nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒09‒03
fourteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Measuring the Spillovers of Venture Capital By Schnitzer, Monika; Watzinger, Martin
  2. The Fluidity of Inventor Networks By Michael Fritsch; Moritz Zoellner
  3. Long working days and falling asleep at work – issues in R&D work efficiency By Erve Sõõru; Aaro Hazak; Marit Rebane
  4. R&D policy regimes in France: New evidence from a spatio-temporal analysis By Benjamin Montmartin; Marcos Herrera; Nadine Massard
  5. The Spillover Effects of Affirmative Action on Competitiveness and Unethical Behavior By Ritwik Banerjee; Nabanita Datta Gupta; Marie Villeval
  6. Sharing Sequential Values in a Network By Juarez, Ruben; Ko, Chiu Yu; Xue, Jingyi
  7. Are R&D companies credit-constrained? Credit frictions during and post-crisis By Kadri Männasoo; Heili Hein
  8. Introductory analysis of sustainable consumption and production: Factors of corporate social responsibility management in Japan By Michiyuki Yagi; Katsuhiko Kokubu
  9. Firms' Costs, Profits, Entries, and Innovation under Optimal Privatization Policy By Haraguchi, Junichi; Matsumura, Toshihiro
  10. The Structure and Performance of U.S. Research Joint Ventures: Inferences and Implications from the Advanced Technology Program By James D. Adams; Albert N. Link
  11. Capital investments and financing structure: Are R&D companies different? By Kadri Männasoo; Heili Hein
  12. International Students, Immigration and Earnings Growth: The Effect of a Pre-immigration Canadian University Education By Hou, Feng; Lu, Yuqian
  13. Spillovers to Asia-Pacific economies from recent economic developments in China By Shuvojit Banerjee from the Macroeconomic Policy and Financing for Development Division.
  14. The Role of Entrepreneurial Human Capital as a Driver of Endogenous Economic Growth By Isaac Ehrlich; Dunli Li; Zhiqiang Liu

  1. By: Schnitzer, Monika; Watzinger, Martin
    Abstract: We provide the first measurement of knowledge spillovers from venture capital-financed companies onto the patenting activities of other companies. On average, these spillovers are nine times larger than those generated by the R&D investment of established companies. Spillover effects are larger in complex product industries than in discrete product industries. Start-ups with experienced inventors holding a patent at the time of receiving the first round of investment produce the largest spillovers, indicating that venture capital fosters the commercialization of technologies. Methodologically, we contribute by developing a novel definition of the spillover pool, combining citation-based and technological proximity-based approaches.
    Keywords: innovation; Spillovers; venture capital
    JEL: G24 O3 O31 O32
    Date: 2017–08
  2. By: Michael Fritsch (FSU Jena); Moritz Zoellner (Friedrich Schiller University Jena, School of Economics and Business Administration)
    Abstract: We investigate the stability of cooperative relationships between inventors and consequences for the characteristics and patent productivity of the respective regional innovation systems (RIS). The empirical analysis is for nine German regions over a period of 15 years. We find a rather high level of 'fluidity', i.e., entry and exit of actors, as well as instability of their relationships over time. The aggregate characteristics of the regional networks are, however, quite robust even with high levels of micro-level fluidity. There are both significantly positive and negative relationships between micro-level fluidity and the performance of the respective RIS.
    Keywords: Innovation networks, R&D cooperation, division of innovative labor, patents
    JEL: O3 R1 D2 D8
    Date: 2017–08–29
  3. By: Erve Sõõru; Aaro Hazak; Marit Rebane
    Abstract: Excessive daytime sleepiness is a major problem in the modern 24/7 society. In our study among Estonian creative R&D employees, we sought to investigate the links between work arrangements, duration of the working day and daytime sleepiness. The average duration of the working day among our sample of 153 creative R&D employees is as long as 10 hours – considerably more than the statutory eight hours. As might be expected, the more working hours and the less sleeping hours, the more serious the daytime sleepiness problem is. Moreover, we find that employees that have the flexibility to choose when they work (and where they work) experience less daytime sleepiness, and also feel that their sleep is significantly less disturbed compared to peers with more rigid work arrangements. Flexitime and distance work may therefore help considerably in reducing work-related daytime sleepiness.
    Date: 2017–08–31
  4. By: Benjamin Montmartin (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique); Marcos Herrera (Universidad Nacional de Salta, CONICET - Consejo Nacional de Investigaciones Científicas y Técnicas); Nadine Massard (UGA - Université Grenoble Alpes, GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes)
    Abstract: Using a unique database containing information on the amount of R&D tax credits and regional, national and European subsidies received by firms in French NUTS3 regions over the period 2001-2011, we provide new evidence on the efficiency of R&D policies taking into account spatial dependency across regions. By estimating a spatial Durbin model with regimes and fixed effects, we show that in a context of yardstick competition between regions, national subsidies are the only instrument that displays total leverage effect. For other instruments internal and external effects balance each other resulting in insignificant total effects. Structural breaks corresponding to tax credit reforms are also revealed.
