nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒04‒16
twenty papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. An evaluation of knowledge management system's components and its financial and non-financial implications By André Luhn; Sergey Aslanyan; Christian Leopoldseder; Pamela Priess
  2. Collaboration Networks and Innovation: How to Define Network Boundaries By Galaso, Pablo; Kovářík, Jaromír
  3. Innovation Networks and Clusters Dynamics By He, Ming; Walheer, Barnabé
  4. A Perfect Specialization Model for Gravity Equation in Bilateral Trade based on Production Structure By Majid Einian; Farshad Ranjbar Ravasan
  5. Eco-strategies and firm growth in European SMEs By Jové Llopis, Elisenda,; Segarra Blasco, Agustí, 1958-
  6. Development governance. The philosophy of innovation and the ethical economy of Amartya Sen By Flavia Palazzi; Francesco Iury Forte
  7. Modern Approaches to the Training of Personnel in the Management System of Innovative Processes in Knowledge-Intensive Industries By Kushlin, Valery; Ustenko, Viktoria; Ivanov, Oleg; Sergeeva, Alexandra
  8. Innovation and Geographical Spillovers: New Approaches and Empirical Evidence By Segarra Blasco, Agustí, 1958-; Arauzo Carod, Josep Maria; Teruel, Mercedes
  9. Importance of Creativity of Employees in Adaptation of Food Companies to Innovative Trends in the World By Klimczuk-Kochańska, Magdalena
  10. Spillover Implications of Differences in Monetary Conditions in the United States and the Euro Area By Carolina Osorio; Esteban Vesperoni
  11. Uncertainty, Imperfect Information, and Learning in the International Market By CHEN Cheng; SENGA Tatsuro; SUN Chang; ZHANG Hongyong
  12. Management innovation driving sustainable supply management By Koster, Mieneke; Vos, Bart; Schroeder, Roger
  13. To acquire or not to acquire: Mergers and Acquisitions in the Software Industry By Méndez Ortega, Carles,; Teruel, Mercedes
  14. The Aerospace Cluster in Washington State, Microeconomics of Competitiveness Study Case By Alana McKenzie; Raluca Nica; Andra Roman; Corina Ioana Petrea
  15. Self Confidence Spillovers and Motivated Beliefs By Ritwik Banerjee; Nabanita Datta Gupta; Marie Claire Villeval
  16. Unlocking digital entrepreneurship through technical business process By Fahim Akhter
  17. Context and the role of policies to attract foreign R&D in Europe By Rodríguez-Pose, Andrés; Wilkie, Callum
  18. Competitiveness and Wage Bargaining Reform in Italy By Alvar Kangur
  19. Innovation Networks and Clusters Dynamics By Desmarchelier, Benoît; Zhang, Linjia
  20. Growth and the Geography of Knowledge By Marta Aloi; Joanna Poyago-Theotoky; Frederic Tournemaine

  1. By: André Luhn (Pan-European University); Sergey Aslanyan (Pan-European University); Christian Leopoldseder (Pan-European University); Pamela Priess (Pan-European University)
    Abstract: Knowledge Management is an inclusive process of gathering knowledge, processing it and then utilising it in order to improve firm productivity and seek solutions to crucial problems. This paper is based on the assessment of structural framework of a Knowledge Management System (KMS) and how these components influence the financial and non-financial aspects of an organisation. The study mainly focuses on the evaluating the influence of KMS on the overall performance of SMEs in Austria. The current study investigates previous researches and theories to build a comprehensive understanding of the topic. It also conducts a quantitative analysis to evaluate the relationships between Knowledge Management Capabilities, Processes, and Firm Performance. To get first-hand information related to knowledge management practices, 126 managers and senior employees from 72 Austrian SMEs are surveyed. According to the results, KM capabilities have a significant positive relationship with KM processes. Moreover, KM processes in the Austrian SMEs have a significant positive influence on financial and non-financial performance. The study recommends increased focus on KM practices for improved overall performance.
