nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2019‒07‒15
twelve papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  2. Business Dynamics, Knowledge Economy, and the Economic Performance of African Countries By Simplice A. Asongu; Voxi H. S. Amavilah; Antonio R. Andres
  3. Local linkages: The interdependence of foreign and domestic firms By Kate Hynes; Yum K. Kwan; Anthony Foley
  4. FDI Technology Spillovers, Geography, and Spatial Diffusion By Mi Lin; Yum K. Kwan
  5. Innovation, Competition, and Incentives: Evidence from Uruguayan Firms By Ramiro de Elejalde; Carlos J. Ponce; Flavia Roldán
  6. Integration and Competition for Innovations in Science-Based Industries By Tapas Kundu; Seongwuk Moon
  7. Antitrust and Innovation: Welcoming and Protecting Disruption By Giulio Federico; Fiona Scott Morton; Carl Shapiro
  10. Internationalization and Performance of firms from emerging markets - Clusters and Business Groups - Substitutes or Complements? By Rajesh Srinivas Upadhyayula
  11. Research and development activities in Belgium: A snapshot of past investment for the country’s future By Saskia Vennix
  12. Scientific Education and Innovation: From Technical Diplomas to University STEM Degrees By Nicola Bianchi; Michela Giorcelli

  1. By: Quentin Plantec (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique, Institut National de la Propriété Industrielle (INPI)); Benjamin Cabanes (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Pascal Le Masson (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Benoît Weil (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: University-Industry (U-I) collaborative Ph.D. is one particular channel amongst a wide range of methods for firms to access academic knowledge. While often presented as a mean for firms to hire Ph.D. candidates or to address problem-solving issues, U-I collaborative Ph.D. could constitute an interesting proxy to deeper explore U-I collaborations goals and principles. We focus here on (1) what could be the different archetypes of U-I collaborative Ph.D. in terms of R&D strategies and collaboration forms? (2) In what extent firms and universities contribute to new knowledge co-development and unknown exploration through those collaborations? This exploratory study was based on an original date set of 90 collaboration agreements between laboratories and companies through the French "CIFRE" programme. First, we developed a coding scheme to classify each project between three collaboration forms (outsourcing of knowledge development / knowledge transfer & absorptive capacity / knowledge co-development) and three R&D strategies (process or product improvement / new competences enhancement / new innovation area exploration). Second, we computed descriptive statistical analyses to define four main archetypes of U-I collaborative Ph.D. As a result, the archetypes definition provided a more comprehensive vision of the literature on U-I collaborative Ph.D. projects that were appearing fragmented. We also highlighted that there was a high share of projects aiming at co-developing new knowledge for unknown exploration in our limited sample. We finally discussed (1) institutional factors that could favour this orientation and (2) possibilities to extend the scope of the study.
    Keywords: University -Industry ecosystems,R&D strategies,R&D collaborations,University - Industry PhD student,doctoral programmes
    Date: 2019–06–19
  2. By: Simplice A. Asongu (Yaoundé/Cameroon); Voxi H. S. Amavilah (REEPS, Arizona, USA); Antonio R. Andres (VSB TU Ostrava Ostrava, Czech Republic)
    Abstract: This paper develops a framework (a) to examine whether or not the African business environment hinders or promotes the knowledge economy (KE), (b) to determine how the KE affects economic performance, and (c) how economic performance relates to the inequality-adjusted human socioeconomic development (IHDI) of 53 African countries during the 1996-2010 time period. We estimate the linkages with three related equations. The results support a strong correlation between the dynamics of starting and doing business and variations in KE. The results also show that there exists a weak link between KE and economic performance. Nonetheless, KE-influenced performance plays a more important role in socioeconomic development than some of the conventional control variables like foreign direct investment (FDI), foreign aid, and even private investment.
    Keywords: Business Dynamics; Knowledge Economy; Economic Performance
    JEL: L59 O10 O30 O20 O55
    Date: 2019–01
  3. By: Kate Hynes (University College Dublin); Yum K. Kwan (City University of Hong Kong); Anthony Foley (Dublin City University)
    Abstract: This paper investigates the interdependence of foreign and domestic firms’ local linkage decisions and the extent to which they respond differently to variations in export intensity and productivity originating from each of the two groups of firms. Our empirical analysis, based on Irish data, uncovers an interesting asymmetric pattern in the local linkage dynamics of foreign and domestic firms. We find that local linkages of domestic firms tend to evolve independently of their foreign counterpart, and that they react almost instantaneously to exogenous events such as increases in export intensity or productivity. Local linkages of foreign firms, by contrast, react gradually to exogenous events and the impact works through the reverberating dynamics of the lagged linkages of both foreign and domestic firms. The Irish experience is instructive to policymakers in emerging markets who are naturally interested in the best way to maximize the value of FDI, in terms of benefits the latter brings about for sustainable economic development.
