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on Economics of Strategic Management |
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Issue of 2019‒10‒07
twelve papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Iizuka, Michiko (National Graduate Institute for Policy Studies, Japan); Pietrobelli, Carlo (UNU-MERIT, and University Roma Tre); Vargas, Fernando (UNU-MERIT, and Inter†American Development Bank) |
| Abstract: | This paper tries to broaden the scope and understanding of innovation in the mining sector, with a focus on emerging countries based on the experience of Latin America. It discusses the innovation processes that are developing in the mining sector of emerging countries, and uses the global value chains (GVC) approach to analyze the potential available to local firms. The focus is on all forms of innovation, not only those eventually subject to patenting, to include innovations in products and processes, but also in business, marketing and organizational models and practices. The new features of scientific knowledge applied to the mining sector (e.g. ICT, new materials, biotechnology) open new opportunities for new suppliers to enter and add value in mining GVCs, and we illustrate this point with specific examples of Latin American suppliers. However, in developing this argument, we cannot forget that in most of Latin American mining there is insufficient supply of local knowledge, indicators of R&D expenditures and researchers involved show a significant lag with respect to advanced countries. Multinational mining companies have not traditionally conducted intensive R&D activities near their operations, and local universities do not tend to specialize in scientific topics directly linked to the mining industry. The paper concludes by arguing that there is a need to rethink and innovate policy approaches, if countries aim at scaling up and broadening the many good examples of innovative suppliers. |
| Keywords: | Global value chains, Natural resources, Mining, Latin America, Innovation and learning, public policies |
| JEL: | O13 O32 O43 |
| Date: | 2019–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2019033&r=all |
| By: | Ufuk Akcigit; Sina T. Ates |
| Abstract: | In the past several decades, the U.S. economy has witnessed a number of striking trends that indicate a rising market concentration and a slowdown in business dynamism. In this paper, we make an attempt to understand potential common forces behind these empirical regularities through the lens of a micro-founded general equilibrium model of endogenous firm dynamics. Importantly, the theoretical model captures the strategic behavior between competing firms, its effect on their innovation decisions, and the resulting “best versus the rest” dynamics. We focus on multiple potential mechanisms that can potentially drive the observed changes and use the calibrated model to assess the relative importance of these channels with particular attention to the implied transitional dynamics. Our results highlight the dominant role of a decline in the intensity of knowledge diffusion from the frontier firms to the laggard ones in explaining the observed shifts. We conclude by presenting new evidence that corroborates a declining knowledge diffusion in the economy. We document a higher concentration of patenting in the hands of firms with the largest stock and a changing nature of patents, especially in the post-2000 period, which suggests a heavy use of intellectual property protection by market leaders to limit the diffusion of knowledge. These findings present a potential avenue for future research on the drivers of declining knowledge diffusion. |
| Keywords: | business dynamism, market concentration, competition, knowledge diffusion, step-by-step innovations, transitional dynamics |
| JEL: | E22 E25 L12 O31 O33 O34 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7854&r=all |
| By: | Jean Bonnet (Normandie Univ, UNICAEN, CNRS, CREM, F-14000 Caen, France); Eva Coll-Martinez (Normandie Univ, UNICAEN, CNRS, CREM, F-14000 Caen, France); Patricia Renou-Maissant (EconomiX, CNRS, University of Paris Nanterre, France) |
| Abstract: | The paper proposes an evaluation framework for empirically comparing the performance of French departments in terms of sustainable development. The concept of sustainability is apprehended from six dimensions: environment and natural resources, energy transition, sustainable mobility, economic dynamism, social cohesion and solidarity, and governance and citizenship. The focus on French departments allows for a more detailed analysis that promotes a better understanding of local characteristics and initiatives. Considering a wide range of variables, we build aggregate composite indexes for each dimension of sustainable development. We use cartographical support to compare the performances of the departments in each of the six dimensions as well as spatial autocorrelation techniques to account for spatial dependence. Finally, a cluster analysis is used to classify French departments and to explore similarities and dissimilarities with respect to the six components of the sustainable development. The results highlight significant disparities between departments regardless of the dimension considered. Five profiles of sustainable development are distinguished. Finally, the findings make it possible to identify the strengths and weaknesses of the departments in the implementation of sustainable development. |
| Keywords: | Sustainable development, French Departments, composite index, multidimensional data |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2019-06&r=all |
| By: | Klimczuk-Kochańska, Magdalena |
