nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2016‒07‒30
24 papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Modes of ICT Innovation: Evidence from the Community Innovation Survey By Federico Biagi; Annarosa Pesole; Juraj Stancik
  2. Innovation and productivity in a S&T intensive sector: the case of Information industries in Spain By Nestor Duch-Brown; Andrea de Panizza; Ibrahim Kholilul Rohman
  3. Strategic Entrepreneurship and Knowledge Spillovers: Spatial and Aspatial Perspectives By Tavassoli, Sam; Bengtsson, Lars; Karlsson, Charlie
  4. Spatial structure and economic network formation of manufacturing exports in Russia By Kuznetsova Maria
  5. Tale of two cities. A comparative study of relationship between education and economic prosperity By Sharaf N. Rehman; Joanna Dzionek-Kozlowska
  6. Imported Intermediate Goods and Product Innovation : Evidence from India By Murat Seker; Daniel Rodriguez Delgado; Mehmet Fatih Ulu
  7. Counterfactual Impact Evaluation of Public Funding of Innovation, Investment and R&D By Daniele Bondonio; Federico Biagi; Juraj StanÄ ík
  8. Potential and partnerships in innovations in EU-funded research projects By Daniel Nepelski; Giuseppe Piroli
  9. Acquire and fire? Evidence from European mergers By Furlan, Benjamin
  10. Strategic Technology Adoption and Hedging under Incomplete Markets By Markus LEIPPOLD; Jacob STROMBERG
  11. Institutional proximity and the size and geography of FDI spillovers: do European firms generate more favourable productivity spillovers in the EU neighbourhood? By Vassilis Monastiriotis
  12. Implementing RIS3 in the Region of Eastern Macedonia and Thrace: Towards a RIS3 tool box By Mark Boden; Patrice dos Santos; Karel Haegeman; Elisabetta Marinelli; Susana Valero
  13. A Model of Business Innovation in the Context of Micro, Small and Medium Enterprises in Davao Del Sur By Castillo-Sam, Eva Marie; Tormis, Jeaneth; Murcia, John Vianne
  14. Land Markets in Europe: Institutions and Market Outcomes By Pavel Ciaian; d'Artis Kancs; Dusan Drabik
  15. Optimal Syndication Decision of Corporate Venture Capital and Venture Capital Firms By Frick, Andreas; Maxin, Hannes
  17. Imports, supply chains, and firm productivity By Carol Newman; John Rand; Finn Tarp
  18. Alternative versions of the global competitive industrial performance ranking constructed by methods from social choice theory By Andrey Subochev; Igor Zakhlebin
  19. Long Run Relationship between IFDI and Domestic Investment in GCC Countries By Ghassan, Hassan B.; Alhajhoj, Hassan R.
  20. Towards a theory of regional diversification By Ron Boschma, Lars Coenen, Koen Frenken, Bernhard Truffer; Lars Coenen; Koen Frenken; Bernhard Truffer
  21. INNOREG: A Comprehensive Dataset on Government Policies Affecting Innovation By Giorgia Casalone; Federico Biagi
  22. Double auction with interdependent values: incentives and efficiency By Kojima, Fuhito; Yamashita, Takuro
  23. RIO Country Report 2015: United Kingdom By Paul Cunningham; Jessica Mitchell
  24. Information Sources Used by European Tourists: A Cross-Cultural Study By Tor Korneliussen; Michael Greenacre

  1. By: Federico Biagi (European Commission - JRC); Annarosa Pesole (European Commission - JRC); Juraj Stancik (European Commission - JRC)
    Abstract: This report was prepared in the context of the three-year research project on European Innovation Policies for the Digital Shift (EURIPIDIS). This project was jointly launched in 2013 by JRC-IPTS and DG CONNECT of the European Commission. It aims to improve understanding of innovation in the ICT sector and ICT-enabled innovation in the rest of the economy. In the context of the EURIPIDIS project, this report analyses innovative activities by ICT-producing firms and provides evidence on innovative activity in the ICT sector, compared to the overall economy. This analysis, based on a set of different indicators, aims to provide a deeper understanding of the modes of innovation adopted by ICT producing firms. To carry out the analysis, we created a panel dataset which matched the information collected by different Community Innovation Survey (CIS) waves from 2004 up to 2012 in twenty EU Member States. We then investigated the major innovation patterns that emerged, and compared the ICT sector to the whole economy. The main findings show that, in general, firms in the ICT sector tend to innovate more with respect to the economy as a whole: the shares of both innovators and technological innovators are consistently higher within the ICT sector than they are in the economy as a whole. Moreover, the ICT sector has a higher share of innovative firms which perform R&D and a higher share of Framework Programme-funded innovative firms. In order to capture the modes of innovation of ICT-producing firms, we used "complex" indicators that condense information from more than one measure and allow us to make multi-dimensional phenomena uni-dimensional. These complex indicators indicate that the share of international and domestic innovators is higher among ICT firms than it is in the economy as a whole. In other words, ICT firms tend to have a higher than average in-house R&D capability and are more likely to introduce new-to-the-market product or process innovations in both international and domestic markets. Looking at international or domestic "modifiers" (i.e. firms that mainly adopt and/or modify innovation made by others), we find no evidence that ICT-producing firms are more likely than the average firm to modify or adopt innovations developed elsewhere.
