nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2016‒05‒28
twenty papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Studying Complementarities between Modes of Innovation Strategies in Transition Economies By Berulava, George; Gogokhia, Teimuraz
  2. Collecting new pieces to the regional knowledge spillovers puzzle: high-tech versus low-tech industries By Carlos Carreira; Luís Lopes
  3. Knowledge diversity and firm growth: Searching for a missing link By Grillitsch, Markus; Schubert, Torben; Srholec, Martin
  4. Universities and RIS3: the case of Catalonia and the RIS3CAT Communities By Elisabetta Marinelli; Susana Elena Pérez; Josep Alias
  5. Structural transformation in Brazil, Russia, India, China and South Africa (BRICS) By Naudé, Wim; Szirmai, Adam; Haraguchi, Nobuya
  6. Knowledge creates markets: The influence of entrepreneurial support and patent rights on academic entrepreneurship By Czarnitzki, Dirk; Doherr, Thorsten; Hussinger, Katrin; Schliessler, Paula; Toole, Andrew A.
  7. How an effective leadership and governance supports to achieve institutional vision, mission and objectives By Aithal, Sreeramana
  8. Innovative Strategies in Technical and Vocational Education and Training for Accelerated Human Resource Development in South Asia: Nepal By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  9. Driving business performance: innovation complementarities and persistence patterns By Maurizio Baussola; Eleonora Bartoloni
  10. The role of regulation on entry : evidence from the Italian provinces By Bripi,Francesco
  11. importance of Internationalization and Valorization in technical universities supported by Information systems By Arturs Zeps; Leonīds Ribickis; Juris Iljins
  12. Are multinationals better at creating technical linkages with local firms? By Cozza, Claudio; Perani, Giulio; Zanfei, Antonello
  13. Socio-economic effects of an earthquake:does sub-regional counterfactual sampling matter in estimates? An empirical test on the 2012 Emilia-Romagna earthquake By Margherita Russo; Francesco Pagliacci
  14. Skill use, skill deficits, and firm performance in formal sector enterprises : evidence from the Tanzania enterprise skills survey, 2015 By Tan,Hong W.; Bashir,Sajitha; Tanaka,Nobuyuki
  15. Adoption with Social Learning and Network Externalities By Marcel Fafchamps; Mans Soderbom; Monique vanden Boogaart
  16. Innovations in Knowledge and Learning for Competitive Higher Education in Asia and the Pacific By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  17. Industrial Penetration and Internet Intensity By Chang, C-L.; McAleer, M.J.; Wu, Y-C.
  18. Cooperation or Competition? A field experiment on non-monetary learning incentives By Margherita Fort; Maria Bigoni; Mattia Nardotto; Tommaso Reggiani
  19. Governance in entrepreneurial ecosystems: Venture capitalists vs. technology parks By Cumming, Douglas; Werth, Jochen Christian; Zhang, Yelin
  20. China's Industrial and Trade Policies and Economic Growth (Japanese) By ZHANG Hongyong

  1. By: Berulava, George; Gogokhia, Teimuraz
    Abstract: This paper explores the existing interrelationships between the firm’s innovation activities and productivity performance as well as studies complementarities among innovation strategies in transition economies. Specifically, on the basis of BEEPS V dataset and using extended CDM model, we have investigated the existence of possible complementarities between various types of innovation modes (product, process, marketing and organizational innovations) in their impact on the firm’s productivity. The traditional CDM framework was modified through accounting for the simultaneous occurrence of different types of innovation inputs - in-house and out-house knowledge generation activities - and through the estimation of their joint effects on various modes of innovation. In compliance with the results of previous studies, we find that CDM model properly describes the existing interrelations between the firm’s innovation activity and its productivity performance in transition economies. In particular, our results show that the firm’s decisions on in-house and out-house knowledge development processes are interdependent. The study results suggest that implementation of internal R&D strategy can stimulate not only technological innovations but non-technological innovative activity as well. However, we find that external knowledge acquisition strategy has positive and statistically significant effect on innovation output only when the firm’s innovation mix incorporates non-technological novelties. Our results show that only those modes of innovation output combinations that assume all the types of innovations and/or the combination of process and non-technological innovations have positive and statistically significant impact on the firm’s productivity. Another vital point of this analysis is that conducting either product or process innovation in isolation will result in a negative productivity performance. The important contribution of this paper is that it tests for complementarity between innovation strategies of firms in transition economies. Our tests reveal complementarity between the following two combinations of innovations: product/process and process/non-technological innovations. The key policy implication of our findings is that while performing all the three innovation modes jointly has a positive impact on firm’s performance, economically preferred options are: either to choose pure technological innovation strategy (product&process mode) or to perform strategy focused on organizational restructuring (process/non-technological mode).
