nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒11‒12
thirteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. COMPLEMENTARITIES IN PERFORMANCE BETWEEN PRODUCT INNOVATION, MARKETING INNOVATION AND COOPERATION WITH CLIENTS By Tanel Rebane
  2. Ethnicity and risk sharing network formation: Evidence from rural Viet Nam By Hoang; Laure Pasquier-Doumer; Camille Saint-Macary
  3. Research and innovation policy in Italy By Nascia, Leopoldo; Pianta, Mario
  4. Collaborative Innovation with External Partners in China: Cultural Similarity Effect By Chun-Yao Tseng
  5. Globalization, Structural Change and Innovation in Emerging Economies: The Impact on Employment and Skills By Vivarelli, Marco
  6. Land use spillovers of bioeconomy-driven trade shocks under imperfect environmental law enforcement By Borner, J.; Bruckner, M.; Flach, R.; Soares-Filho, B.; Wunder, S.
  7. Business Model Innovation and Selection of Entry Barriers By Adam Dewitte
  8. Globalisation, structural change and innovation in emerging economies: The impact on employment and skills By Vivarelli, Marco
  9. Innovation in Global Value Chains By Lema, Rasmus; Pietrobelli, Carlo; Rabellotti, Roberta
  10. Firm heterogeneity and the pattern of R&D collaborations By Pascal Billand; Christophe Bravard; Jacques Durieu; Sudipta Sarangi
  11. Business Ecosystems and Innovation By abe Harraf
  12. New Technologies, Global Value Chains, and Developing Economies By Dani Rodrik
  13. Incubators, Accelerators and Regional Economic Development By Madaleno, Margarida; Nathan, Max; Overman, Henry; Waights, Sevrin

  1. By: Tanel Rebane
    Abstract: This paper examines the complementary relationship between product innovation, marketing innovation and cooperation with clients, based on data from Estonian firms. The author evaluated complementary relationship in terms of its effect on the firm’s total factor productivity. This study uses the Community Innovation Survey (CIS) and Estonian Business Register data from the years 2002–2012 and the Heckman selection model to research the complementarity effect between studied innovation activities using the supermodularity approach. The results show that product innovation and marketing innovation are complementary in the service industry, but in manufacturing industry there is lack of evidence for the effect of complementarity. Cooperation with clients showed inconclusive complementarity test results involving both innovation types in both industries. Using panel data as a robustness test showed more insights into the complementary effects between cooperation with clients and the studied forms of innovation. However, the results show a weak complementarity effect between cooperation and innovation and suggest that there is still no clear complementarity effect.
    Keywords: Product innovation, Marketing innovation, Cooperation with clients, Complementarity, Performance
    JEL: C13 D24 L25 O30
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:mtk:febawb:113&r=cse
  2. By: Hoang (PSL, Université Paris-Dauphine, Paris, France, UMR 225 DIAL, Institut de Recherche pour le Développement (IRD), Paris, France); Laure Pasquier-Doumer (IRD, UMR DIAL, PSL, Université Paris-Dauphine); Camille Saint-Macary (IRD, UMR DIAL, PSL, Université Paris-Dauphine)
    Abstract: Ethnic inequality remains a persistent challenge for Viet Nam. This paper aims at better understanding this ethnic gap through exploring the formation of risk sharing networks in rural areas. It first investigates the differences in risk sharing networks between the ethnic minorities and the Kinh majority, in terms of size and similarity attributes of the networks. Second, it relies on the concept of ethnic homophily in link formation to explain the mechanisms leading to those differences. In particular, it disentangles the effect of demographic and local distribution of ethnic groups on risk-sharing network formation from cultural and social distance between ethnic groups, while controlling for the disparities in the geographical environment. Results show that ethnic minorities have smaller and less diversified networks than the majority. This is partly explained by differences in wealth and in the geographical environment. But ethnicity also plays a direct role in risk-sharing network formation through the combination of preferences to form a link with people from the same ethnic group (inbreeding homophily) and the relative size of ethnic groups conditioning the opportunities to form a link (baseline homophily). Inbreeding homophily is found to be stronger among the Kinh majority, leading to the exclusion of ethnic minorities from Kinh networks, which are supposed to be more efficient to cope with covariant risk because they are more diversified in the occupation and location of their members. This evidence suggests that inequalities among ethnic groups in Viet Nam are partly rooted in the cultural and social distances between them.
