nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2019‒03‒18
nine papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Concordance and complementarity in IP instruments By Marco Grazzi; Chiara Piccardo; Cecilia Vergari
  2. Does deregulation drive innovation intensity? Lessons learned from the OECD telecommunications sector By Polemis, Michael; Tselekounius, Markos
  3. Community Origins of Industrial Entrepreneurship in Pre-Independence India By Gupta, Bishnupriya; Mookherjee, Dilip; Munshi, Kaivan; Sanclemente, Mario
  4. Standard Setting Organizations, Information Flows and Business Strategies: An Empirical Investigation By Ray Lambert; Paul Temple
  5. Innovation and the Patterns of Trade: A Firm-Level Analysis By Santacreu, Ana Maria; Varela, Liliana
  6. Intellectual Property Enforcement, Exports and Productivity: Evidence from China By Huiwen Lai; Keith E. Maskus; Lei Yang
  7. Estimating effects of information and communication technology (ICT) on productivity of manufacturing industries in South Africa By Lefophane, M.; Kalaba, M.
  8. Employee Wellbeing, Productivity and Firm Performance By Jan-Emmanuel De Neve; Christian Krekel; George Ward
  9. Exploring the Scope of a Cross-regional Knowledge Network. The Case of a Green Chemistry Research Federation in France By Marion Maisonobe; Bastien Bernela

  1. By: Marco Grazzi (DISCE, Università Cattolica); Chiara Piccardo (Dipartimento di Scienze Economiche, Università di Verona); Cecilia Vergari (Dipartimento di Scienze Economiche, Università di Bologna)
    Abstract: This work investigates the relationship between proxies of innovation activities, such as patents and trademarks, and firm performance in terms of revenues and growth. By resorting to the virtual universe of Italian manufacturing firms we provide a rather complete picture of the innovation activities of Italian firms, in terms of patents and trademarks, and we study whether the two instruments for protecting Intellectual Property (IP) exhibit complementarity or substitutability. In addition, and to our knowledge novel, we propose a measure of concordance (or proximity) between the patents and trademarks owned by the same firm and we then investigate whether such concordance appears to exert any effect on performance.
    Keywords: Trademarks, Patents, Innovation, Intellectual Property, Complementarity, Concordance, Technological proximity, Firm performance, Firm growth
    JEL: O31 O34 L25
    Date: 2019–01
  2. By: Polemis, Michael; Tselekounius, Markos
    Abstract: The channel between innovation and industry regulation constitutes a non-lasting debate among the economists and researchers within the recent years. Despite the significant contributions on this field, mostly made from the empirical standpoint, the existing literature is still incomplete. This might be attributed to the fact that existing studies fail to combine a strong theoretical framework with the empirical scrutiny in order to exemplify and decompose the relationship between regulation intensity and innovation activity. We attempt to shed light on this limitation by theoretically modeling the telecommunications sector, in which access regulation impacts the non-separable activity in process and product innovation. We then empirically test our model by deploying an efficient panel threshold technique along the lines of Hansen (1999). Our balanced panel dataset comprises of 32 OECD countries over the period 1995-2012. The empirical results unveil a non-monotonic relationship of an “inverted V-shaped” form between regulation and innovation. We argue that beyond certain thresholds increasing the regulatory stringency further results in decreasing sector innovation. Our findings survive robustness checks after the inclusion of two alternative threshold variables (market structure and entry regulation) incurring significant implications for the policy makers and government officials.
    Keywords: Innovation; Regulation; Telecommunications, Market structure; Panel threshold model.
    JEL: C24 D43 L51 L80 L96
    Date: 2019–03–15
  3. By: Gupta, Bishnupriya (University of Warwick); Mookherjee, Dilip (Boston University); Munshi, Kaivan (University of Cambridge); Sanclemente, Mario (University of Warwick)
    Abstract: We argue that community networks played an important role in the emergence of Indian entrepreneurship in the early stages of the cotton textile and jute textile industries in the late 19th and early 20th century respectively, overcoming the lack of market institutions and government support. From business registers, we construct a yearly panel dataset of entrepreneurs in these two industries. We find no evidence that entry is affected by prior trading experience or price shocks in the corresponding upstream sector. Firm directors exhibited a high degree of clustering of entrepreneurs by community. The dynamics of entry is consistent with a model of network-based dynamics.
    Keywords: JEL Classification:
    Date: 2019
  4. By: Ray Lambert (Birbeck); Paul Temple (University of Surrey)
    Abstract: The paper investigates the link between standards, business strategy and innovation, based upon a factor analysis of the stated ‘context’ for innovation contained in the 2012-2014 UK Innovation Survey (UKIS). The analysis reveals a distinction between pro-active ‘entrepreneurial’ strategies and reactive and ‘defensive’ strategies, as well as firms, although regarded in the survey as innovation ‘active’ have no clear innovation based objective. We combine this classification with sectoral indicators of the significance of standards to investigate how firms deliver these strategies. We find that, in addition to the important role played by the type of innovation strategy, standards have a significant impact not only on the extensive margin of R&D expenditures, but also on the likelihood that firms will invest in related complementary investments, notably in training and design. We test these propositions with a specific UKIS question on the value that firms put on standards. The positive impact that standards have on the acquisition of innovation related assets suggest that, on balance, the impact of standards has significant pro-competitive effects on an innovation system.