    Keywords: R&D, external knowledge acquisition, innovation, productivity, CDM model, complementarity, transition economies
    JEL: C12 L25 O12 O31 P31
    Date: 2016–05–13
  2. By: Carlos Carreira (GEMF and Faculty of Economics, University of Coimbra, Portugal); Luís Lopes (GEMF and Faculty of Economics, University of Coimbra, Portugal)
    Abstract: This paper revisits the puzzling question regarding the role of spatial agglomeration of production activities and knowledge on firm’s total factor productivity (TFP). In particular, it addresses the overlooked issue of a plausible non-linear effect and different across industries. Using a panel of Portuguese manufacturing firms, we found that specialization economies have a positive impact on firms’ productivity, especially for those operating in medium-high and high-tech sectors. Diversity externalities, for its part, have an inverted U-shaped relationship with firms’ TFP in low, medium-low and medium-high tech sectors. The relationship between regional R&D employment and productivity differs across sectors: in all manufacturing firms and firms from medium-low and high-tech sectors, there is an inverted U-shaped relationship; in low-tech sector, there is a U-shaped relationship and a positive elasticity for any employment level higher than the 20th percentile. Overall, agglomeration economies differ substantially across industries and they are non-linear.
    Keywords: Regional knowledge spillovers, agglomeration economies, low-tech vs. high-tech industries, total factor productivity. JEL Classification:
    Date: 2016–05
  3. By: Grillitsch, Markus (CIRCLE, Lund University); Schubert, Torben (CIRCLE, Lund University); Srholec, Martin (CIRCLE, Lund University)
    Abstract: The link between knowledge and firm growth has been a core topic in economics of innovation for a long time. However, despite strong theoretical arguments, empirical evidence remains inconclusive. One important reason for this conundrum may be the failure of standard indicators to comprehensively capture firm innovation activities. We contribute to overcoming this limitation by zooming in on the knowledge processes that drive variegated forms of innovation and aim thereby to establish a solid relationship with firm growth. The paper draws on the differentiated knowledge base approach, distinguishing between analytical, synthetic, and symbolic knowledge, and measures these types of knowledge with detailed longitudinal linked-employer-employee micro data from Sweden. Econometric findings indicate positive relationships between the three knowledge types, in particular combinations thereof, and firm growth. These relationships remain robust in a wide range of models. Our analysis therefore suggests that the seemingly weak relationship between firm growth and innovation may be explained by the narrow measurement concepts that have dominated in this literature so far.