    Keywords: Knowledge Management Capabilities,Knowledge Management Systems,Correlation,Regression Analysis,Learning Organisation,T-Shaped Skills,Non-Financial Performance,Financial Performance,Knowledge Management Processes
    Date: 2017–12–29
  2. By: Galaso, Pablo; Kovářík, Jaromír
    Abstract: Numerous studies in management, sociology, and economics have documented that the architecture of collaboration networks affects the innovation performance of individuals, firms, and regions. Little is known though about whether the association between collaboration patterns and innovation outcomes depends on the network geographical boundaries chosen by the researcher. This issue is crucial for both policy-makers and firms that rely on innovation. This article compares the association between collaboration networks and future patenting between regional and country-level collaboration networks. If we relate future innovation to the global, country-wide network our statistical analysis reproduces the findings of the previous literature. However, we find systematically less important effects of regional innovation patterns on subsequent patenting of innovators. Hence, managers and policy makers should choose the boundaries of the innovation networks that they look at carefully, aiming for integration into larger-scale collaboration communities.
    Keywords: innovation, networks, patents, network boundary, boundary specification problem
    JEL: O31 O32 O34 R11
    Date: 2018–03–08
  3. By: He, Ming (Division of Economics, Xi'an Jiaotong-Liverpool); Walheer, Barnabé (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: CFor several decades, the manufacturing industry has been the pillar industry in terms of economic growth in China. The importance of the manufacturing industry is also highlighted by the numerous policy interventions in favour of this industry. In this paper, we identify the key industrial sectors in terms of technical performances and technological advancements for the period 1999-2007. This represents particular valuable information in the context of policy implementations. The distinguishing features of our study are five-fold. One, we make used of a tailored firm-level database. Two, we distinguish between four types of firm ownership. Three, we consider 30 manufacturing sectors. Four, we extend a well-established methodology to answer our questions. Five, we rely on a robust nonparametric estimation method. Our results confirm that firm ownership is important in explaining technical efficiency and technology gap. We also show that foreign firms set the standard for technical efficiency, and are the leaders in terms of technology advancement; that private firms show technology advancements accompanied by eciency losses; and that China has successfully revitalized state-owned firms, although there is still room for improvement. Finally, we find evidence that China's industrial development plans have been successful in stimulating technology progress in many key sectors; but that the current policy of (re)nationalization may undermine technical efficiency and slow down technology progress.
    Keywords: technology gap; technical eciency; manufacturing industry; China; metafrontier; DEA.
    Date: 2018–04–01
  4. By: Majid Einian; Farshad Ranjbar Ravasan
    Abstract: Although initially originated as a totally empirical relationship to explain the volume of trade between two partners, gravity equation has been the focus of several theoretic models that try to explain it. Specialization models are of great importance in providing a solid theoretic ground for gravity equation in bilateral trade. Some research papers try to improve specialization models by adding imperfect specialization to model, but we believe it is unnecessary complication. We provide a perfect specialization model based on the phenomenon we call tradability, which overcomes the problems with simpler initial. We provide empirical evidence using estimates on panel data of bilateral trade of 40 countries over 10 years that support the theoretical model. The empirical results have implied that tradability is the only reason for deviations of data from basic perfect specialization models.
    Date: 2018–03
  5. By: Jové Llopis, Elisenda,; Segarra Blasco, Agustí, 1958-
    Abstract: This study investigates the effects of eco-strategies on firm performance in terms of sales growth in an extensive sample of 11,336 small and medium-sized enterprises (SMEs) located in 28 European countries. Our empirical results suggest that not all eco-strategies are positively related to better performance, at least not in the short term. We find that European companies using renewable energies, recycling or designing products that are easier to maintain, repair or reuse perform better. Those that aim to reduce water or energy pollution, however, seem to show a negative correlation to firm growth. Our results, also, indicate that high investment in eco-strategies improves firm growth, particularly in new members that joined the EU from 2004 onwards. Finally, we observe a U-shaped relationship between eco-strategies and firm growth, which indicates that a greater breadth of eco-strategies is associated with better firm performance. However, few European SMEs are able to either invest heavily or undertake multiple eco-strategies, thus leaving room for policy interventions. Keywords: eco-strategy, firm growth, Europe, SMEs
