nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒01‒22
nine papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Incentivising Innovation and Adoption of ICT: ICT Innovation Voucher Programmes By Paola Valbonesi; Federico Biagi
  2. Services and Performance of the Indian Economy: Analysis and Policy Options By Hildegunn Kyvik Nordås
  3. Disentangling Innovation in Small Food Firms: The role of External Knowledge, Support, and Collaboration By Wixe, Sofia; Nilsson, Pia; Naldi, Lucia; Westlund, Hans
  4. The economic performance of innovations in a collaborative setting: the case of KIBS firms By Anna Cabigiosu; Diego Campagnolo
  5. Long-term growth and productivity projections in advanced countries. By G. Cette; R. Lecat; C. Ly-Marin
  6. Does Experience Affect Fairness, Reciprocity and Cooperation in Lab Experiments? By V. Pelligra; T. Reggiani; T. Medda
  7. Cross-Border Co-opetition through Market Co-creation By Andreas Panagopoulos; Christos Pitelis; Panos Desyllas
  8. Innovation and public understanding of science: possibility of new indicators for the analysis of public attitudes to science, technology and innovation By Tartaruga, Iván G. Peyré; Cazarotto, Rosmari Terezinha; Martins, Clitia Helena Backx; Fukui, Ana
  9. Policy Implications for National Knowledge Networks in UK and India: A Comparative Study By Jain, Rekha; Singh, Manjari

  1. By: Paola Valbonesi (Universita'di Padova); Federico Biagi (European Commission - JRC)
    Abstract: This report discusses analyses ICT Innovation vouchers and provides insights on how such instruments can be used to support small- and medium-sized enterprises (SMEs) in developing and adopting information communication technology (ICT) and digital innovation in order to enhance their competitiveness and growth. This report suggests that the effectiveness of ICT innovation voucher programmes are affected by the granting government’s choices, which should be grounded on a preliminary analysis of SMEs’ needs in the region/area considered. In particular, referring to the SMEs’ ICT-based innovation and digital needs, it would be useful to map the actual ‘level’ of ICT adoption and diffusion among local firms (SMEs in particular) in order to gain a better understanding of the ICT services and applications that could improve firms’ competitiveness and growth, especially by stimulating product, process, organisational and marketing innovation. By defining the firms’ needs and the goals of the programme, this preliminary analysis can also highlight the specific competences required from actors – the “Knowledge Service Providers†(KSPs) - supplying and developing the ICT applications supported by the ICT innovation voucher programme. The report also discusses vouchers implementation, and it examines best practices. Indicators for additionality (i.e. input, output and behavioural) and their information needs are also illustrated. Moreover, in the aim to evaluate the vouchers’ impact, we also discuss how to perform a counterfactual analysis for an ICT innovation voucher programme.
    Keywords: Innovation vouchers, ICT
    JEL: O31 O38
    Date: 2016–12
  2. By: Hildegunn Kyvik Nordås
    Abstract: This paper highlights India’s unique services export led growth path. Observing that Indian business services have helped manufacturers all over the world to become more efficient and productive, it raises the question how Indian business services can do the same for local manufacturers and thus support the Make in India initiative. The paper also explores the potential for broadening the export base in services. The services sector that appears to have the largest prospect for unleashing the potential of both manufacturing and knowledge intensive business services is the telecommunications sector, particularly broadband internet services. In addition reforms in the distribution sector that enable multi-channel wholesale and retailing could facilitate the development of marketing channels for SME manufacturers both across the vast Indian market and abroad. Reforms in the logistics sector would further improve the competitiveness of local manufacturers producing time-sensitive goods including inputs to global value chains. Finally, competitiveness in knowledge-intensive services is obtained through knowledge sharing across borders. A prerequisite for broadening the export base in these sectors is openness to foreign professionals. The set of proposed recommendations emerging from this analysis underlines the importance of streamlining sector-level regulatory frameworks in all sectors to encourage foreign entry and competition, and the role that cross-cutting improvements in the trade and business environment would play to render services providers as well as down-stream manufacturers more competitive.
