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on Economics of Strategic Management |
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Issue of 2017‒12‒11
twelve papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | D'AMORE, Rosamaria (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy); IORIO, Roberto (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy); LUBRANO LAVADERA, Giuseppe (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy) |
| Abstract: | In this paper, we explore the relationship between the human capital “embodied” in the workforce and the innovative capabilities of the firm, adopting an international comparative perspective. In fact data come from a survey (EFIGE) run in seven European countries during the 2007-2009 period. They are analysed with several models of multivariate analysis also with the support of a semi-parametric model. Our results show a positive relationship between the ratio of graduated employees and the percentage of turnover from innovative products, being the share of personnel employed in R&D constant. This relationship is not linear: we find decreasing marginal returns for human capital and R&D. We then find a complementarity between human capital and R&D: the strength of the link between human capital and innovation is higher when the firm’s R&D increases. We also find some significant differences in the intensity of the human capital/innovation link across different countries. |
| Keywords: | Human capital; R&D; Innovation; |
| JEL: | D22 J24 O32 |
| Date: | 2017–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0144&r=cse |
| By: | Davide Castellani (Henley Business School, University of Reading) |
| Abstract: | This paper provides descriptive evidence of the changing geography of inventive activity and the role of MNEs international R&D activities, with quite an extensive geographical coverage. Results highlight that ‘local buzz’ is crucial for the development of knowledge in local economies, and it leads to persistence in innovative activities. However, ‘global pipelines’ are also becoming a crucial element for the successful development of local knowledge. In particular, we first find that the number of regions involved in patenting has increased threefold since the 1980s. Second, despite this increase in the number of regions patenting, 70% of inventions come from the top 100 regions. Third, although the hierarchy of the top patenting regions is not immobile, the propensity to patent is quite dependent on previous innovation. Fourth, international collaboration in patenting has been steadily on the rise over the last three decades. Fifth, international R&D investments of MNEs are indeed also very concentrated in a few locations, which can also be quite distant from the MNEs headquarters’ location. |
| Keywords: | geography of innovation, MNEs, regions, local buzz, global pipelines |
| JEL: | F23 R11 O33 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:jhdxdp:jhd-dp2017-02&r=cse |
| By: | Fabio Pieri; Michela Vecchi; Francesco Venturini |
| Abstract: | This study explores the channels through which technological investments affect productivity performance of industrialized economies. Using a Stochastic Frontier Model (SFM) we estimate the productivity effects of R&D and ICT for a large sample of OECD industries between 1973 and 2007, identifying four channels of transmission: input accumulation, technological change, technical efficiency and spillovers. Our results show that ICT has been particularly effective in reducing production inefficiency and in generating inter-industry spillovers, while R&D has raised the rate of technical change and favoured knowledge spillovers within sectors. We also quantify the contribution of technological investments to output and TFP growth documenting that R&D and ICT accounted for almost 95% of TFP growth in the OECD area. |
| Keywords: | Research & Development, Information and Communication Technology, Productivity, Stochastic frontier models |
| JEL: | O14 O32 O47 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwprg:2017/13&r=cse |
| By: | Vadym Volosovych (Erasmus University Rotterdam); Carolina Villegas Sanchez (ESADE Business School); Bent Sorensen (University of Houston); Sebnem Kalemli-Ozcan (University of Maryland) |
| Abstract: | We identify knowledge spillovers from foreign investment to domestic firms using novel measures of ``closeness'' of foreign-owned and domestic and domestic firms in product space and in technology space. We rely on a new data set that spans six advanced countries connecting firms internationally in order to, a) separate competition effects on domestic firms from knowledge spillovers when domestic and foreign-owned firms are close in product space, and b) identify spillovers from foreign-owned firms that are close to domestic firms in technology space. We find strong negative competition effects on domestic firms that produce in the same {four-digit} sector as the foreign firms and positive knowledge spillovers to domestic firms operating in the same {two-digit} sector (but in different four-digit sectors). Using a measure of ``technological closeness,'' building on the work of Bloom, Schankerman, and van Reenen (2013), we find significant knowledge spillovers to firms which are close in technology space. On average, knowledge spillovers explain 60 percent of the total factor productivity improvement for domestic firms that are technologically close to foreign firms. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed017:1194&r=cse |
