nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2019‒12‒16
eleven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Smart Specialisation and the Wider Innovation Policy Context in the Western Balkans By Nikola Radovanovic; Maximilian Benner
  3. Business Angel Investment, Public Innovation Funding and Firm Growth By Ali-Yrkkö, Jyrki; Pajarinen, Mika; Ylhäinen, Ilkka
  4. Pengaruh PAD, Dana Perimbangan dan PMA terhadap Tingkat Kemajuan Daerah Kabupaten dan Kota di Provinsi Sulavesi Selatan By Syukri, Muhammad
  5. Effects of Minimum Wage on Import and Innovation: Theory and Evidence from China By Chu, Angus C.; Furukawa, Yuichi; Kou, Zonglai; Liu, Xueyue
  6. The Relationship Between Open Source Software and Standard Setting By Knut Blind; Mirko Bohm
  7. Mergers and Innovation Portfolios By José Luis Moraga-González; Evgenia Motchenkova; Saish Nevrekar
  9. Industrial innovation for transformation: New science & policy insights By Sara Amoroso; Zoltan Csefalvay; Mafini Dosso; Petros Gkotsis; Nicola Grassano; Pietro Moncada Paterno Castello; Dimitrios Pontikakis; Lesley Potters; Emanuele Pugliese
  10. Firm Ownership, Quality of Government and Innovation By Stefano Clò,; Massimo Florio; Francesco Rentocchini
  11. The Intellectual Spoils of War? Defense R&D, Productivity and International Spillovers By Enrico Moretti; Claudia Steinwender; John Van Reenen

  1. By: Nikola Radovanovic (European Commission - JRC); Maximilian Benner (European Commission - JRC)
    Abstract: Enhancing the innovation potential has been on the policy agenda of the Western Balkan economies for years. Hence, innovation policymaking has led to a number of policy documents and strategies that relate to economic and innovative competitiveness. The concept of smart specialisation is a newer approach of innovation policy that seeks to develop countries’ or regions’ competitiveness based on their innovative potential in a cross-sectoral perspective and through evidence-based analysis. As Western Balkan economies are currently developing Smart Specialisation Strategies or preparing to do so, pre-existing policy documents provide a relevant context for ensuring the cross-sectoral character of Smart Specialisation Strategies. This paper gives an overview of the main elements of the smart specialisation concept and surveys the existing strategic frameworks for innovation in the Western Balkan economies. The analysis addresses the relevance of these frameworks and policy documents for smart specialisation, and highlights the links between pre-existing strategic frameworks in a smart specialisation perspective.
    Keywords: smart specialisation, Western Balkans, innovation, EU enlargement
    Date: 2019–11
  2. By: Hadiwijaya, Hendra; , Febrianty
    Abstract: This study aimed to determine the effect of Absorptive Capacity and Knowledge Sharing on the performance of womenowned SMEs group. The sample of this research was female business actor who joined in Alisah Khadijah group of ICMI Palembang as many as 138 business actors. Analysis of this research used Structural Equation Modeling (SEM) program with Lisrel Program. The result showed that Absorptive Capacity and Knowledge Sharing variable had positive and significant influence on Performance of SME group incorporated in Alisah Khadijah ICMI Palembang. Absorptive Capacity variable had more dominant influence on Performance than Knowledge Sharing variable
    Date: 2018–05–31
  3. By: Ali-Yrkkö, Jyrki; Pajarinen, Mika; Ylhäinen, Ilkka
    Abstract: Abstract In recent years, business angels have invested in a few hundred Finnish firms annually. The target firms are mainly young and small: 75% of them employ fewer than 10 workers and are less than 8 years old. These firms are most likely to be found in the ICT and professional service industries and manufacturing. Although many angel-funded firms have faster employment growth compared to matched nonfunded firms, the average growth rates do not significantly differ when we control for receiving public innovation funding and other firm characteristics. As many as 75% of the firms funded by business angels have also received public innovation funding in some phase, and 57% have received it before angel funding. However, no robust indication was found that combining these two sources of funds would give an extra boost to growth.
