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on Economics of Strategic Management |
| By: | Salome Baslandze (UPenn) |
| Abstract: | What is the impact of information and communications technologies (ICT) on aggregate productivity growth and industrial reallocation? In this paper, I analyze the impact of ICT through facilitating knowledge diffusion in the economy. There are two opposing effects. The increased flow of ideas between firms and industries improves learning opportunities and spurs innovation. However, knowledge diffusion through ICT also results in broader accessibility of knowledge by competitors, reducing expected returns from research efforts and hence harming innovation incentives. The nature of the tradeoff between these opposing forces depends on an industry's technological characteristics, which I call external knowledge dependence. Industries whose innovations rely more on external knowledge benefit greatly from knowledge externalities and expand, while more self-contained industries are more affected by intensified competition and shrink. This results in the reallocation of innovation and production activities toward more externally-focused, ``knowledge-hungry'' industries. I develop a general equilibrium endogenous growth model featuring this mechanism. In the model, firms belonging to technologically heterogeneous industries learn from external knowledge and innovate. These firms' abilities to access external information is governed by ICT. Using NBER patent and citations data together with BEA industry-level data on ICT, I empirically validate the mechanism of the paper. Quantitative analysis from the calibrated model illustrates that it is important to account for both technological heterogeneity and the knowledge-diffusion role of ICT to explain U.S. trends in productivity growth and sectoral reallocation in recent decades. Counterfactual experiments are conducted to quantitatively assess separate channels and illustrate various growth decompositions. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed015:1488&r=cse |
| By: | Dan Andrews; Chiara Criscuolo; Peter N. Gal |
| Abstract: | This paper analyses the characteristics of firms that operate at the global productivity frontier and their relationship with other firms in the economy, focusing on the diffusion of global productivity gains and the policies that faciliate it. Firms at the global productivity frontier – defined as the most productive firms in each two-digit industry across 23 countries – are typically larger, more profitable, younger and more likely to patent and be part of a multinational group than other firms. Despite the slowdown in aggregate productivity, productivity growth at the global frontier remained robust over the 2000s. At the same time, the rising productivity gap between the global frontier and other firms raises key questions about why seemingly non-rival technologies do not diffuse to all firms. The analysis reveals a highly uneven process of technological diffusion, which is consistent with a model whereby global frontier technologies only diffuse to laggards once they are adapted to country-specific circumstances by the most productive firms within each country (i.e. national frontier firms). This motivates an analysis of the sources of differences in the productivity and size of national frontier firms vis-à-vis the global frontier and the catch-up of laggard firms to the national productivity frontier. Econometric analysis suggests that well-designed framework policies can aid productivity diffusion by sharpening firms’ incentives for technological adoption and by promoting a market environment that reallocates resources to the most productive firms. There is also a role for R&D tax incentives, business-university R&D collaboration and patent protection but trade-offs emerge which can inform the design of innovation-specific policies.<P>Entreprises en pointe, diffusion des technologies et politiques publiques : Microdonnées des pays de l'OCDE<BR>Ce document analyse les caractéristiques des entreprises qui se situent à la frontière mondiale en matière de productivité et leurs relations avec les autres entreprises de l’économie. Les entreprises à la frontière de la productivité mondiale – que l’on définit comme étant les entreprises les plus productives dans chaque industrie correspondant à un code à deux chiffres de la classification des activités économiques, dans 23 pays – sont en général de plus grande taille, plus rentables, plus jeunes, présentent une plus grande propension à breveter et font plus souvent partie d’un grand groupe multinational que les autres entreprises. Malgré le ralentissement de la croissance de la productivité globale, la croissance à la frontière mondiale est demeurée robuste pendant les années 2000, tandis que le creusement de l’écart de productivité entre les entreprises à la frontière et les autres soulève d’importantes questions quant aux raisons faisant que des