| By: | Niebel, Thomas; Rasel, Fabienne; Viete, Steffen |
| Abstract: | This paper analyzes the relationship between firms' use of big data analytics and their innovative performance in terms of product innovations. Since big data technologies provide new data information practices, they create novel decision-making possibilities, which are widely believed to support firms' innovation process. Applying German firm-level data within a knowledge production function framework we find suggestive evidence that big data analytics is a relevant determinant for the likelihood of a firm becoming a product innovator as well as for the market success of product innovations. These results hold for the manufacturing as well as for the service sector but are contingent on firms' investment in IT-specific skills. Subsequent analyses suggest that firms in the manufacturing and service sector rely on different data sources and data-related firm practices in order to reap the benefits of big data. Overall, the results support the view that big data analytics have the potential to enable innovation. |
| Keywords: | big data,data-driven decision-making,product innovation,firm-level data |
| JEL: | D22 L20 O33 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:17053&r=cse |
| By: | Davide Castellani (Henley Business School, University of Reading); Katiuscia Lavoratori |
| Abstract: | This paper investigates the determinants of the location of MNEs’ overseas R&D activities, by focusing on two major drivers. On the one hand, external location factors lead the firm to separate its activities along the value chain and geographically disperse these activities in different locations. On the other hand, the R&D location choice may be driven by the existence of internal (within-firm) linkages that motivate firms to locate their value chain activities in the same location (co-location within-firm). Using data from the fDi Markets database, the study examines 2,580 location decisions of new R&D greenfield investments made by MNEs in 110 global cities worldwide, over the period 2003-2014. Results from Conditional and Mixed Logit econometric models reveal that both external and internal factors matter. Findings confirm the strong role of external agglomeration economies, but also suggest that previous R&D and production activities of the same MNE increase the probability to locate R&D in a given global city. |
| Keywords: | location of international R&D, empirical methodology |
| JEL: | F23 O30 R30 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:jhdxdp:jhd-dp2017-03&r=cse |
| By: | Maximilian Goethner (Friedrich Schiller University Jena, School of Economics and Business Administration); Michael Wyrwich (Friedrich Schiller University Jena, School of Economics and Business Administration) |
| Abstract: | Over the past decades, entrepreneurial activity has started to be considered a third mission of higher education institutions. Our study examines the extent to which entrepreneurship at universities is driven by spatial proximity between university faculties. To this end, we use a new dataset that links information on business idea generation by faculties of German universities between 2007 and 2014 with comprehensive data on structural characteristics of these universities and faculties (e.g., number of academic staff, students, industry funding). Our analysis shows that the emergence of entrepreneurial ideas in natural sciences is positively affected by proximity to business schools. This pattern suggests the presence of knowledge flows between university faculties as an important source of science-based and technology-oriented business ideas. |
| Keywords: | Academic entrepreneurship, Knowledge Spillover, Spatial Proximity, Entrepreneurial Human Capital |
| JEL: | D24 L26 M13 O31 O32 |
| Date: | 2017–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2017-017&r=cse |
| By: | S. Cerreia-Vioglio; F. Maccheroni; M. Marinacci; A. Rustichini |
| Abstract: | We provide both an axiomatic and a neuropsychological characterization of the dependence of choice probabilities on time in the softmax (or Multinomial Logit Process) form where pt (a;A) is the probability that alternative a is selected from the set A of feasible alternatives if t is the time available to decide, u is a utility function on the set of all alternatives, and is an accuracy parameter on a set of time points. MLP is the most widely used model of preference discovery in all elds of decision making, from Quantal Response Equilibria to Discrete Choice Analysis, from Psychophysics and Neuroscience to Combinatorial Optimization. Our axiomatic characterization of soft-max permits to empirically test its descriptive validity and to better understand its conceptual underpinnings as a theory of agents rationality. Our neuropsychological foundation provides a computational model that may explain softmax emergence in human multi-alternative choice behavior and that naturally extends the dominant binary choice Drift Diffusion Model paradigm. Keywords: Discrete Choice Analysis, Drift Diffusion Model, Luce Model, Metropolis Algorithm, Multinomial Logit Model, Quantal Response Equilibrium |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:615&r=cse |
