nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒08‒19
twenty papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Does Internal and External R&D Affect SMEs Innovation Performance? Micro Level Evidence from India and Pakistan By Rehman, Naqeeb, Ur
  2. The determinants of partner choice for cooperative innovation: The effect of competition By Ibañez-Zarate, Guiomar
  3. Does Foreign Entry Spur Innovation? By Gorodnichenko, Yuriy; Svejnar, Jan; Terrell, Katherine
  4. Intangible Investment and Technical Efficiency: The Case of Software-Intensive Manufacturing Firms in Turkey By Findik, Derya; Tansel, Aysit
  5. Does Foreign Entry Spur Innovation? By Gorodnichenko, Yuriy; Svejnar, Jan; Terrell, Katherine
  6. Simulating knowledge diffusion in four structurally distinct networks: An agent-based simulation model By Mueller, Matthias; Bogner, Kristina; Buchmann, Tobias; Kudic, Muhamed
  7. Share of exports to low-income countries, productivity, and innovation: A replication study with firm-level data from six European countries By Wagner, Joachim
  8. International R&D Spillovers and Asset Prices By Ana Maria Santacreu; Federico Gavazzoni
  9. The virtues of the vice of cooperation between rival firms : a simulation model to evaluate the performance of coopetition strategy in the grain merchant industry By Mourad Hannachi; Francois-Christophe Coleno
  10. Heterogeneous policies, heterogenous technologies : the case of renewable energy By Francesco Nicolli; Francesco Vona
  11. Patents used by NPE as an Open Information System in Web 2.0 – Two mini case studies By Abdelkader Baaziz; Luc Quoniam
  12. Same difference? Minority ethnic inventors, diversity and innovation in the UK By Max Nathan
  13. Emergence and evolution of new industries: The path-dependent dynamics of knowledge creation. An introduction to the special section By Jackie Krafft; Sebastien Lechevalier; Francesco Quatraro; Cornelia Storz
  14. Human Capital Spillovers and the Geography of Intergenerational Mobility By Brant Abbott; Giovanni Gallipoli
  15. Corporate Venture Capital as a Real Option in the Markets for Technology By Marco Ceccagnoli; Matthew J. Higgins; Hyunsung D. Kang
  16. Local social innovation and welfare state restructuring: analysing their relationship By Stijn Oosterlynck; Yuri Kazepov; Andreas Novy; Pieter Cools; Tatiana Sarius; Florian Wokuvitsch
  17. Territorial clusters of economic cooperation : citizens' and institutional processes for social innovation By Myriam Matray; Jacques Poisat
  18. A Note on Quality Disclosure and Competition By Jos Jansen
  19. Spillover Implications of Differences in Monetary Conditions in the United States and the Euro Area By Carolina Osorio; Esteban Vesperoni
  20. Title: Strategic Intelligence Monitor on Personal Health Systems Phase 3 (SIMPHS 3) – SPARRA (United Kingdom) Case Study Report By Francisco Lupiañez-Villanueva; Alexandra Theben

  1. By: Rehman, Naqeeb, Ur
    Abstract: The purpose of this study is to investigate the impact of internal and external R&D on SMEs innovation performance. Micro level data was obtained from Enterprise Survey. For analysis, bivariate models have been used. The results show that internal and external R&D positively affects the product and process innovations. However, this effect is stronger for Indian SMEs. In comparison, only external R&D showed positive association to product and process innovation for Pakistani SMEs. Similarly, Pakistani SMEs are externally constrained (lack of access to credit) than Indian SMEs. Moreover, Indian SMEs are dominant in terms of undertaking internal R&D, generating product and process innovations than Pakistani SMEs. Lastly, the complementary relationship has been examined between internal and external R&D for both countries. Regarding contribution, this research study for the first time has examined the Indian and Pakistani SMEs innovation activities. The implication of this study suggests that business managers can utilize the balance combination of internal and external R&D to accelerate the SMEs innovation performance.
