Date: 2015
  8. By: Krammer, Sorin M.S.
    Abstract: This paper posits that firms' corporate and technological diversification profiles and their relatedness in terms of products and technologies impact their propensity to form alliances for exploitation and exploration. The empirical investigation employs a dataset of all tire producers worldwide between 1985 and 1996 that combines detailed firm level data on establishment, patenting, and alliance activities. The results support these theoretical predictions and indicate that exploitative alliances are driven primarily by complementarity in terms of corporate diversification strategies, as well as partner characteristics (e.g., size, age, and technological capabilities). Moreover, firms with similar product portfolios but uneven technological performance are more likely to engage in exploitative interactions. In contrast, exploration alliances are driven by strong partner similarity across all firm characteristics and product portfolios. Both market and technological diversification have positive effects on the propensity to engage in explorative alliances while technological distance has a negative one.
    Keywords: Alliances; Technology; Diversification strategy; Dyadic characteristics; Global tire industry;
    JEL: D21 L62 L65 O32 O33
    Date: 2015–06–05
  9. By: Alessandro Borin (Bank of Italy); Michele Mancini (Bank of Italy)
    Abstract: Both empirical and theoretical literature show that multinational firms exhibit a competitive advantage before investing abroad. However, there are no clear empirical results regarding the ex-post effects of foreign direct investment (FDI) on firm performance, partially due to the inadequacy of available firm-level data. We build a brand new firm-level dataset able both to represent the extent of Italian firms' foreign activity and to provide reliable measures of key performance indicators, especially total factor productivity (TFP) and employment. We then use a propensity score matching procedure to analyze the causal relationship between FDI and firm performance. Firms investing abroad for the very first time, especially in advanced economies, show higher productivity and employment dynamics in the years following the investment: the average positive effect on TFP is driven by new multinationals operating in specialized and high-tech sectors, while the positive employment gains are explained by an increase of the white collar component. On average there are no negative effects on the parent firm's blue collar component.
    Keywords: multinational firms, FDI, productivity, propensity score matching
    JEL: F23 C25 D24
    Date: 2015–06
  10. By: Jouini, Sihem Ben Mahmoud; Charue-Duboc, Florence
    Abstract: A discrepancy exists in the literature regarding the type of suppliers to consider when targeting discontinuous innovation (DI). Some authors suggest that DI require leveraging knowledge from a selection of familiar and trustful suppliers, whereas others claim that DI requires leveraging distant knowledge from new suppliers. The authors argue that establishing relationships with a new supplier mastering knowledge distant from the firm’s one, requires a specific process. Based on a longitudinal study in a firm that developed such relationships and succeeded in enhancing DI, they underline three characteristics of the approach adopted: (i) proposing an open enough formulation to give the suppliers the opportunity to value their competencies but well documented, (ii) having a structured and transparent process, supporting a mutual progressive commitment and (iii) dedicating a specific entity with access to the top management and technical specialists, with a global vision of the questions to be tackled.
    Keywords: Discontinuous innovation; early supplier involvement; leveraging external knowledge
    Date: 2014–01–05
  11. By: Fassio, Claudio; Montobbio, Fabio; Venturini, Alessandra (University of Turin)
    Abstract: This paper uses the French and the UK Labour Force Surveys and German Microcensus to estimate the effects of the different components of the labour force on innovation at the sectoral level between 1994 and 2005, focusing in particular on the contribution of migrant workers. We adopt a production function approach in which we control for the usual determinants of innovation, such as R&D investments, stock of patents and openness to trade. To address for the possible endogeneity of migrants we implement instrumental variable strategies using both two-stage least squares with external instruments and GMM-SYS with internal ones. In addition we also account for the possible endogeneity of native workers and instrument them accordingly. Our results show that highly educated migrants have a positive effect on innovation even if the effect is smaller relative to the one of the educated natives. Moreover this positive effect seems to be confined to the high tech sectors and among highly educated migrants from other European countries.
    Date: 2015–05
  12. By: Francesco Bogliacino; Dario Guarascio; Mario Pianta; Matteo Lucchese
    Abstract: This article shows – on both conceptual and empirical grounds - the importance of business cycles in affecting key relationships between innovation and international performance. While periods of upswing are characterized by a well-documented 'virtuous circle' between innovation inputs, new products and export success, during downswings most of the positive relationships and feedbacks tend to break down. The findings of Guarascio et al. (2014) on the long-term relationships between R&D, new products and exports are confirmed and qualified with major novelties. But when the period of analysis is split between periods of upswing and downswing - following Lucchese and Pianta (2012) – significantly different relationships emerge. The empirical test is carried out for the period 1995-2010 at the industry level, on 21 manufacturing and 17 service sectors; country coverage includes Germany, France, Italy, Spain, the Netherlands and the United Kingdom, representing a very large part of the European economy.