    Keywords: Knowledge; innovation; firm growth; micro data; Sweden
    JEL: C33 D22 O12 O32 O33
    Date: 2016–04–21
  4. By: Elisabetta Marinelli (European Commission – JRC - IPTS); Susana Elena Pérez (European Commission – JRC - IPTS); Josep Alias (ACUP (Catalan Association of Public Universities))
    Abstract: Regional Smart Specialisation Strategies (RIS3) are aimed at developing nation-al/regional competitive advantages following a vertical prioritisation logic based on the bottom-up identification of a limited set of priorities where regions believe they have potential to obtain a comparative advantage. Priorities are identified and pursued through the interaction of stakeholders across the quadruple helix of government, industry, academia and society at large. This is because entrepreneurial knowledge is most often distributed across a regional system. This cyclical and recursive process of identification and prioritisation is referred to as an Entrepreneurial Discovery Process (EDP). In this context, universities and regions have a unique opportunity to form partnerships, together with the business sector, to maximise the use of European Structural and Investment Funds (ESIF), and particularly the European Regional Development Fund (ERDF), hence contributing to the local knowledge-based development. Although universities are placed in a good position to contribute significantly to the process of local development, it is difficult to evaluate whether and how such potential can be untapped (Kempton et al., 2013). This report, which is based on collaboration between the JRC-IPTS and the Catalan Association of Public Universities (ACUP), contributes to this debate by exploring universities’ role within RIS3 in the case of Catalonia. The paper first assesses the role of universities in the overall design and implementation of the Catalan RIS3 and EDP, and then goes in depth into one of its key instruments, namely the RIS3CAT Communities. Catalonia’s Smart Specialization Strategy (RIS3CAT) lays the framework under which the Government of Catalonia carries out RDI (Research Development and Innovation) policies in the current programming period (2014-2020) and supports the generation and development of innovative projects aiming to further develop the region. RIS3CAT establishes that the sectors defined as strategic for Catalonia are structured into RIS3CAT Communities. Each community is expected to carry out initiatives to facilitate collaboration among sectorial stakeholders, to improve competitiveness and to generate solutions to society’s changing needs. These communities will be one of the key tools through which universities and other stakeholders in strategic sectors are able to apply for ERDF-funded grants. The case of Catalonia is particularly interesting as the region is home to several public universities displaying remarkable differences in terms of size, scientific specialisation and relationship to the territory. In this respect Catalonia provides the opportunity to test how different types of Higher Education Institutions (HEIs) can respond to the RIS3.
    Keywords: universities, smart specialisation strategies, instruments
    Date: 2016–05
  5. By: Naudé, Wim (; Szirmai, Adam (UNU-MERIT); Haraguchi, Nobuya (UNIDO)
    Abstract: This paper provides a comparative overview of the experiences of the BRICS countries (Brazil, Russia, India, China and South Africa) with structural transformation since the 1980s. We evaluate the different outcomes in industrialisation in these countries, explore the reasons for success (and failure); we also ask what currently industrially lagging countries can learn from the BRICS in this regard, and what impact their industrialisation had on poverty reduction. We point out that important areas for future research and current challenges remain. Foremost in this is the need for BRICS to drive their further structural economic transformation through innovation, taking into consideration their stage of development and the particulars of the sectors involved. As they develop, entrepreneurship and the role of the private sector seem to become more important. The paper is based on our edited book published in 2015 by Oxford University Press 'Structural Change and Industrial Development in the BRICS'.
    Keywords: Structural change, industrialisation, manufacturing, development, entrepreneurship, innovation, Brazil, Russia, India, China, and South Africa (BRICS)
    JEL: O14 L52 L60 L26 O32 O57
    Date: 2016–04–06
  6. By: Czarnitzki, Dirk; Doherr, Thorsten; Hussinger, Katrin; Schliessler, Paula; Toole, Andrew A.
    Abstract: We use an exogenous change in German Federal law to examine how entrepreneurial support and the ownership of patent rights influence academic entrepreneurship. In 2002, the German Federal Government enacted a major reform called Knowledge Creates Markets that set up new infrastructure to facilitate university-industry technology transfer and shifted the ownership of patent rights from university researchers to their universities. Based on a novel researcher-level panel database that includes a control group not affected by the policy change, we find no evidence that the new infrastructure resulted in an increase in start-up companies by university researchers. The shift in patent rights may have strengthened the relationship between patents on university-discovered inventions and university start-ups; however, it substantially decreased the volume of patents with the largest decrease taking place in faculty-firm patenting relationships.