| By: | Thomas Grebel (Technische Universität Ilmenau, Germany); Lionel Nesta (Université Côte d'Azur; GREDEG CNRS; OFCE Sciences Po.; SKEMA Business School) |
| Abstract: | We investigate the determinants of the sign of R&D reaction functions of two rival firms. Using a two-stage Cournot competition game, we show that this sign depends on four types of environments in terms of product rivalry and technology spillovers. We test the predictions of the model on the world's largest manufacturing corporations. Assuming that firms make R&D investments based on the R&D effort of the representative rival company, we develop a dynamic panel data model that accounts for the endogeneity of the decision of the rival firm. Empirical results corroborate the validity of the theoretical model. |
| Keywords: | Process R&D, Spillovers, Product substitution, Reaction function, GMM |
| JEL: | D43 L13 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2017-34&r=cse |
| By: | Laura Alfaro (Harvard Business School, Business, Government and the International Economy Unit); Alejandro Cuñat (University of Vienna); Harald Fadinger (University of Mannheim); Yanping Liu (University of Mannheim) |
| Abstract: | We evaluate manufacturing firms' responses to changes in the real exchange rate (RER) using detailed firm-level data for a large set of countries for the period 2001-2010. We uncover the following stylized facts: In emerging Asia, real depreciations are associated with faster growth of firm-level TFP, sales and cash-ow, higher probabilities to engage in R&D and export. We find no significant effects for firms from industrialized economies and negative effects for firms in other emerging economies, which are less export-intensive and more import-intensive. Motivated by these facts, we build a dynamic model in which real depreciations raise the cost of importing intermediates, but increase demand and the profitability to engage in exports and R&D, thereby relaxing borrowing constraints and enabling more firms to overcome the fixed-cost hurdle for financing R&D. We decompose the effects of RER changes on productivity growth into these channels and explain regional heterogeneity in the effects of RER changes in terms of differences in export intensity, import intensity and financial constraints. We estimate the model and quantitatively evaluate the different mechanisms by providing counterfactual simulations of temporary real exchange rate movements. Effects on physical TFP growth, while different across regions, are non-linear and asymmetric. |
| Keywords: | real exchange rate, firm level data, innovation, productivity, exporting, importing, credit constraints |
| JEL: | F O |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:18-044&r=cse |
| By: | Mohajan, Haradhan |
| Abstract: | Knowledge is an essential item in our daily activities to perform the works efficiently. It is considered as the most important asset for every organization. Knowledge management is a system of acquiring, capturing, sharing, storing, developing, capitalizing, disseminating, and utilizing knowledge efficiently in organizations. This paper discusses some of the widely used knowledge management models (KMMs). The aim of KMMs is the substantial development of the organizations. Due to recent global economic competition they become essential to all communities. KMMs play vital roles for the rapid development in technology, and the emergence of new products and services in the society. The intention of this study is to investigate the theory and practice of the emerging and existing KMMs. |
| Keywords: | KMMs, knowledge creation, organization, sense-making |
| JEL: | I2 O1 |
| Date: | 2017–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:83089&r=cse |
| By: | Basant, Rakesh |
| Abstract: | Significant research has gone into the analysis of the complex linkages between public policy and innovation. While this research has generated a lot of interesting insights, it has also identified several gaps in our understanding of these linkages. This paper is an attempt to pool together some of the ideas that academic research has highlighted on the linkages between innovation and public policy and identify the current challenges as well as opportunities for meaningfully exploring these linkages further. Through a select review of the literature the paper (i) provides a broad overview of the public policy–innovation interface; (ii) discusses issues of conceptualizing and measuring innovation, innovation related activities and policy changes; (iii) summarizes mechanisms through which various policies impact innovation along with available evidence on the same; and (iv) identifies challenges in exploring policy-innovation interface along with a few potential areas of research in the context of India. |
| Date: | 2017–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:14582&r=cse |