nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒07‒02
ten papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The role of inter-organizational proximity on the evolution of the European Aerospace R&D collaboration network. By Pier Paolo Angelini
  2. Employment Effect of Innovation By d'Artis Kancs; Boriss Siliverstovs
  3. The Determinants of Growth in the Information and Communication Technology (ICT) Industry: A Firm-Level Analysis By Giorgio Canarella; Stephen M. Miller
  4. Bridging Organizations between University and Industry: from Science to Contract Research By Angelo Bonomi
  5. Development and Analysis of Economic Models of Innovation Incentives By Levin, Mark; Matrosova, Kseniya
  6. Political Connections and Antidumping Investigations: Evidence from China By ZHANG Hongyong
  7. Heterogeneous Human Capital, Inequality and Growth: The Role of Patience and Skills By Kirill Borissov; Stefano Bosi; Thai Ha-Huy; Leonor Modesto
  8. Building Knowledge Economies in Africa: A Survey of Policies and Strategies By Simplice Asongu; Jacinta C. Nwachukwu
  9. Performance of Cross-Border Acquisitions: Evidence from Canadian Firms Acquired by Emerging Market Firms By Gamal Atallah; Yang Zhou
  10. Does social inducement lead to higher open innovation investment? An experimental study By Dai, Shuanping; Yang, Guanzhong

  1. By: Pier Paolo Angelini
    Abstract: The influence exerted by five dimensions of inter-organizational proximity (geographical, organizational, network, institutional and technological) on the evolution of the collaboration networks subsidized by the European Union Framework Programmes in the Aerospace sector is studied. The role of the proximity dimensions is controlled by means of a longitudinal analysis with a stochastic actor-oriented model, which will be run on four observations of the network starting in the fourth (1994-1998) and ending in the seventh Framework Programme (2007-2013). Results show that organizational proximity is the most important driver for the longitudinal evolution of the network. Further, this form of proximity is constant in time, analogously to the geographical one which, on its side, only moderately affects network’s evolution. Network proximity plays a weak but positive influence, while the institutional and technological dimensions do not affect the evolution of the network. Anyway, when proximity is evaluated on single institutional and technological types, different roles are detected. Regarding the former, research centres have a preference for inter-organizational mixing, while firms prefer to cooperate with firms. As for the latter, a repulsive tendency among system integrators is appreciated. Organizations’ patenting activity, introduced as a control variable, does not play a significant role on network’s evolution. Length: 41 pages
    Keywords: Longitudinal network analysis; Stochastic actor-oriented models; European Framework Programmes; Inter-organizational proximity; R&D collaboration networks; Aerospace. JEL Codes: O33; D85; C63Creation-Date: 2014-03
  2. By: d'Artis Kancs; Boriss Siliverstovs (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: The present paper estimates and decomposes the employment e?ect of innovation by R&D intensity levels. Our micro-econometric analysis is based on a large international panel data set from the EU Industrial R&D Investment Scoreboard. Employing ?exible semi-parametric methods – the generalised propensity score – allows us to recover the full functional relationship between the R&D investment and ?rm employment, and to address important econometric issues, which is not possible in the standard estimation approach used in the previous literature. Our results suggest that modest innovators do not create and may even destruct jobs by raising their R&D expenditures. Most of the jobs in the economy are created by innovation followers: increasing innovation by 1% may increase employment up to 0.7%. The job creation e?ect of innovation reaches its peak when the R&D intensity is around 100% of the total capital expenditure, after which the positive employment e?ect declines and becomes statistically insigni?cant. Innovation leaders do not create jobs by further increasing their R&D expenditures, which are already very high.