    Keywords: Local linkages; Multinationals; Foreign direct investment; Emerging markets
    JEL: F23 L22
  4. By: Mi Lin (University of Lincoln); Yum K. Kwan (City University of Hong Kong)
    Abstract: This paper investigates the geographic extent of FDI technology spillovers and associated spatial diffusion. By adopting a spatiotemporal autoregressive panel model as the platform of our study, the complex impact resulting from FDI penetration is separated into spatial direct and indirect effects while accounting for feedback loops among regions. A set of spatially partitioned summary measures is produced to identify and to quantify FDI spillovers from different channels with distinct geographic scopes. Empirical results based on data from China document that the direct impacts of FDI presence to a specific location itself are likely to be negative. Domestic firms mainly benefit from FDI presence in their neighboring regions through knowledge spillovers that have wider geographic scope. Negative market stealing effect nevertheless has no spatial boundary. Policy implications of these findings are discussed.
    Keywords: FDI spillovers, spatial diffusion, geography, spatial dynamic panel, Chinese economy
    JEL: R12 F21 O33
  5. By: Ramiro de Elejalde (Departamento de Economía, Universidad Alberto Hurtado); Carlos J. Ponce (Departamento de Economía, Universidad Alberto Hurtado); Flavia Roldán (Universidad ORT Uruguay)
    Abstract: Using a sample of manufacturing firms in Uruguay, this paper studies the eect of product market competition on innovative activities, labor practices and the provision of incentives within firms. Our estimates show that a higher level of product market competition: (i) decreases innovative expenditures, (ii) increases the number of innovations per dollar spent on innovative activities, and: (iii) leads firms to implement incentive payment schemes based on employee performance. These results suggest that, in developing economies, firms react to a higher level of product market competition by providing internal incentives that ultimately lead to significant increases in the productivity of their innovative outlays.
    Keywords: Competition, Innovation, Innovative Productivity, Incentives.
    Date: 2019–03
  6. By: Tapas Kundu (Oslo Business School, Oslo Akershus University College of Applied Sciences, School of Business and Economics, UiT the Arctic University of Norway); Seongwuk Moon (Sogang University Graduate School of Management of Technology)
    Abstract: We develop a model to understand how competition for innovation affects the organization of research activity and property-rights allocation in science-based industries. We consider a vertical production process with a division of labour between research and commercialization. We analyze firms’ incentive for integration in the presence of upstream competition for innovation. Integration adversely affects an integrated firm’s R&D investment and creates positive externality for the independent firms. For a sufficiently strong externality, a semiintegrated structure appears in equilibrium. The model can thus explain the coexistence of integrated and independent research firms and conforms to the evidence of R&D competition in science-based industries. Interestingly, a non-integrated arrangement can sometime appear in equilibrium even though a semi-integrated arrangement has higher innovation probability and aggregate industry payoff. This is because those who gain from integration cannot commit to compensate the losing parties at the contracting stage. We analyze the effects of resource constraints and inter-customer licensing on the industry structure and their implications for the competition for innovation.
    Keywords: R&D contest; Innovation, Vertical integration; Science-based Industry.
    JEL: L22 O31 O32
    Date: 2017–09–21
  7. By: Giulio Federico; Fiona Scott Morton; Carl Shapiro
    Abstract: The goal of antitrust policy is to protect and promote a vigorous competitive process. Effective rivalry spurs firms to introduce new and innovative products, as they seek to capture profitable sales from their competitors and to protect their existing sales from future challengers. In this fundamental way, competition promotes innovation. We apply this basic insight to the antitrust treatment of horizontal mergers and of exclusionary conduct by dominant firms. A merger between rivals internalizes business-stealing effects arising from their parallel innovation efforts and thus tends to depress innovation incentives. Merger-specific synergies, such as the internalization of involuntary spillovers or an increase in the productivity of R&D, may offset the adverse effect of a merger on innovation. We describe the possible effects of a merger on innovation by developing a taxonomy of cases, with reference to recent U.S. and E.U. examples. A dominant firm may engage in exclusionary conduct to eliminate the threat from disruptive firms. This suppresses innovation by foreclosing disruptive rivals and by reducing the pressure to innovative on the incumbent. We apply this broad principle to possible exclusionary strategies by dominant firms.
