nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒11‒19
seven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. IMPROVING THE EFFECTIVENESS OF OPEN INNOVATION: A CONFIGURATIONAL APPROACH By Gloria Cuevas-Rodríguez; Antonio Carmona-Lavado; Carmen Cabello-Medina
  2. The Product-Related Environmental Regulation, Innovation, and Competitiveness: Empirical Evidence from Malaysian and Vietnamese Firms By Qizhong YANG; Tsunehiro OTSUKI
  3. Location of R&D activities by vertical multinationals over asymmetric countries By José Pedro Pontes; Carlos Eduardo Lobo e Silva
  4. The Diffusion of Knowledge via Managers' Mobility By Giordano Mion; Luca David Opromolla; Alessandro Sforza
  5. Resource Efficiency, Environmental Policy and Eco-Innovations for a Circular Economy: Evidence from EU Firms By Giulio Cainelli; Alessio D’Amato; Massimiliano Mazzanti
  6. A New ‘Cut’ on Technological Innovation Aiming for Sustainability in a Globalized World By Adela Conchado; Pedro Linares
  7. International Technology Transfer measures in an interconnected world: Lessons and policy implications By Przemyslaw Kowalski; Daniel Rabaioli; Sebastian Vallejo

  1. By: Gloria Cuevas-Rodríguez (Department of Business Organization and Marketing, Universidad Pablo de Olavide); Antonio Carmona-Lavado (Department of Business Organization and Marketing, Universidad Pablo de Olavide); Carmen Cabello-Medina (Department of Business Organization and Marketing, Universidad Pablo de Olavide)
    Abstract: In this research, we propose that biotech firms use Open Innovation (OI) configurations by combining three openness practices (number of alliances, breadth and external R&D) and five complementary organizational assets for openness (internal R&D, human capital, alliances coordination and interorganizational learning capabilities, and patenting) and that such configurations have influence on firm performance. From our empirical study on a sample of Spanish biotech firms, three predominant configurations are identified, which are located at different points in the openness continuum, and encompass different combinations of openness practices and organizational complementary assets. The most open configuration presents a significant superior performance while the least open is associated with the lowest performance.
    Keywords: Open Innovation, Configurations, Internal R&D, Human Capital, Coordination and Interorganizational Learning capabilities, and Patenting.
    Date: 2017–05
  2. By: Qizhong YANG (The Graduate School of Economics, Osaka University); Tsunehiro OTSUKI (Osaka School of International Public Policy, Osaka University)
    Abstract: This study examined the impact of two PRERs released by the EU—RoHS and REACH—on Malaysian and Vietnamese firms’ compliance. The analysis considers productivity as a realization of innovations and examines the R&D enhancement effect of PRERs. The effect of PRERs on productivity is also broken down into direct and indirect effects through R&D enhancement. The result shows that the response to REACH can create incentives to advance R&D, and productivity can increase through both direct and indirect channels. No relationship between the response to RoHS and R&D expenditure is found. Further analysis shows that firms comply with RoHS and REACH in different ways, but just the ability to continue exporting to the EU motivates compliance.
    Keywords: RoHS, REACH, Innovation, Productivity, Porter Hypothesis
    JEL: F18 O31 Q55 Q56
    Date: 2017–11
  3. By: José Pedro Pontes; Carlos Eduardo Lobo e Silva
    Abstract: This paper deals with the location of R&D by vertical multinational firms. By taking the colocation of laboratories and productive plants as a benchmark, we can see that the spatial separation of both emerges under two conditions – high intensity of R&D spillovers and strong size asymmetry between countries. The latter condition is effective since it is related with a rising international inequality of wages. If the spatial separation of R&D and manufacturing takes place, headquarters services (namely R&D units) will be likely located in the smaller country. The converse pattern, where laboratories are place in the larger country, may arise if production is high-tech and the localized externalities of research activity are strong. Hence, this article confirms the main results of the literature on this topic but in the context of a different framework which allows us to tackle two usually disregarded topics: the transfer cost of technology; and the direct engagement of industrial workers in R&D spillovers. These aspects are dealt with by presupposing that, in addition to a “technological” externality among researchers, there is an “educational” externality exerted by researchers upon neighbouring industrial workers. When a country loses its laboratories, the inhabitants become intellectually “impoverished” and their labour starts to have a lesser efficiency.
    Keywords: Location of R&D; Vertical Multinationals; Spillovers; Nash Equilibria in a Large Group of Agents.