    Keywords: ICT sector, ICT-enabled innovation, ICT Innovation System, Community Innovation Survey
    Date: 2016–07
  2. By: Nestor Duch-Brown (European Commission – JRC); Andrea de Panizza (European Commission – JRC); Ibrahim Kholilul Rohman (European Commission – JRC)
    Abstract: This paper adds to the empirical literature on the relationships between R&D, innovation and productivity at the firm level. The focus is on Spanish enterprises in Information industries, which are acknowledged to be at the forefront for both innovative activity and R&D performance. The analysis is performed on ca. 1800 enterprises included in the PITEC database (the Spanish source of the EU Community Innovation Survey) for the period 2004-2013. Using a three-stage "CDM" model we consider: (i) factors affecting the decision to conduct R&D, including the role of perceived importance of innovation on firm's R&D performance, (ii) the impact of the predicted R&D effort on companies' effective undertaking of product, process, organisational and marketing innovations, as well as their simultaneous occurrence and (iii) whether and to what extent such innovations boost productivity. In the specific context of this R&D intensive array of industries, the decision of undertaking R&D appears to be strongly influenced by the importance attributed to enhancing existing products or creating new ones, as well as by the size of the company, the fact of being young and local, and the availability public funding. These elements also greatly impact on enterprises' R&D effort, thus providing some arguments in favour of R&D promotion policies, in particularly addressed to start-ups. Expected R&D performance, in turn, appears to be strongly related to the actual achievement of such innovations, including non-technical ones. By focusing on innovation patterns, it was possible to ascertain a strong complementarity between different families of innovation (as expected, given these industries' specificities), as well as to qualify existing evidence on the innovation-productivity conundrum. Indeed, we show that results depend on the way innovation types are modelled and combined. Controlling for complementarities, enterprises performing focused non-technical innovations and joint technical and non-technical ones (mixed-mode innovators) are likely to be more productive (in terms of sales per capita) than their peers, while stand-alone technical innovations give inconclusive results.
    Keywords: R&D, innovation, ICT sector, productivity, firm level data, panel
    JEL: O00 O31 O32 O47
    Date: 2016–07
  3. By: Tavassoli, Sam (CIRCLE, Lund University); Bengtsson, Lars (LTH, Lund University); Karlsson, Charlie (CESIS, KTH)
    Abstract: The literature in the Strategic Entrepreneurship (SE) is increasingly embracing the concept and implications of knowledge spillovers. In this paper, we add to the theoretical repertoire on SE and knowledge spillovers by investigating the types of knowledge spillovers and what they imply for various dimensions of SE. On the one hand, we distinguish between spatial and aspatial knowledge spillovers. On the other hand, we distinguish between three dimensions of SE, i.e. inputs, resource orchestration, and output. Finally, we conceptually link the various types of knowledge spillovers and dimensions of SE and discuss the implications. Doing so, we argue that spatial knowledge spillovers (inter-firm) has received the major attention in previous research in increasing the amount of ‘inputs’ dimension of SE, while the aspatial knowledge (either inter-regional or intra-firm) has been relatively neglected not only for ‘inputs’, but also for ‘resource orchestration’ dimension. At the end, the paper provides suggestions for future research.
