nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒02‒12
ten papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Knowledge Composition, Jacobs Externalities and Innovation Performance in European Regions By Antonelli, Cristiano; Crespi, Francesco; Mongeau, Christian; Scellato, Giuseppe
  2. The inter-temporal dimension to knowledge spillovers: any non-environmental reason to support clean innovation? By Christos Karydas
  3. Decentralization in Heterogeneous Regions: A Biased Technological Change Approach By Feder, Christophe; Kataishi, Rodrigo Ezequiel
  4. Industrial clusters: The case for Special Economic Zones in Africa By Carol Newman; John Page
  5. Mapping and Analysis of ICT-enabled Social Innovation initiatives promoting social investment across the EU: IESI Knowledge Map 2016 By Gianluca Misuraca; Csaba Kucsera; Giulio Pasi; Dimitri Gagliardi; Fabienne Abadie
  6. Human Capital Acquisition and Occupational Choice: Implications for Economic Development By Mestieri, Martí; Schauer, Johanna; Townsend, Robert M
  7. Linking Emissions Trading Schemes in the Presence of Research and Develoment Spillovers By Nachtigall, Daniel
  8. Cooperation, Competition and Entry in a Tullock Contest By GRANDJEAN, G.; TELLONE, D.; VERGOTE, W.
  9. A Typology of European Research Universities. Differentiation, Layering and Resource Distribution By Benedetto Lepori; Aldo Geuna; Valerio Veglio
  10. Entrepreneurship, Economic Development and Institutional Environment: Evidence from OECD countries By Rafik Abdesselam; Jean Bonnet; Patricia Renou-Maissant; Mathilde Aubry

  1. By: Antonelli, Cristiano; Crespi, Francesco; Mongeau, Christian; Scellato, Giuseppe (University of Turin)
    Abstract: This paper analyses the role of the composition of the regional stock of knowledge in explaining innovation performance. The paper provides three main contributions. First, it investigates the relevance of Jacobs knowledge externalities in characterizing the technological capabilities at the regional level. Second, it applies the Hidalgo-Hausmann (HH) methodology to analyze knowledge composition by looking at patent data of 214 regions, located in 27 state members of the European Union (EU) during the years 1994- 2008. Third, it econometrically assesses the role of knowledge base composition in a knowledge generation function. The results of the empirical analysis confirm that the characterization of regional knowledge base through the HH indicators provides interesting information to understanding its composition and to qualify it as a provider of the Jacobs knowledge externalities that account for the dynamics of regional innovative performance.
    Date: 2016–07
  2. By: Christos Karydas (ETH Zurich, Switzerland)
    Abstract: How should governments best allocate their budget to support private research activities? The consensus in the literature is that sector-specific R&D support policies should be increasing in the degree of compatibility of sectoral innovation with the practices of the wider economy. Using a multi-sector endogenous growth model with in-house R&D and knowledge spillovers, it is shown, that accounting for the time it takes for an innovation to diffuse modifies this widely-accepted result. Wide applicability of green innovations alone does not justify higher research subsidies.
    Keywords: Climate Policy, Industrial Policy, Innovation Spillovers, Technology Diffusion, Endogenous Growth
    JEL: O31 O33 Q54 Q55 Q58 H23
    Date: 2017–01
  3. By: Feder, Christophe; Kataishi, Rodrigo Ezequiel (University of Turin)
    Abstract: Regional heterogeneity plays a determinant role in both the decentralization and the biased technological change literature. Merging these perspectives, this paper offers a novel approach on how productivity of firms can be affected by public policies within centralized and decentralized political systems. The contribution of this paper is to develop a theoretical model that introduces the biased technological change concept instead of the traditional Total Factor Productivity (TFP) to evaluate policy outcomes. By doing so, we find that public policies may not always have the expected effect in terms of effciency. In our model, productivity and effciency will depend on the level of regional heterogeneity, the inter-regional spillovers and the relative amount of regional endowments. In particular, our point argues that if there is regional heterogeneity but no inter-regional spillovers a centralized policy can be effcient and that if regions are homogeneous in the presence of inter-regional spillovers, a decentralized strategy can be effcient too. Last, we find that there are cases that may reach no effcient outcomes, regardless the political system.