    Keywords: Risk-sharing network, homophily, ethnic gap, Viet Nam, Vietnam.
    JEL: O12 I31 D85
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:dia:wpaper:dt201815&r=cse
  3. By: Nascia, Leopoldo; Pianta, Mario
    Abstract: Italy’s research and innovation are examined in this article moving from the structure of the country’s economy and innovation system, examining the dynamics of private and public activities and the impact of policies. As a result of the long recession started in 2008, industrial production and investment experienced dramatic reductions, weakening business performances in R&D and innovation; policies have relied on ‘horizontal’ tax incentives for R&D, patenting and new machinery, with limited effects. Austerity-driven reduction of public expenditure has led to major cuts in public R&D and university budgets, combined with new rules for evaluation and merit-based financing. As a result, gaps between Italy’s research and innovation and EU average performances have increased. Four key policy questions are identified: the possibility for Italians firms to grow with modest technological activities; the longer term impact of underfunding the public R&D and university system; the consequences of a low presence of university graduates in the labour force; the sustainability of the increasing regional divergence within Italy’s research and innovation system.
    Keywords: R&D, innovation, technology policy, Italy
    JEL: O31 O33 O52
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:89510&r=cse
  4. By: Chun-Yao Tseng (Tunghai University)
    Abstract: This study focuses on collaborative innovation in China ICT(Information and Communications Technology) industry. Although prior findings point out that collaborative innovations do facilitate innovation performance, there are some unresolved problems and one of which is the problem of ?collaborating with whom?. Is there the effect of cultural similarity in collaborative innovation. This paper aims to contribute to the literature of collaborative innovation by investigating into the effects of collaborative partners on innovation performance from the perspective of cultural similarity. Based on the analysis of patent and citation from the U.S. Patents and Trademark Office (USPTO) from 1985 to 2010, empirical results are shown the performance of collaborative innovation between China and foreign is significantly greater than that of domestic collaborative innovation in China. The performance of collaborative innovation between China and culturally similar country is significantly better than that between China assignees and culturally different country.
    Keywords: Collaborative Innovation; Cultural Similarity; External Partners; Innovation across Cultures.
    JEL: O30 O32 M14
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:sek:iacpro:6509247&r=cse
  5. By: Vivarelli, Marco (Università Cattolica del Sacro Cuore)
    Abstract: This paper aims to provide a critical overview of the drivers that the relevant theoretical and empirical literature suggests being crucial in dealing with the challenges an emerging country may encounter in its attempts to further catch-up a higher income status, with a particular focus devoted to the implications for the domestic labor market. In the first part of the paper, attention will be focused on structural change, capability building and technological progress, trying to map - using different taxonomies put forward by the innovation literature - the concrete ways through which an emerging country can engage a successful catching-up, having in mind that developing countries are deeply involved into globalized markets where domestic innovation has to be complemented by the role played by international technology transfer. In the second part of the paper, the focus will be moved to the possible consequences of this road to catching-up in terms of employment and skills. In particular, the prescriptions by the conventional trade theory will be contrasted with a view taking into account technology transfer, labor-saving technological progress and skill-enhancing trade.
    Keywords: catching-up, structural change, globalization, capabilities, technological transfer