    Keywords: Business angels, Innovation subsidies, R&D, Firm growth
    JEL: D22 G24 G30 L53 O31
    Date: 2019–12–04
  4. By: Syukri, Muhammad
    Abstract: The purpose of this study is to determine the effect of locally-generated revenue (PAD), balancing funds and Foreign Direct Investment (FDI) to Progress Regions Level districts and cities in South Sulawesi Province either simultaneously or partially. Type of research used is applied research with quantitative data. The data used obtained from the Statistics Central Institution (BPS), which covers 24 districts and cities of South Sulawesi Province in 2016 in the form of thousands of rupiah. The research procedure is (1) Descriptive Analysis. (2) Establish multiple regression model. (3) Partial test and simultaneous test, and (4) determine the coefficient determination. Based on the simultaneous test of multiple linear regression model that PAD (X1), Balance Funds (X2) and FDI (X3) have significant effect to regional progress level (Y). And partial model testing, only PAD (X1) and fund balancing (X2) which significantly influence to regional progress level (Y). Meanwhile, FDI (X3) has no significant effect on regional progress level (Y). Therefore, the cultivation of FDI should be targeted and can provide direct benefits for the community in improving their welfare that will impact on improving regional progress. The suggestions needed in the development of further research that is required addition of other variables that can affect the level of regional progress.
    Date: 2018–05–20
  5. By: Chu, Angus C.; Furukawa, Yuichi; Kou, Zonglai; Liu, Xueyue
    Abstract: This study explores the heterogeneous effects of minimum wage on innovation of different types of firms. Using firm-level data in China, we find that a higher minimum wage is associated with more innovation by importing firms but less innovation by non-importing firms. To interpret these empirical findings, we develop an open-economy R&D-based growth model and find that a higher minimum wage reduces innovation of firms that use domestic inputs but increases innovation of firms that import foreign inputs. Intuitively, when a higher minimum wage reduces employment, importing firms respond by importing more inputs, which have technology spillovers and enhance their innovation.
    Keywords: innovation; minimum wage; imports; knowledge spillovers
    JEL: E24 F43 O31
    Date: 2019–11
  6. By: Knut Blind; Mirko Bohm
    Abstract: This report has been developed in the framework of the 2017 Communication of the European Commission ‘Setting out the EU approach to Standard Essential Patents’ (COM(2017) 712 final). In this Communication there is a direct commitment that 'The Commission will work with stakeholders, open source communities and SDOs for successful interaction between open source and standardisation, by means of studies and analyses'. Standards and open source development are both processes widely adopted in the ICT industry to develop innovative technologies and drive their adoption in the market. Innovators and policy makers assume that a closer collaboration between standards and open source software development would be mutually beneficial. The interaction between the two is however not yet fully understood, especially with regard to how the intellectual property regimes applied by these organisations influence their ability and motivation to cooperate. This study provides a comprehensive analysis of the interaction between standard development organisations (SDOs) and open source software (OSS) communities. The analysis is based on 20 case studies, a survey of stakeholders involved in SDOs and OSS communities, an expert workshop, and a comprehensive review of the literature.
    Keywords: Open source software development, standard development organization, intellectual property rights, intellectual property policies, FRAND licensing
    Date: 2019–11
  7. By: José Luis Moraga-González (Vrije Universiteit Amsterdam); Evgenia Motchenkova (Vrije Universiteit Amsterdam); Saish Nevrekar (Universidad Carlos III de Madrid)
    Abstract: This paper studies mergers in markets where firms invest in a portfolio of research projects of different profitability and social value. The portfolio nature of the investment problem brings about novel insights on the external effects of firms’ investments. The investment of a firm in one project imposes a negative business-stealing externality on the rival firms because it lowers the probability they win the innovation contest for that project; however, the investment of a firm in one project also exerts a positive business-giving externality on the rival firms because it increases the likelihood they win the contest for the alternative project.