    Keywords: intellectual property,patents,technology transfer,policy evaluation
    JEL: O34 O38
    Date: 2016
  7. By: Aithal, Sreeramana
    Abstract: Effective leadership by setting values and participative decision- making process is key not only to achieve the vision, mission and goals of the institution but also in building the organizational culture. The formal and informal arrangements in the institution to co-ordinate the academic and administrative planning and implementation reflects the institutions efforts in achieving its vision. This paper focus on the vision, mission and the objectives identified for a higher education institution and needs to be addressed through its distinctive characteristics by considering Srinivas Institute of Management Studies as an example. The role of top management, principal and faculty in design and implementation of its quality policy and plans both in Teaching and Services are identified. The involvement of the leadership in ensuring the policy statements and action plans for fulfillment of the stated mission, formulation of action plans for all operations and incorporation of the same into the institutional strategic plan, Interaction with stakeholders, Proper support for policy and planning through need analysis, research inputs and consultations with the stakeholders, Reinforcing the culture of excellence, and Champion organizational change. The various procedures adopted by the institution to monitor and evaluate policies and plans of the institution for effective implementation and improvement from time to time are discussed. Details of the academic leadership provided to the faculty by the top management, the college strategy to groom leadership at various levels, How does the college delegate authority and provide operational autonomy to the departments / units of the institution and work towards decentralized governance system, and the strategy of college to promote a culture of participative management are elaborated.
    Keywords: Effective leadership, Governance in Higher education, Efficiency in higher education institutions
    JEL: I2 I23
    Date: 2015–05
  8. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (South Asia Department, ADB); Asian Development Bank (ADB) (South Asia Department, ADB); Asian Development Bank (ADB)
    Abstract: This publication consists of six country reports on technical and vocational education and training and higher education in Bangladesh, Nepal, and Sri Lanka. Each report presents current arrangements and initiatives in each of the three countries’ skills development strategies, complemented by critical analysis to reveal key issues, challenges, and opportunities for innovative strategies toward global competitiveness, increased productivity, and inclusive growth. The emphasis is to make skills training more relevant, efficient, and responsive to emerging domestic and international labor markets. The reports were conducted under the Australian AID-supported Phase 1 of Subproject 11 (Innovative Strategies for Accelerated Human Resource Development) of RETA 6337 (Development Partnership Program for South Asia).
    Keywords: nepal tvet, nepal skills development, south asia, human capital, nepal human resources, vocational education, technical education, skills training, global competitiveness, increased productivity, inclusive growth, labor markets, adb ta 6337
    Date: 2015–11
  9. By: Maurizio Baussola (DISCE, Università Cattolica); Eleonora Bartoloni (ISTAT, Regional Office for Lombardy)
    Abstract: Complementarities between technological and non-technological innovation are crucial determinants of firm performance. This topic has not received the attention that it merits, as the focus has been primarily placed on technological innovation alone or on innovation efforts as measured by R&D or patent activities. The capacities to develop market-oriented behaviour and introduce new organisational innovations are the drivers - together with technological innovation - of a firm's productivity and profitability. We also underline how the impact of such activities is larger when they persist over time, thus introducing a more general concept of innovation persistency. We present an empirical model based on a large and new panel of Italian manufacturing firms covering the period 2000-2012 that enables us to derive the precise impacts of a firm's innovative effort - based on a broad definition that incorporates non-technological innovation and persistence - on its productivity and profitability.
    Keywords: Technological and non-technological innovation, Complementarities, European Community Innovation Survey, Profitability, Productivity, Unbalanced panel data
    JEL: L25
    Date: 2016–03
  10. By: Bripi,Francesco
    Abstract: This paper studies the effects of differences in local administrative burdens in Italy in the years 2005?2007 preceding a major reform that sped up firm registration procedures. Combining regulatory data from a survey on Italian provinces before the reform (costs and time to start a business) with industry-level entry rates of limited liability firms, it explores the effects of regulatory barriers on the average of the annual entry rates across industries with different natural propensities to enter the market. The estimates of the cross-sectional analysis show that lengthier and, to some extent, more costly procedures reduced entry in sectors with naturally high entry. A one-day delay in registration procedures reduces the entry rate in highly dynamic sectors by more than 1 percent. These results hold when I include measures of local financial development and of efficiency of bankruptcy procedures are included.