    Keywords: Internal and External R&D,SMEs
    JEL: O3
    Date: 2015
  2. By: Ibañez-Zarate, Guiomar
    Abstract: This study analyses the effect of competition intensity as a determinant of cooperative partner choice. To the best of our knowledge, this is the first attempt to study the relationship between research and development (R&D) cooperation and direct measures of competition intensity. Competition intensity is measured by the number of competitors in the firm's core market and the price elasticity reported by firms. Using information from German firms for 2011, our results show that competition intensity is a determinant for different types of collaborative innovation (e.g., with customers, suppliers, competitors, universities, or firms of the same group). Overall, the effect of competition is negative for cooperation with universities, customers and firms of the same group, and positive for cooperation with suppliers and competitors (and ambiguous for cooperation with consultants). Competition negatively affects partnerships with customers and universities, which look for radical innovation and involve high risks of disclosure. By contrast, competition positively influences partnerships with suppliers and competitors, which pursue incremental innovation and which involve a symmetric risk of information disclosure. Keywords: innovation; R&D cooperation; competition intensity; appropriability conditions. JEL Classification Numbers: L10; O32; O33; L60.
    Keywords: Investigació industrial, Competència econòmica, Innovacions tecnològiques, Empreses -- Alemanya, Col·laboració empresa-universitat, 338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus,
    Date: 2015
  3. By: Gorodnichenko, Yuriy (University of California, Berkeley); Svejnar, Jan (Columbia University); Terrell, Katherine (University of Michigan)
    Abstract: Our estimates, based on large firm-level and industry-level data sets from eighteen countries, suggest that FDI and trade have strong positive spillover effects on product and technology innovation by domestic firms in emerging markets. The FDI effect is more pronounced for firms from advanced economies. Moreover, our results indicate that the spillover effects can be detected with micro data at the firm-level, but that using linkage variables computed from input-output tables at the industry level yields much weaker, and usually insignificant, estimated effects. These patterns are consistent with spillover effects being rather proximate and localized.
    Keywords: innovation, FDI, spillovers, horizontal and vertical linkages, emerging markets, foreign competition
    JEL: F23 M16 O16 P23
    Date: 2015–08
  4. By: Findik, Derya (Middle East Technical University); Tansel, Aysit (Cornell University)
    Abstract: This chapter analyzes the effect of intangible investment on firm efficiency with an emphasis on its software component. Stochastic production frontier approach is used to simultaneously estimate the production function and the determinants of technical efficiency in the software intensive manufacturing firms in Turkey for the period 2003-2007. Firms are classified based on the technology group. High technology and low technology firms are estimated separately in order to reveal differentials in their firm efficiency. The results show that the effect of software investment on firm efficiency is larger in high technology firms which operate in areas such as chemicals, electricity, and machinery as compared to that of the low technology firms which operate in areas such as textiles, food, paper, and unclassified manufacturing. Further, among the high technology firms, the effect of the software investment is smaller than the effect of research and development personnel expenditure. This result shows that the presence of R&D personnel is more important than the software investment for software intensive manufacturing firms in Turkey.
    Keywords: intangible assets, software investment, efficiency, software intensive firms, stochastic frontier analysis, production function, firms, Turkey
    JEL: L21 L22 L23 L25
    Date: 2015–08
  5. By: Gorodnichenko, Yuriy; Svejnar, Jan; Terrell, Katherine
    Abstract: Our estimates, based on large firm-level and industry-level data sets from eighteen countries, suggest that FDI and trade have strong positive spillover effects on product and technology innovation by domestic firms in emerging markets. The FDI effect is more pronounced for firms from advanced economies. Moreover, our results indicate that the spillover effects can be detected with micro data at the firm-level, but that using linkage variables computed from input-output tables at the industry level yields much weaker, and usually insignificant, estimated effects. These patterns are consistent with spillover effects being rather proximate and localized.