    Keywords: Business cycles, Innovation, Export, Three Stage Least Squares.
    JEL: F41 F43 O31 O33 C3
    Date: 2015–05–31
  13. By: Frohwein, Torsten
    Abstract: Sustainable competitive advantage (SCA) is a central tenet in strategic management theory. The effect of regulation on sustaining competitive advantages is widely neglected in literature. The impact on competence development and SCA of the firm can be significant, if regulatory requirements and regulatory prohibitions as types of specific industry regulation are considered. In arguing that resource-based theory can be modeled analogous to complex system theory, the effect of regulation on competence development and SCA is illustrated. In explaining the effect of regulation on competence development and SCA, the paper contributes to close a gap in one of the central assumptions of attaining SCA resource-based theory.
    Keywords: strategic management,resource-based theory,sustainable competitive advantage,competence development,regulation,open system
    Date: 2015
  14. By: Matthew S. Clancy; GianCarlo Moschini (Center for Agricultural and Rural Development (CARD))
    Abstract: Mandates are policy tools that are becoming increasingly popular to promote renewable energy use. In addition to mitigating the pollution externality of conventional energy, mandates have the potential to promote R&D investments in renewable energy technology. But how well do mandates perform as innovation incentives? To address this question, we develop a partial equilibrium model with endogenous innovation to examine the R&D incentives induced by a mandate, and compare this policy to two benchmark situations: laissez-faire and a carbon tax. Innovation is stochastic and the model permits an endogenous number of multiple innovators. We find that mandates can improve upon laissez faire, and that the prospect of innovation is essential for their desirability. However, mandates suffer from several limitations. A mandate creates relatively strong incentives for investment in R&D in low-quality innovations, but relatively weak incentives to invest in high-quality innovations, so that the dispersion of realized innovation quality is comparatively low. Moreover, a mandate achieves lower welfare than a carbon tax, and its optimal level is more sensitive to the structure of the innovation process. Key Words: Carbon tax, Incentive, Innovation, Mandates, Renewable energy, R&D, Welfare. JEL codes: H23, O31, Q42, Q55, Q58
    Date: 2015–06
  15. By: Mandakovic Vesna; María Teresa Lepelev; Olga Pizarro (School of Business and Economics, Universidad del Desarrollo)
    Abstract: This study is framed on a global vision of women participation in entrepreneurial activity as an introductory note and proceeds with a comprehensive assessment of the experience of women entrepreneurs in Chile in the last thirty years. Chile is one of the fastest growing and most stable economies in Latin America and among developing countries with a 5.7 percent unemployment and 14.8 percent poverty level. This case study is focused on Chilean women entrepreneurs from a business sustainability dimension, providing the experience of a pioneer country that introduced entrepreneurship as a central economic development strategy since the late seventies.
    Keywords: Women Entrepreneurs,innovation, business sustainability, economies, América Latina, Chile.
    Date: 2014–04
  16. By: Fumi Kitagawa (University of Edinburgh); Don J. Webber (University of the West of England, Bristol); Anthony Plumridge (University of the West of England, Bristol); Susan Robertson (University of Bristol)
    Abstract: The recognition of a strong association between education and economic prosperity has enthused higher education institutions (HEIs) to amplify their initiatives to stimulate entrepreneurship within their local economies and beyond. However, the actual processes and impacts made through entrepreneurship education, and the extent to which and the conditions with which different types of programmes are effective, are not understood well. This article fills part of this gap by adopting the concept of university-based entrepreneurship ecosystems and contributes to the understanding of different impacts of entrepreneurship education and their implications for city-region development. Student-level data are gathered across two HEIs within one city-region in England, which include demographic backgrounds, university experiences and motivations and propensities to start-up businesses. Our analysis reveals that students who believe their university education has helped them develop competencies to address challenges of becoming an entrepreneur were 78 percent more likely to have experienced an increase in their stated preference to start-up a business. This suggests that HEIs should be more actively engaged in stimulating student entrepreneurial behaviour and developing university-based entrepreneurial ecosystems that may lead to greater city-region economic development.
    Keywords: Business start-up; Entrepreneurial propensity; Student motivations
    JEL: L26 R58
    Date: 2015–01–05
  17. By: Haas, Aurore
    Abstract: Our article contributes to the understanding of the micro-foundations of dynamic capabilities by showing how middle managers adopting the role of boundary spanners influence the organizational capacities to sense/shape and seize opportunities. Organizations should constantly monitor their environment in order to detect and create opportunities. How such access, detection and creation actually occur still needs to be investigated. Boundary spanners are individuals with rare competencies who link the organization to its environment. They play an important role in knowledge transfer, diffusion and exploitation. They also influence innovation and organizational change. However, not all boundary spanners are equal when it comes to succeeding in these functions, sometimes despite high expertise and individual talent. Research has explored the characteristics and levers of performance of boundary spanners. As few studies have done, we propose to analyze how boundary spanners influence the important dynamic capabilities of sensing/shaping and seizing opportunities. From a qualitative study of a case of an inter-professional association on diversity management, four boundary spanning roles are identified in relation to the shaping/sensing and seizing of opportunities. Our study contributes to the understanding of perceptions and practices which influence the performance of boundary spanners. It also provides insights on how boundary spanners can help their organizations capture and capitalize upon opportunities.
