nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2020‒04‒13
twelve papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Contributions of Corporate Basic Research and Research Collaboration with Academia to Innovation and Spillover Performance in Japan (Japanese) By NAGAOKA Sadao; EDAMURA Kazuma; ONISHI Koichiro; TSUKADA Naotoshi; NAITO Yusuke; KADOWAKI Ryo
  2. Bureaucrats or Markets in Innovation Policy? – A critique of the entrepreneurial state By Karlson, Nils; Sandström, Christian; Wennberg, Karl
  3. What drives university-industry collaboration: Research excellence or firm collaboration strategy? By Kwadwo Atta-Owusu; Rune Dahl Fitjar; Andrés Rodríguez-Pose
  4. Foreign Direct Investment and International R&D Collaborations in Japanese Multinational Enterprises (Japanese) By IKEUCHI Kenta
  5. Network compatibility, intensity of competition and process R&D: A Generalization By Sumit Shrivastav
  6. Impact of Multinational Enterprises on Competition, Productivity and Trade Spillovers across European Firms By Jan Hanousek; Evzen Kocenda; Pavla Vozarova
  7. Drivers of eco-innovation and economic development in the Spanish hospitality industry By Sotiriadis, Marios; Magadán-Díaz, Marta; Rivas-García, Jesús
  8. Maintenance and creation of roles during socialization processes in entrepreneurial small firms: An institutional work perspective By Emilie Bargues; Bertrand Valiorgue
  9. Proximity, Innovation and Networks: A Concise Review and Some Next Steps By Pierre-Alexandre Balland; Ron Boschma; Koen Frenken
  10. The Impact of the Third Sector of R&D on the Innovative Performance of Entrepreneurial Firms By Link, Albert; Morris, Cody; van Hasselt, Martijn
  11. Industrial Policy 4.0 Promoting Transformation in the Digital Economy By Padmashree Gehl Sampath
  12. Digitalization and New Product Development in Manufacturing SMEs: A Comparative Study of Germany and Japan By MOTOHASHI Kazuyuki; Christian RAMMER

  1. By: NAGAOKA Sadao; EDAMURA Kazuma; ONISHI Koichiro; TSUKADA Naotoshi; NAITO Yusuke; KADOWAKI Ryo
    Abstract: Corporate basic research is important for both enhancing the R&D capability of a firm, especially in its ability to absorb scientific progress, and for improving the innovation performance of the industry through spillovers. This paper reports the findings from the following four research inquiries, all based on newly built, long-term comprehensive panel data set on the structure and performance of R&D by Japanese companies. (1) An analysis of the contributions of internal basic research to industrial R&D performance, including its collaborative research with academia and its research commissioned by the government, based on a new model of R&D that accommodates the effect of basic research on enhancing the productivity of applied research and experimental development. (2) An analysis of the evolution of the effects of R&D in information and communication technology (ICT) on industrial R&D performance. While ICT R&D has increased its significance globally in recent years, ICT R&D investment by Japanese industry had decreased to about two-thirds of its peak value in 2007. (3) An analysis of how technology spillover between firms varies, depending on the structure of R&D of the utilizing and the source companies, the proximity between the two firms in terms of specialized fields of human resources, and industry configurations (within industry vs. between industry). (4) Finally, an analysis of how the effects of the spillover pool of each firm on its R&D are affected by the interaction between the type of spillover pools and the type of R&D investment of each firm. Based on these results, this paper demonstrates potential implications for policy.
    Date: 2020–01
  2. By: Karlson, Nils (The Ratio Institute); Sandström, Christian (The Ratio Institute); Wennberg, Karl (The Ratio Institute)
    Abstract: This paper takes stock of recent suggestions that the state apparatus is a central and underappreciated actor in the generation, diffusion and exploitation of innovations enhancing growth and social welfare. We contrast such a view of “the entrepreneurial state” with theories and empirical evidence of the microeconomic processes of innovation in the modern economy which focus on well-functioning markets, free entry and competition among firms, and independent entrepreneurship as central mechanisms in the creation and dissemination of innovations. In doing so, we identify several deficiencies in the notion of an entrepreneurial state by showing that (i) there is weak empirical support in the many hundreds empirical studies and related meta analyses evaluating the effectiveness of active industrial and innovative policies, that (ii) these policies do not take account of the presence of information and incentive problems which together explain why attempts to address purported market failures often result in policy failures, and that (iii) the exclusive focus on knowledge creation through R&D and different forms of firm subsidies ignores the equally important mechanisms of knowledge dissemination and creation through commercial exploitation in markets. We discuss how a more theoretically well-founded focus on the state as investing in knowledge generation and securing the conditions of free and competitive markets will lead to a more innovative economy.