    Keywords: Strategic entrepreneurship; knowledge spillovers; spatial; aspatial
    JEL: D21 D80 L10 L26
    Date: 2016–07–06
  4. By: Kuznetsova Maria
    Abstract: We study the agglomeration effect of exporters on decision of a firm to start exporting and volumes of trade. The unique database of Russian exporters in manufacturing sector for the eight-years period was constructed. It enables us to examine the nature and channels of export spillovers along the product and destination dimensions. At first, we provide the analysis using the existing empirical strategies. Our findings support the previous results, that export spillovers are destination-specific and affect both margins of trade. On the top of that, the large data sample and the usage of multiple fixed effects, that absorb time-variant and time-invariant unobserved characteristics, allowed us to achieve better identification strategy of the export spillover effect. It acts through the narrow group of firms that export the same product to the same destination as exporters nearby. Moreover, we tend to follow network view of international trade (Rauch 1999). The export spillover effect is positive for differentiated goods and negative for homogeneous goods. The presence of other exporters nearby to contiguous or linked country affects positively decision of a firm to export the same product to the same country.
    JEL: F14 R12
    Date: 2016–07–04
  5. By: Sharaf N. Rehman (Department of Communication, University of Texas Rio-Grande Valley); Joanna Dzionek-Kozlowska (Institute of Economics, Department of History of Economic Thought and Economic History, University of Lodz)
    Abstract: Over the last century, the social function and the role of the universities and other higher education institutions (HEI) changed significantly. What the contemporary students expect to gain due to their university education is neither enlightenment nor insight, but rather skills and practical knowledge needed to successfully find and retain a job. In turn, the modern HEI ceased to be the entities isolated from their surroundings but became the institutions intertwined into community life. Hence, our purpose is to redefine the role of the universities in their communities with the emphasis put on the relationship between the HEI and the communities’ economic performance. The general discussion on the transition in academy’s place in the society is presented in the first section of the article, whereas its second part provides an overview of the potential contributions to the reciprocal development made by the universities and communities. Against such a background two illustrative examples are analyzed, i.e. Lodz, Poland and Brownsville, Texas. Both the theoretical inquiries and these examples’ analysis confirm that the relationship between the development of the universities and economic performance is bi-directional: on the one hand, the investments in HEI trigger stimuli towards economic growth, and on the other, the economic prosperity of the city commonly results in invigorating the scientific research. The article concludes that despite the fact the interrelatedness between universities and local communities’ economic performance is too complex to be boiled down to any simple rule, the communities’ investments in HEI may sow seeds of future economic growth and provide a safety net protecting the economy in times of stagnations or slumps.
    Keywords: Higher Education, Economic Performance, Lodz, Brownsville, Social Role of the Universities
    JEL: I23 I25 N92 N93 N94 O33
    Date: 2016–06
  6. By: Murat Seker; Daniel Rodriguez Delgado; Mehmet Fatih Ulu
    Abstract: In this study, we build a structural model of multi-product firms that illustrates how access to new foreign intermediate goods contributes to product innovation. We establish a stochastic dynamic model of firm evolution allowing firms to be heterogeneous in their efficiency levels. Through introducing importing decision to this dynamic framework, we show that the effects of importing intermediate goods are twofold: i) it increases the revenues per each product created and ii) through the knowledge spillovers obtained from importing, firms become more likely to introduce new varieties. Calibration of the model to Indian data shows that the model can successfully explain the dynamics of product evolution and other moments related to importing and product distribution. Finally the comparison of autarky with trade equilibrium shows how liberalizing trade increases innovation performances and product growth.