    Keywords: competitveness, services trade restrictions, trade in manufacturing, trade policy
    JEL: F13 F14 F15 F60 L80 O53
    Date: 2017–01–20
  3. By: Wixe, Sofia (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Sweden); Nilsson, Pia (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Swede); Naldi, Lucia (Centre for Family Enterprise and Ownership (CeFEO ), Jönköping International Business School, Sweden); Westlund, Hans (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, & KTH Royal Institute of Technology, Sweden)
    Abstract: This paper applies unique survey data on innovation and external interaction of small food producers in Sweden. The overall purpose is to test if firms that are more engaged in external interaction are more innovative. To disentangle innovativeness beyond new goods and services, innovation is measured as new processes, new markets, new suppliers, new ways of organization, and new distributors. Findings point to a positive relationship between firm innovation and external interaction, both in terms of collaboration, external knowledge and support from regional actors. In particular, collaboration regarding transports and sales is shown to enhance most types of innovation. Product and process innovation benefit from external knowledge from extra-regional firms as well as regional support from the largest firm. Findings suggest that current innovation policies can improve their efficiency by increasing their flexibility to enable tailor-made innovation policies at the local level.
    Keywords: Innovation; collaboration; food industry; rural regions
    JEL: L25 L66 O31 R12
    Date: 2017–01–16
  4. By: Anna Cabigiosu (Dept. of Management, Università Ca' Foscari Venice); Diego Campagnolo (Dept. of Economics and Management, University of Padova)
    Abstract: Collaborative innovation literature shows that collaborating with clients enhances the innovation performance of firms particularly as regard the development of highly new products. In this setting, are highly new products the innovation category that drives the most firmÕs performance? This is a relevant research question in the innovation literature since it warns about the risks and limits of highly new products but has not considered the firmÕs performance implications of different categories of innovations developed by collaborating with clients. In this paper we consider different categories of innovation, product and process innovations new to the industry and new to the firm respectively, and develop original hypotheses about their implications over firmÕs performance. We develop and test our hypotheses on a sample of 99 Italian KIBS firms. We focus on KIBS firms since they are used to customize their services and collaborate with clients during the development of new services. Results support the idea that highly innovative product innovations are more strongly associated with a KIBS firmÕs growth, while weakly innovative process innovations are more strongly associated with a KIBS firmÕs productivity, but only in small firms. Theoretical and managerial implications for collaborative innovations settings are drawn.
    Keywords: collaborative innovation, innovation categories, firmÕs performance, KIBS
    JEL: O32 O33
    Date: 2016–11
  5. By: G. Cette; R. Lecat; C. Ly-Marin
    Abstract: In this period of high uncertainty about future economic growth, we have developed a growth projection tool for 13 advanced countries and the euro area at the 2100 horizon. This high uncertainty is reflected in the debate on the possibility of a ‘secular stagnation’, fuelled by the short-lived Information and Communication Technology (ICT) shock and the current low productivity and GDP growth in advanced countries. Our projection tool allows for the modelling of technology shocks, for different speeds of regulation and education convergence, with endogenous capital growth and TFP convergence processes. We illustrate the benefits of this tool through four growth scenarios, crossing the cases of a new technology shock or secular stagnation with those of regulation and education convergence or of absence of reforms. Over the 2015-2100 period, the secular stagnation scenario assumes yearly TFP growth of 0.6% in the US, leading to a 1.5% GDP growth trend. The technology shock scenario assumes that the third technological revolution will, in the US, provide similar TFP gains to electricity during the second industrial revolution, leading to a 1.4% TFP trend, to which we add a TFP growth wave peaking in 2040, and thus to an average GDP growth rate of 3% in the US. In non-US countries, GDP growth will depend on the implementation of regulation reforms, the increase in education and on the distance to the country-specific convergence target, namely the US, as well. Over the period 2015-2060, for the euro area, Japan and the United Kingdom, benefits from regulation and education convergence would amount to a 0.1 to 0.4 pp yearly growth rate depending on the initial degree both of rigidity and the TFP distance to the US.
    Keywords: Growth, productivity, long-term projections, structural reforms, innovation, education
    JEL: E21 E22 E32 E44 E63
    Date: 2017
  6. By: V. Pelligra; T. Reggiani; T. Medda
    Abstract: One of the most common criticisms about the external validity of lab experiments in economics concerns the representativeness of participants usually considered in these studies. The ever-increasing number of experiments and the prevalent location of research centers in university campuses produced a peculiar category of subjects - Students with high level of laboratory experience built through repeated participations in experimental sessions. We investigate whether the experience accumulated in this way biases subjects’ behaviour in a set of simple games widely used to study social preferences (Dictator Game, Ultimatum Game, Trust Game, and Prisoner’s Dilemma Game). Our main finding shows that subjects with a high level of experience in lab experiments do not behave in a significantly different way from novices.