    JEL: F23 O32 R12
    Date: 2017–11
  4. By: Giordano Mion; Luca David Opromolla; Alessandro Sforza
    Abstract: Better managers and managerial practices lead to better firm performance. Yet, little is known about what happens when managers move across firms. Does a firm hiring a good manager improve its performance? If yes is there some valuable knowledge the manager has acquired and successfully diffused to the new firm? In order to answer these questions we use information related to specific activities the manager was involved in when working for previous firms. More specifically, we use information on whether the manager has worked in the past for firms exporting to a specific destination country or a specific product. Our data is rich enough to allow controlling for both manager and firm unobservables and wash out any time-invariant ability of the manager as well as overall firm performance. We find that the export experience gained by managers in previous firms leads their current firm towards higher export performance, and commands a sizable wage premium for the manager. We use several strategies to deal with endogeneity including an exogenous event study: the sudden end of the Angolan civil war in 2002. We further refine our analysis by looking at different types of managers (general, production, financial and sales) and show how specific export experience interacts with the degree of product differentiation and/or the financial vulnerability of a firm’s products as well as with rising import competition from China.
    Keywords: managers, knowledge diffusion, firm performance, job mobility, export experience
    JEL: M20 L20 F16 J31
    Date: 2016
  5. By: Giulio Cainelli (University of Padova & SEEDS); Alessio D’Amato (University of Tor Vergata Rome & SEEDS); Massimiliano Mazzanti (University of Ferrara, IEFE Bocconi Milan & SEEDS)
    Abstract: Innovation adoption and diffusion by firms are key pillars for the EU strategy on resource-efficiency and the development of a circular economy. This paper presents new EU evidence regarding the role of environmental policy and green demand drivers to sustain the adoption of resource efficiency-oriented eco-innovations. This paper originally implements new estimators to address the endogeneity of binary framed policy and demand covariates, which typically characterise firm level survey data. Our results suggest that when endogeneity is accounted for, environmental policy is the only factor always significant in driving the adoption of innovations that reduce the use of waste and material, while demand-side and market-factors do not always play a central role. The result is an important piece of new quantitative-based knowledge, which complements the currently large case study-based evidence on the setting of sound management and policy strategies for the circular economy.
    Keywords: Eco innovation; circular economy; innovation drivers; EU; environmental regulation; market demand
    Date: 2017–11
  6. By: Adela Conchado (Universidad Pontificia Comillas, C/Alberto Aguilera 23, 28015 Madrid, Spain); Pedro Linares (Universidad Pontificia Comillas – Instituto de Investigación Tecnológica, Economics for Energy)
    Abstract: Innovation policy needs to respond to the complexity posed by sustainability goals and the globalization of innovation processes. Yet, current representations of technological innovation systems are not well suited to facilitate this view: they are built taking the diffusion of a technology as the main objective, rather than reflecting more broadly on its contributions to sustainability; and they have often focused on the interactions within a geography and not on interconnections among geographies. In this paper we propose a new ‘cut’ to technological innovation that puts the consideration of sustainability outcomes and international dynamics at its core: the Outcome-oriented Innovation Framework (OoIF). OoIF builds on key concepts from various strands of the innovation literature: innovation systems, innovation economics and sustainability transitions. We present the framework in detail, and provide a diagrammatic representation for it. We also reflect on its limitations, contributions and applications -particularly on how it allows to analyze the distribution of outcomes across differentiated activities and geographies.
    Keywords: technological innovation systems, innovation policy, sustainability, international dynamics, globalization
    Date: 2017–11
  7. By: Przemyslaw Kowalski (OECD); Daniel Rabaioli (OECD); Sebastian Vallejo (OECD)
    Abstract: The aim of this paper is to inform the ongoing debate on the policies being used to encourage international technology transfer (ITT) and, of these, which have the potential to distort trade or investment and which may effectively promote ITT. The paper develops a first-cut approach to cataloguing ITT-related measures across countries. Following the literature, technology transfer-related policies are grouped into six categories: 1) absorptive capacity policies; 2) measures related to intellectual property rights (IPR); 3) FDI promotion measures; 4) FDI restrictions and FDI screening; 5) performance requirements; and 6) investment incentives. A list of regulatory questions about measures in place is devised for the four categories 3 through 6 on which information is currently particularly scarce. Summary results are presented for twenty four developing and developed countries which are important actors in global FDI, technology and product markets. The findings of the literature addressing both the impact of these measures on technology transfer and on market competition are summarised for each of the four policy categories. The paper also explores the extent to which various ITT measures are covered by existing international agreements, with a view to helping inform future approaches. The concluding section elaborates on policy implications.
    Keywords: competition, FDI, innovation, intellectual property, international technology transfer, international trade
    JEL: F1 F13 F15 F23 O3
    Date: 2017–11–20

This nep-cse issue is ©2017 by João José de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.