    Keywords: innovation policy; market failure; entrepreneurial state; incentive problem; rent seeking
    JEL: M13 O31 O38 O40 P16
    Date: 2020–03–30
  3. By: Kwadwo Atta-Owusu; Rune Dahl Fitjar; Andrés Rodríguez-Pose
    Abstract: Research and innovation policy aims to boost research output and university-industry collaboration (UIC) at least in part to allow firms access to leading scientific knowledge. As part of their mission, universities are expected to contribute to innovation in their regions. However, the relationship between research output and UIC is unclear: research-intensive universities can produce frontier research, which is attractive to firms, but may also suffer from a gap between the research produced and the needs of local firms, as well as mission overload. This may hinder local firms’ ability to cooperate with universities altogether or force them to look beyond the region for other suitable universities to interact with. This paper investigates the relationship between the research output of local universities and firms’ participation in UICs across different geographical scales. It uses Community Innovation Survey (CIS) data for Norwegian firms and Scopus data on Norwegian universities’ research output across various disciplines. The results demonstrate that local university research intensity and quality are negatively associated with firm participation in UICs at the local level. Firm characteristics, in particular the firm’s general strategy towards cooperation and its geography, turn out to be much more important than university characteristics in explaining UICs. Notably, firms’ cooperation with other external partners at the same scale is a strong predictor of UICs.
    Keywords: research, universities, firms, university-industry collaboration, Norway
    JEL: O31 O32 O33
    Date: 2020–03
  4. By: IKEUCHI Kenta
    Abstract: How does economic globalization relate to internationalization of knowledge production activities? Existing research has not fully clarified the effects of the spatial interdependence of foreign direct investment and international R&D collaboration on R&D performance and productivity. Therefore, in this study, a database that interconnected the data on foreign direct investment of Japanese multinational corporations and international patent data is constructed, and the spatial interdependence of foreign direct investment and the international joint invention of patents is analyzed. As a result of analyzing panel data for a long period of about 20 years since the 1990s, it was found that the locations of overseas subsidiaries and the locations of international cooperation partners are interrelated. In addition, when a research and development center is located near an overseas joint research partner, a high-quality invention tends to be patented. On the other hand, no clear results were obtained regarding the effects of international joint R&D on corporate performance in countries where R&D centers are located. These results suggest that Japanese multinationals use overseas subsidiaries as bases for international collaboration in R&D, but that the technological output of international joint research may not be strongly linked to corporate performance.
    Date: 2020–02
  5. By: Sumit Shrivastav (Indira Gandhi Institute of Development Research)
    Abstract: This paper analyses implications of network compatibility and competition on process innovation in differentiated network goods duopoly. It shows that firms R&D investments are strategic substitutes (complements), if effective network compatibility is less (more) than product substitutability, regardless of the nature of competition. If R&D investments are strategic complements, firms always invest in process innovation and they invest more under Bertrand competition than under Cournot competition. If R&D investments are strategic substitutes, unlike Cournot firms, Bertrand firms dont always undertake process innovation; but, when Bertrand firms also undertake process innovation, Cournot-Bertrand R&D ranking depends on the strength of network externalities.
    Keywords: Network compatibility, Network Externalities, Process R&D, Bertrand-Cournot Compari- son, Product Differentiation
    JEL: L13 D43 O31
    Date: 2020–02
  6. By: Jan Hanousek (CERGE-EI, Charles University); Evzen Kocenda; Pavla Vozarova (Faculty of Information Technology, Czech Technical University)
    Abstract: We analyze the impact of multinational enterprises (MNEs), via their foreign direct investment, on domestic firms in 30 European host economies, from 2001 to 2013. We incorporate international industrial and trade linkages into a standard theoretical framework and test them empirically on a unique dataset compiled from the Amadeus, Eurostat, UNComtrade and BACI data sources and aggregated at industry level. While controlling for horizontal, vertical, and export channels at the upstream and downstream levels, we show that the presence of MNEs significantly affects domestic firms by changing the degree of competition and improving productivity. The impact is not always positive, as domestic firms are often crowded-out, but the negative effect for an average firm is mostly small.
    Keywords: multinational enterprise (MNE), foreign direct investment (FDI), European firms, spillovers, international trade
    JEL: C33 F15 F21 F23 O24
    Date: 2020–04
  7. By: Sotiriadis, Marios; Magadán-Díaz, Marta; Rivas-García, Jesús
    Abstract: Eco-innovation is a challenge for tourism industry, given the connection and interrelationship between environmental quality, economic development and business performance. Th eco-innovation plans represents a new field of research in its infancy. This paper addresses the conceptual evolution of eco-innovation to subsequently develop an analytical framework that tentatively explores this concept and its implementation in Spanish hotel companies through two basic internal characteristics of these organizations: their economic development and business performance, and their respective size, measured in terms of capacity. A qualitative research method was implied, making a set of case studies of 10 Spanish hotel groups, through documentary evidence and structured interviews. Findings suggest the influencing and determining factors for eco-innovation action.