    Keywords: Firm dynamics, Heterogeneous firms, Innovation, Endogenous product scope, Importing intermediate goods, Trade liberalization, Indian manufacturing sector
    JEL: F12 F13 L11 O31
    Date: 2015
  7. By: Daniele Bondonio (Universita'del Piemonte Orientale); Federico Biagi (European Commission - JRC); Juraj StanÄ ík (European Commission - JRC)
    Abstract: This report uses data from Efige and from Bureau Van Dijk’s Amadeus and Orbis to estimate the effect of funding from the EU and national programmes on firms’ employment, sales, added value, productivity and innovativeness. It also looks at the impact of subsidies to investment and R&D (irrespective of the source of funding) on the same variables. In the first part of the report we use only the Efige dataset (covering the years 2007- 2009) and we look at (contemporaneous) correlation between public support (from national and EU sources) and product and process innovation. Our results indicate that national and EU funding are equally important in stimulating product innovation. However, EU funding has a higher correlation with process innovation. We also find a positive correlation between public support to private R&D and product innovation (but no significant correlation between the former and process innovation). On the other hand, public support to private investment (including ICT capital) is positively associated with process innovation but not with product innovation. In the second part of the report we perform a proper counterfactual analysis, where we merge the Efige dataset with the Bureau Van Dijk’s Amadeus (years 2001-2012) and Orbis (2006-2012) databases. This allows us to test whether firms funded between years 2007 and 2009 have a significantly different economic performance (measured in terms of employment, sales, and value added) in the years 2009-2012, while controlling for firms characteristics measured prior to 2007 (i.e. in the pre-treatment period). Our results indicate that receiving public support from national funds generates positive increments in employment, sales and added value, compared to the counterfactual status of the absence of public intervention. We do not find evidence that EU funds have additional impacts on employment, sales or value added (relative to firms receiving only national funding or no funding). This result is most likely due to the small sample size of firms receiving EU funds, which does not allow us to precisely estimate the impact of EU funding alone or in conjunction with national funding. It is also likely to depend upon the features of EU funding, which is geared towards research that produces results over a longer time horizon than the one observable in our data. We also find that generic support to firm-level investment projects has positive impacts on employment and added value. However, no statistically significant impacts are estimated for subsidies which support R&D expenditures exclusively (possibly due to the nature of R&D support policies, which often require more time to yield noticeable impacts on general firm-level performance).
    Keywords: Counterfactual impact evaluation; public funding; innovation; Framework programme
    Date: 2016–07
  8. By: Daniel Nepelski; Giuseppe Piroli
    Abstract: We analyse the relationship between the composition of innovation partnerships and the potential of their innovations developed within EU-funded research projects under the Seventh Framework Programme for Research and Technological Development (FP7), the European Union's Research and Innovation funding programme for 2007-2013. Innovation potential is assessed using a formal framework capturing three different dimensions: innovation readiness, management and market potential. Both the analysed innovations and innovators were identified by external experts during periodic Framework Programme reviews. Thus, our population includes participants in the FP7 projects that are considered as key organisations in the project delivering innovations in FP7 projects. We show that the innovative potential of research output of homogenous partnerships, e.g. between two SMEs or two large companies, is likely to be higher, as compared to heterogeneous partnerships, e.g. an SME and a large company. The impact of universities on the potential of innovations is unclear. The total number of key organizations in delivering an innovation has a negative impact on its potential. Neither project funding nor duration affects the potential of innovation. Our results contribute to the discussion on the most appropriate design of R&D consortia of organizations in publically-funded projects.
    Keywords: R&D consortia; innovation policy; framework programme, small and medium-sized enterprises.
    JEL: L52 L53 O31 O32 O25
    Date: 2016–01–01
  9. By: Furlan, Benjamin (University of Salzburg)
    Abstract: This paper provides a systematic analysis on the employment effects after merger and acquisition activities for a sample of European production firms. Rather than taking the perspective of the acquired firm, which has been extensively addressed in previous research, this paper focuses on the acquiring firm. At hand with a data set covering roughly 160.000 firms between 2003-2010 we apply propensity score matching methods to evaluate post-merger effects. Our results suggest that acquiring companies show a higher employment growth rate than their counterparts. This result holds by splitting our data in several sub samples (small and medium-sized firms, national takeovers).
    Keywords: Merger and acquisition evaluation; propensity score matching; em-ployment effects.
    JEL: C00 G00 L00
    Date: 2015–12–06
  10. By: Markus LEIPPOLD (University of Zurich and Swiss Finance Institute); Jacob STROMBERG (University of Zurich and Swiss Finance Institute)
    Abstract: We investigate the implications of technological innovation and non-diversifiable risk on entrepreneurial entry and optimal portfolio choice. In a real options model where two risk-averse individuals strategically decide on technology adoption, we show that the impact of non-diversifiable risk on the option timing decision is ambiguous and depends on the frequency of technological change. Compared to the complete market case, non-diversifiable risk may accelerate or delay the optimal investment decision. Moreover, strategic considerations regarding technology adoption play a central role for the entrepreneur's optimal portfolio choice in the presence of non-diversifiable risk.
