nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒11‒12
four papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Measuring the Spillovers of Venture Capital By Monika Schnitzer; Martin Watzinger
  2. Performance Heterogeneity Among Service-Sector Entrepreneurial Spinoffs By Richard A. Hunt; Daniel A. Lerner
  4. Network Structure of French Multinational Firms By Charlie Joyez

  1. By: Monika Schnitzer; Martin Watzinger
    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: venture capital, spillovers, innovation
    JEL: G24 O30 O31 O32
    Date: 2017
  2. By: Richard A. Hunt (Division of Economics and Business, Colorado School of Mines); Daniel A. Lerner (Deusto Business School, Universidad Deusto)
    Abstract: In recent years, beliefs about entrepreneurial spinoffs have coalesced around several ``stylized facts,'' including the perspective that knowledge is transferred from parent-firms to progeny in hereditary fashion, such that spinoffs emanating from high-quality parent-firms outperform the spinoffs from low-quality parent-firms. This emerging orthodoxy has found some support in fast- changing and technologically complex sectors, but it is less clear whether parental endowments are a key determinant of operational success in the context of service-oriented sectors, which comprise more 80\% of many developed economies. Through the discovery and analysis of a complete industry population, the results of this study suggest that extant perspectives may not fully account for the extreme heterogeneity of performance that is often exhibited by entrepreneurial spinoffs, especially differences among firms spawned by the same parent. These findings contribute to the ongoing discussion of intra-industry entrepreneurial spinoffs by establishing much-needed boundary conditions and by revealing underlying logics that govern the hereditary transfer of knowledge and capabilities among service sector spinoffs.
    Keywords: Entrepreneurial spinoffs, Spinouts, Knowledge transfer, Spillovers, Hereditary endowments, Entrepreneurship, Market entry, New ventures
    Date: 2017–10
  3. By: Francesco Aiello; Lidia Mannarino; Valeria Pupo (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria)
    Abstract: This paper estimates the impact of R&D investments on the productivity of European family firms. For the period 2007-2009, we consider a Cobb-Douglas production function augmented by R&D intensity. Specifically, we address the questions of whether the R&D returns of family firms differ from that of non-family firms. Final outcomes suggest that, on average, non-family firms conducting R&D record a productivity gain of about 5-8 % compared to non-innovative firms. Additionally, the innovative family firms are about 6% lower compared to innovative non-family firms. Finally, the rate of return to R&D of family firms is lower than non-family firms.
    Keywords: Productivity, R&D returns, Family firms
    JEL: O30 L60 G34
    Date: 2017–11
  4. By: Charlie Joyez (Université Paris-Dauphine, PSL Research University,IRD, LEDa, DIAL)
    Abstract: This paper develops a network approach of French multinationals' host countries network. It reveal and describe the expansion pattern of multinational firms through their affiliates, identifying core destinations, centralization degree of the network, and favorite countries linkages. The main results are in line with previous findings on foreign investment decision, location choices and gradual pattern. Further findings appear when looking at the network structure over time, showing an increasing geographical dispersion of affiliates. In addition, building directed networks allows us to observe upstream and downstream stages of internationalization. I later examine separately top productive firms network from least productive ones, and show the sensitivity of network structure to firm heterogeneity.
    Keywords: Network analysis; Weighted directed networks; Foreign direct investment; Multinational Firms; Firm heterogeneity;
    JEL: F23 L14 C45
    Date: 2017–10

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