    Keywords: Banks&Banking Reform,Economic Theory&Research,Access to Finance,Transport Economics Policy&Planning,Information and Communication Technologies
    Date: 2016–04–26
  11. By: Arturs Zeps (Riga Technical University); Leonīds Ribickis (Riga Technical University); Juris Iljins (Riga Technical University)
    Abstract: This article explores the importance of internationalization and valorization in technical Universities as one of core priorities for achieving international excellence and strengthening university – industry collaboration. The World is becoming more interconnected and Higher Education institutions can no more act on their own – they are motivated and even forced to become international. But an important topic for management of each University, especially technical, is to strengthen the collaboration with business in global environment. Valorization or creation of new products and services through innovation process is an important task for all technical Universities that want to maintain strong bond with the industry and capitalize on this process. This article is based on research conducted between technical Universities in Baltic States, where different processes in university internationalization and valorizations have been distinguished as main driving forces of institutional development. The conducted research shows that this task can be achieved by increased international research, student mobility, large scale jointly managed projects and other international activities. After internationalization and valorization processes have been analyzed, establishing the most critical key elements for fostering both of these processes, authors present an evaluation of Riga Technical University’s case as an example on how internal Information Systems provide the possibility for management to both implement strategic settings of the University and accelerate valorization within the University. This can be achieved trough correct strategy development based on key elements of valorization and internationalization, effective strategy implementation, monitoring and creating of appropriate incentive mechanism where IT support pay an important role.
    Keywords: Internationalization, valorization, strategy, information system
    JEL: O32 I23 M15
  12. By: Cozza, Claudio (University of Trieste); Perani, Giulio (ISTAT & Eurostat); Zanfei, Antonello (University of Urbino)
    Abstract: Using data on R&D investors active in Italy and controlling for various indicators of absorptive capacity and for the regional distribution of research activities, we show that multinationality is associated with a higher propensity to technical linkage creation. We also find that domestic owned multinationals are more inclined to R&D contracting out, while foreign multinationals are better at developing R&D cooperation with external parties. However, foreign multinationals are less prone than domestic companies to set up linkages with local counterparts. This suggests that while foreign multinationals generally possess advantages in terms of absorptive capacity and economies of common governance, they might as well face relative disadvantages in terms of experience of local contexts, inhibiting their propensity to set up on-site technical linkages.
    Keywords: Absorptive capacity; R&D; technical linkages; Multinationals
    JEL: F10 F23 O33
    Date: 2016–04–27
  13. By: Margherita Russo; Francesco Pagliacci
    Abstract: Estimates of macroeconomic effects of natural disaster have a long tradition in economic literature (Albala-Bertrand, 1993a; 1993b; Tol and Leek, 1999; Chang and Okuyama, 2004; Benson and Clay, 2004; Strömberg, 2007; UNISDR, 2009; Cuaresma, 2009; Cavallo and Noy, 2009; Cavallo et al., 2010; The United Nations and The World Bank, 2010). After the seminal contribution of Abadie et al. (2010) in identifying synthetic control groups, with DuPont and Noy (2015) a new strand has been opened in estimating long term effects of natural disaster at a sub-regional scale, at which the Japan case provides plenty of significant economic variables. Although the same methodology has been applied in estimating the impact of earthquakes in Italy (Barone et al. 2013; Barone and Mocetti, 2014), the analysis has been limited to the regional scale. In our paper, due to a lack in long-term time series data at municipality level, this paper cannot adopt the methodology suggested by Abadie et al. (2010). Nevertheless, it provides a test bed for assessing the relevance of a sub-regional counterfactual evaluation of a natural disaster's impact. By taking the 2012 Emilia-Romagna earthquake as a case study, we propose a comprehensive framework to answer some critical questions arising in such analysis. Firstly, we address the problem of identifying the proper boundaries of the area affected by an earthquake. Secondly, through a cluster analysis we show the importance of intra area differences in terms of their socio-economic features. Thirdly, counterfactual analysis is assessed by adopting a pre- and post-earthquake difference-in-difference comparison of average data in clusters within and outside the affected area. Moreover, three frames to apply propensity score matching at municipality level are also adopted, by taking the control group of municipalities (outside the affected area): (a) within the same cluster, (b) within the same region, (c) in the whole country. The four variables considered in the counterfactual analysis are: total population; foreigner population; total employment in manufacturing local units; employment in small and medium-sized manufacturing local units (0 to 49 employees). All the counterfactual tests largely show a similar result: socio-economic effects are heterogeneous across the affected area, where some clusters of municipalities perform better, in terms of increase of population and employment after the earthquake, against some others. This result sharply contrasts with the average results we observe by comparing the whole affected area with the non-affected one or with the entire region.