technologies non rivales n’atteignent pas toutes les entreprises. À cet égard, l’analyse concorde avec un modèle selon lequel les technologies à la frontière mondiale ne rejoignent les entreprises retardataires que lorsqu’elles sont adaptées aux exigences propres à chaque pays des entreprises qui se situent à la frontière nationale. Ce processus très inégal de diffusion des technologies justifie une analyse des différences internationales en ce qui concerne les écarts de performances entre les entreprises à la frontière mondiale et celles qui se situent à la frontière nationale, et le rattrapage des entreprises retardataires par rapport à la frontière de productivité nationale. L’analyse économétrique donne à penser que des politiques-cadres judicieuses peuvent favoriser la diffusion de la productivité en affinant les motivations des entreprises à adopter des technologies nouvelles et en promouvant un environnement de marché qui réaffecte les ressources aux entreprises les plus productives. Les incitations fiscales à la R-D, la collaboration entreprises-universités en R-D et la protection par brevet ont un rôle à jouer, mais des arbitrages nouveaux peuvent inspirer des politiques spécifiques en faveur de l’innovation. |
| Keywords: | productivity, firm dynamics, reallocation, réaffectation, productivité |
| JEL: | M13 O30 O40 O43 O57 |
| Date: | 2015–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaac:2-en&r=cse |
| By: | Douglas Hanley (University of Pittsburgh) |
| Abstract: | There is substantial heterogeneity across industries in the level of interdependence between new and old technologies. I propose a measure of this interdependence--an index of sequentiality in innovation--which is the transfer rate of patents in a particular industry. I find that highly sequential industries have higher profitability, higher variance of firm growth, lower exit rates, and lower rates of patent expiry. To better understand these trends, I construct a model of firm dynamics where the productivity of firms evolves endogenously through innovations. New innovators either replace existing technologies or must purchase the rights to existing technologies from incumbents in order to produce, depending on the level of sequentiality in the industry. Estimating the model using data on US firms and recent data on US patent transfers, I can account for a large fraction of the cross-industry trends described above. Because innovation results in larger monopoly distortions in more sequential industries, there is an overinvestment of research inputs into these industries. This misallocation, which amounts to 2.5% in consumption equivalent terms, can be partially remedied using a patent policy featuring weaker protection in more sequential industries, yielding welfare gains of 1.7%. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed015:1491&r=cse |
| By: | Dudin, Mikhail Nikolaevich (Russian Academy of Entrepreneurship); Lyasnikov, Nikolaj Vasil'evich (Russian Academy of Entrepreneurship); Dzhurabaeva, Gulnora Kahramanovna (Novosibirsk State Technical University); Dzhurabaev, Kahraman Tursunovich (Novosibirsk State Technical University); Reshetov, Konstantin Jur’evich (National Institute of Business) |
| Abstract: | This article aims to reveal main theoretical and methodological issues related to the specificity of the strategic innovation-oriented interaction of large and small business structures of the agrarian sector. As part of the presentation of this paper, the authors have obtained the following main conclusions Secure and sustainable development of national economies and the international community as a whole is not possible without a constant evolution of the agro-industrial sector, which plays a key role in the formation of an adequate level of food security; effectiveness of development of the agrarian sector can be enhanced through the use of innovative solutions, both in terms of agricultural production, and in terms of interaction of large industrial enterprises and small entrepreneurship with each other; interaction of large industrial enterprises and small entrepreneurship of the agrarian sector is strategically-oriented solutions, aimed at meeting the interests and needs of the cooperating subjects, as well as maximizing economic and other benefits in proportion to a contribution of each partner; improving the innovative strategy of interaction of large industrial enterprises and small entrepreneurship in the agrarian sphere should include two directions: ongoing collaboration (meeting functioning needs) and strategic partnerships (meeting development needs). |
| Keywords: | Cooperation, teamwork, strategy, small entrepreneurship, large industrial enterprises, agrarian sphere |
| Date: | 2015–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:d155&r=cse |
| By: | Ugur, Mehmet; Trushin, Eshref; Solomon, Edna; Guidi, Francesco |