    Date: 2017–02
  3. By: Giorgio Canarella (University of Nevada, Las Vegas); Stephen M. Miller (University of Nevada, Las Vegas)
    Abstract: Why do some firms grow faster than others? This question has become the focus of a large number of empirical studies in industrial organization, strategic management, and entrepreneurship since the publications of Gibrat (1931) and Penrose (1959). Using an unbalanced panel data set of 85 U.S. information and communication technology (ICT) firms that survived over the period from 1990 to 2013, we examine the effect of firm size, agency costs, R&D investments, capital structure, profitability, and the Great Recession of 2007-2009 on firm growth. Adopting the two-step, system, generalized-method-of-moments estimator for linear dynamic panel models (Blundell and Bond, 1998), we document that growth in the ICT industry is not stochastic, as predicted by Gibrat (1931), but driven by systematic factors. We find compelling evidence that in the ICT industry: (i) firm growth exhibits positive persistence, which endorses the controversial "success-breeds-success" evolutionary hypothesis; (ii) agency costs and financial leverage exert a negative effect on firm growth; (iii) R&D investment and financial performance generate a positive effect on firm growth; (iv) the Great Recession (2007-2009) produced a negative effect on firm growth; (v) a nonlinear, inverted U-shaped relationship exists between firm size and firm growth; and (vi) Gibrat’s law does not hold. Our findings remain robust to transformations using first differences and forward orthogonal deviations as well as principal components reductions. These results are new to the literature, since the dynamics of firm growth has not been documented at the ICT industry level. Noteworthy policy implications emerge because the growth dynamics of the ICT industry move this sector toward more concentration and less competition.
    Keywords: ICT industry; Agency costs; Firm growth; Panel data; system-GMM
    JEL: G21 G28 G32 G34
    Date: 2017–06
  4. By: Angelo Bonomi (Ceris - Institute for Economic Research on Firms and Growth,Turin, Italy)
    Abstract: Two bridging organizations, NIS and Agroinnova, formed both in 2003 internally to the University of Turin, have been studied through a good practice benchmarking in view to assess their validity in the science to business process especially concerning Italian SMEs. References for benchmarking have been established by suitable definitions of technology, technology innovation and a structured model of technology followed by a description of the innovation process as a sequence of steps. Benchmarking attention has been focused on contract research and technology transfer office activities. The results of the study show that such type of bridging organizations, and especially their spin-offs in contract research, may be a good possibility to foster the science to business process. However bottlenecks exist and concern the low diffusion of an entrepreneurial mentality that limits generation of innovative ideas for new technologies despite a large activity in scientific research. Bottlenecks concerning SMEs are mainly lack of experience in R&D and technology management. Fostering of science to business process by a simple increase of funds does not appear effective without a change in mentalities, adoption of suitable industrial policies and new concepts for bridging structures and financial aids to SMEs.
    JEL: O32 O38 I23
  5. By: Levin, Mark (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Matrosova, Kseniya (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: This paper is an analysis of the innovation incentives. The aim of this study is to create the model describing innovation processes, and to research the mechanisms stimulating innovation in the economic systems. The first section is devoted to the review of the models and approaches for analyzing the effects of the market competition on the innovation activity of firms. The second section describes several models of behavior of companies in the domestic and international market. The final section presents the original model of the effectiveness of the schemes of innovation incentives at different levels of diffusion of innovation and technological development.
    Keywords: innovation, innovation incentives, diffusion of innovation, simulation analysis, competition, èííîâàöèè, ñòèìóëèðîâàíèå, äèôôóçèÿ èííîâàöèé, èìèòàöèîííîå ìîäåëèðîâàíèå, êîíêóðåíöèÿ
    Date: 2017–06
  6. By: ZHANG Hongyong
    Abstract: Do political connections affect antidumping (AD) investigations? To address this question, we use antidumping filings data combined with micro data on Chinese manufacturing firms for the period 1998-2007. The political connections of a firm are defined by whether it has state-owned capital or whether it is under the administration of central or provincial government. Estimating a probit model of AD filings at the firm level, we find that strong political connections significantly increase the likelihood of AD petitions and affirmative final dumping decisions. State-owned enterprises, firms affiliated with the central or provincial government, low productivity firms, and large firms tend to file AD investigations in China. The industry-level estimation results also confirm that industries with a greater presence of state-owned enterprises are likely to receive trade protection from the Chinese government, controlling for import penetration, year, and industry fixed effects.