    Keywords: Empreses petites i mitjanes -- Aspectes ambientals -- Unió Europea, Països de la, Planificació estratègica -- Aspectes ambientals, Empreses -- Creixement, 33 - Economia, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses,
    Date: 2017
  6. By: Flavia Palazzi (UGA UFR ARSH - Université Grenoble Alpes - UFR Arts & Sciences Humaines - UGA - Université Grenoble Alpes); Francesco Iury Forte
    Abstract: The essay aims to analyze the phenomenon of corporate social responsibility, which originated in the United States in the fifties but became a reality widespread in recent decades, from a philosophical-economic point of view and as the Socratic question "how to live ? ", Reproposed by the Nobel Prize winner for economics Amartya Sen, as well as his reflections on the ethical origins of the economy, lead us to reflect on new ways through which the company influences social values. From crowdfunding to the experiences of free-form enterprises, where time and space are decentralized. The phenomenon is interesting from an economic point of view: in fact, new forms of competitiveness are sought in the knowledge that the ultimate goal of the company remains profit, but also and above all ethical and social where new ways of doing business are changing society , while society itself requires innovative models in the way of doing business in its liquid and globalized variability. The need to find new measures of quality of life is also linked to these reflections. In 2008, a commission set up by the then President Nicolas Sarkozy and composed of some Nobel prizes including Amartya Sen, Jean Paul Fitoussi and Joseph Stigltiz, despite not having had a large following, began studying alternative measures to GDP that took into account happiness and of the welfare of the population. The order of economic indices so far known is therefore to be confronted with the disorder of a society that is reorganizing according to renewed models and desperately seeking new certainty, in the economic and political fields; starting from the crisis of homo oeconomicus, of overcoming the mere rationality about human choices in the economic field, if the request of society is that of a greater attention to ethics, to the responsibility in the consumption of resources and in respect of human rights, the governments that in the future will have the objective of guiding the economy and, in turn, not being guided, will have to take it into account and identify new answers to these questions, in order to put the economy back to the full service of man.
    Abstract: Il saggio mira ad analizzare il fenomeno della responsabilità sociale d’impresa, che ha avuto origine negli Stati Uniti negli anni Cinquanta ma divenuta una realtà diffusa negli ultimi decenni, da un punto di vista filosofico-economico e come la domanda socratica «come bisogna vivere?», riproposta dal premio Nobel per l’economia Amartya Sen, nonché le sue riflessioni sulle origini etiche dell’economia, ci inducano a riflettere su nuove modalità attraverso cui l’impresa influenza i valori sociali. Dal crowdfunding alle esperienze della free-form enterprises, in cui il tempo e lo spazio sono decentrati. Il fenomeno è interessante da un punto di vista economico: si cercano infatti nuove forme di competitività pur nella consapevolezza che il fine ultimo dell’impresa resta il profitto, ma anche e soprattutto etico-sociale laddove i nuovi modi di fare impresa stanno cambiando la società, mentre la società stessa richiede, nella sua variabilità liquida e globalizzata, modelli innovativi nel modo di fare impresa. A queste riflessioni si collega anche la necessità di trovare nuove misure della qualità della vita. Nel 2008, una Commissione istituita dall’allora Presidente Nicolas Sarkozy e composta da alcuni premi Nobel tra cui Amartya Sen, Jean Paul Fitoussi e Joseph Stigltiz, malgrado non abbia avuto grande seguito, iniziò a studiare misure alternative al PIL che tenessero conto della felicità e del benessere della popolazione. L’ordine degli indici economici fino ad ora conosciuti si trova quindi a doversi confrontare con il disordine di una società che si sta riorganizzando secondo modelli rinnovati e che cerca disperatamente nuove certezze, in campo economico e politico; a partire dalla crisi dell’homo oeconomicus, del superamento della mera razionalità circa le scelte umane in ambito economico, se la richiesta della società è quella di una maggiore attenzione all’etica, alla responsabilità nel consumo delle risorse e nel rispetto dei diritti umani, i governi che in futuro avranno come obiettivo quello di guidare l’economia e, non esserne a loro volta guidati, dovranno tenerne conto e individuare nuove risposte a queste domande, al fine di porre di nuovo l’economia al pieno servizio dell’uomo.