| Abstract: | Effects of R&D investment on frim/industry productivity have been investigated widely thanks to pioneering contributions by Zvi Griliches and others in late 1970s and early 1980s. We aim to establish where the balance of the evidence lies and what factors may explain the variation in the research findings. Using 1,258 estimates from 65 primary studies and hierarchical meta-regression models, we report that the average elasticity and rate-of-return estimates are both positive, but smaller than those reported in prior narrative reviews and meta-analysis studies. We discuss the likely sources of upward bias in prior reviews, investigate the sources of heterogeneity in the evidence base, and discuss the implications for future research. Overall, this study contributes to existing knowledge by placing the elasticity and rate-of-return estimates under a critical spot light and providing empirically-verifiable explanations for the variation in the evidence base. |
| Keywords: | R&D, knowledge capital, productivity, meta-analysis |
| JEL: | C8 D24 O30 O32 |
| Date: | 2015–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68008&r=cse |
| By: | David Bailey; Lisa De Propris; Jürgen Janger |
| Abstract: | The policy brief synthesises key policy findings from Area 3. The over-riding goal is to foster the transition to a new growth path for Europe, with a dynamic manufacturing and services base, greater social inclusiveness, less unemployment and higher sustainability based on excellence in clean technologies. Embarking on a growth path that leverages current technological chances, that is ecologically compatible and that delivers greater and more shared prosperity requires a vision that is able to set long term, clear and transparent targets and to draw pathways to reach them. Businesses require certainty to take risks and create the jobs that societies and communities need to flourish and prosper. Economic growth, social inclusion and ecological ambitions are not necessarily mutually exclusive, but neither are they mutually supportive. In the New Industrial Policy that this brief presents, we see a real opportunity for developing a policy agenda that is capable of transforming some of the trade-offs into potential synergies, problems into solutions and constraints into advantages. Our research has encompassed five key questions: (a) How can we redefine competitiveness so as to encompass social and ecological objectives and to motivate a new industrial policy needed for technology shifts and inclusive, sustainable growth? (b) How do we realign innovation and industrial performance towards social and ecological objectives? (c) What is the impact of green innovation on growth, employment and social cohesion? (d) How can entrepreneurial dynamics drive smart and sustainable growth? (e) How can intangible assets and the quality of academic research act as drivers of change? This Policy Brief outlines the essential elements of the New Industrial Policy for Europe (NIPE) for a more smart, inclusive and sustainable growth. |
| Keywords: | Economic growth path, economic strategy, holistic and interdisciplinary approach, industrial policy, policy options, political economy of policy reform, social development, sustainable growth |
| JEL: | O25 L52 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfepbr:y:2015:m:8:d:0:i:9&r=cse |
| By: | Reinhilde Veugelers |
| Abstract: | This contribution focuses on the heterogeneity in innovation capacity within Europe across its different Member States. Who are the leading and who are the lagging EU countries? Is there a trend towards convergence over time? And how has the crisis affected this trend of convergence? We then take a look at the research and innovation policies which the EU countries have in place and try to assess whether these policies match with the heterogeneous EU countries’ innovation capacity positions. We examine both the budgets allocated by EU Member States to R&I as well as the various kinds of R&I policy programmes being deployed. More particularly, we examine how heterogeneous the deployment of policy instruments is across EU member states and whether this matches with the heterogeneity in innovation capacity development among EU countries. Notwithstanding the large and increasing heterogeneity among EU countries in innovation capacity development, the evidence on innovation policies in EU countries shows a relative homogeneity of policy mixes in different countries. Current innovation policy mixes of instruments do not well reflect the countries’ levels of innovation capacity development. |
| Keywords: | Innovation, innovation policy, institutional reforms, multi-level governance |
| JEL: | O31 O38 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfepbr:y:2015:m:8:d:0:i:8&r=cse |
| By: | Premepeh, kwadwo Boateng; Odartei-Mills, Eugene |