    Date: 2017–01
  4. By: Carol Newman; John Page
    Abstract: Firms tend to cluster in close geographic proximity to each other to benefit from reduced transport costs, shared inputs, and productivity spillovers due to learning and technology transfers. Evidence from low-income countries suggests that such agglomeration economies may be substantial in endogenously formed clusters. This raises the question of whether spatial industrial policies can be designed to facilitate clustering. In this paper, we consider the case for creating Special Economic Zones (SEZs) in Africa. We document at the country level the state of current SEZ programmes and the policy measures in place for their promotion. We give an overview of the evidence on their success and provide a set of policy recommendations to improve SEZs performance.
    Keywords: agglomeration, Special Economic Zones, spatial industrial policy, Africa
    Date: 2017
  5. By: Gianluca Misuraca (European Commission – JRC); Csaba Kucsera (European Commission – JRC); Giulio Pasi (European Commission – JRC); Dimitri Gagliardi (University of Manchester); Fabienne Abadie (European Commission – JRC)
    Abstract: This report presents the results of the analysis of the consolidated mapping of ICT-enabled social innovation initiatives promoting social investment gathered as part of the research project entitled 'ICT-Enabled Social Innovation to support the Implementation of the Social Investment Package' (IESI). The dataset includes 613 initiatives inventoried over the course of the research, out of which 300 have been mapped and are part of the IESI Knowledge Map 2016. The results of the analysis of the IESI mapping is meant to help policymakers and practitioners to use ICT-enabled social innovation to modernise EU welfare states, providing better and more efficient social services and increasing the skills, wellbeing and resilience of EU citizens. In this perspective, the documented research design, its proposed terminology, theoretical framework and findings contribute to the growing scientific interest and debate about ICT-enabled social innovations in the field of social services innovation and social policy redesign within the scope of the emerging discussion on the European Pillar of Social Rights and the future of welfare systems.
    Keywords: Social policy, innovation, ICT, social investment, social policy innovation, SIP, Social Investment Package, social economy, social enterprise, ICT enabled social innovation, ICT, services, social protection, welfare, mapping, welfare reforms, wellbeing, resilience
    JEL: I31 I38 O35 O33
    Date: 2017–01
  6. By: Mestieri, Martí; Schauer, Johanna; Townsend, Robert M
    Abstract: Using household-level data from Mexico we document patterns among schooling, entrepreneurial decisions and household characteristics such as assets, talent of household members and age of the household head. Motivated by our findings, we develop a heterogeneous-agent, incomplete- markets, overlapping-generations dynasty model. Households jointly decide over their life cycle on (i) kids' human capital investments (schooling) and (ii) parents' entry, exit and investment into alternative entrepreneurial modes (subsistence and modern). With financial constraints all of these are co-determined. A calibrated version of our model can account for the broad correlation patterns uncovered in the data within and across generations, e.g., a non-monotonic relationship between educational choices and assets across occupations, growth in profits and employment for modern firms only, and dynastic persistence across generations in education and wealth. Endogenous human capital acquisition is a key driver of inequality and intergenerational persistence. Eliminating this channel would decrease the top 10% income share by 47%. Eliminating within-period borrowing constraints would increase average household expenditure by 7.1% and benefit the middle class, reducing top and bottom expenditure shares. It would also reduce by 28% the correlation between household assets and kids' schooling levels.
    Keywords: entrepreneurship; Human Capital; inequality; Mexico; Occupational choice
    JEL: I24 I25 O15 O54
    Date: 2017–02
  7. By: Nachtigall, Daniel
    Abstract: I analyze the role of research and development (R&D) spillovers on the incentives to link emissions trading schemes (ETSs) under different timings with respect to the determination of the emissions reduction target (ERT) and to the linking decision. When countries decide upon linking their ETSs prior to setting their ERTs, the permit importing country may not consent to link in the absence of R&D spillovers. The reason is that the other country strategically decreases its ERT to increase its revenues from permit trading, thereby increasing the costs for the permit importing country. However, in the presence of R&D spillovers, the permit importing country benefits from higher R&D spillovers and from lower environmental damage under linking relative to autarky and is therefore willing to link. When countries determine their ERTs prior to the linking decision, the role of R&D spillovers on the linking decision reverses. In the absence of R&D spillovers, both countries unambiguously are willing to link their ETSs due to the efficiency gains from trade. However, if R&D spillovers are relevant, the permit exporting country may be worse off under linking because its R&D spillovers deteriorate due to lower abatement effort by the other country. Hence, there is a trade-off between the efficiency gains from trade and the reduced R&D spillovers, causing the permit exporting country to reject linking if the spillover effect is sufficiently large.
