nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒08‒06
ten papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Effects of Foreign Direct Investment on Intellectual Property, Patents and R&D By Arun, Korhan; Yıldırım, Durmuş Çağrı
  2. The Young, the Old and the Innovative: The Impact of R&D on Firm Performance in ICT versus Other Sectors By Koutroumpis, Pantelis; Leiponen, Aija; Thomas, Llewellyn D W
  3. Innovation and location in German knowledge intensive business service firms By Brunow, Stephan; Hammer, Andrea; Mc Cann, Philip
  4. Knowledge flows, firms' competencies, and patent citations: an analysis of the trajectory of IBM By Jorge Britto; Leonardo Costa Ribeiro; Lucas Araújo; Eduardo da Motta e Albuquerque
  5. Corporate Venture Capital and the Nature of Innovation By Maxin, Hannes
  6. Non-parametric methods applied in the efficiency analysis of European structural funding in Romania By Roman, Monica; Gotiu (Lucaciu), Liliana
  7. Does Real Exchange Rate Undervaluation Really Promote Economic Growth? By Rafael Saulo Marques Ribeiro; John S. L. McCombie, Gilberto Tadeu Lima
  8. Knowledge-Intensive Mining Services: a Regional Approach for their Development in Chile By Claudio Bravo-Ortega; Leonardo Muñoz
  9. Collaborative learning as a tool for social innovation By Matei, Ani; Tirziu, Andreea-Maria
  10. Institutions and firms’ internationalization: an empirical analysis on three Middle East countries By Nadine Levratto; Clarisse Nguedam Ntouko; Maarouf Ramadan

  1. By: Arun, Korhan; Yıldırım, Durmuş Çağrı
    Abstract: As innovative firms have considerable competitive advantage; more foreign direct investment (FDI) research has been related to the innovation. The primary aim of this study is to explore how intra-regional economies interact with host countries’ innovative performance, and how they are affected by FDI. Azerbaijan, Georgia and Turkey, located in the South Caucasus region, are selected as examples. Numbers of patent applications, R&D expenditure (% of GDP), and intellectual property payments are chosen as factors indicative of innovation. While this research tries to explore whether these three countries, connected by large trades, can act as a clustered group; Panel cointegration and Panel OLS models are used for analysis. The results show that FDI is an important variable affecting the level of innovation in the panel analysis. Nevertheless, individual relationships with FDI vary, and cointegration analysis shows heterogeneity. That is, foreign direct investment could play a central role in increasing the level of innovation for Azerbaijan and Georgia, but it is not an important determinant of Turkey's economic innovation level. Countries should realize that when their economies are becoming stronger, FDI is not a useful tool for escalating innovation, rather they should be in clusters that can leverage innovation.
    Keywords: Foreign Direct Investment (FDI), Innovation, Panel Data Analysis, Panel OLS, Azerbaijan, Turkey, Georgia
    JEL: F21 O32 O34
    Date: 2017–06
  2. By: Koutroumpis, Pantelis; Leiponen, Aija; Thomas, Llewellyn D W
    Abstract: Although innovation opportunities within the ICT industry are assumed high in comparison with other industries because of their rapidly evolving technological trajectory, little empirical research systematically investigates the distribution of returns to R&D investment across industries and types of firms. Building on the technological opportunity framework, we examine the effect of R&D on firm revenues in a large panel of European firms and study its variation with the age, size, and sub-sector of firms. We confirm that R&D investments in ICT firms have a larger effect on their revenue performance when compared to non-ICT firms and that the effect is higher for small firms and for firms in Internet services and ICT component manufacturing. At the firm level, our results suggest that smaller and, surprisingly, older ICT firms are technologically opportunistic and exhibit the flexibility and adaptability to both identify and respond to technological opportunities and develop innovative products and services. We highlight some implications for R&D investment and policy.