    JEL: O14 O33
    Date: 2018–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp11849&r=cse
  6. By: Borner, J.; Bruckner, M.; Flach, R.; Soares-Filho, B.; Wunder, S.
    Abstract: Green growth strategies and bioeconomic technological innovation affect global demand and supply of agricultural and forestry-based commodities. What trade-mediated impacts has this fledging transformation on land-use change at ecologically sensitive tropical forest margins? Standard global trade models only provide impact assessments at aggregate regional scales, implicitly assuming either perfect or zero environmental enforcement. However, emerging empirical impact evaluations suggest that conservation policies only partially constrain illegal land conversion with highly variable effectiveness in space. We present a spatially explicit cropland allocation tool simulating imperfectly functioning conservation policies. We shock cropland allocation with a land demand scenario derived from a multi-regional input-output model to assess land-use spillovers under two common policy scenarios of imperfect environmental enforcement under spatial heterogeneity: (1) protection of specific flagship biomes through protected area networks or (2) cost-efficient enforcement in accessible zones immediately threatened by illegal agricultural expansion. Both scenarios result in land use spillover effects, but combining the two strategies does not generally perform better than flagship biome protection alone. Outcomes depend on country-specific spatial distributions of returns to cropland expansion, law enforcement costs, and environmental service provision. In closing, we discuss the implications of our findings for land-use governance in a globalized bioeconomy. Acknowledgement : This work was supported by the Robert Bosch Foundation, the German Federal Ministry of Education and Research, the German Federal Ministry for Economic Cooperation and Development, and is part of CIFOR s Global Comparative Study on REDD+
    Keywords: Environmental Economics and Policy
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:ags:iaae18:277223&r=cse
  7. By: Adam Dewitte (IAE Lille - Institut d'Administration des Entreprises - Lille - Université de Lille, Sciences et Technologies)
    Abstract: The concept of business model innovation has lead to numerous research in strategy. However, little attention has been given on topics related to entry strategies. Consequently, this theoretical paper aims to link two research streams, i.e. the literature on business model and that of entry strategy, to provide insightful knowledge for both fields. In particular we try to better understand the role of business model innovation on entry barrier' effectiveness. Using previous theoretical works and empirical examples, we first discuss the ability of an innovative business model (1) to lower entry barriers and (2) to provide first mover advantages for a new entrant. These advantages may lead to new entry or mobility barriers development. We finally identify four research propositions to guide future empirical research.
    Keywords: Mots-clés : Business Model,Business Model Innovation,Entry Strategy,Entry Barriers,Strategic Management
    Date: 2017–06–01
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01896940&r=cse
  8. By: Vivarelli, Marco (UNU-MERIT, IZA, and Università Cattolica del Sacro Cuore, Milano)
    Abstract: This paper aims to provide a critical overview of the drivers that the relevant theoretical and empirical literature suggests being crucial in dealing with the challenges an emerging country may encounter in its attempts to further catch-up a higher income status, with a particular focus devoted to the implications for the domestic labour market. In the first part of the paper, attention will be focused on structural change, capability building and technological progress, trying to map - using different taxonomies put forward by the innovation literature - the concrete ways through which an emerging country can engage a successful catching-up, having in mind that developing countries are deeply involved into globalised markets where domestic innovation has to be complemented by the role played by international technology transfer. In the second part of the paper, the focus will be moved to the possible consequences of this road to catching-up in terms of employment and skills. In particular, the prescriptions by the conventional trade theory will be contrasted with a view taking into account technology transfer, labour-saving technological progress and skill-enhancing trade.
    Keywords: catching-up, structural change, globalisation, capabilities, technology transfer, technologic change, innovation, emerging economies
    JEL: O14 O31 O33
    Date: 2018–10–23
    URL: http://d.repec.org/n?u=RePEc:unm:unumer:2018037&r=cse
  9. By: Lema, Rasmus (Aalborg University); Pietrobelli, Carlo (UNU-MERIT, and University Roma Tre); Rabellotti, Roberta (University of Pavia, and Aalborg University)
    Abstract: Developing countries are faced with significant challenges related to building and deepening their innovation capabilities. In this chapter, we focus on innovation in global value chains and on the role that such chains play in building and deepening capability. We also focus on the trajectories along which firms, once inserted into global value chains and located in developing countries, acquire or lose innovation capability. To do so, we bring together the global value chains and innovation systems approaches. Our key arguments are that global value chains interact with innovation systems in multiple ways and that these interactions have important implications for the speed, depth, and overall quality of capability building in developing-country firms. We outline five innovation capability trajectories and show how capability building at the firm level interrelates with the various ways in which global value chains and innovation systems co-evolve.