    Keywords: Real Options, Incomplete Markets, Technology Adoption, Optimal Portfolio Choice, Hedging
    JEL: G11 G31 E02
  11. By: Vassilis Monastiriotis
    Abstract: The EU association framework provides European businesses with an entry advantage into the associated countries by facilitating production links and encouraging institutional convergence. It is believed that this has multiple beneficial effects for the associated countries, including ones related to productivity spillovers accruing to domestic firms. However, no empirical evidence exists to show that the presence of European firms produces larger productivity spillovers in recipient economies compared to firms from other world regions. We examine this question using firm-level data covering 28 transition countries over the period 2002-2009. We estimate the intra-industry productivity effects of foreign ownership and examine how these differ across regional blocks (CEE, SEE and ENP), by origin of investor (EU15 versus non-EU15), across geographical scales (national versus regional) and for different types of locations (capital-city regions versus the rest). Our results suggest that investments of EU origin play a distinctive role, helping raise domestic productivity in the associated countries unlike investments from outside the EU. However, this process operates in a spatially selective manner, potentially enhancing regional disparities and spatial imbalances. This assigns a particular responsibility for EU policy to devise interventions that will help redress these problems within its existing association framework.
    Keywords: EU neighbourhood; FDI spillovers; institutional proximity; regional disparities
    JEL: R14 J01
    Date: 2016–06–24
  12. By: Mark Boden (European Commission – JRC); Patrice dos Santos (European Commission – JRC); Karel Haegeman (European Commission – JRC); Elisabetta Marinelli (European Commission – JRC); Susana Valero (European Commission – JRC)
    Abstract: This policy brief provides a summary of the approach and outcomes of a European Parliament Preparatory Action centred on the refinement and implementation of the Research and Innovation Smart Specialisation Strategy (RIS3) in the region of Eastern Macedonia and Thrace (REMTh). Implemented, mainly during 2015, by the European Commission (the Joint Research Centre in collaboration with the Directorate General for Regional and Urban Policy) and the Managing Authority of the region, this action also had the explicit aim to draw lessons for other low growth and less developed regions in Europe. An essential aspect of the preparatory action was the opportunity it offered for stakeholders, the EC and the regional authority to share experiences and build a common understanding of RIS3 and the challenges to its implementation. This centred on a series of stakeholder events, critical for the mutual learning process and trust building among stakeholders. Stakeholders have thus worked together to identify and exploit research and innovation based opportunities for the region as well as tackling the challenges to RIS3 implementation. The various tools developed and applied in the REMTh preparatory action can, taken together, be seen to constitute a toolbox of approaches for RIS3 implementation. This toolbox and the hands-on approach taken for the implementation of this Preparatory Action, as well as the flexibility to further adapt methodologies to local needs and context, can generate a wide set of tools and lessons on the implementation of regional smart specialisation strategies. These can be of benefit both to less developed regions that have struggled to restructure their economy in spite of considerable investments, and to all regions facing difficulties in implementing RIS3 as a new and largely unknown governance approach.
    Keywords: REMTh, Eastern Macedonia and Thrace, RIS3, smart specialisation, toolbox
    Date: 2016–07
  13. By: Castillo-Sam, Eva Marie; Tormis, Jeaneth; Murcia, John Vianne
    Abstract: This study determined the factors that affect business innovation of micro, small and medium enterprises (MSMEs) in Davao del Sur. Data were gathered from owners and proprietors of 88 microenterprises, 61 small enterprises and 52 medium enterprises registered and are operational within the municipalities and component city of the Province of Davao del Sur. Results revealed that the respective mean scores of the management factors have the interpretations: articulation of vision, mission and goals was found to be good, organizational structure was found to be good, while human resource management was found to be very good. In addition, the mean scores for marketing mix have the following interpretations: Product was found to be very good, while price, place and promotion were found to be good. MSMEs were found to be financially-capable. More so, politico-legal, economic, socio-cultural and technological factors were found to be influential in the activities and decision-making of the owners and proprietors. They also posed high regard in adopting business innovation. Stepwise regression analysis was used to derive a model for business innovation of micro, small and medium enterprises in Davao del Sur. The final model revealed that a combination of organizational structure, human resource management, politico-legal forces and socio-cultural forces significantly determine the business innovation of micro, small and medium enterprises, holding other variables constant.