    Keywords: ICT, R&D, firm performance, technological opportunity, firm age, firm size
    JEL: O31 O32 D24
    Date: 2017–08–02
  3. By: Brunow, Stephan (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Hammer, Andrea; Mc Cann, Philip
    Abstract: "Knowledge Intensive Business Services (KIBS) are widely perceived as being important drivers of technological progress and innovation. KIBS are generally understood as depending, driving and thriving on knowledge exchanges and therefore, geographical proximity to markets, customers and suppliers would be expected to be a critical factor in their performance. This paper investigates how the innovation performance and processes of KIBS firms are related to their distance from the nearest city and also to the size of the nearest city. For this purpose we make use of detailed firm level data and consider Germany as a research field. While most current evidence on this topic emerges from Canada, we complements and add to this existing literature on the geography of KIBS by examining these issues in the German spatial setting which largely conforms to a textbook type of spatial urban hierarchy. Our probit results indeed find that there are very strong distance decay and city size effects, and these also vary according to the innovation type." (Author's abstract, IAB-Doku) ((en))
    Keywords: Innovation, unternehmensbezogene Dienstleistungen, Wissensarbeit, regionale Faktoren, Stadt-Umland-Beziehungen
    JEL: D22 L84 O31 R12
    Date: 2017–07–24
  4. By: Jorge Britto (UFF, Brazil); Leonardo Costa Ribeiro (Inmetro, Brazil); Lucas Araújo (UFF, Brazil); Eduardo da Motta e Albuquerque (CEDEPLAR/UFMG, Brazil)
    Abstract: In a knowledge economy, the creation, distribution and use of knowledge become decisive factors to reinforce firms' competitiveness. At the firm level, the process of innovation involves, fundamentally, the creation of new knowledge, which implies the integration and recombination of existing knowledge that may come from different sources and locations. The analytical difficulties to deal with this subject generate a literature that tries to quantify and analyze knowledge flows between economic agents using patent citations. Those citations may provide clues for intra and inter-firms knowledge flows. The paper analyses information about patents granted by IBM in the USPTO, which is used to map knowledge flows and to correlate these flows with the evolution of IBM competences and growth strategies.
    Keywords: Patent Citations; Knowledge flows; Firms Competences, IBM Competences; IBM Strategy
    JEL: O32 O34 O39
    Date: 2017–07
  5. By: Maxin, Hannes
    Abstract: This paper investigates a model where two corporate venture capital firms (CVCs) decide whether to finance a new venture stand-alone or together, called syndication. The CVCs obtain a cash flow if the venture succeeds. In addition, the venture has a positive or negative effect on an asset of the CVCs parental companies. This effect may differ among the parental companies. I show that the CVC faced with the weaker positive effect becomes the stand-alone investor only if the expected cash flow is low. Otherwise, in equilibrium, there are only syndicates or stand-alone investments of the CVC with the stronger positive effect. However, if one CVC faces a positive effect on its parental company's asset whereby the opponent faces a negative effect, then a syndicate is still possible. The model generates empirical predictions for syndicates consisting of several CVCs.
    Keywords: Corporate Venture Capital, Venture Capital, Nonmonetary Support, Nature of Innovation
    JEL: G24 M13
    Date: 2017–08
  6. By: Roman, Monica; Gotiu (Lucaciu), Liliana
    Abstract: One of the most widely used methods in assessing the efficiency of public policies and programs for a set of units is Data Envelopment Analysis (DEA). DEA is a non-parametric method which identifies an efficiency frontier on which only the efficient Decision Making Units (DMUs) are placed, by using linear programming techniques. By applying non-parametric techniques of frontier estimation, the efficiency of a DMU can be measured by comparing it with an identified efficiency frontier. In this paper we have used DEA for evaluating the efficiency of the European structural funds allocated to finance the educational infrastructure through the Regional Operational Program 2007-2013, implemented in Romania. The output variables measure the educational performance as well as the school drop-out rate, while the focal input variable is the value of European funds. Romanian counties are considered to be the decision making units (DMUs) and our results confirm the deep disparities existing between Romanian counties concerning the efficient use of European structural funds.