    Keywords: structural breaks,R&D investment,spatial panel,Additionality,French policy mix
    Date: 2017–07
  5. By: Ritwik Banerjee (IIMB - Indian Institute of Management [Bangalore]); Nabanita Datta Gupta (Aarhus University [Aarhus]); Marie Villeval (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - UJM - Université Jean Monnet [Saint-Etienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)
    Abstract: We conduct an artefactual field experiment to examine various spillover effects of Affirmative Action policies in the context of castes in India. We test a) if individuals who enter tournaments in the presence of Affirmative Action policies remain competitive after the policy has been removed, and b) whether having been exposed to the policy generates unethical behavior and spite against subjects from the category who has benefited from the policy. We find that these policies substantially increase the confidence and the competitiveness of the backward caste members. However, we find no spillover effect on confidence and competitiveness once Affirmative Action is withdrawn: any gain in competitiveness due to the policy is then entirely wiped out. Furthermore, the strong existing bias of the dominant category against the backward category is not significantly aggravated by Affirmative Action, except when individuals learn that they have lost the previous competition.
    Keywords: Affirmative Action,castes,competitiveness,unethical behavior,field experiment
    Date: 2017–07–24
  6. By: Juarez, Ruben (Department of Economics, University of Hawaii); Ko, Chiu Yu (Department of Economics, National University of Singapore); Xue, Jingyi (School of Economics, Singapore Management University)
    Abstract: Consider a sequential process where agents have individual values at every possible step. A planner is in charge of selecting steps and distributing the accumulated aggregate values among agents. We model this process by a directed network where each edge is associated with a vector of individual values. This model applies to several new and existing problems, e.g., developing a connected public facility and distributing total values received by surrounding districts; selecting a long-term production plan and sharing final profits among partners of a firm; choosing a machine schedule to serve different tasks and distributing total outputs among task owners. Herein, we provide the first axiomatic study on path selection and value sharing in networks. We consider four sets of axioms from different perspectives, including those related to (1) the sequential consistency of assignments with respect to network decompositions; (2) the monotonicity of assignments with respect to network expansion; (3) the independence of assignments with respect to certain network transformations; and (4) implementation in the case where the planner has no information about the underlying network and individual values. Surprisingly, these four disparate sets of axioms characterize similar classes of solutions — selecting efficient path(s) and assigning to each agent a share of total values which is independent of their individual values. Furthermore, we characterize more general solutions that depend on individual values.
    Keywords: Sequential Values; Sharing; Network; Redistribution
    JEL: C72 D44 D71 D82
    Date: 2016–12–11
  7. By: Kadri Männasoo; Heili Hein
    Abstract: Private research and development (R&D) and innovation activity is believed to fall below the socially optimal level. The credit constraints that R&D companies face due to asymmetric information and credit market imperfections may hinder innovation. This descriptive analysis aims to provide a comparative insight into the credit demand and supply patterns of R&D and non-R&D companies in Central and Eastern European countries during and after the Global Financial Crisis. The study uses company-level data from rounds IV and V of the Business Environment and Enterprise Performance Survey, covering the years 2007-2009 and 2012-2014. It reveals that the dependence of R&D companies on bank credit dropped significantly over the two survey rounds, mirroring substantial self-selection into R&D, with a smaller number of able and well-capitalised companies continuing R&D activity after the crisis. We do not subsequently find convincing evidence that R&D firms that remained in business after the crisis are notably credit-constrained.
    Date: 2017–08–31
  8. By: Michiyuki Yagi (Graduate School of Business Administration, Kobe University); Katsuhiko Kokubu (Graduate School of Humanities and Social Sciences, Okayama University)
    Abstract: As an introductory analysis of sustainable consumption and production, this paper examines what factors influence corporate social responsibility management in Japan. Following some underlying theories (management control system; the neo-institutional theory; performance measurement systems; the stakeholder theory; the resource dependence theory), this paper conducts empirical studies using firm-level data. The first three studies examine what factors encourage corporate social responsibility management, using questionnaire survey dataset for Japanese companies. These studies examine the corporate social responsibility factors from the viewpoints of Simons’ four levers of control, isomorphism in neo-institutional theory, and the role of organizational culture in management control system. The last two studies use archival data, examining how corporate social responsibility performance and related disclosure score are affected by ownership structure and corporate social responsibility directors.