    Keywords: Eco-innovation, economic development, environmental responsibility, hospitality industry, drivers, organizational change, Spain
    JEL: L83 Q56
    Date: 2018–10–28
  8. By: Emilie Bargues (CleRMa - Clermont Recherche Management - Clermont Auvergne - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA - Université Clermont Auvergne); Bertrand Valiorgue (CleRMa - Clermont Recherche Management - Clermont Auvergne - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA - Université Clermont Auvergne)
    Abstract: Entrepreneurial small firms (ESFs) are characterized by a permanent dynamic of innovation not only regarding their commercial offers, but also their organizational processes. Potentially, newcomers play a key role in the maintenance of this innovation dynamic, but there is a lack of knowledge regarding their socialization. In this research, we develop an understanding of socialization processes in ESFs by taking an institutional work perspective. Through a qualitative, longitudinal and inductive research design based on two case studies, we make several contributions. First, we identify different socialization activities enforced jointly and separately by newcomers and insiders. Second, we explain the dynamics of these activities with the achievement of two socialization outcomes: maintenance of institutionalized roles and the creation of new ones. Our results enrich the organizational socialization literature by introducing a new field of enquiry and by showing that role creation can be a major distal outcome of socialization processes. We also develop new perspectives on institutional work by demonstrating the importance of newcomers and the dimensions of agency at play during socialization processes.
    Keywords: role maintenance and creation,institutional work,entrepreneurial small firms,newcomers,socialization processes
    Date: 2019
  9. By: Pierre-Alexandre Balland; Ron Boschma; Koen Frenken
    Abstract: We review proximity research on collaborative innovation among organizations. We discuss the basic theorical tenets of collaborative innivation and summarize empirical findings on the roles of various forms of proximity. At the aggregative level, we look at studies of inter-organizational relations at the aggregate level of innovation systems. We end with a discussion of next steps in proximity research on collaborative innovation.
    Keywords: proximity, innovation, networks, inter-organizational relations, innovation systems, knowledge base
    JEL: B25 D85 L14 O3 R1
    Date: 2020–03
  10. By: Link, Albert (University of North Carolina at Greensboro, Department of Economics); Morris, Cody (University of North Carolina at Greensboro, Department of Economics); van Hasselt, Martijn (University of North Carolina at Greensboro, Department of Economics)
    Abstract: Entrepreneurial firms that rely on public research institutes, the third sector of R&D, are also firms that are more innovative in terms of introducing new or significantly improved goods or services to the market. This finding is based on an analysis of 4,004 knowledge-intensive entrepreneurial (KIE) firms located in ten European Union countries. We interpret our findings as suggestive evidence of the importance of policy makers continuing to support financially public research institutions.
    Keywords: Research institute; third sector of R&D; innovation; entrepreneurship; KIE firms;
    JEL: L26 O31 O32 O38
    Date: 2020–04–07
  11. By: Padmashree Gehl Sampath
    Abstract: The rise of the fourth industrial revolution (IR) is deeply embedded in a wider context of privatization of knowledge, rising costs of innovation and uneven distribution of capacity between countries. But debates on a ‘balanced’ policy framework to tackle these issues have until now floundered to address some of the fundamental dilemmas of our times. Will the fourth IR render the manufacturing-led model of economic development a thing of the past? Are there new boundaries for innovation and industry in the fourth IR? What should policy do in such an uncertain technological era? This paper addresses these crucial questions and makes a case for comprehensive digital industrial policies that are differentiated and rooted in the broader reality of development and globalization in the fourth IR. The paper maps the new boundaries for innovation and industrialization, after which, it elaborates in detail the market and institution failures in the platform economy that arise from the highly complex nature of technological change and a lack of effective policy oversight. It offers evidence to the effect that although manufacturing as we knew it – with its effects on low and unskilled labour and employment creation - might not continue to exist, it will continue to thrive using high technology skills and R&D, within a new model of industrialization where the knowledge-component of all sectors – agriculture, manufacturing and services – will be on the rise. Countries therefore, need a more nuanced and differentiated industrial policy 4.0 framework that can: (a) sustain overall industrial performance, (b) in a way that helps close the gap to the frontier in a constantly evolving technological landscape, (c) while mitigating the adverse consequences for society, in terms of employment, privacy and latent social fabric. The paper proposes the components of such an industrial policy 4.0 in detail in its concluding section.
    Date: 2018–12
  12. By: MOTOHASHI Kazuyuki; Christian RAMMER
    Abstract: This report presented descriptive results of a novel survey on IT practices in the context of new product development (NPD) in German and Japanese manufacturing SMEs. Based on dedicated questionnaire-based surveys in both countries, the report demonstrated that there are a number of commonalities between German and Japanese SMEs. It is found that German firms are more advanced in use of digital applications, while Japanese firms are more likely to be involved in collaboration for NPD. However, this difference disappears when the business environment faced by both samples is controlled. In terms of business performance impacts of digitalization and NPD process, a complementarity between them regarding specific business partners (supplier or customer firms) is found in Japan, while digital applications with multiple users is positively correlated with business performance in Germany.
    Date: 2020–03

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