    Keywords: European structural funds, efficiency, Data envelopment analysis, infrastructure, regions
    JEL: C61 H83 R58
    Date: 2017–03–17
  7. By: Rafael Saulo Marques Ribeiro; John S. L. McCombie, Gilberto Tadeu Lima
    Abstract: This article seeks to reassess the empirical literature on real exchange rate misalignment and growth in light of the extensive discussion about the relationship between income distribution and growth in developing economies. We state that the relationship between changes in the real exchange rate and growth can be characterised by two conflicting partial effects, as follows: i) undervaluation stimulates technological change and knowledge spillovers, thus affecting positively output growth; ii) undervaluation raises income inequality and hence harms output growth. Though there are a vast number of empirical studies presenting robust evidence of a positive relationship between currency undervaluation and growth for developing economies, none has yet explicitly considered the potentially negative distributional effects of undervaluation on growth. Our empirical model adds to this literature by suggesting that, once both functional income distribution and the level of technological capabilities are explicitly taken into account, the direct impact of real exchange rate misalignment on growth becomes statistically non-significant for a sample of developing countries. Further, based on our results, we state that the real exchange rate only affects growth indirectly through its impacts on functional income distribution and technological innovation. Our estimates have shown that the indirect impact of undervaluation on growth in developing countries is negatively signed.
    Keywords: Exchange rate; growth; income distribution; technological capabilities
    JEL: F43 F31 D63 O33
    Date: 2017–08–01
  8. By: Claudio Bravo-Ortega; Leonardo Muñoz
    Abstract: Governments in every country are concerned about the local economic development within each country’s region. In this vein, the case of mining industry draws attention in its trend of establishing enclave economies rather than cluster dynamics at the local level. In the case of the mining industry one might estate that there is no room for local economic development based on a strong industrial fabric if no directed policies are set and implemented. This paper’s objective is to understand how the backward and forward linkages approach is a key argument to inform regional industrial and vertical initiatives that aim to upgrade mining suppliers’ technological capacities. Based on the strategic design revision of the public-private programs for mining suppliers’ development and five case studies, we explore whether those implemented initiatives are being locally translated into mining regions. We find that the regional approach is nearly nonexistent in public policies implemented in the last 12 years. From our perspective, this lack of the regional approach makes it difficult to visualize direct effects from public-private policies on local firms’ performance. All these issues contribute inputs for scoping the design and deployment of policy tools for local economic development.
    Date: 2017–07
  9. By: Matei, Ani; Tirziu, Andreea-Maria
    Abstract: The innovative pedagogy is enhanced by learning and teaching or training programmes focused on social innovation and social entrepreneurship. In this context, the academic capacity building represents a fundamental element. This paper aims to present a framework of developmental traditions that have a great influence on collective learning in order to be used as a way to boost social innovation. It shows the literature that focuses on collaborative learning and how it can be used as an instrument to boost social innovation. The methodology used to carry out the research is both bibliographic – opting here to study the work of specialists in the field, authors from Romania and abroad, and empirical – thus the theoretical approach is supported through relevant case studies from the European context and conclusions. The present and future generations will make a difference in the society they live in, with the help of the academic learning and teaching courses, when more institutions oriented on education take into consideration this type of development process. The results of this paper will show that social media tools have an important role in this context, therefore educational institutions should build spaces adapted for community learning, by using platforms and fields to which students, local communities, different stakeholders, public and private organizations have access and through which they can have the possibility to organize meetings of common interest regarding the education issue. We have identified that although technology is a main element in all life’s activities, there should also be taken into consideration the capability and willingness of individuals and institutions to cooperate and innovate, not only by electronic means, but also through traditional ways of participating in the development process of a society.
    Keywords: Collaborative learning, social innovation, social entrepreneurship, education, digital era
    Date: 2017–07–03
  10. By: Nadine Levratto; Clarisse Nguedam Ntouko; Maarouf Ramadan
    Abstract: On the basis of a broad definition of firms’ internationalization, this paper provides an empirical analysis of this question using a two-stage model, which first estimates the determinants of international commitment and the factors explaining the different types of internationalization strategies. The empirical analysis relies on firms’ individual data covering three countries (Jordan, Lebanon and Turkey) in 2013. We show that the probability of being internationalized and internationalization types depend on a combination of factors such as firms’ characteristics, access to finance and institutional framework. The determinants of internationalization as well as the number and types of internationalizations are heterogeneous depending firms' size and sectors in which they operate.
    Keywords: Firms' internationalization, Institutions, Business climate, Middle East and North Africa (MENA)
    JEL: D22 D23 O19
    Date: 2017

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