    Date: 2018–03–19
  7. By: Kushlin, Valery (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Ustenko, Viktoria (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Ivanov, Oleg (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Sergeeva, Alexandra (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: In the face of new challenges, Russia is experiencing an objective need to accelerate the pace of economic growth by moving to an innovative economy. The tasks of technological modernization require the development of new approaches to the training and retraining of personnel necessary for the implementation of a breakthrough in priority science-intensive industries and, on this basis, improving the quality of management at all levels of the national economy, taking into account the best foreign and domestic practices. The paper analyzes the peculiarities of state regulation of the development of science intensive industries in the process of formation of the innovation economy and substantiates the need for improving the mechanism of training and professional development of cadres in the high technology strategic sectors of the Russian economy. The ways and possibilities of restructuring the system of higher and secondary vocational education in Russia are examined with the use of the most effective world experience accumulated recently. Particular attention is paid to the possibility of using modern geoinformation technologies to prepare innovative personnel. The experience of interaction of Russian higher educational institutions on the use of modern geoinformation technologies in education, science and management of regional development is examined.
    Date: 2018–03
  8. By: Segarra Blasco, Agustí, 1958-; Arauzo Carod, Josep Maria; Teruel, Mercedes
    Abstract: This special issue concerns the generation of knowledge and geographical spillovers, and it includes a selection of papers that cover existent research gaps with respect to the role of space in the promotion of knowledge spillovers and innovation. These papers analyse different typologies of innovation processes carried out in several geographical areas and highlight heterogeneities of these processes, after focusing on several determinants in innovation. Empirical results indicate the positive role of geographical spillovers and the importance of accurate matching among firms, in industry and with regard to regional characteristics, in order to ensure the generation of knowledge and innovation. Keywords: innovation, geography, spillovers. JEL Codes: O30, R10
    Keywords: Innovacions tecnològiques -- Direcció i administració, Economia regional, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018
  9. By: Klimczuk-Kochańska, Magdalena
    Abstract: The purpose of this paper is to identify a gap in knowledge and understanding of the need to motivate employees for creative and pro-innovation activities in the organization. Another aim is to provide an overview of innovation in one of the low-tech industries - in the food industry. The concept of innovation and creativity is presented. The characteristics of the concept of creativity have been briefly described. Then examples of ways how food companies are dealing with current trends in the area of innovation in the world are briefly described. Among these trends, the focus on radical innovations has been highlighted, more tightly aligned firm innovation and business strategies, better insight into customers' needs and increased collaboration with other entities. Analyses based on the desk research technique were performed with the inclusion of literature regarding the examples of implementation of innovations in the food sector companies. The conducted analyses allowed us to confirm that exemplary food companies are actively engaged in improving their competitive position, by introducing creative solutions in their products or by new ways of organizing different processes. It has been shown that creativity should be used as the primary source of innovation in the food industry.
    Keywords: creativity, innovations, low-tech sectors, crowdfunding, sharing economy, open innovation
    JEL: M13 O32 Q18
    Date: 2017
  10. By: Carolina Osorio; Esteban Vesperoni
    Abstract: This report analyzes the possible spillover effects that could result if the U.S. normalizes its monetary policy while euro area countries are increasing monetary stimulus (a situation referred to as asynchronous monetary conditions). This analysis identifies country-specific shocks to economic activity and monetary conditions since the early 1990s, finding that real and monetary conditions in the United States and the euro area have oftentimes been asynchronous and have often resulted in significant spillover effects, particularly since early 2014.
    Keywords: Monetary policy;Spillovers;Western Hemisphere;United States;Negative spillovers;Positive spillovers;
    Date: 2016–09–27
  11. By: CHEN Cheng; SENGA Tatsuro; SUN Chang; ZHANG Hongyong
    Abstract: This paper uses a unique dataset of Japanese multinational affiliates, which contains information on sales forecasts, to detect information imperfection and learning in the international market. We document three stylized facts concerning affiliates' forecasts. First, forecast errors (FEs) of sales decline with the affiliate's age. Second, if the parent firm has previous export experience to the region where its affiliate is set up, the entering affiliate starts with a smaller absolute value of FEs. Third, FEs of sales are positively correlated over time and this positive correlation becomes stronger when the affiliates are located further away from Japan. In total, we view these facts as direct evidence for the existence of imperfect information and learning in the international market. We then build up and quantify a dynamic industry equilibrium model of trade and foreign direct investment (FDI), which features information rigidity and learning, in order to explain the documented facts. Counterfactual analysis shows that the variance of time-invariant demand draws and that of transitory shocks have qualitatively different and quantitatively important implications for dynamic patterns of trade/multinational production, dynamic selection, and aggregate productivity.
