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on Economics of Strategic Management |
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Issue of 2016‒11‒13
thirteen papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Binz, Christian (CIRCLE, Lund University); Diaz Anadon, Laura (Harvard University) |
| Abstract: | New clean-tech industries emerge in increasingly complex spatial patterns that challenge existing explanations on industrial path creation. In particular, the case of latecomer regions quickly building up industries in fields that are unrelated to their previous industrial capabilities is not well understood in the literature. This paper aims to address this gap with an analytical framework that draws on technological innovation system and catching-up literatures to specify the place-specific and extra-regional system resources that firms in latecomer regions draw on in the industry formation process. An in-depth case study of the Chinese solar photovoltaics (PV) sector reveals an industry formation process that differs from existing models. Rather than depending on linkages with multinational companies, extensive policy support, or gradual recombination of pre-existing domestic capabilities, early industry formation in the Chinese solar PV sector emerged from path transplantation in a highly internationalized entrepreneurial project. Pioneering actors mobilized knowledge, markets, investment and technology legitimacy developing outside China and re-combined them with the country’s generic capabilities in export-oriented mass manufacturing. This implies that in some industries, globalization may enable a new model of industrial path creation based on bridging domestic resource gaps by directly mobilizing system resources emerging in the international networks of a global innovation system. |
| Keywords: | cleantech; path creation; technological innovation system; solar photovoltaics; China; transnational entrepreneurship |
| JEL: | F64 O33 Q55 |
| Date: | 2016–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2016_029&r=cse |
| By: | Elina Berghäll |
| Abstract: | Contradictory empirical and theoretical evidence on the relationship between innovation and competition has been reconciled in a model that yields an inverted U-shaped curve. I test whether the predictions of the model are supported by the data with an unbalanced panel of firms for 1990-2003 in a high productivity growth, high-tech industry, Finnish ICT manufacturing. In particular, I investigate how well alternative, yet rigorous measures of innovation and the technology gap, such as R&D intensity, R&D elasticity, technical change, technical efficiency and total factor productivity fare with respect to competition measured by the Lerner index. The results prove sensitive to the choice of variable. Overall, the model is not supported by the empirical evidence of the industry. |
| Keywords: | competition, innovation, technical efficiency, technology frontier, R&D intensity |
| JEL: | O25 L50 L60 D20 O30 |
| Date: | 2016–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:77&r=cse |
| By: | Nazli Toraganli; Cihan Yalcin |
| Abstract: | Turkish manufacturing firms are highly exposed to foreign currency (FX) denominated costs in the forms of liability dollarization and high imported input content in domestic production. This might limit the competitiveness effects of currency depreciation on exports. We attempt to uncover the relationship between the real exchange rates and exports of manufacturing firms in Turkey by taking account FX exposures and various firm characteristics. We use a large panel of manufacturing firms to carry out an empirical analysis for the period 2002-2010. We document that a real depreciation of the Turkish lira has a positive impact on export volumes and its impact is muted for manufacturing firms operating in sectors that use imported inputs intensively. That is, the cost of production channel seems to be effective in export performance of firms. In addition, we estimate that exports are less sensitive to real exchange rates for firms having moderate or low FX debt-to-export ratios (naturally hedged) and those are large and mature. Contrary to macro evidence, firm level findings suggest that a depreciation of Turkish lira seems to favor the external competitiveness of firms in general while for naturally hedged, large, mature, and high import intensity firms, the sensitivity is estimated to be smaller. |
| Keywords: | Exports, Real exchange rates, Currency mismatch, Firm characteristics |
| JEL: | F23 F31 G15 G31 G32 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:1624&r=cse |
| By: | Allan Dahl Andersen (TIK Centre, University of Oslo); Olav Wicken (TIK Centre, University of Oslo) |
| Abstract: | Natural resource based industries (NRBIs) have received only limited attention in Innovation Studies. In this paper we explore how qualitative diversity of ecological and geological conditions influence innovation—a phenomenon we denote natural resource knowledge idiosyncrasy (NKI)—as one particular aspect of change in NRBIs. We find that the dominant thinking in Innovation Studies about innovation and industry change—which is largely informed by studies of high-tech manufacturing industries—does not allow us to achieve a full understanding of change in NRBIs. To advance our thinking about NRBIs we propose a definition of NKI, a conceptualization of how NKI influence innovation and industry change, and explore implications of the latter for strategies for resource based development and sustainability in natural resources. Lastly, we argue that a new model of innovation is required for grasping and guiding innovation and transformation in NRBIs. |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20161107&r=cse |
| By: | John Haltiwanger; Ron S Jarmin; Robert Kulick; Javier Miranda* |