    Keywords: Boundary spanners; Gatekeepers; Opportunities; Dynamic capabilities;
    JEL: D83 M1 M12
    Date: 2015–06
  18. By: Sanatkhani, Mahboobeh; Vasaf, Esmaeil
    Abstract: Abstract One of the most important problems in innovation arguments is how to identify and measure innovation. In industry sector, the available measurements to identify innovation activities are number of patents, R&D expenditure and share of R&D workers. Unfortunately these measurements for service sector especially financial sector are problematic and not readily available. This paper, following Bos et al. (2009), proposes changes of Technology Gap Ratio (TGR) as innovation activity in banking system and investigates it for the US commercial banks in years 2000-2013. For this purpose, at first step, the annual cost frontier functions (as representative of technology set for each year) are estimated by applying Stochastic Frontier Analysis (SFA). Consequently, the efficiency scores for each year are calculated for banks which operate under the same frontier functions. Then, the meta-frontier analysis is employed to estimate the potentially available cost function for the whole period. In next step, the TGR which indicates the relative distance of annual cost frontier function to the most efficient cost function (meta-frontier cost function) for the whole period is calculated. Finally, changes of TGR as a proxy of financial innovation during the time are illustrated by proper Salter curves. Results show that the average of TGR for the period 2000 to 2011 was associated with 2.88% annual growth rate. In other words, commercial banks in this period demonstrated an increasing level of innovation in their activities including financial products and services. In contrast, the results show that in last two years (2012 and 2013) this ratio had a considerable reduction, even less than the initial year. Thus, it seems that they have been less involved in innovation activities during the recent years.
    Keywords: Technology Gap Ratio (TGR), Stochastic Frontier Analysis (SFA), Meta-frontier cost function, banking system, Efficiency.
    JEL: G21
    Date: 2014–10–29
  19. By: Bez, Sea Matilda; Fernandez, Anne-Sophie; Le Roy, Frédéric; Dameron, Stéphanie
    Abstract: This study seeks to provide insights into the principle of “integration of coopetition paradox” considered as a managerial necessity to manage coopetition situations. Coopetition is a relationships filled with tensions related to the coexistence of two contradictory dimensions of cooperation and competition. To manage this situation, individuals need to integrate the coopetive paradox, that means to accept cognitively the paradox and to integrate both contradictory dimensions into their daily activities. The cognitive dimension of the integration principle and its consequences on managerial practices remain under investigated in previous literature. How do individuals perceive the coopetition paradox? What are the consequences of the integration principle on managerial practices? We aim to fill this gap by identifying how individuals are capable of integrating coopetition paradox and how do they deal with it in their daily management. Based on an in-depth study of an exemplar case of intra-firm coopetition we identify for the first time in the coopetitive literature to show and discuss different capacities of integration of the coopetition paradox between managers. According to the integration principle at the individual level, individuals should cognitively accept the coopetition paradox and behave correspondingly to their cognitive perception, emphasizing on both dimensions of cooperation and competition. However, in this study, we show that managerial practices can be disconnected from a cognitive acceptance of the paradox. Moreover, depending on the level of the cognitive integration, we point out that managerial tools are insufficient to efficiently manage coopetition and that all manager are not capable of integrate the paradox and handle coopetition situations.
    Keywords: Coopetition management; Integration; Perceptions; Managerial practices;
    JEL: G21 M1
    Date: 2015–06
  20. By: Juan de Lucio (Banco de España); Raúl Mínguez (Cámara de España); Asier Minondo (Deusto Business School); Francisco Requena (University of Sheffield)
    Abstract: We use network-analysis tools to identify communities in the web of exporters' destinations. Our network-based community measure is purely outcome-based; it captures multilateral rather than bilateral dependence across countries; and it can be calculated at the industry level. We next use our network-based community measure as a predictor of additional countries chosen by firms expanding their export destinations portfolios. Using data on new Mexican exporters, the probability of choosing a new export destination doubles if it belongs to the same community of any of the firm’s previous destinations. The introduction of the network-based community variable improves the accuracy of the model by up to 19% relative to a model that only includes gravity variables. Industry-specific communities and general communities play similar roles in determining the dynamics of Mexican exporters' country portfolios.
    Keywords: export market, network analysis, modularity, extended gravity, Mexico.
