nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒03‒19
six papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Do Companies Benefit from Public Research Organizations? The Impact of the Fraunhofer Society in Germany By Comin, Diego; Licht, Georg; Pellens, Maikel; Schubert, Torben
  2. Institutions and Innovation: Evidence from Chinese Cities By Chen, Yang; Luan, Fushu; Regis, Paulo José
  3. Anti-Migration as a Threat to Internationalization? By Hatzigeorgiou, Andreas; Lodefalk, Magnus
  4. "The Development Model of Small-Industry in East Java: A Regional Comparative Study" By Setyo Tri Wahyudi
  5. Does Host Market Regulation Induce Cross Border Environmental Innovation? By Antonello Zanfei; Giovanni Marin
  6. Explaining the structure of collaboration networks: from firm-level strategies to global network structure By Johannes van der Pol

  1. By: Comin, Diego (Dartmouth College & CEPR); Licht, Georg (ZEW); Pellens, Maikel (ZEW & KU Leuven); Schubert, Torben (CIRCLE & Fraunhofer ISI)
    Abstract: Among available policy levers to boost innovation, investment in applied research organisations has received the least attention. In this paper, we analyze the case of the Fraunhofer Society, the largest public applied research organization in Germany. We analyze whether project interaction with Fraunhofer affect the performance and strategic orientation of firms. To that end, we assemble a unique dataset based on the confidential Fraunhofer-internal project management system and merge it with the German contribution to the Community Innovation Survey (CIS), which contains panel information on firm performance. Using instrumental variables that exploit the scale heteroscedasticity of the independent variable (Lewbel, 2012), we identify the causal effects of Fraunhofer interactions on firm performance and strategies. We find a strong, positive effect of project interaction on turnover and productivity growth. We also provide evidence that a major driver of the positive performance effects is the firms increased share of sales from new products and an increase in the share of workers with tertiary education. More detailed analyses reveal, amongst others that the performance effects become stronger the more often firms interact with Fraunhofer and that interactions aiming at generation of technology have a stronger effect than interactions aiming merely at the implementation of existing technologies.
    Keywords: Innovation; R&D; diffusion; applied research; Fraunhofer
    JEL: O33 O38
    Date: 2018–03–07
  2. By: Chen, Yang (Division of Economics, Xi'an Jiaotong-Liverpool University); Luan, Fushu (Division of Economics, Xi'an Jiaotong-Liverpool University); Regis, Paulo José (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: We contribute to explore the roles of sub-national leaders and institutional environment in shaping urban innovation in China. We adopt a dynamic production function framework using a panel dataset comprising 280 prefecture cities during 2001-2014. We find that knowledge and education boost local innovative outputs and has positive spillover effects; the externalities of domestic and foreign capital are limited to local investments. Controlling for the basic production inputs, our analysis unveils a clear and significant role of meritocracy with regional dimension in sharpening the competitive advantage of city innovativeness measured by patents applications. Party secretary competition intensity and tenure encourages innovation while city mayor turnover rate has a negative effect. Marketization intensity also positively links with urban innovation. Compared with diversity and specialization, competitive industrial structures bring more creative elements into regional knowledge and idea production.
    Keywords: Innovation, Meritocracy, Institutions, Prefecture-Level City, China
    JEL: H11 R11 O30 P26 C33
    Date: 2018–02–20
  3. By: Hatzigeorgiou, Andreas (The Ratio Institute); Lodefalk, Magnus (The Ratio Institute and Örebro University)
    Abstract: Do anti-migration sentiments threaten internationalization? One major argument of the pro-Brexit campaign in the UK was that Brexit would allow greater control over immigration. The most recent US presidential election also focused on the issue of immigration. Anti-migration sentiments could constitute a threat to internationalization considering that migrants can help lower costs associated with internationalization. Despite the vast literature on the migration-trade nexus and its important implications for policy, however, there are very few examples where governments and policymakers have highlighted the role of migration for trade and other aspects of internationalization. One explanation could be the lack of an accessible and comprehensive survey of the available theory and evidence on the nexus between migration and internationalization. This article intends to bridge this gap. We review and discuss over 100 published papers on the subject, from the pioneering country-level studies to the nascent firm-level studies that exploit employeremployee data. To our knowledge, this is the first paper to provide a wide-ranging review of both the different strands of theory related to the relationship between migration and internationalization, as well as early and new empirical results on this nexus. We find substantial support in the literature of an internationalization facilitating influence of migration. The evidence can be found in various settings, from individual small countries to groups of large countries, in both developed and less developed economies, and for regions and firms. Although the evidence suggests that migration can help to increase confidence and facilitate the flow of information between countries, which reduces the costs of—and improves the prospects for—internationalization, we also find substantial gaps and inconsistencies in the previous literature. More research is therefore needed. The theory is still incomplete and does not provide a coherent framework for explaining the interlinkages between migration and internationalization. Furthermore, a large part of the empirical literature has been based on aggregate data, which has stood in the way of robust evidence on the direction of causation and the main mechanisms at play. The nascent firm-level approach has the potential to bridge several of the existing knowledge gaps, but the research is still in its initial stages. Our aim is that this article will encourage future research, which will fill in the missing pieces. In addition, we hope the article can help policymakers formulate better policies for the promotion of internationalization.