    Keywords: emerging markets; FDI; foreign competition; horizontal and vertical linkages; innovation; spillovers
    JEL: F23 M16 O16 P23
    Date: 2015–08
  6. By: Mueller, Matthias; Bogner, Kristina; Buchmann, Tobias; Kudic, Muhamed
    Abstract: In our work we adopt a structural perspective and apply an agent-based simulation approach to analyse knowledge diffusion processes in four structurally distinct networks. The aim of this paper is to gain an in-depth understanding of how network characteristics, such as path length, cliquishness and the distribution and asymmetry of degree centrality affect the knowledge distribution properties of the system. Our results show - in line with the results of Cowan and Jonard (2007) - that an asymmetric or skewed degree distribution actually can have a negative impact on a network's knowledge diffusion performance in case of a barter trade knowledge diffusion process. Their key argument is that stars rapidly acquire so much knowledge that they interrupt the trading process at an early stage, which finally disconnects the network. However, our findings reveal that stars cannot be the sole explanation for negative effects on the diffusion properties of a network. In contrast, interestingly and quite surprisingly, our simulation results led to the conclusion that in particular very small, inadequately embedded agents can be a bottleneck for the efficient diffusion of knowledge throughout the networks.
    Keywords: innovation networks,knowledge diffusion,agent-based simulation,scale free networks,Netzwerk,Simulation,Wissen
    Date: 2015
  7. By: Wagner, Joachim (Leuphana University Lueneburg, Germany, Centre of Excellence for Science and Innovation Studies (CESIS), & Royal Institute of Technology (KTH), Sweden.)
    Abstract: Crinò and Epifani (2012) report and discuss two empirical regularities they find in a representative sample of Italian manufacturing firms. First, there is a negative correlation between firms’ productivity and their export share to low-income destinations. Second, there is a negative correlation between firms’ innovation activity and their export share to low-income destinations. This note uses recently available comparable high quality firm level data for six European countries (including Italy) and similarly specified empirical models in an attempt to replicate these results. Replication failed completely. The link found between the share of exports to low-income countries and either productivity or R&D intensity is never in line with the results from Crinò and Epifani (2012).
    Keywords: exports; low-income destinations; productivity; innovation; EFIGE data
    JEL: F14
    Date: 2015–07–29
  8. By: Ana Maria Santacreu (Federal Reserve Bank of Saint Louis and INSEAD); Federico Gavazzoni (INSEAD)
    Abstract: We document that international R&D spillovers through trade in varieties is a major driver of asset prices. We find that country pairs that share more R&D have more correlated stock market returns and less volatile exchange rates. Moreover, we show that countries that depend more heavily on their trading partner's R&D have currencies that tend to pay a positive excess return. We develop an endogenous growth model of innovation and international technology diffusion that rationalizes our empirical findings. A calibrated version of our model matches several important asset pricing and quantity moments, thus alleviating several of the classic quantity-price puzzles of the international macroeconomic literature.
    Date: 2015
  9. By: Mourad Hannachi (SADAPT - Sciences pour l'Action et le Développement : Activités, Produits, Territoires - Institut national de la recherche agronomique (INRA) - AgroParisTech); Francois-Christophe Coleno (SADAPT - Sciences pour l'Action et le Développement : Activités, Produits, Territoires - Institut national de la recherche agronomique (INRA) - AgroParisTech)
    Abstract: Coopetition is often seen as a phenomenon present in the tertiary sector encouraging the competitors to achieve cooperation upstream the production particularly in R & D. The literature suggest that coopetition's benefits occur inknowledge-intensive sectors. The aim of this paper is to explore how coopetition enables superior industry performance in primary sector. Using a simulation model on the case of grain merchant's industry in the context of coexistence between GM (genetically modified) and non-GM production, we demonstrate that coopetition enables superior performance and competitiveness in a context of market segmentation. The use of modelling enables us to compare a cooperative strategy with a non-cooperative strategy.