| Abstract: | Over the past two decades the ideology of shareholder value has become entrenched as a principle of corporate governance among companies. A well-established corporate governance system suggests effective control and accounting systems, stringent monitoring, effective regulatory mechanism and efficient utilisation of firms’ resources resulting in improved performance. The object of the research presented in this paper is to provide empirical evidence on the effects of corporate governance on shareholder value maximization of the listed companies in Ghana. Data from ten companies listed on Ghana Stock Exchange covering the period 2003 –2007 were used and analysis done within the panel data framework. The dependent variables, dividend per share and dividend yield are used as a measure of shareholder wealth maximization and the relation between corporate governance and shareholder wealth maximization is investigated. The regression results show that both the board size and the independence have statistically significant relationship with shareholder wealth maximization. |
| Keywords: | Corporate governance, shareholder wealth, dividend, wealth maximization, Ghana Stock Exchange. |
| JEL: | G10 |
| Date: | 2015–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68087&r=cse |
| By: | Koska, Onur A. |
| Abstract: | This study models competition between multinationals, sequentially entering the same market, and analyzes how they choose their entry modes between trade, greenfield investment and acquisition, and how competition amongst them affects their choices. I discuss two important factors that lead a multinational whether or not to acquire a local firm: the intensity of pre- and post-acquisition competition. The former determines both the acquisition price and the profitability of the next best alternative entry mode, whereas the latter determines the extent of business stealing by the rival. The results point to a non-linear relationship between trade and investment liberalization and foreign direct investment. |
| Keywords: | Market Entry; Foreign Direct Investment; Acquisition; Trade |
| JEL: | D21 F23 L13 |
| Date: | 2014–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68024&r=cse |
| By: | Ugur, Mehmet; Trushin, Eshref; Solomon, Edna |
| Abstract: | Theoretical and empirical work on innovation and firm survival has produced varied and often conflicting findings. In this paper, we draw on Schumpeterian models of competition and innovation and stochastic models of firm dynamics to demonstrate that the conflicting findings may be due to linear specifications of the innovation-survival relationship. We demonstrate that a quadratic specification is appropriate theoretically and fits the data well. Our findings from an unbalanced panel of 39,705 UK firms from 1997-2012 indicate that an inverted-U relationship holds for different types of R&D expenditures and sources of funding. We also report that R&D intensity is more likely to increase survival when firms are in more concentrated industries and in Pavitt technology classes consisting of specialized suppliers of technology and scale-intensive industries. Finally, we report that the effects of firm and industry characteristics as well as macroeconomic environment indicators are all consistent with prior findings. The results are robust to step-wise modeling, controlling for left truncation and use of lagged values to address potential simultaneity bias. |
| Keywords: | Innovation, post-entry performance, R&D, survival analysis |
| JEL: | C41 D22 L1 O21 O3 |
| Date: | 2015–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68010&r=cse |
| By: | Simone Bertini (IRPET); Tommaso FerraresiAuthor-X-Name-First: Tommaso (IRPET); Marco Mariani (IRPET); Edoardo Loris Rossi (IRPET) |
| Abstract: | The present study analyzes the managerial practices of high-growth firms, an issue which is still unexplored in the relevant literature. Its aim is to verify whether the excellent performances of these firms are matched by significant differences in management skills. The main results suggest that, although they are not radically different from the others, fast-growing firms are somehow characterized by more advanced managerial practices and pay greater attention to learning-related aspects. Some of these aspects differentiate constant-growth firms from the non-constant growth ones. |
| Keywords: | High-growth firms, management |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:irp:essays:515&r=cse |
| By: | Andrew Keisner (Attorney, Davis & Gilbert LLP, New York, New York, U.S.A); Julio Raffo (Economics and Statistics Division, World Intellectual Property Organization, Geneva, Switzerland.); Sacha Wunsch-Vincent (Economics and Statistics Division, World Intellectual Property Organization, Geneva, Switzerland.) |