| Abstract: | Recent research shows that the job creating prowess of small firms in the U.S. is better attributed to startups and young firms that are small. But most startups and young firms either fail or don’t create jobs. A small proportion of young firms grow rapidly and they account for the long lasting contribution of startups to job growth. High growth firms are not well understood in terms of either theory or evidence. Although the evidence of their role in job creation is mounting, little is known about their life cycle dynamics, or their contribution to other key outcomes such as real output growth and productivity. In this paper, we enhance the Longitudinal Business Database with gross output (real revenue) measures. We find that the patterns for high output growth firms largely mimic those for high employment growth firms. High growth output firms are disproportionately young and make disproportionate contributions to output and productivity growth. The share of activity accounted for by high growth output and employment firms varies substantially across industries – in the post 2000 period the share of activity accounted for by high growth firms is significantly higher in the High Tech and Energy related industries. A firm in a small business intensive industry is less likely to be a high output growth firm but small business intensive industries don’t have significantly smaller shares of either employment or output activity accounted for by high growth firms. |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:16-49&r=cse |
| By: | Romina R. Giuliano; Benoît Mahy; François Rycx; Guillaume Vermeylen |
| Abstract: | This article provides first evidence on whether corporate social responsibility (CSR) influences the productivity effects of overeducation. By relying on detailed Belgian linked employer-employee panel data covering the period 1999-2010, our empirical results exhibit a positive and significant impact of over-education on firm productivity. Moreover, they suggest that the effect of over-education is positively enhanced when the firm implements a corporate social responsibility process, especially when it aims to have: i) a good match between job requirements and workers’ educational level, ii) a diverse workforce in terms of gender and age, and iii) a long-term relationship with its workers. Whenfocussing on required and over-education, the results suggest that CSR, besides representing an innovative and proactive approach for the firms’ stakeholders, may also be beneficial for the firm itself through a bigger increase in productivity for each additional year of required or over-education. |
| Keywords: | Educational mismatch; Productivity; CSR; Linked panel data |
| JEL: | J28 I20 J24 M50 |
| Date: | 2016–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/239579&r=cse |
| By: | Jürgen Janger (WIFO); Torben Schubert; Petra Andries; Christian Rammer; Machteld Hoskens |
| Abstract: | In October 2013, the European Commission presented a new indicator intended to capture innovation outputs and outcomes and thereby "support policy-makers in establishing new or reinforced actions to remove bottlenecks that prevent innovators from translating ideas into products and services that can be successful on the market". This paper aims to evaluate the usefulness of the new indicator against the background of the difficulties in measuring innovation outputs and outcomes. We develop a unique conceptual framework for measuring innovation outcomes that distinguishes structural change and structural upgrading as two key dimensions in both manufacturing and services. We conclude that the new indicator is biased towards a somewhat narrowly defined "high-tech" understanding of innovation outcomes. We illustrate our framework proposing a broader set of outcome indicators capturing also structural upgrading. We find that the results for the modified indicator differ substantially for a number of countries, with potentially wide-ranging consequences for innovation and industrial policies. |
| Keywords: | Innovation Output, Innovation Outcome, Innovation Measurement, Structural Change, Structural Upgrading, EU 2020 Strategy, Innovation Policy |
| Date: | 2016–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2016:i:529&r=cse |
| By: | Beata Bierut; Kamila Kuziemska-Pawlak |
| Abstract: | Over the last two decades the share of CEE countries’ exports of goods in world exports more than doubled, despite considerable appreciation of their real effective exchange rates. Inspired by this observation, we set out to establish which factors had impact on their export performance. For that purpose, we run a series of panel regressions in which export market shares are explained by various measures of price/cost competitiveness, technological advancement and institutional environment. We make two important contributions to the subject literature. We show that technological factors, specifically innovative outputs (patent applications), had the most significant positive impact on export performance and that was in addition to their impact through the economic potential. Moreover, we verify the impact of the quality of the institutional environment on exports. Specifically, we show that improvements in the overall regulatory quality were conducive to increasing export market shares. The results regarding price/cost competitiveness are less robust and depend on the measure used. Hence, we conclude that further gains in non-price competitiveness should be considered for the region to compete successfully in international markets in the long run. |
| Keywords: | Central and Eastern Europe, open economy, trade, export market shares, price/cost competitiveness, technological competitiveness, institutional environment |
| JEL: | F14 F15 R10 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:248&r=cse |
| By: | Isabel Narbón-Perpiñá (Department of Economics, Universitat Jaume I, Castellón, Spain); Kristof De Witte (Top Institute for Evidence Based Education Research-Maastricht University and Leuven Economics of Education Research-Katholieke Universiteit Leuven) |