    Date: 2015
  10. By: Francesco Nicolli (Facoltà di Economia (Faculty of Economics) - Università degli Studi di Ferrara); Francesco Vona (Facoltà di Economia (Faculty of Economics) - Università degli Studi di Ferrara)
    Abstract: This paper investigates empirically the effect of market regulation and renewable energy policies on innovation activity in different renewable energy technologies. For the EU countries and the years 1980 to 2007, we built a unique dataset containing information on patent production in eight different technologies, proxies of market regulation and technology-specific renewable energy policies. Our main findings show that lowering entry barriers is a more significant driver of renewable energy innovation than privatisation and unbundling, but its effect varies across technologies, being stronger in technologies characterised by the potential entry of small, independent power producers. Additionally, the inducement effect of renewable energy policies is heterogeneous and more pronounced for wind, which is the only technology that is mature and has high technological potential. Finally, the ratification of the Kyoto protocol – determining a more stable and less uncertain policy framework - amplifies the inducement effect of both energy policy and market liberalisation.
    Date: 2014–07
  11. By: Abdelkader Baaziz (IRSIC - Institut de Recherches en Sciences de l'Information et de Communication - AMU - Aix-Marseille Université); Luc Quoniam (UTLN - Université de Toulon)
    Abstract: The Information Systems around patents are complex, their study coupled with a creative vision of "out of the box", overcomes the strict basic functions of the patent. We have, on several occasions, guiding research around the patent solely-based on information, since the writing of new patents; invalidation of existing patents, the creation of value-added information and their links to other Information Systems. The traditional R&D based on heavy investments is one type of technology transfer. But, patent information is also, another powerful tool of technology transfer, innovation and creativity. Indeed, conduct research on the patent, from an academic viewpoint, although not always focusing only on financial revenue, can be considered as a form of "Non Practicing Entities" (NPE) activity, called rightly or wrongly "Patent Trolls". We'll see why the term "patent troll" for this activity is controversial and inappropriate. The research we will describe in this paper falls within this context. We show two case studies of efficient use of patent information in Emerging countries, the first concern the pharmaceutical industry in Brazil and the second, the oil industry in Algeria.
    Date: 2014–11–25
  12. By: Max Nathan
    Abstract: Minority ethnic inventors play important roles in US innovation, especially in high-tech regions such as Silicon Valley. Do ‘ethnicity–innovation’ channels exist elsewhere? Ethnicity could influence innovation via production complementarities from diverse inventor communities, co-ethnic network externalities or individual ‘stars’. I explore these issues using new UK patents microdata and a novel name-classification system. UK minority ethnic inventors are spatially concentrated, as in the USA, but have different characteristics reflecting UK-specific geography and history. I find that the diversity of inventor communities helps raise individual patenting, with suggestive influence of East Asian-origin stars. Majority inventors may benefit from multiplier effects.
    Keywords: innovation; cultural diversity; minority ethnic inventors patents; cities
    JEL: J15 O31 R11
    Date: 2014–05–10
  13. By: Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS - UNS - Université Nice Sophia Antipolis); Sebastien Lechevalier (CCJ - Chine, Corée, Japon - CNRS - UP7 - Université Paris Diderot - Paris 7 - EHESS - École des hautes études en sciences sociales); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS - UNS - Université Nice Sophia Antipolis); Cornelia Storz (Goethe University Frankfurt - Department of Money and Macroeconomics)
    Abstract: In this introduction, we review the arguments that underpin the rationale for the special section, and provide a structured sequence for the contents of the six selected papers that comprise the section.
    Date: 2014–12
  14. By: Brant Abbott (Yale University); Giovanni Gallipoli (UBC)
    Abstract: We develop and estimate an equilibrium model of geographic variation in the intergenerational earnings elasticity (IGE). The theory extends the Becker-Tomes model, introducing a production sector in which human capital inputs are strategic complements. We show that the equilibrium return to human capital investments is lower in places where strategic complementarity is more intense, and that this is associated with less intergenerational persistence (lower IGEs). Furthermore, optimal education policies are more progressive where these complementarities are stronger, leading to a negative correlation between progressive public policy and IGEs. Using microdata we construct various location-specific measures of skill complementarity and document that the patterns of geographic variation in IGEs are consistent with our hypothesis. Quantitatively, geographic differences in skill complementarity account for up to 1/5 of cross-country variation in intergenerational earnings persistence. Governments in countries where prominent industries exhibit greater skill complementarities tend to spend larger fractions of GDP on public education, suggesting that underlying technology differences may indirectly explain an even larger proportion of cross-country IGE variation.