| Abstract: | Robotics technology and the increasing sophistication of artificial intelligence are breakthrough innovations with significant growth prospects and the potential to disrupt existing economic and social facets of everyday life. Few studies have analyzed the developments of robotics innovation. This paper closes this gap by analyzing how innovation in robotics is taking place, how it diffuses, and what role intellectual property (IP) plays. The paper finds that robotics clusters are mainly located in the US, Europe, but increasingly also in the Republic of Korea and China. The robotics innovation ecosystem builds on cooperative networks of actors, including individuals, research institutions, and firms. Governments play a significant role in supporting robotics innovation, in particular through funding, military demand, and national robotics strategies. Robotics competitions and prizes provide for an important incentive to innovation. Patents are used to exclude third parties, to secure freedom to operate, to license technologies and to avoid litigation. The countries with the highest number of filings are Japan, China, Republic of Korea and the US. The growing stock of patents owned by universities and PROs, in particular in China, is noteworthy too. Automotive and electronics companies are still the largest patent filers, but new actors in fields such as medical technologies and the Internet are emerging. Secrecy is often used as a tool to appropriate innovation. Copyright protection is relevant to robotics too, mainly in its role in protecting software, and more recently in protecting so-called Netlists. Finally, proprietary approaches co-exist with open-source robotics platforms which are developing rapidly in robotics clusters. |
| Keywords: | Robotics; artificial intelligence; innovation; patents; trade secrets; copyrights. |
| JEL: | F23 L86 O3 L6 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:30&r=cse |
| By: | Olga V. Kotomina (National Research University Higher School of Economics) |
| Abstract: | Knowledge intensive business services (KIBS) are characterized by high concentration in large urban areas due to the presence of more developed infrastructure, higher human capital development, proximity to the large customer, etc. However, companies in the KIBS sector have potential for development (new knowledge, experience) in collaboration with agents located in other regions. This paper is focused on the spatial aspects of the knowledge intensive business services sector in Russia. The study is based on a unique empirical data from mass surveys of Russian producers and consumers of KIBS. Comparative analysis of the incoming and outgoing flows of KIBS in Russian regions helps us to classify federal districts by their involvement in KIBS exchange, and to map the intensity of these flows. We have identified regions that are actively involved in both the purchase of services and their delivery outside the regional boundaries (Volga and Central Districts); active regions of consumption with an average level of production (Northwestern and Siberian Districts); and the passive regions, who are only weakly involved in inter-regional exchange of knowledge intensive business services (Ural and Southern Federal Districts) |
| Keywords: | Knowledge intensive business services, spatial proximity, spatial development, interregional cooperation. |
| JEL: | O18 R11 R12 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:50sti2015&r=cse |
| By: | Dudin, Mihail Nikolaevich (Russian academy of Entrepreneurship); Lyasnikov, Nikolaj Vasilevich (Russian academy of Entrepreneurship); Dzhurabaeva, Gulnora Kahramanovna (Novosibirsk State Technical University); Kuznecov, Aleksandr Valerevich (Moskovskij institut jekonomiki, politiki i prava) |
| Abstract: | Modern global geo-economic development is characterized by a turn of the European and the whole of the Western concept of the Asia-Pacific and East Asian concept, resulting in the further evolution of the World System will determine the economics of the new industrial and post-industrial countries. The purpose of this article is to study the role of the economies of the East Asian countries in the global economic development. And in particular the purpose of this article is to analyze the situation of the textile industry of China in the world market and the prospects for its definition of sustainable and competitive development. During the presentation of this work it was found that textile production in China is currently under the influence of delayed negative effects of the global financial and economic crisis 2008 - 2010 years, which can then lead to the deployment of systemic risks in the Chinese economy, since the textile industry plays leading role in the economic development of China. In the analytical procedures were received substantive justification for increasing the competitiveness of the textile industry in China through the use of organizational and technological innovation, as well as through review of government support measures under consideration of the economic sphere. Enhancing the competitiveness and sustainable growth and development of the textile industry in China to create a new reserve of strength of the Chinese economy and secure in the long term for the textile industry unconditional leadership. |