    Date: 2017–06
  7. By: Kirill Borissov; Stefano Bosi; Thai Ha-Huy; Leonor Modesto
    Abstract: We extend the Lucas’ 1988 model introducing two classes of agents with heterogeneous skills, discount factors and initial human capital endowments. We consider two regimes according to the planner’s political constraints. In the meritocratic regime, the planner faces individual constraints. In the redistributive regime, the planner faces an aggregate constraint. We find that heterogeneity matters, particularly with redistribution. In the meritocratic regime, the optimal solution coincides with the BGP found by Lucas (1988) for the representative agent’s case. In contrast, in the redistribution case, the solution for time devoted to capital accumulation is never interior for both agents. Either the less talented agents do not accumulate human capital or the more skilled agents do not work. Moreover, social welfare under the redistribution regime is always higher than under meritocracy and it is optimal to exploit existing differences. Finally, we find that inequality in human capital distribution increases in time and that, in the long run, inequality always promotes growth.
    Keywords: Human capital, Heterogenous patience and skills, Inequality and growth
    JEL: J24 O15 O40
    Date: 2017–06–23
  8. By: Simplice Asongu (Yaoundé/Cameroun); Jacinta C. Nwachukwu (Coventry University, UK)
    Abstract: Compared to other regions of the world, Africa is lagging in its drive toward knowledge-based economies. This study surveys the literature in order to highlight the policies and strategies with which African countries can accelerate their current drive towards knowledge economies. These are discussed in terms of the four pillars of the World Bank’s knowledge economy framework. They are the indices for: (i) education and skilled population, (ii) information and communication technology, (iii) economic incentives and institutional regime and (iv) innovation systems.
    Keywords: Knowledge economy; Development; Africa
    JEL: O10 O30 O38 O55 O57
    Date: 2017–06
  9. By: Gamal Atallah (University of Ottawa, Ottawa, ON); Yang Zhou (University of Ottawa, Ottawa, ON)
    Abstract: This paper studies the impact of M&A of Canadian firms by emerging market firms on the stock performance of the acquired firms. Using the short-term window event study, we analyze security prices of Canadian listed firms acquired by emerging market firms from 2000 to 2016. After calculating the abnormal return and cumulative abnormal return of target firms we find that the abnormal return on the event day is about +10.3% and the cumulative abnormal return for 11 days is about +10.55%. The findings indicate that in the short-term, the performance of Canadian firms which are acquired by emerging market firms is positive. Technology and mineral firms have significantly positive abnormal return on day 0 whereas energy firms only have small abnormal return for the same time period.
    Keywords: Cross-border acquisitions, M&A, Emerging countries, Corporate performance, Event studies
    JEL: G14 G34
    Date: 2017
  10. By: Dai, Shuanping; Yang, Guanzhong
    Abstract: Open innovation has attracted an avalanche of interests from many practitioners and scholars, and is gradually becoming an acceptable scientific and managerial paradigm over the past few decades. Traditionally, however, innovative activities ought to be confidential within certain groups or individuals before the marketing process, and will be protected strictly by the intellectual property rights laws, for the sake of innovators' economic benefits and encouraging further innovation attempts. This paper aims at addressing the question of how to stimulate firms and managers to invest more resources to open innovation, and focuses on social inducement's effectiveness, in the art of a pre-recorded video, using an experimental approach. We established two open innovation investment models in which investors decide to allocate resources to open and traditional innovation projects. In the first model, we introduce the spillover effect and assume that traditional innovation projects may profit from open innovation investment. We then consider uncertainty to make the investment more realistic in the second model. The effect of social inducement on open innovation provision has been investigated in all the three settings, i. e. No Video, Full Video and Half Video. The striking result is that social inducement increases open innovation investment, but only if both induced subjects and non-induced subjects exist; meanwhile, economic uncertainty also matters.
    Keywords: open innovation,social inducement,conditional cooperation,economic uncertainty
    JEL: C92 H41 O31
    Date: 2017

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