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on Economics of Strategic Management |
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Issue of 2020‒10‒12
eight papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Sergey Kichko; Wen-Jung Liang; Chao-Cheng Mai; Jacques-Francois Thisse; Ping Wang |
| Abstract: | Tech clusters play a growing role in knowledge-based economies by accommodating high-tech firms and providing an environment that fosters location-dependent knowledge spillovers and promote R&D investments by .rms. Yet, not much is known about the economic conditions under which such entities may form in equilibrium without government interventions. This paper develops a spatial equilibrium model with a competitive final sector and a monopolistically competitive intermediate sector, which allows us to determine necessary and sufficient conditions for a tech cluster to emerge as an equilibrium outcome. We show that strongly localized knowledge spillovers, skilled labor abundance, and low commuting costs are key drivers for a tech cluster to form. Not only is the productivity of the final sector higher when intermediate firms cluster, but a tech cluster hosts more intermediate firms and more R&D and production activities, and yields greater worker welfare, compared to what a dispersed pattern would generate. With continual improvements in infrastructure and communication technology that lowers coordination costs, tech clusters will eventually be fragmented. |
| Keywords: | high-tech city, knowledge spillovers, intermediate firm clustering, land use, commuting, R&D |
| JEL: | D51 L22 O33 R13 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8527&r=all |
| By: | Marco Carreras (Institute of Development Studies) |
| Abstract: | I evaluate the impact of the Banco Nacional de Desenvolvimento Econômico e Social, (BNDES) disbursements on companies’ R&D intensity of companies operating in the Brazilian manufacturing sector for the period of 2003-2011. Using Instrumental Variable (IV) technique, I find a crowding-in impact of receiving funding from BNDES on business-funded innovation intensity, resulting in an increased commitment in innovation activities for funded Brazilian manufacturing companies. The findings of this analysis provide new evidence regarding the industrial sector activity of the Brazilian development bank, adding on the debate about additionality/substitutability of public financial resources. |
| Keywords: | BNDES, development bank, crowding-in/out, R&D intensity2 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2020-16&r=all |
| By: | Maria Tsouri; ; |
| Abstract: | The proximity literature usually treats proximity in terms of common attributes shared by agents, disregarding the relative position of an actor inside the network. This paper discusses the importance of such dimension of proximity, labelled as in-network proximity, and proposes an empirical measurement for it, assessing its impact (jointly with other dimensions of proximity) on the creation of strong knowledge network ties in ICT in the region of Trentino. The findings show that actors with higher in-network proximity are more attractive for both other central actors and peripheral ones, which is further strengthening their position within the network. |
| Keywords: | knowledge networks, in-network proximity, strong ties, proximity dimensions |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2045&r=all |
| By: | Santosh Kumar Sahu (Assistant Professor, Madras School of Economics); Sunder Ramaswamy (Visiting Distinguished Professor of Economics, Madras School of Economics); Abishek Choutagunta (Institute of Law and Economics, Universität Hamburg) |
| Abstract: | This study re-examines the relationship between export performance and productivity in manufacturing firms in India for the period 2003-2015, using firm level information. Departing from the earlier studies on India economy, we argue that product innovations boost export performance of the economy. The hypothesis being that, in the post-economic-reforms era competitive export market scenario, productivity alone, without product innovation and participation in R and D cannot drive export performance. We observe that the argument of highly productive firms entering the export market without eallocating resources towards innovation and R and D seems to be invalid in our sample. Nevertheless, we find in our sample, that productivity as a selection criterion coupled with advertising and marketing strategies explains participation in R and D in boosting exports. |
| Keywords: | Export Performance, Innovation, Productivity, Manufacturing firms, India |
| JEL: | D20 D24 L16 L6 L60 |
| URL: | http://d.repec.org/n?u=RePEc:mad:wpaper:2016-159&r=all |
| By: | Cunningham, James (Northumbira University); Link, Albert (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | This paper focuses on a situation in which a firm decides to sell its non-commercialized technology to another firm rather than commercialize it (a latent entrepreneurial firm), and the other firm then adopts the appearance of an emergent entrepreneur. Using U.S. project data from firms funded through the U.S. Small Business Innovation Research (SBIR) program, we find using a qualitative choice model that firms that do not commercialize their newly developed SBIR-funded technology have a greater probability of selling their technology to another firm than do firms that do commercialize. We also identify other covariates with the probability that such a firm will sell their technology. |
| Keywords: | Latent entrepreneurship; Emergent entrepreneurship; SBIR; Commercialization; |
| JEL: | O32 O33 O38 |
| Date: | 2020–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2020_008&r=all |
| By: | Yiou Zhang; David L. Rigby; |
| Abstract: | Do capabilities reside in firms, in regions, or in both? Most models of related diversification, building on the early work of Hidalgo et al. (2007), examine how the structure of economic activity within a region conditions the trajectory of diversification. Inter-regional flows are sometimes added to these models. The logic here is that capabilities are largely built-up within regions and sometimes shared between them. We challenge that logic, exploring whether capabilities are more likely to be built within the firm and to flow across spatial boundaries than they are to be built within the region flowing across firm boundaries. Analysis focuses on Chinese patent data spanning 286 cities over the period 1991 to 2015. We develop standard models of related diversification before examining how the branches of multi-locational firms diversify their knowledge portfolios. Evidence shows that the knowledge structure of firms is more important than the knowledge structure of regions in shaping branch diversification. We show that the influence of the firm and the region on diversification vary significantly between headquarters (HQ) branches and non-HQ branches of firms, and between the non-HQ branches of firms that are located in core and peripheral cities of China. |
| Keywords: | Related diversification; Patents; Capabilities; China |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2044&r=all |
| By: | Alessandra Perri (Department of Management, Università Ca' Foscari Venice); Daniela Silvestri (Department of Management, Università Ca' Foscari Venice); Francesco Zirpoli (Department of Management, Università Ca' Foscari Venice) |
| Abstract: | This study explores the evolution of the knowledge base of the automotive industry. Over the last decades, the industry has experienced major changes. New and originally unrelated fields have increasingly become relevant shaping over time the knowledge base of the industry. Using data on patent families granted in the period 1990-2014, we map the knowledge base of the automotive industry by reconstructing and analyzing the patenting portfolio of the top firms operating in this industry. The analysis documents exploration in new technical fields as well as persistence in industry-specific technical areas, pointing to the relevance of core competences that might be difficult to accumulate for industry outsiders. |
| Keywords: | knowledge base evolution, automotive industry, patent analysis |
| JEL: | L62 O34 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:175&r=all |
| By: | Ratul Lahkar (Ashoka University); Saptarshi Mukherjee (IIT, Delhi) |
| Abstract: | We consider implementation of the efficient state in a large population public goods game. Agents are divided into a finite set of types. The planner asks agents to report types, which generates a reported type distribution. Based on reported types and distribution, the planner calculates the efficient strategy level and a Pigouvian transfer for each type of agent. We show that this direct mechanism satisfies incentive compatibility in strictly dominant strategies, strong budget balance and ex–post individual rationality. |
| Keywords: | Public Goods,Externalities, Pigouvian Pricing, VCG Mechanism |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:ash:wpaper:36&r=all |