| Keywords: | China's economy, the textile industry, sustainable development, industrial competitiveness |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:d152&r=cse |
| By: | Dudin, Mihail Nikolaevich (Russian academy of Entrepreneurship); Lyasnikov, Nikolaj Vasilevich (Russian academy of Entrepreneurship); Dzhurabaeva, Gulnora Kahramanovna (Novosibirsk State Technical University); Kuznecov, Aleksandr Valerevich (Moskovskij institut jekonomiki, politiki i prava) |
| Abstract: | Modern global geo-economic development is characterized by a turn of the European and the whole of the Western concept of the Asia-Pacific and East Asian concept, resulting in the further evolution of the World System will determine the economics of the new industrial and post-industrial countries. The purpose of this article is to study the role of the economies of the East Asian countries in the global economic development. And in particular the purpose of this article is to analyze the situation of the textile industry of China in the world market and the prospects for its definition of sustainable and competitive development. During the presentation of this work it was found that textile production in China is currently under the influence of delayed negative effects of the global financial and economic crisis 2008 - 2010 years, which can then lead to the deployment of systemic risks in the Chinese economy, since the textile industry plays leading role in the economic development of China. In the analytical procedures were received substantive justification for increasing the competitiveness of the textile industry in China through the use of organizational and technological innovation, as well as through review of government support measures under consideration of the economic sphere. Enhancing the competitiveness and sustainable growth and development of the textile industry in China to create a new reserve of strength of the Chinese economy and secure in the long term for the textile industry unconditional leadership. |
| Keywords: | China's economy, the textile industry, sustainable development, industrial competitiveness |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:d152e&r=cse |
| By: | Kinsuk Mani Sinha; Pamela Adams; Franco Malerba |
| Abstract: | This study proposes that individual intermediate users in resource-poor environments represent a source of innovation. The paper first surveys the empirical evidence of user innovation in various developing countries and then examines some cases of user innovation in India. On the basis of the cases examined, the paper proposes an appreciative theory and then a formal model of the innovation process by users in a development context. This process is driven by the unmet, low-cost and functional needs of users, users’ contextual know-how and experience, and users’ knowledge of, and ability to learn from, the local context. |
| Keywords: | users, innovation, economic development, local knowledge, process model. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:aal:glowps:2015-14&r=cse |
| By: | Lisa Larrimore Ouellette (Stanford Law School, USA.) |
| Abstract: | This paper examines the role of intellectual property and other innovation incentives in the development of one field of breakthrough innovation: nanotechnology. Because nanotechnology is an enabling technology across a wide range of fields, the nanotechnology innovation ecosystem appears to be a microcosm of the global innovation ecosystem. Part I describes the nature of nanotechnology and its economic contribution, Part II explores the nanotechnology innovation ecosystem, and Part III focuses on the role of IP system s in the development of nanotechnology. |
| Keywords: | Innovation, nanotechnology, intellectual property |
| JEL: | O3 O34 O38 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:29&r=cse |
| By: | Ionara Costa; Howard Rush; Andrew Grantham |
| Abstract: | This study focuses on ‘multilatinas’, a group of emerging multinationals headquartered in Latin American countries, and analyses the flows of knowledge between multilatinas’ European subsidiaries and their headquarters. The research tracts both the occurrence of conventional flows of knowledge from headquarters to their European subsidiaries, as well those flows going in the reverse direction. The paper’s main findings can be summarised as follows. First, multilatinas presence in Europe is the result of the combination of market and strategic-asset seeking drivers; with Europe being both an important market for multilatinas, as well as a key location for their R&D activities. Second, multilatinas’ European subsidiaries exchange knowledge with their headquarters in Latin America, implying the concurrency of both conventional and reverse knowledge flows. Third, multilatinas are not only tapping into European knowledge base (strategic-asset seeking), they are also bringing knowledge into their European operations, suggesting the occurrence of spillovers into the host environments. Forth, intra-firm trade is a key mechanism for knowledge transfers, particularly from Europe to Latin America. |