    JEL: L1 L10 L12 L13 L4 O3
    Date: 2019–06
  8. By: Swati Nigam
    Abstract: The role and status of English is higher than ever as evidenced by its position as a key subject of medium of instruction, curriculum. In view of its relevance, it has become imperative for English Language teachers and learners to realize the fundamental role of information and communication technology as a catalyst in the advancement of the frontiers of knowledge in language acquisition which is a prerequisite to the viability of the global economic development. The paper focuses on the role f ICT in teaching English method. Key Words:ICT, English, English method, teaching skill, teaching methodology Policy
    Date: 2018–06
  9. By: Venkataraman S (Indian Institute of Management, Kozhikode)
    Abstract: Stakeholder approach to management offers a distinctly different approach to managing corporations from the dominant “shareholder approach”, emphasizing the firm as balancing a confluence of co-operative and competitive interests representing an extended stakeholder base. This review examines the various dimensions that emerge in scholarly research associating stakeholder approaches to the theme of sustainable business. Stakeholder theory, particularly in its normative and instrumentalist approaches, is presented as a very naturally aligned theoretical framework for advancing the science and practice of sustainability. Nevertheless, risks also emerge in relying solely on a stakeholder approach to achieve sustainability. Gaps in research are identified.
    Keywords: Stakeholder, Corporate Sustainability
    Date: 2019–03
  10. By: Rajesh Srinivas Upadhyayula (Indian Institute of Management, Kozhikode)
    Abstract: While extant literature highlight business groups as a response to institutional voids, recent studies emphasized that business groups continue to persist because of the information advantages they possess. Studies in the developed economy context have shown that firms in clusters could benefit significantly from the information advantages and perform better than firms outside clusters. In this study, we examine if clusters serve as an alternative response to business groups for internationalization and performance. We find that both clusters and business groups have a positive association with internationalization and performance of firms. In addition, we also find that clusters and business groups serve as substitutes in explaining the performance of firms.
    Keywords: Internationalization, Emerging markets, Clusters and Business Groups
    Date: 2019–03
  11. By: Saskia Vennix (NBB, Microeconomic Information Department)
    Abstract: Recent changes in the accounting legislation regarding the accounting and disclosure of research and development (R&D) expenditure in the financial statements have triggered this research on the importance of this kind of activities and their impact at microeconomic level. Using survey data, a solid sample of 1,964 R&D companies was compiled. Based on this sample, some of the main characteristics of R&D firms are presented, such as sector of activity, age, geographic location, etc. In 2016, these 1,964 R&D entities together employed nearly 279,000 people and generated € 45 billion of value added, which represents 6 % of Belgium’s domestic employment and 10.6 % of the country’s gross domestic product. By means of statistical echniques, the microeconomic impact of R&D efforts on average annual growth of value added, average annual employment growth and average annual growth of labour productivity is investigated. Following this research, the conclusion is that R&D investment has generally had a positive impact on average annual growth of value added and average annual employment growth for periods of four years or longer. In a shorter timespan (less than four years), such a positive impact of R&D involvement could not be demonstrated. For the average annual growth of labour productivity, no evidence of any difference between the R&D and the non-R&D group was found.
    Keywords: microeconomic data, corporate R&D, firm performance, employment, value added, Belgian firms.
    JEL: D22 J21 L25 O33
    Date: 2019–07
  12. By: Nicola Bianchi; Michela Giorcelli
    Abstract: This paper studies the effects of university STEM education on innovation and labor market outcomes by exploiting a change in enrollment requirements in Italian STEM majors. University-level scientific education had two direct effects on the development of patents by students who had acquired a STEM degree. First, the policy changed the direction of their innovation. Second, it allowed these individuals to reach top positions within firms and be more involved in the innovation process. STEM degrees, however, also changed occupational sorting. Some higher-achieving individuals used STEM degrees to enter jobs that required university-level education, but did not focus on patenting.
    JEL: I21 I25 I28 J24 O30
    Date: 2019–06

This nep-cse issue is ©2019 by João José de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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