    Keywords: business innovation, MSMEs, management factor, marketing mix, financial capability, best-fit model
    JEL: M00 M1 M3
    Date: 2016–01
  14. By: Pavel Ciaian; d'Artis Kancs; Dusan Drabik
    Abstract: In this chapter, we review land market institutions in the European Union (EU) and their potential impact on land markets. We first review land tenure-/ownership regulations and find that they vary heavily across EU Member States. Four types of tenure-/ownership measures are implemented in the EU: to protect the tenant, to protect the owner, to protect the (non-farm) land owner, and to prevent land fragmentation. We then examine EU land-related environmental regulations whose general objective is to address land market failures linked to externalities and the provision of public goods. Despite possibly reducing private benefits of land owners or users, environmental regulations may generate welfare gains to society by improving the environmental services on land. Finally, we investigate how area-based subsidies affect land prices. These subsidies are empirically found to be partially capitalized into land values, albeit at a lower rate than suggested by theory.
    Keywords: Land markets, institutions, tenure, ownership, externalities, public goods.
    JEL: H22 L11 Q11 Q12 Q15 Q18 P32 R12
    Date: 2016–01–10
  15. By: Frick, Andreas; Maxin, Hannes
    Abstract: Venture capital and corporate venture capital firms are driven by high financial returns through the sale of ownership stakes. Additionally, corporate venture capital firms maximize the profits of their parent companies by generating innovation advantage. Despite this, both intermediaries can join syndicates to obtain more information about their potential investments. We examine a model to show the differences between the syndication decisions of these two investor types. We find that corporate venture capital firms finance more projects without a syndicate in comparison with venture capital firms. To reinforce our theoretical results, we conduct a survey about the German private equity market. The empirical evidence support our main theoretical findings.
    Keywords: Corporate venture capital; Venture capital; Syndication; Screening
    JEL: G24 M13
    Date: 2016–07
  16. By: Fernanda Ricotta (Dipartimento di Economia, Statistica e Finanza, Università della Calabria)
    Abstract: This paper examines the effect of the quality of regional government (QoG) on firm Total Factor Productivity (TFP) in a multi-country context. The analysis is based on comparable cross-country data of manufacturing firms operating in seven European countries (Austria, France, Germany, Hungary, Italy, Spain and the United Kingdom). The measure of the ‘quality of government’ is the European quality of government index (EQI), calculated at regional level over twenty-seven EU members. To disentangle internal from external productivity drivers, the multilevel approach is employed. Results refer to 2008 and show, as expected, the importance of firm-specific determinants of TFP. As far as the specific scope of this paper is concerned, firms located in regions with high quality regional government show higher levels of TFP. When considering the QoG components, corruption and the quality of services positively affect TFP, while the evidence is inconclusive for impartiality.
    Keywords: Institutions, firm performance, European regions, multilevel model
    JEL: O43 D24 C30
    Date: 2016–07
  17. By: Carol Newman; John Rand; Finn Tarp
    Abstract: This paper explores the relationship between imports and firm productivity, focusing on imported intermediates. Using firm-level data on over 20,000 manufacturing firms in Viet Nam, we find evidence for competition-induced productivity gains from trade. We show that gains in intermediate sectors spill-over to downstream sectors such that firms using more inputs from import-intensive sectors experience higher productivity gains. The evidence indicates that the main source of spill-over is better quality, domestically produced inputs. Ignoring the gains from trade through this mechanism may significantly underestimate the impact of trade on productivity.
    Keywords: imports, supply chains, productivity, Viet NamCreation-Date: 2016
  18. By: Andrey Subochev; Igor Zakhlebin
    Abstract: The Competitive Industrial Performance index (developed by experts of the UNIDO) is designed as a measure of national competitiveness. Index is an aggregate of eight observable variables, representing different dimensions of competitive industrial performance.
    Date: 2016–07
  19. By: Ghassan, Hassan B.; Alhajhoj, Hassan R.
    Abstract: The paper aims to examine the relationship, whether complementary or substitutive, between inward FDI and gross domestic investment in the six GCC countries using cointegration techniques and fully modified GMM estimation. Based on the panel data, the empirical evidence implies that in Qatar, Oman, the UAE and Saudi Arabia, the inward FDI has positive short-run and long-run effects on the domestic investment. For Bahrain, such a complementary relationship exists only in the short-run. For the majority of GCC countries, the long-run elasticities have large magnitude compared to the short-run counterparts, justifying more attraction policy of the IFDI in the future. The gap in the privatization process of public enterprises in the GCC explains in a large extent their heterogeneity in terms of elasticities and spillovers effects.