| Abstract: | Background. For universities, it is essential to develop in the direction of market expectations. It is necessary to enter into cooperation with entrepreneurs which allows technology transfer to create innovations. The knowledge triangle model is a concept that involves creating relationships between universities, research institutions and enterprises. This idea is very important for European policy and is implemented by the European Institute of Innovation and Technology (EIT). However, it is worth checking whether it is actually being implemented. Research Aims. To check if the approach of the knowledge triangle is used in practice by entities set up under the EIT. Another research aim is an exploration of the current directions in which the university's cooperation with other bodies is heading, and if this has an impact on raising the level of innovation in Europe. Methodology. A look at the model of cooperation between universities and the environment and search for an appropriate framework of benefit from this kind of collaboration on scientific literature review. Moreover, the desk research regarding the EIT Food - one of the European initiatives in the food sector. Key findings. The analyses carried out allow us to state that the concept of the knowledge triangle is not just a theoretical idea. The concept has its application in practice. It was also identified that universities are the main engine of all undertaken activities in the field of education, research and innovation. |
| Keywords: | cooperation, entrepreneurial university, knowledge triangle, third mission, triple helix, quadruple helix |
| JEL: | L22 O31 O32 Q55 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96150&r=all |
| By: | Jean Bonnet (Normandie Univ, UNICAEN, CNRS, CREM, F-14000 Caen, France); Eva Coll-Martinez (Normandie Univ, UNICAEN, CNRS, CREM, F-14000 Caen, France); François Raulin (Métis Lab, EM Normandie, France); Patricia Renou-Maissant (EconomiX, CNRS, University of Paris Nanterre, France) |
| Abstract: | The paper proposes an evaluation framework for comparing empirically the performance of Norman EPCIs in terms of sustainable development. The concept of sustainability is based on six dimensions: environment and natural resources, energy transition, sustainable mobility, economic dynamism, social cohesion and solidarity, and governance and citizenship. Considering a wide range of variables, we build aggregate composite indexes for each dimension of sustainable development. We use cartographical support to compare the performances of EPCIs in each of the six dimensions. Then a cluster analysis classifies Norman EPCIs and explores similarities and dissimilarities with respect to the six components of the sustainable development. The results highlight significant disparities between EPCIs regardless of the dimension considered. Six profiles of sustainable development are distinguished. Finally, the findings make it possible to identify the strengths and weaknesses of Norman EPCIs in implementation of sustainable development. |
| Keywords: | Sustainable development, French EPCIs, composite index, multidimensional data |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2019-05&r=all |
| By: | Sumudu Kankanamge (Toulouse School of Economics); Alexandre Gaillard (Toulouse School of Economics) |
| Abstract: | This paper introduces a quantitative stylized life-cycle model with entrepreneurship and endogenous business selling, buying and founding decisions. Using a new dataset on the small business sale market as well as the SSBF, the SBO and the PSID datasets, we document the importance of the buying, selling and founding margins for entrepreneurs and find large mismatches on the business sale market. The data also reveal a key role for age and life-cycle dynamics for entrepreneurial entry and exit decisions. Using the model, we find that the combination of (i) illiquid business assets, (ii) frictions on the business sale market and (iii) the life-cycle components of entrepreneurship are key to reproducing our empirical finding. Finally, we simulate a large demographic event akin to the baby-boomers generation reaching peak retirement age and evaluate the macroeconomic outcome of such a change. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1503&r=all |
| By: | Narula, Rajneesh (Henley Business School, University of Reading, UK) |
| Abstract: | The 2013 Rana Plaza disaster led external stakeholders to insist on higher labour standards in apparel global value chains (GVCs). Stakeholders now expect MNEs to take 'full-chain' responsibility. However, the increased monitoring and enforcement costs of a large network of suppliers have been non-trivial. MNEs instead implement a 'cascading compliance' approach, coupled with a partial re-internalisation. Elevated costs are further exacerbated in developing countries where the informal and formal sector are linked, and cost competitiveness greatly depends on this duality. Monitoring actors in the informal sector is difficult, and few informal actors can achieve compliance. GVCs have therefore reduced informal sector engagement by excluding non-compliant actors and investing in greater automation. By seeking to strictly enforce compliance, MNEs are attenuating some of the positive effects of MNE investment, particularly the prospects for employment creation (especially among women), and enterprise growth in the informal sector. I discuss how these observations might inform other cross-disciplinary work in development, ethics, and sociology. Finally, I note implications for IB theory from the disparities between the ownership, control and responsibility boundaries of the firm. |
| Keywords: | informal economy, MNEs, duality, Bangladesh, compliance, GVCs |
| JEL: | E26 F23 J8 |
| Date: | 2019–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2019034&r=all |
| By: | Nelson Lind (Emory University); Natalia Ramondo (UCSD) |