| Abstract: | The efficient management of the available resources in local governments has been a topic of high interest in the field of public sector. We provide an extensive and comprehensive review of the existing literature on local governments’ efficiency from a global point of view, covering all articles from 1990 to August 2016. This paper is the second of two. It covers the aspects related to local governments’ efficiency measurement along with its determinants, i.e., taking into account the effect of environmental variables over efficiency. First, we describe which techniques have been used to incorporate environmental variables in the context of local governments. Second, we provide a classification for the determinants used and we summarise their impact on efficiency. Finally, we discuss some operative directions and considerations for further research in the field. |
| Keywords: | Efficiency, local government, survey, contextual factors |
| JEL: | H40 H72 D61 R50 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2016/21&r=cse |
| By: | Yasir Khan (Pakistan Institute of Development Economics, Islamabad); Attiya Yasmin Javid (Pakistan Institute of Development Economics, Islamabad) |
| Abstract: | This study is an attempt to understand the relative contribution of culture and economic freedom to economic growth. Through applying fixed effect to the panel of fifty four developed, developing and less developed countries for the period of 1980 to 2007, study explores direct and indirect influence of culture relative to economic freedom on economic performance. The analysis shows that human capital is an appropriate transmission channel for cultural effects. It reveals that culture play fundamental role in shaping human behaviour that further lead to determine the level of accumulation and productivity of human capital. In this analysis significance of the culture relative to economic freedom is confirmed after the inclusion of a transmission channel for cultural influences. Study shows that cross-country differences in economic growth are fundamentally related to the differences in level of underlying cultural values like trust, respect, self-determination and obedience. To reduce differences in productivity and accumulation rate of human capital across countries this analysis advocates integration of cultural values into national education policy and investment in cultural capital. |
| Keywords: | Economic Freedom, Culture, Formal Institutions, Informal Institutions, Human Capital |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:2015:130&r=cse |
| By: | Usman Qadir (Pakistan Institute of Development Economics, Islamabad) |
| Abstract: | The growth trajectories of developed and developing countries are diverging rather than converging as expected from theory. Five policy areas have been identified that are crucial for ensuring development efforts succeed, of which a vital area is in innovation promotion and imitation and accelerated or sustained catching up policies. It is generally agreed that positive progress is required on all the five policy fronts highlighted above, for there to be sustained growth over long time horizons. Against this backdrop, a key concern for developing countries that merits further research in the context of learning by doing and innovation promotion is: what has been the country’s performance with regard to technology acquisition for purposes of enhancing productivity? Has the country been effective in its efforts to acquire the appropriate technology needed to boost productivity levels? Has the country made effective use of the technology acquired? What market failure(s), if any, are constraining the country’s ability to acquire the technology and make appropriate use of it? This research addresses these questions in the light of the experience of Pakistan’s economy, focusing on the development of the domestic automotive industry. The research frames these issues in the context of rent-seeking, political settlements and firm-level efficiency and proposes a framework of analysis that allows for an assessment of technology acquisition efforts at the firm level. |
| Keywords: | Economic Development, Technology Acquisition, Productivity, Pakistan, Political Settlements, Rent-seeking |
| JEL: | O11 O30 O47 D72 O53 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:2016:134&r=cse |
| By: | Zuzana Brixiová (SALDRU, University of Cape Town); Thierry Kangoye (African Development Bank) |
| Abstract: | This paper examines gender differences in entrepreneurial performance and their links with start-up capital utilizing a search model and empirical analysis of survey of entrepreneurs from Swaziland. The results show that entrepreneurs of both genders with higher start-up capital record better sales performance than those with smaller amounts of capital. For women entrepreneurs, formal finance sources of start-up capital are also associated with higher sales. However, as in other developing countries, women entrepreneurs in Swaziland have smaller start-up capital and are less likely to fund it from formal sources than men. Among women entrepreneurs, those with college education and confident in their skills tend to start their firms with higher amounts of capital. Professional support also matters, as women with such support are more likely to fund their start-up capital from the formal financial sector. |
| Keywords: | women's entrepreneurship, start-up capital, search model, multivariate analysis |
| JEL: | L53 O12 C61 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ldr:wpaper:192&r=cse |
| By: | Yi, Sæung-gyu; Jun, Bogang |
| Abstract: | This paper investigates whether the German reunification strengthened the country's national innovation system, using the Triple Helix model. In particular, it assesses the various dimensions of the innovation system by analyzing co-authorship networks from 1973 to 2014. Despite the series of policies promoting collaboration between the two regions and the rise in the number of regional collaborations and in the number of papers, the results show that the national innovation system of Germany has worsened since the reunification in 1990, and the role of government is critical in encouraging collaboration. Finally, this paper uses survey data on the type of Triple Helix configuration that actually occurred in East Germany as a robustness check. |
| Keywords: | Triple Helix model,German reunification,National innovation system |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hohdps:152016&r=cse |