    Keywords: lab experiment,External Validity,Experimental Methodology,Experience
    Date: 2016
  7. By: Andreas Panagopoulos (Department of Economics, University of Crete, Greece); Christos Pitelis; Panos Desyllas
    Abstract: In its August 8th 2015 leader, the Economist magazine questions the evidence for patent protection and proposes innovative alternative ways to foster innovation, including new forms of public sector regulation. Our aim is to suggest a market-based alternative and complement to regulation that leverages the joint benefits to companies that choose to cooperate and compete (co-opete), as opposed to the two extremes of direct competition, or collusion. We draw on the idea of market co-creation by companies in ‘advanced’ and emerging countries, using the pharmaceutical industry as our focus of examination. Over the last two decades, emerging country pharmaceutical companies operate in an increasingly challenging competitive environment (Ghauri and Santangelo, 2012; Angeli, 2013). This new environment is, in part, the result of a series of international trade agreements that have strengthened the Intellectual Property (IP) regime worldwide. These agreements include the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, the subsequent Anti- Counterfeiting Trade Agreement (ACTA), and the more recent Trans-Pacific Partnership (TPP) agreement. They are based on the view that global IP protection will foster trade opportunities across the world and also facilitate technology transfer from advanced to emerging countries (Blakeney, 2013; Yang, 2012). This new IP regime is affecting competitive dynamics, particularly in the pharmaceutical industry where patents confer robust protection and are essential for the commercialization of innovations (James et al., 2013). In the past, emerging country pharmaceutical firms (EPFs) relied extensively on reverse engineering of patented compounds to produce “generic” versions of branded drugs at a fraction of the costs faced by the original innovators (McKinsey Report, 2013). However, the result of TRIPS (and the subsequent agreements) has been to place restrictions on the space for the production of generic drugs (Shaffer and Brenner, 2009). Thus, EPFs had to fundamentally rethink their “closed” business models, which were oriented towards reverse engineering and low-cost manufacturing (Angeli, 2013). Pharmaceutical firms in emerging countries, such as India, have adopted different strategies to adjust to the new environment. Some firms try to leverage their location advantages at home, such as relationships with hospital and doctors, but also frugal innovation-type strategies (Anand and Kale, 2006; Greenhalgh, 2013). Others attempt to upgrade their production and marketing capabilities to offer ‘branded generics’. And others contest the IP rights of advanced country multinational companies. In 2005, for instance, several Indian generics producers successfully challenged Novartis’ attempt to obtain patent protection for an updated version of its drug Gleevec (for chronic myeloid leukemia) in India (Shadlen and Guennif, 2011). Direct competition, however, between EPFs and “advanced” country multinational enterprises (AMNEs) may not be the most desirable competitive outcome for either groups of firms. Instead, some form of cooperation can prove preferable to both parties when EPFs can leverage complementary assets and capabilities to extend and co-create market space. For instance, in 2009, Dr. Reddy’s Labs established a partnership with GlaxoSmithKline plc to develop and market drugs in fast growing therapeutic segments (e.g. cardiovascular, diabetes, oncology, gastroenterology) across several emerging markets. Products were manufactured by Dr. Reddy’s and were licensed and supplied to GlaxoSmithKline in various emerging markets, while revenues shared between the two partners. In other products and markets the two firms continued to compete.
    Keywords: cross-border co-opetition, market co-creation, complementary assets, intellectual property rights, MNEs, pharmaceuticals
    JEL: K11
    Date: 2016–09–24
  8. By: Tartaruga, Iván G. Peyré; Cazarotto, Rosmari Terezinha; Martins, Clitia Helena Backx; Fukui, Ana
    Abstract: In the context of a knowledge-based economy, in the last 50 years, countries and international organisms have systematized many indicators to evaluate inventive and innovative capacity, mainly related to science. But these indicators have almost exclusively focused on the supply side of invention and innovation, in which attention is given to people (entrepreneurs), organizations practicing research and development (R&D) and innovative companies and virtually none to the end users, like consumers or organizations not connected to R&D/innovation. Aiming at facing this insufficiency, this paper proposes new models to analyze innovation through indicators that show the relationship between the realms of science, technology and innovation and society as a whole. These sociocultural indicators represent the set of propensities to innovate in a given social group. Therefore, from the confluence of investigations in the field of Public Understanding of Science and Innovation Studies, five indicators of the propensity to innovate were chosen: efficiency, creativity, trust in science and technology, uncertainty tolerance and cooperation.
    Keywords: innovation; science; society; Innovation Studies; Public Understanding of Science
    JEL: O31 O39
    Date: 2016–09
  9. By: Jain, Rekha; Singh, Manjari
    Date: 2016

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