    Keywords: cluster analysis, counterfactual analysis, Emilia-Romagna, earthquake
    JEL: C38 R11 R58
    Date: 2016–04
  14. By: Tan,Hong W.; Bashir,Sajitha; Tanaka,Nobuyuki
    Abstract: Inadequacies in Tanzania's education and training systems compromise the quality of workforce skills, giving rise to skill shortages, and constraining the operations and growth of formal sector firms in the country. This study addressed these concerns using data from a unique Enterprise Skills Survey that asked Tanzanian employers about the education, training, and occupational mix of their workforce, the skill gaps in cognitive, noncognitive, and job-specific competencies affecting their operations, and the strategies they are using to overcome these skill gaps. The study investigates the consequences for firm productivity of employers'choices about their optimal skills mix, and their strategies to mitigate shortfalls in skills supply. Compared with noninnovators and firms primarily serving the domestic market, exporters and innovators face greater skill demand and suffer from skill shortages that are more likely to constrain their operations in such areas as quality assurance, use of new technology, and introducing new products and services. In analyzing firm performance and its relation to skill mix, the study found that firms with higher shares of tertiary-educated workers are more productive; it found no impact, however, from secondary education and technical vocational education and training qualifications, possibly reflecting the universally acknowledged poor quality of secondary education in Tanzania. Employers use a range of strategies to address skill deficiencies, from hiring new workers, to training current workers in-house or externally, using high-skill expatriate workers, or outsourcing professional services. Almost all were associated with higher labor productivity. The exception, employer provided in-house training, had no measurable impact on productivity.
    Keywords: ICT Policy and Strategies,Education For All,Effective Schools and Teachers,Access&Equity in Basic Education,Primary Education
    Date: 2016–05–12
  15. By: Marcel Fafchamps; Mans Soderbom; Monique vanden Boogaart
    Abstract: Using a large administrate dataset covering the universe of phone calls and airtime transfers in a country over a four year period, we examine the pattern of adoption of airtime transfers over time. We start by documenting strong network effects: increased usage of the new airtime transfer service by social neighbors predicts a higher adoption probability. We then seek to narrow down the possible sources of these network effects by distinguishing between network externalities and social learning. Within social learning, we also seek to differentiate between learning about existence of the new product from learning about its quality or usefulness. We find robust evidence suggestive of social learning both for the existence and the quality of the product. In contrast, we find that network effects turn negative after first adoption, suggesting that airtime transfers are strategic substitutes among network neighbors.
    JEL: D12 D83 O33
    Date: 2016–05
  16. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Sustainable Development and Climate Change Department, ADB); Asian Development Bank (ADB) (Sustainable Development and Climate Change Department, ADB); Asian Development Bank (ADB)
    Abstract: Higher education institutions in Asia and the Pacific are modeled on industrial age thinking that promotes routinized capacities and lacks the ability to innovate and create new knowledge enterprises. The transition to a knowledge economy is affecting the purpose, content, pedagogy, and methodologies of higher education. Nontraditional stakeholders such as professional bodies, industry experts, think tanks, research institutes, and field experts/practitioners are now involved not only in planning but in providing higher education services. The traditional model of “knowledge versus skills” is no longer relevant. Higher education programs must consider lived experiences, contextual knowledge, and indigenous knowledge.