    Keywords: FDI, Domestic investment, GMM, Long-run Elasticities, GCC.
    JEL: C5 F2
    Date: 2015
  20. By: Ron Boschma, Lars Coenen, Koen Frenken, Bernhard Truffer; Lars Coenen; Koen Frenken; Bernhard Truffer
    Abstract: This paper aims to develop a theoretical framework on regional diversification. Combining insights from the evolutionary economic geography literature and the transition literature, we argue that a theory of regional diversification should build on the current understanding of conditions for related diversification but additionally start to tackle processes of unrelated diversification by accounting for (1) the role of agency (institutional entrepreneurship) and the dynamic interplay between agency and context; (2) enabling and constraining factors at various spatial scales. We propose a typology of four regional diversification processes by cross-tabulating related versus unrelated diversification with niche creation versus regime adoption.
    Keywords: evolutionary economic geography, transition studies, regional diversification, unrelated diversification, institutional entrepreneurship, institutional change
    JEL: B52 O18 R11
    Date: 2016–07
  21. By: Giorgia Casalone (Universita'del Piemonte Orientale); Federico Biagi (European Commission - JRC)
    Abstract: The purpose of this report is to describe the methodology used to develop a comprehensive dataset, denominated INNOREG, which provides information on several potential drivers and barriers to firms’ innovation activity. All the examined drivers and barriers depend, in a more or less direct way, upon the decisions taken by national policy makers. By merging INNOREG with data on ICT use, innovation, productivity and employment it will be possible to investigate the effect of several policies (mainly concerning labour market and taxation) and of the efficiency of bureaucracy on measures of economic performance such as production, employment, innovation etc.. The data are of three main types: 1. reforms of labour market regulation, computed using the EU Commission LABREF database, and which gives us information on the direction and intensity of reforms affecting the labour markets of 27 EU countries from 2000 to 2012 (LABREF_DRF.DTA); 2. generosity of the tax treatment for R&D, as measured by the B-Index over the period 1990-2013 (not all years are available) for a set of EU countries (B_INDEX.DTA); 3. indices of business regulation, as measured by various indicators taken by the Wordbank DoingBusiness project, reported annually from 2004 to 2014 for all EU countries (DOINGBUSINESS.DTA). For each of the above three topics, we developed a specific dataset (name in parenthesis). The three resulting datasets were then merged to form the comprehensive INNOREG dataset (INNOREG.dta). In this report we also provide summary statistics on the three types of data mentioned above.
    Keywords: Labour market reform, B-Index; business regulation; innovation
    Date: 2016–07
  22. By: Kojima, Fuhito; Yamashita, Takuro
    Abstract: We study a double auction environment where buyers and sellers have interdependent valuations and multi-unit demand and supply. We propose a new mechanism which satisfies ex post incentive compatibility, individual rationality, feasibility, non-wastefulness, and no budget deficit. Moreover, this mechanism is asymptotically efficient in that the trade outcome in the mechanism converges to the efficient level as in a competitive equilibrium as the numbers of the buyers and sellers become large. Our mechanism is the first double auction mechanism with these properties in the interdependent values setting.
    Keywords: double auction, interdependent values, multi-unit demand and supply, ex post incentive compatibility, asymptotic efficiency
    JEL: D44 D47 D82
    Date: 2016–07
  23. By: Paul Cunningham (Manchester University); Jessica Mitchell (European Commission – JRC)
    Abstract: The 2015 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems.
    Keywords: R&I system, R&I policy, ERA, Innovation Union, Semester analysis, United Kingdom
    Date: 2016–07
  24. By: Tor Korneliussen; Michael Greenacre
    Abstract: This study investigates which information sources European tourists use when making decisions about their travel/ holiday plans. Using survey data based on national representative samples of tourists from 27 member countries of the European Union allows generalizable conclusions to be drawn. The data were analysed using correspondence analysis of overall country data. The findings indicate that there are systematic differences in how information sources are related to one another and that the various national cultures within the European Union have influence on tourists' use of information sources. Six segments of information source behaviour are revealed. These segments reflect economic development and the national cultures of European nations. Management implications are highlighted. The findings of this study can be used to segment tourists' use of information sources according to economic development and national culture.
    Keywords: cross-cultural, information search, European Union, Economic development, national culture, tourism.
    JEL: Z32 C19 C38 C55
    Date: 2016–07

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