    Keywords: Corporate social responsibility; Japan; levers of control in management control systems; the neo-institutional theory; performance measurement systems; the stakeholder theory; the resource dependence theory
    Date: 2017–08
  9. By: Haraguchi, Junichi; Matsumura, Toshihiro
    Abstract: We investigate how cost conditions of private firms affect optimal privatization policy and private firms' profits. We find that the optimal degree of privatization is decreasing with the costs of private firms unless the public firm is fully privatized in equilibrium. A cost reduction in a private firm increases the degree of privatization and benefits for all private firms. Therefore, each private firm's profit is increasing with its rival private firms' costs, which is in contrast to the result when the degree of privatization is given exogenously. This interesting property yields two important results. The profit of each private firm can increase with the number of private firms, and the positive externality of innovation accelerates private firms' R&D.
    Keywords: partial privatization, cost-reducing R&D, asymmetric private firms, constant marginal costs
    JEL: D43 H44 L33
    Date: 2017–08–22
  10. By: James D. Adams; Albert N. Link
    Abstract: Research Joint Ventures (RJVs) are projects that combine the research resources of different firms. A sample of RJVs supported by the U.S. Advanced Technology Program shows that the projects yield revenues that are far less than costs. Related to this point, the RJVs are subject to commercialization delays, loss of intellectual property, and product market competition. Partner firms undertake joint research, but if they commercialize at all, they do so separately, to avoid splitting of revenues from new products. Ultimately, difficulties with the RJVs occur because frequently, firms are potential competitors.
    JEL: D23 K21 L24 O31 O34 O38
    Date: 2017–08
  11. By: Kadri Männasoo; Heili Hein
    Abstract: Research and development (R&D) activities place elevated demands on high-technology equipment and infrastructure, and this requires sizable investments. However, returns on R&D investments are time-lagged, highly uncertain and subject to appropriability problems, causing private R&D investment to fall below the socially desirable level. Market imperfections such as financing constraints are also reasons why R&D may be insufficient. This short, descriptive analysis compares the funding structure of the capital investments of R&D and non-R&D companies over rounds IV (2007-2009) and V (2012-2014) of the Business Environment and Enterprise Performance Survey. We find that R&D companies invest more relative to sales, and that they are more reliant on credit from banks and other financial intermediaries. Although the share of internal funding increased for all companies after the crisis, the strong selection of companies into R&D and innovation activities has made R&D companies less vulnerable to credit contraction with fewer marked changes in their financing structure than has been seen by non-R&D companies.
    Date: 2017–08–31
  12. By: Hou, Feng; Lu, Yuqian
    Abstract: This study uses large national longitudinal datasets to examine cross-cohort trends and within-cohort changes in earnings among three groups of young university graduates: immigrants who are former international students in Canada (Canadian-educated immigrants), foreign-educated immigrants who had a university degree before immigrating to Canada and the Canadian-born population.
    Keywords: Education, training and learning, Education, training and skills, Ethnic diversity and immigration, Outcomes of education
    Date: 2017–08–22
  13. By: Shuvojit Banerjee from the Macroeconomic Policy and Financing for Development Division. (United Nations Economic and Social Commission for Asia and the Pacific)
    Abstract: Two significant events in China in the past year have had large spillovers for the region’s economies — the gradual economic growth moderation and movements in its currency. Economic growth in China is forecast to be around 6.5% for 2016 and 6.3% for 2017, continuing the growth moderation from an estimated increase to 6.9% in 2015. Moderating growth in China is being driven partly by a much-needed rebalancing to sustain growth in the medium term, away from investment and net exports and towards consumption, as well as away from manufacturing and towards services. The impact of the growth moderation in China on the region has come largely through weaker trade prospects and declining commodity prices. Key among sectors of domestic investment in China that are expected to assume a lesser role in coming years are real estate investment and infrastructure spending in the more developed parts of the country.
  14. By: Isaac Ehrlich; Dunli Li; Zhiqiang Liu
    Abstract: We model investment in entrepreneurial human capital (EHC) - the representative enterprise’s share of production capacity allocated to investment in innovative industrial and commercial knowledge – as a distinct channel through which firm-specific human capital drives endogenous growth. Our model suggests that institutional factors supporting free markets for goods and ideas, and higher educational attainments of entrepreneurs and workers, enhance endogenous economic growth by augmenting the efficiency of investment in EHC rather than exclusively by themselves. We test these implications using data from Global Entrepreneurship Monitor’s Adult Population Survey of 63 countries over 2002-2010 and find robust support for these hypotheses.
    JEL: L26 O31 O43
    Date: 2017–08

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