| Abstract: | This paper develops a model of economic growth and trade in which countries innovate ideas that diffuse across the globe. This model dynamically generates max-stable multivariate Frechet productivity distributions and implies a mixed-CES import demand system. This demand system allows for rich substitution patterns in trade flows that arise from spatial correlation in technology. In the special case of a pure innovation model where countries do not share ideas, productivities are independent across space, and the demand system is CES. As a consequence, departures from CES reflect how knowledge diffusion generates technological similarity. In the general case with diffusion, high innovation countries tend to have dissimilar technology and their goods are less substitutable. These theoretical results provide a direct connection between estimable substitution patterns and the underlying dynamics of innovation and knowledge diffusion. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1364&r=all |
| By: | Vanessa Alviarez (University of British Columbia); Javier Cravino (University of Michigan); Natalia Ramondo (UCSD) |
| Abstract: | We use data on the cross-country operations of multinational enterprises and their foreign affiliates to separate the components of productivity that are internationally mobile from those that are immobile. We show that the productivity factors that are embedded in firms and can be transferred globally account for about 20 percent of the observed differences in TFP across European countries, thought its importance varies widely across countries. This indicates large potential gains form convergence in `firm-embedded' productivity. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1188&r=all |
| By: | Pietro Moncada-Paterno-Castello (European Commission - JRC); Sara Amoroso (European Commission - JRC); Dimitris Pontikakis (European Commission - JRC); Emanuele Pugliese (European Commission - JRC); Alexander Tuebke (European Commission - JRC) |
| Abstract: | Key science and EU policy topics on 'Innovation for industrial transformation', the focus of CONCORDi 2019 Conference, are addressed in this background report such as: how manage an inclusive and sustainable industrial transformation, establishing European firms as globally competitive; how to advise industrial and innovation policy on how to take into account specific territorial needs to guarantee fair and sustainable competitiveness and job creation across the whole EU; and what are the main challenges and opportunities that EU industry transformation due to innovation will face. Addressing these compelling topics is not an easy task and requires us to consider different dimensions of analysis in parallel. The report first points out what are the research and policy challenges ahead, and then introduces expected contribution from CONCORDi 2019 by the academia providing a short literature background in the main corresponding areas, by policy-makers and by other distinguished stakeholders from national or international institutions and industry. The document also provides a summary of the content of the Conference's scientific papers as well as some specific examples of challenges for the future EU policy agenda related to 'innovation for industrial transformation'. |
| Keywords: | Innovation, Corporate R&D, Technological change, Industrial transformation, EU Industrial and Innovation policies. |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc117787&r=all |
| By: | Sara Amoroso (Joint Research Centre, European Commission); Simone Vannuccini (Science Policy Research Unit (SPRU), University of Sussex Business School, University of Sussex) |
| Abstract: | The participation of top R&D players to publicly funded research collaborations is a common yet unexplored phenomenon.If,on the one hand,including top R&D firms creates opportunities for knowledge spillovers and increases the chance for a project to be funded, on the other hand, the uneven nature of such partnerships and the asymmetry in knowledge appropriation capabilities could hinder the overall performance of such collaborations. In this paper, we study the role of top R&D investors in the performance of publicly funded R&D consortia (in terms of number of patents and publications). Using a unique data set that matches informationon R&D collaborative projects and proposals with data on international top R&D firms, we find that indeed teaming up with leading R&D firms increases the probability to obtain funds. However,the participation of such R&D leaders hinders the innovative performance of the funded projects, both in terms of patents and publications. In light of this evidence, the benefits of mobilizing top R&D players should be carefully leveraged in the evaluation and design of innovation policies aimed at R&D collaboration and technology diffusion. |
| Keywords: | Collaboration; publicfunding; innovationperformance; appropriability; top R&D investor |
| JEL: | L24 L25 O33 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2019-20&r=all |
| By: | Ziesemer, Thomas (UNU-MERIT, and SBE, Maastricht University) |
| Abstract: | This literature review shows that a majority of studies finds complementarity of R&D subsidies and tax credits with private R&D expenditures. A non-negligible minority finds incomplete crowding out. Full crowding out is found only for small parts of the respective samples or small sub-sectors of the economy under consideration. Education R&D and publicly performed R&D stimulate private R&D according to a small literature. We focus on the exceptions from these dominant results. The controversies concern firm size, interaction of policy instruments, and effectiveness of parts of publicly performed R&D. There are important suggestions for future research derived from our literature review: (i) use of dynamic models with adequate time lags, (ii) explaining effects of country and firm heterogeneity. |
| Keywords: | Research & development, business R&D, subsidies, public R&D |
| JEL: | H25 O38 |
| Date: | 2019–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2019036&r=all |