| Keywords: | emerging multinationals; multilatinas; multinational subsidiaries; knowledge flows; knowledge management |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:aal:glowps:2015-13&r=cse |
| By: | Bournakis, Ioannis; Papanastassiou, Marina; Pitelis, Christos |
| Abstract: | This paper explores the relative effects of Multinational Enterprises’ (MNEs) subsidiaries to domestic firms (DOMS) on regional productivity growth in the UK. We combine regional and firm level data to explore the relative importance of three key characteristics of Multinational Enterprises’ subsidiaries: R&D, intangible assets and exports. Our main results indicate that MNE subsidiaries are on average more R&D intensive and have a higher level of investment in intangibles which impact significantly on regional productivity growth. The results are shown not to be symmetric when we take into account the country of origin of MNE subsidiaries, the role of R&D, intangibles and exports depending on the country of origin of the parental MNE. Two key implications can be derived from our findings: (a) DOMS can sometimes be more advantageous for local development; (b) the contribution of MNEs subsidiaries to the regional economy depends on its degree of embeddedness in the local economy. These two findings can provide a large scope for regional policy making. |
| Keywords: | Total Factor Productivity (TFP), Regions, Multinationals, Subsidiaries, Domestic Firms, R&D, Intangibles, Exports |
| JEL: | F23 O47 R3 |
| Date: | 2015–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68090&r=cse |
| By: | Carl Deschamps; Jan Mattijs |
| Abstract: | The performance management trend that has swept over public organizations in the last 25 years has had its share of successes and failures. Even in the organizations that have a good track record with performance management, the benefits of the system are sometimes ambiguous. In this paper, we study the link between measured results and productivity in a public organization that has a strong history of performance management using indicators. Across its different missions, the Belgian federal National Employment Office measures all aspects of its activities and uses performance targets to evaluate its results. Using statistical analysis of 5 years of monthly data across 30 regional offices, we found links between productivity and both indicators scores and targets, indicating that the productivity of employees increases when targets are harder to meet. However, the causality links between results, targets, and productivity are inconsistent across different activities, indicating areas where the performance management system works more effectively than others. Indeed, the link from targets to productivity is far from straightforward, as correlations are specific to activities that meet certain conditions, such as moderate task complexity and degree of automation. More research is needed to elaborate on the specific conditions. |
| Keywords: | Performance management; Productivity; Motivation theories; Goal-setting theory; Public administration |
| Date: | 2015–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/217877&r=cse |
| By: | Lackner M.; Stracke R.; Sunde U.; Winter-Ebmer R. (GSBE) |
| Abstract: | This paper investigates empirically whether decision makers are forward looking indynamic strategic interactions. In particular, we test whether decision makers in multistage tournaments take heterogeneity induced changes of continuation values and the ability of their immediate opponent into account when choosing effort. Usingdata from professional and semi-professional basketball tournaments, we find thateffort is negatively affected by the ability of the current opponent, consistent with thetheoretical prediction and previous evidence. More importantly, the results indicatethat the expected relative strength in future interactions does affect behavior in earlier stages, which provides support for the standard view that decision makers are forward looking in dynamic strategic interactions. |
| Keywords: | Expectations; Speculations; Intertemporal Choice and Growth: General; Compensation Packages; Payment Methods; Personnel Economics: Firm Employment Decisions; Promotions; |
| JEL: | D84 D90 M51 J33 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2015037&r=cse |
| By: | Bertrand M. Koebel; Anne-Laure Levet; Phu Nguyen-Van; Indradev Purohoo; Ludovic Guinard |