    Date: 2018–03
  12. By: Koster, Mieneke (Tilburg University, School of Economics and Management); Vos, Bart (Tilburg University, School of Economics and Management); Schroeder, Roger (Tilburg University, School of Economics and Management)
    Abstract: Although research in the area of sustainable supply management (SSM) has evolved over the past few decades, knowledge about the processes of emergence and innovation of SSM practices within organizations is surprisingly limited. These innovation processes are, however, important because of the considerable impact they may have on resulting sustainable practices and because of SSM's complex societal and intra-firm challenges. In a process study on management innovation, the sequences of SSM innovation processes in two exemplar case companies are studied to address: ‘What are the sequences through which SSM emerges within exemplar organizations?’, and ‘In what way do management innovation processes influence resulting SSM practices?’. We build on literature regarding firstly management innovation and secondly communities and internal networks of practice. An SSM innovation model and propositions are developed, proposing how the process of management innovation affects SSM practices and firm performance in a broader perspective.
    Date: 2017
  13. By: Méndez Ortega, Carles,; Teruel, Mercedes
    Abstract: The aim of this paper is to analyse the impact of Mergers and Acquisitions on firm growth for Software firms located in Catalonia. We investigate firms which are targeting, or are themselves the target of an acquisition and we find that the impact on is heterogeneous; there appear to be positive and negative impacts on productivity and sales growth rate. This paper contributes to the understanding of the M&A process in this young industry characterised by an exponential growth and how such activity interacts with the growth and productivity of the firms involved. Keywords: Software industry, Mergers and acquisitions, firm growth, Catalonia. JEL Codes: D22, C33, L86, O30
    Keywords: Conducta organitzacional, Programari -- Indústria i comerç, Empreses -- Creixement -- Catalunya, 33 - Economia,
    Date: 2018
  14. By: Alana McKenzie; Raluca Nica (Department of International Economics and Business, Bucharest University of Economic Studies); Andra Roman (Department of International Economics and Business, Bucharest University of Economic Studies); Corina Ioana Petrea (Department of International Economics and Business, Bucharest University of Economic Studies)
    Abstract: The paper analyzes the development of the Washington cluster in the aeronautics industry and the factors that contributed to this continuous and substantial growth. In the first section of the text it is described the profile of the country as well as the region and the city, in order to understand the exogenous factors that made possible the enrichment of the aerospace cluster in that particular area. Moving further with the analysis, the paper identifies the main competition from rival clusters, emphasizing the strengths of each rival cluster in comparison with the aeronautics cluster from Washington. A cluster map is provided later in the study, for explaining the intertwined relation between many supporting industries that help sustain the aerospace cluster. Additionally, the text explores the performance of the cluster and the overall competitiveness in the business environment. In the end, the paper seeks to answer the question: What are the key issues that the cluster is facing?
    Keywords: cluster, aerospace industry, Washington, competitiveness
    JEL: L93
    Date: 2017–09
  15. By: Ritwik Banerjee (Indian Institute of Management Bangalore, Bannerghatta Main Road, Sundar Ram Shetty Nagar, Bilekahalli, Bengaluru, Karnataka 560076 India); Nabanita Datta Gupta (Department of Economics and Business Economics, Aarhus University, Denmark, and IZA, Bonn. Fuglesangs Allé 4, 8210 Aarhus V, Denmark); Marie Claire Villeval (Univ Lyon, CNRS, GATE L-SE UMR 5824, F-69131 Ecully, France; IZA, Bonn, Germany)
    Abstract: Is success in a task used strategically by individuals to motivate their beliefs prior to taking action in a subsequent, unrelated, task? Also, is the distortion of beliefs reinforced for individuals who have lower status in society? Conducting an artefactual field experiment in India, we show that success when competing in a task increases the performers’ self-confidence and competitiveness in the subsequent task. We also find that such spillovers affect the self-confidence of low-status individuals more than that of high-status individuals. Receiving good news under Affirmative Action, however, boosts confidence across tasks regardless of the caste status.