    JEL: L21 O31 O32 O34
    Date: 2019–03
  5. By: Santacreu, Ana Maria (Federal Reserve Bank of St. Louis); Varela, Liliana (University of Warwick, CEPR and CAGE)
    Abstract: This paper studies the impact of increased import penetration on a country’s long-term patterns of trade. It shows that foreign competition induces firms to increase their R&D efforts in order to differentiate their products and escape competition. Quality improvements translate into increases in firms’ exports. This effect, however, is heterogeneous across sectors and is driven by sectors’ in which the country has a comparative advantage. On the aggregate, the impact of import competition on innovation and a country’s patterns of trade depends crucially on the distribution of sectoral comparative advantage. We provide evidence of this mechanism using firm-level data on trade and innovation for France and import competition driven by China’s WTO entry.
    Keywords: quality upgrading, import competition, patterns of trade, comparative advantage JEL Classification: F12, F14, O30, O41
    Date: 2019
  6. By: Huiwen Lai; Keith E. Maskus; Lei Yang
    Abstract: We study how provincial-level enforcement of intellectual property rights (IPRs) affects Chinese firms’ decisions regarding exit, export, and the channels through which to receive technology transfer. Our findings provide insights into how variations in IPRs enforcement alter productivity. Our model combines the standard theory of heterogeneous firms with the endogenous choices of those firms concerning how they absorb international technologies through imitation or licensing. We show that, in this setting, the exit and export cutoff productivities differ from those in the standard environment, leading to a different sorting mechanism. We also predict that stronger IPRs change the decisions firms make concerning their mode of technology transfer, further altering their productivity and export possibilities. Empirical tests based on a comprehensive dataset of Chinese firms from 2000 to 2006 support the model predictions.
    Keywords: Intellectual Property Enforcement, Exports, Firm Heterogeneity
    JEL: D23 F13 F14 O34
    Date: 2018–07
  7. By: Lefophane, M.; Kalaba, M.
    Abstract: The paper serves to examine whether the growth in labour productivity (LP) in the manufacturing sector following policy reforms after democracy can be attributed to ICT. To achieve this, we examine the link between ICT intensity and LP growth of 23 manufacturing industries for the period 1970-2016 and sub-periods 1970-1995 and 1996-2016. The industries are disaggregated into two groups which are namely �more ICT intensive� and �less ICT intensive� using the ICT intensity index. Four dummy variable regression models are applied to test for the relationship between ICT intensity of industries and LP growth. The findings suggest that LP growth of more ICT intensive industries accelerated more than that of their counterparts. The results underscore the need for policy measures to increase ICT use with the aim of improving LP performance of industries.
    Keywords: ICT intensity, LP growth, manufacturing industries; Productivity Analysis
    Date: 2018–09–25
  8. By: Jan-Emmanuel De Neve; Christian Krekel; George Ward
    Abstract: Does higher employee wellbeing lead to higher productivity, and, ultimately, to tangible benefits to the bottom line of businesses? We survey the evidence and study this question in a meta-analysis of 339 independent research studies, including the wellbeing of 1,882,131 employees and the performance of 82,248 business units, originating from 230 independent organisations across 49 industries in the Gallup client database. We find a significant, strong positive correlation between employees' satisfaction with their company and employee productivity and customer loyalty, and a strong negative correlation with staff turnover. Ultimately, higher wellbeing at work is positively correlated with more business-unit level profitability.
    Keywords: employee satisfaction, engagement, employee productivity, firm performance, wellbeing, meta-analysis
    JEL: I31 J24
    Date: 2019–03
  9. By: Marion Maisonobe (GC - Géographie-cités - UP1 - Université Panthéon-Sorbonne - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique); Bastien Bernela (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers)
    Abstract: Competition in research has led to the emergence of numerous consortia of laboratories, designed to improve their participants' visibility. This article aims to understand the determinants of these new structures through the case study of a French federation of laboratories in green chemistry. Working from bibliographic and qualitative data, we examine this federation's geographical and institutional scope, highlighting the importance of i) prior collaborations in French chemistry, ii) interpersonal relations between consortium members, and iii) policy and scientific incentives. This research highlights the role of the territorial scope of the consortium not only as an argument for the consortium to emerge but also as a resource for its development and visibility among academics and industrial partners.
    Keywords: green chemistry,territorial organization,network formation,embeddedness,scientific alliances
    Date: 2019–03–01

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