    JEL: H41 Q54 Q56
    Date: 2016
  8. By: GRANDJEAN, G.; TELLONE, D.; VERGOTE, W. (Université catholique de Louvain, CORE, Belgium)
    Abstract: We propose a model of network formation in a Tullock contest. Agents first form their partnerships and then choose their investment in the contest. While a link improves the strength of an agent, it also improves the position of her rival. It is thus not obvious that they decide to cooperate. We characterize all pairwise equilibrium networks and find that the network formation process can act as a barrier to entry to the contest. We then analyze the impact of network formation on total surplus and find that a social planner can increase total surplus by creating more asymmetry between agents, as long as this does not reduce the number of participating agents. We show that barriers to entry may either hurt total surplus, as the winner of the prize does not exploit all the possible network benefits, or improve total surplus since less rent is dissipated when competition becomes less fierce. Finally, when networking acts as an endogenous barrier to entry, no pairwise equilibrium network is efficient.
    Keywords: Network Formation, Tullock Contest, Participation Constraints, Efficiency
    JEL: D72 D85
    Date: 2016–07–31
  9. By: Benedetto Lepori (Universita della Svizzera italiana); Aldo Geuna (University of Turin - Department of Economics S. Cognetti de Martiis); Valerio Veglio (Università degli Studi di Milano-Bicocca - Department of Economics, Quantitative Methods and Business Strategies (DEMS))
    Abstract: The aim of this paper is to develop a theory-based typology of Higher Education Institutions (HEIs) based on three dimensions of differentiation, i.e. their activity profile (education vs. research), the subject scope (generalist vs. specialist) and regulatory characteristics which constrain previous two. We examine the financial environment of HEIs as a possible selection mechanism. Particular attention is devoted to the identification of European Research Universities By testing this typology on a large sample of European HEIs, we show systematic differences between types in their activity profile and in the level of funding, therefore providing evidence that types are associated with different market positioning. We identify a small group of research universities, characterized by a high level of research volume and intensity and by a volume of funding far higher than all other HEIs in the sample, suggesting that their emergence is critically linked to the concentration of resources.
    Keywords: Academic Research, Higher Education Institutions, Universities, Ranking, Typology, Resource Allocation, Concentration of Resources
    JEL: I23 I28 H52
    Date: 2017–01
  10. By: Rafik Abdesselam (University of Lyon, Lumière Lyon 2, COACTIS, EA 4161, France); Jean Bonnet (University of Caen Normandy, CREM-CAEN, UMR CNRS 6211, France); Patricia Renou-Maissant (University of Caen Normandy, CREM-CAEN, UMR CNRS 6211, France); Mathilde Aubry (Management School of Normandy, METIS Research Department, France)
    Abstract: The purpose of this article is to establish a typology of entrepreneurship for OECD countries over the 1999-2012 period. Our aim is to make a distinction between managerial and entrepreneurial economies, to identify groups of countries with similar economic and entrepreneurial activity variables and to determine the economic and institutional drivers of entrepreneurial activities in each group. We show that the level of development, sectoral specialization, and institutional variables related to entrepreneurship, functioning of the labor market and openness of the country are decisive to understand differences in entrepreneurship activity across countries. Results show that the pre-crisis period, from 1999 to 2008, is a period of growth favorable to entrepreneurship. The financial crisis involved a break in entrepreneurial dynamism with agricultural economies withstanding the financial crisis better. The 2010-2012 period of recovery is a period of a sharp slowdown in entrepreneurial activity, during which the countries that are less dependent on the financial sector proved to be the most resilient in terms of entrepreneurial activity. Nevertheless, it is the advanced economies of knowledge with developed financial markets, fewer institutional regulatory constraints and qualitative entrepreneurship that show the weaker unemployment rates. These findings have important implications for the implementation of public policy in order to promote entrepreneurial activity and reduce unemployment.
    Keywords: Entrepreneurship, Data analysis methods, Entrepreneurial/Managerial economies
    JEL: L26 C38 O1
    Date: 2017–02

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