    Keywords: global value chains, innovation systems, technological capabilities, innovation policy, co-evolution
    JEL: F23 D23 L22 L25 O10 O32 O38
    Date: 2018–10–24
    URL: http://d.repec.org/n?u=RePEc:unm:unumer:2018038&r=cse
  10. By: Pascal Billand (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Christophe Bravard (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Jacques Durieu (UGA UFR FEG - Université Grenoble Alpes - Faculté d'Économie de Grenoble - UGA - Université Grenoble Alpes); Sudipta Sarangi (Virginia Tech [Blacksburg], DIW Berlin - Deutsches Institut für Wirtschaftsforschung)
    Abstract: We consider an oligopoly setting in which firms form pairwise collaborative links in R&D with other firms. Each collaboration generates a value that depends on the identity of the firms that collaborate. First, we provide properties satisfied by pairwise equilibrium networks and efficient networks. Second, we use these properties in two types of situation (1) there are two groups of firms, and the value of a collaboration is higher when firms belong to the same group; (2) some firms have more innovative capabilities than others. These two situations provide clear insights about how firms heterogeneity affects both equilibrium and efficient networks. We also show that the most valuable collaborative links do not always appear in equilibrium, and a public policy that increases the value of the most valuable links may lead to a loss of social welfare.
    Keywords: Networks,R&D collaborations,link value heterogeneity
    Date: 2018–08
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01905345&r=cse
  11. By: abe Harraf (University of Northern Colorado - Monfort Collge of Business)
    Abstract: The concept of Business Ecosystems has become a topic that has received increased attention within management literature and amongst practitioners. This concept refers to the idea that the nature of competition within our contemporary economy has fundamentally changed. No longer do organizations compete with one another in a zero-sum game. Today, organizations are simultaneously collaborating and competing with one another in order to co-create value, co-evolve capabilities with one another, and develop innovations in a more effective, timely and efficient manner. Although this concept has been praised for its ability to create value and share that value amongst ecosystem members, including customers, little research has been conducted to investigate the potential drawbacks of this new form of competition. This paper identifies that business ecosystems can have negative effects on innovation and competition as they develop oligopolistic market structures.
    Keywords: Business Ecosystems, Keystone organizations, innovation, Oligopoly
    JEL: O31
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:sek:iacpro:8208527&r=cse
  12. By: Dani Rodrik
    Abstract: Many of the exports of developing countries are channeled through global value chains (GVCs), which also act as conduits for new technologies. However, new capabilities and productive employment remain limited so far to a tiny sliver of globally integrated firms. GVCs and new technologies exhibit features that limit the upside and may even undermine developing countries’ economic performance. In particular, new technologies present a double whammy to low-income countries. First, they are generally biased towards skills and other capabilities. This bias reduces the comparative advantage of developing countries in traditionally labor-intensive manufacturing (and other) activities, and decreases their gains from trade. Second, GVCs make it harder for low-income countries to use their labor cost advantage to offset their technological disadvantage, by reducing their ability to substitute unskilled labor for other production inputs. These are two independent shocks that compound each other. The evidence to date, on the employment and trade fronts, is that the disadvantages may have more than offset the advantages.
    JEL: O30 O40
    Date: 2018–10
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:25164&r=cse
  13. By: Madaleno, Margarida (London School of Economics); Nathan, Max (University of Birmingham); Overman, Henry (London School of Economics); Waights, Sevrin (DIW Berlin)
    Abstract: A growing wave of co-location programmes promises to boost growth for entrepreneurs and young firms. Despite great public and policy interest we have little idea whether such programmes are effective. This paper categorises accelerators and incubators within a larger family of co-location interventions. We then develop a single framework to theorise workspace-level impacts. We summarise available evaluation evidence and sketch implications for regional economic policy. We find clear evidence programmes are effective overall. But we know little about how effects operate – or who benefits. Providers and policymakers should experiment further to establish optimal designs.
    Keywords: entrepreneurship, incubators, accelerators, clusters, cities, economic development
    JEL: L26 O32 R30 R58
    Date: 2018–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp11856&r=cse

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