    Keywords: Motivated beliefs, spillovers, self-confidence, competitiveness, Affirmative Action, experiment
    JEL: C91 J15 M52
    Date: 2018
  16. By: Fahim Akhter (King Saud University)
    Abstract: The objective of this study is to explore the level of reliance of business processes on technologies for growth and sustainability of Saudi entrepreneurship. The technological business environment has pressed the entrepreneurs to adopt the information systems to overcome operating deficiencies, including high costs, small production cycles, dormant business process and scare financial resources. The future growth and sustainability of the Saudi entrepreneurship are depending on the adoption and integration of information systems allowing to facilitate the trade processes across functional units, use of a standatized database and information sahring. Obtained data support the technological reform that claims that business technology will enable the decision-making process to be timely, consistent and reliable across organizational units and geographical locations. The data collected through online surveys with thirty-one Saudi entrepreneurs revealed the barriers faced by the entrepreneurship, and allowed to summarize provided recommendations. The analysis indicated that the growth and sustainability of the enterprise are subject to adoption of technology oriented business process lead by information systems in the organizations. The outcome of the study is further recommendation to educate and spread the awareness about the implementation of information systems to address the electronic business process. The study will help to organize, assess and improve business processes in order to meet the new requirements set by competition among entrepreneurial companies.
    Keywords: electronic commerce,information systems,sustainability,entrepreneurship
    Date: 2017–09–29
  17. By: Rodríguez-Pose, Andrés; Wilkie, Callum
    Abstract: This paper explores the effectiveness of policies ‘in’ attracting the foreign research and development (R&D) of multinational enterprises (MNEs) to specific countries in Europe. We develop a macroeconomic investigation covering 29 European countries during the period between 1990 and 2012 in order to address: (a) whether the provision of direct financial support for business R&D is effective for the attraction of foreign R&D; (b) whether direct support is more effective than indirect support for this purpose and (c) whether the link between direct financial support for business R&D and the foreign R&D of MNEs is conditioned by the context within which the support is provided. The results of the analysis show that, first, the provision of direct financial support is generally effective for the attraction of foreign R&D by MNEs. Second, direct support for business R&D is more effective for this purpose than indirect support. Third, the provision of direct financial support for business R&D yields greater returns in contexts that are more socio-economically suitable for knowledge-intensive, innovative activity.
    Keywords: foreign R&D; multinational enterprises (MNEs); direct and indirect support; knowledge flows; innovation; Europe
    JEL: N0
    Date: 2016–09–20
  18. By: Alvar Kangur
    Abstract: The growth of Italian exports has lagged that of euro area peers. Against the backdrop of unit labor costs that have risen faster than those in euro area peers, this paper examines whether there is a competitiveness challenge in Italy and evaluates the framework of wage bargaining. Wages are set at the sectoral level and extended nationally. However, they do not respond well to firm-specific productivity, regional disparities, or skill mismatches. Nominally rigid wages have also implied adjustment through lower profits and employment. Wage developments explain about 45 percent of the manufacturing unit labor cost gap with Germany. In a search-and-match DSGE model of the Italian labor market, this paper finds substantial gains from moving from sectoral- to firm-level wage setting of at least 3.5 percentage points lower unemployment (or higher employment) rate and a notable improvement in Italy’s competitiveness over the medium term.
    Date: 2018–03–16
  19. By: Desmarchelier, Benoît (Lille 1 University); Zhang, Linjia (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: Contributions in terms of clusters life cycle indicate that intense interactions between a variety of agents within the cluster are essential to its success. Despite being accepted by the literature, this view has not yet been confirmed by analyses of large temporal networks of interactions within industrial clusters. This paper proposes to fill this gap by building and studying the innovation networks of three clusters over a 10 years period. We find that clusters’ growth is all but smooth and that low assortativity and preferential attachment among agents can constitute safeguards against clusters decline. Also, we bring evidence that clusters’ innovation networks are resilient to decline. This observation supports contributions advocating for non-deterministic lifecycles in which clusters can still grow, even after a period of pronounced decline.
    Keywords: Industrial Clusters, Network Science, Dynamics
    Date: 2018–04–01
  20. By: Marta Aloi; Joanna Poyago-Theotoky; Frederic Tournemaine
    Abstract: We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial variations in knowledge spillovers lead to spatial concentration of more innovative firms. Migration costs, however, limit the concentration of economic activities in the most productive region. Narrowing the gap in knowledge spillovers across regions raises growth, and reduces regional inequality by making firms more sensitive to wage differentials. The associated change in the spatial concentration of industries has positive welfare effects.
    Keywords: growth, economic geography, geographic labour mobility, innovation, knowledge spillovers, regional economics
    JEL: O41 O31 L13 J61 R32
    Date: 2018

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