| Abstract: | This paper analyzes the determinants of international trade of wood products, considering three main groups: woodworking products, pulp and paper and wooden furniture. We extend the Heckscher-Ohlin-Vanek (HOV) framework in order to take into account the forest resource endowment as well as industrial performance factors. Empirical tests are based on data on European countries between 1995 and 2007. The HOV hypothesis is partially confirmed in that the forest resource endowment is a significant determinant for explaining differences in net trade of two products (pulp and paper and furniture) but not for woodworking products. In addition, empirical tests also show the limits of the HOV model for explaining international trade of wood products. Indeed, factors reflecting industrial performance of wood sectors, including total factor productivity and average labor cost, have a significant role in determining differences in net trade of wood products. |
| Keywords: | Heckscher-Ohlin-Vanek hypothesis; international trade; wood products, panel data. |
| JEL: | F10 L60 Q23 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2015-26&r=cse |
| By: | Sebastiano Sabato; Bart Vanhercke; Gert Verschraegen |
| Abstract: | The aim of this paper is to identify and provide a preliminary assessment of the resources that the EU has made available to promote social innovation over the period 2006-2014, with special focus on poverty and social exclusion policies. Such a focus is relevant insofar as the establishment of a quantitative target concerning poverty and social exclusion has been one of the major novelties introduced by the Europe 2020 Strategy: social innovation has been presented as a key area for facilitating its achievement. In order to identify European Union (EU) resources relevant for social innovation, we have adopted a diachronic approach taking into account two sub-periods: 2006-2010 (the period of the revised Lisbon Strategy) and 2010-2014 (the first stage of the new Europe 2020 Strategy). This has allowed us to shed light on both the varying importance of the issue over time and the evolution of the relevant instruments and processes implemented by the EU. Our analysis also provides insights into the complex and multi-layered European policy architecture for underpinning social innovation.(for more see paper) |
| Keywords: | Social innovation, Europe 2020, poverty and social exclusion, social experimentation, European structural Funds |
| JEL: | I3 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:hdl:improv:1521&r=cse |
| By: | Nobuyuki Hanaki (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - CNRS); Nicolas Jacquemet (BETA - Bureau d'Economie Théorique et Appliquée - CNRS - Université de Strasbourg - UL - Université de Lorraine, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Stéphane Luchini (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université Paul Cézanne - Aix-Marseille 3 - Université de la Méditerranée - Aix-Marseille 2 - EHESS - École des hautes études en sciences sociales - CNRS - AMU - Aix-Marseille Université); Adam Zylbersztejn (GATE - Groupe d'analyse et de théorie économique - CNRS - UL2 - Université Lumière - Lyon 2 - Ecole Normale Supérieure Lettres et Sciences Humaines) |
| Abstract: | How is one's cognitive ability related to the way one responds to strategic uncertainty? We address this question by conducting a set of experiments in simple 2 x 2 dominance solvable coordination games. Our experiments involve two main treatments: one in which two human subjects interact, and another in which one human subject interacts with a computer program whose behavior is known. By making the behavior of the computer perfectly predictable, the latter treatment eliminates strategic uncertainty. We find that subjects with higher cognitive ability are more sensitive to strategic uncertainty than those with lower cognitive ability. |
| Keywords: | Strategic Uncertainty, Bounded Rationality, Robot, Experiment |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01229612&r=cse |
| By: | Petreski, Blagica; Petreska, Despina |
| Abstract: | Many families in Krushevo (small city in Macedonia) are struggling with unemployment and poverty, seeking a way to address these bitter social problems. The main objective of the intervention is economic empowerment of women. The social entrepreneurship model has been applied among 25 unemployed women from Krushevo who produce traditional, homemade products divided in several categories: homemade pasta, berries products and natural teas. The model involves horizontal clustering through interconnections among individual producers and the community, as well vertical clustering through networking with the local caterers. Hence, applied approach composes of: capacity building, mentoring, piloting and promotion. The income of the women increased on average more than six times, the number of new buyers increased by 80%. At the same time, skills for packaging and sale significantly improved. Vertical clustering diversifies existing and enable new channels on sale, and horizontal clustering improved their products with joint brand, slogan and logo. |
| Keywords: | social entrepreneurship, economic empowerment, women, mini-clustering, traditional products |
| JEL: | E2 J16 J24 P36 |
| Date: | 2015–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68085&r=cse |