    Keywords: education, information resources, electronic information resource, open educational resources, oer, free educational resources, education and oer, education and open educational resources, jouko sarvi, hitendra pillay
    Date: 2015–12
  17. By: Chang, C-L.; McAleer, M.J.; Wu, Y-C.
    Abstract: This paper investigates the effect of industrial penetration and internet intensity for Taiwan manufacturing firms, and analyses whether the relationships are substitutes or complements. The sample observations are based on 153,081 manufacturing plants, and covers 26 two-digit industry categories and 358 geographical townships in Taiwan. The Heckman selection model is used to accommodate sample selectivity for unobservable data for firms that use the internet. The empirical results from two-stage estimation show that: (1) a higher degree of industrial penetration will not affect the probability that firms will use the internet, but will affect the total expenditure on internet intensity; (2) for two-digit industries, industrial penetration generally decreases the total expenditure on internet intensity; and (3) industrial penetration and internet intensity are substitutes.
    Keywords: Industrial penetration, Internet intensity, Sample selection, Incidental truncation
    JEL: L60 D22
    Date: 2016–04–13
  18. By: Margherita Fort; Maria Bigoni; Mattia Nardotto; Tommaso Reggiani
    Abstract: We assess the effect of two antithetic non-monetary incentive schemes based on grading rules on students' effort, using experimental data. We randomly assigned students to a tournament scheme that fosters competition between paired up students, a cooperative scheme that promotes information sharing and collaboration between students and a baseline treatment in which students can neither compete nor cooperate. In line with theoretical predictions, we find that competition induces higher effort with respect to cooperation, whereas cooperation does not increase effort with respect to the baseline treatment. Nonetheless, we find a strong gender effect since this result holds only for men while women do not react to this type of non-monetary incentives.
    Date: 2015
  19. By: Cumming, Douglas; Werth, Jochen Christian; Zhang, Yelin
    Abstract: We argue two alternative routes that lead entrepreneurial start-ups to acquisition outcomes instead of liquidation. On one hand, acquisitions can come about through the control route with external financers such as venture capitalists (VCs). VCs take control through their board seats along with other contractual rights that can bring about changes in a start-up necessary to successfully attract a strategic acquirer. Consistent with this view, we show that VCs often replace the founding entrepreneur as CEO long before an acquisition exit. On the other hand, acquisitions can come about through advice and support provided to the start-up, such as that provided by an incubator or technology park. Based on a sample of 251 Crunchbase companies in the U.S. over the years 2007 to 2014, we present evidence that is strongly consistent with these propositions. Further, we show that the data indicate a tension between VC-backing of start-ups resident in technology parks insofar as such start-ups are slower to become, and less likely to be, acquired.
    Keywords: Entrepreneurship,Entrepreneurial Finance,Governance,Technology Park,Incubator,Board of Directors,Venture Capital,Angel
    JEL: G23 G24 L26
    Date: 2016
  20. By: ZHANG Hongyong
    Abstract: This paper investigates the evolution and effects of China's industrial and trade policies after its reform and opening-up in 1979. Specifically, this paper focuses on the effects of various policies (including processing trade regime, accession to the World Trade Organization, special economic zones and foreign direct investment policies, reform of state-owned enterprises, and innovation policies) on trade, investment, and productivity. Using data on China's industry, firms, and trade, there is a large and growing number of studies empirically evaluating the effects of China's industrial and trade policies. By a survey of the previous literature, this paper examines the evolution of China's industrial and trade policies and the mechanism of its economic growth. Furthermore, this paper points out the problems of China's industrial policies and the tasks in the future.
    Date: 2016–05

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