    Keywords: innovation portfolios, R&D contests, mergers
    JEL: O32 L13 L22 O31
    Date: 2019–12–08
  8. By: Febriyantoro, Mohamad Trio (Universitas Universal)
    Abstract: The problem of low students’ motivation for entrepreneurship becomes serious thought by various parties such as governments, universities and industries, and societies. Various ways, which need to be done to foster interest and motivation in entrepreneurship, are to change the mindset of students who have been only interested to become employees in some companies. This research uses qualitative descriptive method. This method does not test hypothesis. Universities play an important role in the formation of entrepreneurial mindset and entrepreneurial spirit with the application of curriculum and entrepreneurship-based learning, the development of entrepreneurial lesson that is not just theoretical but also the practice to create new business, it can increase the motivation and interest of the students to become entrepreneurs.
    Date: 2019–09–12
  9. By: Sara Amoroso (European Commission - JRC); Zoltan Csefalvay (European Commission - JRC); Mafini Dosso (European Commission - JRC); Petros Gkotsis (European Commission - JRC); Nicola Grassano (European Commission - JRC); Pietro Moncada Paterno Castello (European Commission - JRC); Dimitrios Pontikakis (European Commission - JRC); Lesley Potters (European Commission - JRC); Emanuele Pugliese (European Commission - JRC)
    Abstract: This article introduces the main challenges, the latest scientific evidence and policy issues, and the science and policy areas for industrial innovation to be further developed, and the role of industrial innovation in sustainability and prosperity in Europe. New innovations and integrated production structures need updated management practices. Territorial and economic disparities and the performance heterogeneity of firms depend on the differences in innovation diffusion and adoption rates. Mixed consequences on the labour force and structural inequalities arise out of advanced digitalisation, while sustainable technologies may have a significant positive impact on employment and industrial composition. Disruptive transformative EU policies should be set up to trigger the exploration of innovation with the highest possible economic, social, and employment returns. These should also be able to attract industrial investment.
    Keywords: Industrial Research and innovation, transformation, sustainability and prosperity, science, economic, societal and policy challenges
    Date: 2019–11
  10. By: Stefano Clò,; Massimo Florio; Francesco Rentocchini
    Abstract: Despite the wave of privatisation in recent decades, enterprises under government control still account for a large part of assets and employment in several countries and particularly continue to play a key role in certain network industries. We explore the potential role of State-Invested Enterprises (SIEs) as investors in innovation, with particular interest in that played by the institutional environment. We focus on the telecommunication industry, which has been affected by fundamental technological and organisation change, including liberalisation and privatisation, over the last decades but where public ownership still retains a major role. We draw on a longitudinal data set of 707 telecom companies from 85 countries over the 2007-2015 period and show that public ownership is positively correlated to innovation activity. We also find that - for both state-invested and private companies -improvements in institutional quality are positively associated with firm-level innovation, and that such a relation is stronger under public ownership. We offer an interpretation of these findings which shed new light on the role of SIEs as patient investors.
    Date: 2019
  11. By: Enrico Moretti; Claudia Steinwender; John Van Reenen
    Abstract: In the US and many other OECD countries, expenditures for defense-related R&D represent a key policy channel through which governments shape innovation, and dwarf all other public subsidies for innovation. We examine the impact of government funding for R&D - and defense-related R&D in particular - on privately conducted R&D, and its ultimate effect on productivity growth. We estimate models that relate privately funded R&D to lagged government-funded R&D using industry-country level data from OECD countries and firm level data from France. To deal with the potentially endogenous allocation of government R&D funds we use changes in predicted defense R&D as an instrumental variable. In both datasets, we uncover evidence of “crowding in” rather than “crowding out,” as increases in government-funded R&D for an industry or a firm result in significant increases in private sector R&D in that industry or firm. A 10% increase in government-financed R&D generates 4.3% additional privately funded R&D. An analysis of wages and employment suggests that the increase in private R&D expenditure reflects actual increases in R&D employment, not just higher labor costs. Our estimates imply that some of the existing cross-country differences in private R&D investment are due to cross-country differences in defense R&D expenditures. We also find evidence of international spillovers, as increases in government-funded R&D in a particular industry and country raise private R&D in the same industry in other countries. Finally, we find that increases in private R&D induced by increases in defense R&D result in significant productivity gains.
    JEL: O3 O30 O31 O33 O38
    Date: 2019–11

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