    JEL: F1
    Date: 2015–06
  21. By: Di Francesco,Michael; Barroso,Rafael Chelles
    Abstract: This paper reviews international practices for ?bottom-up costing? for medium-term expenditure frameworks. Medium-term expenditure frameworks are important because they incorporate the multi-annual nature of the fiscal policy into the budget process, mitigating its short-term bias. They also allow for the incorporation of the effects of policy decisions and provide for a comprehensive fiscal sustainability picture. However, there are significant gaps in current understanding of how costing and cost information is implemented within medium-term expenditure frameworks. The objective of this paper is to assemble information on practices used in Australia, Austria, Canada, and the Netherlands to determine program costs as part of medium-term expenditure planning, and to provide preliminary observations on the strengths and weaknesses of current arrangements. The overall findings are that current costing practices fall short of the declared objectives of medium-term expenditure frameworks. The report makes some specific observations on the status of costing practices within the surveyed jurisdictions, namely that: (i) although there is no typical medium-term expenditure frameworks, some features tend to be more compatible with a greater role for bottom-up costing; (ii) where costing practices are specified, they are generally expected to be used across the entire budget, but in practice the focus is on new or expanded programs; (iii) the capacity to distinguish existing and new programs is important in utilizing cost information; (iv) the distinction between conventional program costing and forecasting helps to explain differences in costing approaches; and (v) where they are specified, costing methodologies are recommended but not mandated.
    Keywords: Debt Markets,Banks&Banking Reform,Business Environment,Competitiveness and Competition Policy,Business in Development
    Date: 2015–06–03
  22. By: Heidi L. Williams
    Abstract: A long theoretical literature has analyzed optimal patent policy design, yet there is very little empirical evidence on a key parameter needed to apply these models in practice: the relationship between patent strength and research investments. I argue that the dearth of empirical evidence on this question reflects two key challenges: the difficulty of measuring specific research investments, and the fact that finding variation in patent protection is difficult. I then summarize the findings of two recent studies which have made progress in starting to overcome these empirical challenges by combining new datasets measuring biomedical research investments with novel sources of variation in the effective intellectual property protection provided to different inventions. The first study, Budish, Roin, and Williams (forthcoming), documents evidence consistent with patents affecting the rate and direction of research investments in the context of cancer drug development. The second study, Williams (2013), documents evidence that one form of intellectual property rights on the human genome had quantitatively important impacts on follow-on scientific research and commercial development. I discuss the relevance of both studies for patent policy, and discuss directions for future research.
    JEL: I1 O3
    Date: 2015–06
  23. By: Luis Alfredo Sarmiento Gómez
    Abstract: La creación de ideas, entendida como el uso de nuevas formas de producción, de organización social y de instituciones, es el factor más importante para el desarrollo y la competitividad de una nación y su base es la capacidad de individuos y países para construir una sociedad del conocimiento. La acumulación individual en las personas, como capital humano, y colectiva, como instituciones, es la base necesaria para desarrollar la productividad total de los factores de producción, la competitividad de un país y la producción de más y mejores tecnologías. El desarrollo de la gente formada con alta calidad de habilidades, de conocimientos, de aptitudes individuales y de interacción colectiva es la base del progreso económico, político y social. Este documento desarrolla un marco conceptual que da sentido a la información sobre capital humano, investigando los referentes, los lineamientos teóricos y aplicados y los acuerdos en la discusión internacional, y propone una metodología para la producción de indicadores. ****** The creation of ideas understood as the use of new ways of production, social organization and institutions, is the most important factor for the development and competitiveness of a nation and its framework is the ability of individuals and countries to build society knowledge. The individual accumulation, as human capital, and collective, as institutions, is the basis to develop the total productivity of the factors of production, the competitiveness of a country and the production of more and better technologies. The development of people trained with high quality skills, knowledge, individual skills and collective interaction is the basis of economic, political and social progress. This paper develops a conceptual framework that gives meaning to information on human capital, researching references, theoretical and applied guidelines; agreements in the international discussion; and proposes a methodology for the production of indicators.
    Date: 2014–12–16
  24. By: Chowdhury, Sabbir Hassan
    Abstract: This study will be performed to find out whether the RMG sectors in Bangladesh are practicing the right process of HR functions and whether this sector is considering HR as an integral part of its business. Simple Random Sampling Method is applied in this study. The study will have both practical and academic value. It will lead anyone to get a clear idea about Human Resource Management Practices, its procedure and present scenario of RMG sector in comparison with BGMEA rules and regulations. This study will also focus on the issues of fraud and forgery in Human Resource Management Practices, and their guidelines in prevention. On the other hand the findings of the study will direct to think about appropriate actions and steps for the betterment of the existing practices.
    Keywords: Training and development, Compensation, Forgery, Fraudulence
    JEL: M1 M12
    Date: 2015–05

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