    Keywords: Migration; networks; information; trade; foreign direct investment
    JEL: D20 D80 F14 F16 F22 F23 J61
    Date: 2017–12–22
  4. By: Setyo Tri Wahyudi (Faculty of Economics and Business, Universitas Brawijaya)
    Abstract: "Objective – This study aims to compare the developmental model of small industry in both regions. Methodology/Technique – The economic growth of the northern region is relatively higher compared to their southern counterpart. It is thought that industrial zone policies, which tend to be northern-region oriented, is the trigger for this. Although the development of small industries in the southern region of East Java is quite significant and able to absorb many workforces, it is still unable to boost the economic growth of the region. This research uses a shift share analysis method and a sample of regencies and cities in both regions. Findings – The result of the shift-share analysis model shows that the processing industry and wholesale and retail industry are basic sectors that can enhance the economic growth of both regions. Each industry is significantly shifted to a basic sector. Local governments have established clusters of small and medium businesses, such as earthenware, ceramics, snack, furniture, rattan craft, and stoneware industrial centres. Several other industrial sectors show significant contributions following the implementation of industrial zone policies. This suggests that the establishment of industrial zones is able to boost the region's economy and reduce disparities. However, small industries are low in capital accessibility, skills, and production technology. Therefore, to maintain the sustainability of industrial development, policies implemented by the government should focus on developing small businesses by improving their capital accessibility, skills, and technological proficiencies. Novelty – East Java's economy has shown a significant growth in recent years. Unfortunately, the growth across the region is still irregular. The disparity at the regional level, particularly between the northern and southern regions of East Java, is still prevalent."
    Keywords: Small Industry; Comparative Study; East Java; Development Model; Economics.
    JEL: R11 R58
    Date: 2017–12–09
  5. By: Antonello Zanfei (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Giovanni Marin (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: TThis paper evaluates the effect of host-country environmental policy stringency on the offshoring of environmental patents for 2000 top world R&D performers. It is shown that a more stringent environmental regulation triggers both the extensive and intensive margin of patent offshoring in the field of environmental technologies. Results are robust to various different specifications, alternative definitions of innovation offshoring and of regulation restrictions, and to the consideration of possible endogeneity of regulation. It is suggested inter alia that R&D subsidies and non-market based regulatory measures are more important than market-based instruments as drivers of cross-border environmental innovation
    Keywords: MNE, environmental policy, patent data
    JEL: F10 F23 O33 Q55
    Date: 2018
  6. By: Johannes van der Pol
    Abstract: The aim of this paper is to show how firm-level partner selection strategies impact the structure a of collaboration network. The analysis is performed in three stages. A first stage identifies how partners select their collaborators, a second stage shows how these decisions result in clusters, and a final stage studies the global network structure that emerges from the interconnection of these clusters. In order to highlight the importance of the sectors’ influence, the analysis is performed on the French Aerospace and the French Biotech collaboration networks. Results show that the firm-level strategies are the same in both sectors while the resulting global network structure is different (core-periphery structure with small-world characteristics for the aerospace network and no particular structure for the biotech sector). The difference in the global network structure can be explained by sectorial characteristics. These differences define the manner in which knowledge flows through the network.
    Keywords: SNA; Sectoral analysis; Collaboration network; Biotechnology; Aerospace; ERGM; Innovation
    JEL: L25 C23 D85 L14 C20
    Date: 2018

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