    Date: 2015
  15. By: Marco Ceccagnoli; Matthew J. Higgins; Hyunsung D. Kang
    Abstract: Despite the fact that one of the main goals of corporate venture capital (CVC) investments in high-tech industries is to gain a window on future technologies, the relationship between CVC investments and strategies used to acquire technologies in the markets, such as licensing, has not been adequately explored. To address this gap, we build on the real option literature suggesting that CVC investments can be used as real options in the markets for technology. Accordingly, we formulate hypotheses about key drivers of the option value of CVC investments and the decision to exercise the option. Using a longitudinal dataset based on 604 dyads formed by a sample of global pharmaceutical firms and their external technology partners, we find that corporate investors’ scientific capabilities, technological domains, research pipelines, and the resolution of exogenous uncertainty related to partner firms’ technologies impact investors’ decisions on CVC investments and ex post technology acquisition. In our research setting, the most common way to exercise the option post-CVC investment is via technology licensing.
    JEL: G34 L24 L65 O32
    Date: 2015–07
  16. By: Stijn Oosterlynck; Yuri Kazepov; Andreas Novy; Pieter Cools; Tatiana Sarius; Florian Wokuvitsch
    Abstract: This paper is concerned with local social innovation in the field of poverty reduction. We argue that local social innovation aimed at poverty reduction should be discussed in the context of the ongoing restructuring of the welfare state in Europe and debates about the future of social policy, paying particular attention to institutional features such as the territorial organization of the welfare system and changes in the welfare mix. Rather than seeing local social innovation as a new paradigm for social intervention that can potentially replace the welfare state, we see local social innovation as a wave of initiatives that is part and parcel of an ongoing spatio-institutional restructuring of welfare states, leading to a more complex rather than a completely different welfare mix.We start this paper with a general definition of social innovation as an innovation that is innovative both in its goals and means and then develop a more customised definition for the field of poverty reduction. We do so by discussing three core characteristics of social innovation in this area, namely its approach of poverty as a multidimensional and relational phenomenon, its critique of bureaucratic and centralized welfare institutions and its place-based character. This leads us to define local social innovations in the field of poverty reduction as locally embedded practices, actions and policies that enable socially excluded and impoverished individuals and social groups to satisfy basic needs for which they find no adequate solution in the private market or institutionalized macro-level welfare policies.In a final part of the paper, we build on this customized definition to analyze the relationship between social innovation and macro-level welfare state policies. We show how the spatio-institutional restructuring of welfare states in recent decades have created many points of contact between macro-level welfare policies and local social innovations and that recent and that social innovation has recently emerged on the European social agenda. Finally, by way of identifying issues of interest for empirical research on the relationship between social innovation and welfare state, we look at how local social innovations organize social interventions differently from conventional welfare state policies and social investment strategies.
    Keywords: Social innovation, welfare state, poverty reduction, social investment, welfare mix, rescaling, social policy
    Date: 2015–07
  17. By: Myriam Matray (EVS - UMR 5600 Environnement Ville Société - ENSAL - Ecole nationale supérieure d'architecture de Lyon - Ecole Nationale Supérieure des Mines de Saint-Etienne - CNRS - UL2 - Université Lumière - Lyon 2 - Université Jean Moulin - Lyon III - Université Jean Monnet - Saint-Etienne - École Nationale des Travaux Publics de l'État [ENTPE] - ENS Lyon - École normale supérieure - Lyon); Jacques Poisat (EVS - UMR 5600 Environnement Ville Société - ENSAL - Ecole nationale supérieure d'architecture de Lyon - Ecole Nationale Supérieure des Mines de Saint-Etienne - CNRS - UL2 - Université Lumière - Lyon 2 - Université Jean Moulin - Lyon III - Université Jean Monnet - Saint-Etienne - École Nationale des Travaux Publics de l'État [ENTPE] - ENS Lyon - École normale supérieure - Lyon)
    Abstract: Coming from civil society and entrepreneurial processes in a bottom-up strategy, territorial clusters of economic cooperation (inspired by french economic clusters) could hardly emerge and develop separately from public institutions. The approach by local collective strategies shows indeed that citizens’ and institutional processes combine to create groups of social actors. But such governance is not obvious, needs to be organized, taking into account the purposes, constraints, means of each stakeholder and in compliance with the necessary but relative autonomy of each of them. The roannaise initiative, POLLENS, highlights the many practical forms that the involvement of public institutions can take in the development of a social cluster, and shows the strategic importance to reach agreements, both for social economy and local public institutions.
    Abstract: Inspirés des pôles de compétitivité mais émanant de la société civile et de dynamiques entrepreneuriales, dans une logique ascendante, les Pôles territoriaux de coopération économique pourraient difficilement émerger et se développer totalement à l’écart des pouvoirs publics. L’approche par les stratégies collectives locales montre, en effet, que les processus citoyens et institutionnels se combinent pour faire émerger des collectifs. Mais une telle gouvernance ne va pas de soi, nécessite d’être construite et organisée, en tenant compte des objectifs, contraintes, moyens de chaque partie prenante et dans le respect de la nécessaire, mais relative, autonomie de chacune d’elles. L’initiative roannaise, POLLENS, met en lumière les nombreuses formes concrètes que peut prendre l’implication des institutions publiques dans l’émergence, le fonctionnement et le développement d’un pôle et montre l’intérêt stratégique, tant pour l’économie solidaire que pour les élus locaux, de réussir ces articulations-ajustements.
    Date: 2014
  18. By: Jos Jansen (Department of Economics and Business Economics, Aarhus University, Denmark)
    Abstract: Competitive pressure is lower in markets where goods are more differentiated. I analyze how a change in the degree of horizontal product differentiation affects the incentives of duopolists to disclose quality information. If disclosure is costly, then a firm discloses high qualities but conceals low qualities in equilibrium. The higher the disclosure cost, the higher the equilibrium threshold below which firms conceal quality information. I show that the effect of product differentiation on quality disclosure depends on the cost of disclosure. For low (high) disclosure costs, a firm discloses more (less) quality information if goods become more differentiated.
    Keywords: Hotelling model, quality, transportation cost, product differentiation, information disclosure, disclosure cost, competitive pressure
    JEL: D82 D83 L13 L15 M31
    Date: 2015–03–08
  19. By: Carolina Osorio; Esteban Vesperoni
    Abstract: This report analyzes the possible spillover effects that could result if the U.S. normalizes its monetary policy while euro area countries are increasing monetary stimulus (a situation referred to as asynchronous monetary conditions). This analysis identifies country-specific shocks to economic activity and monetary conditions since the early 1990s, finding that real and monetary conditions in the United States and the euro area have oftentimes been asynchronous and have often resulted in significant spillover effects, particularly since early 2014.
    Keywords: Spillovers;Negative spillovers;Positive spillovers;United States;Euro Area;Monetary policy;spillovers;monetary policy
    Date: 2015–07–23
  20. By: Francisco Lupiañez-Villanueva (Open Evidence); Alexandra Theben (Open Evidence)
    Abstract: SPARRA/ACP is an integrated care management approach based on two main components: the predictive model “Scottish Patient at Risk of Readmission and Admission” (SPARRA) which aims to measure the risk of hospital admission of a targeted patient and an Anticipatory Care Planning (ACP) approach which designs, implements and monitors the most suitable intervention according to the degree of hospital admission risk of the targeted patient. Together they form the SPARRA/ACP Patient-Centric Integrated Care approach that is being implemented in several communities in Scotland, promoted by the Scottish Government and NHS Scotland as part of its strategy of national health care system renewal.
    Keywords: SIMPHS, eHealth, Remote Monitoring, ageing, integrated care, independent living, case studies, facilitators, governance, impact, drivers, barriers, integration, organisation
    JEL: I11 I18 O33 O38
    Date: 2015–07

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