|
on Economics of Strategic Management |
|
Issue of 2020‒10‒19
eleven papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Li, Xiaogang |
| Abstract: | This dissertation presents the theoretic and empirical findings on innovation, market returns, and trade, with particular focuses on how a firm's innovation activities affect their market returns through the channel of productivity-improving, and how policy uncertainty affects a firm's trading and innovation decisions.Chapter 2 examines the relationship between productivity and innovation, using the U.S. manufacturers' patent data from 1976-2006. First, this chapter investigates whether productive firms actively participate in innovation in terms of having more patents, and then examines whether their innovation activities are involved in a wide spectrum of technological categories. The empirical results reveal that: (i) productivity is positively correlated with the number of patents granted and the number of technological categories for these patents; and (ii) productivity is positively correlated with the number of citations per granted patent and is also positively correlated with the number of technological categories for cited patents per granted patent.Chapter 3 examines the impact of innovation on a firm's operating performance, market valuation, and stock returns, especially the role of Innovation Efficiency in predicting a firm's future market valuation. Three different measures of Innovation Efficiency--the number of granted patents per patent or citation (backward and forward) technological fields scaled by research and development expenditures--are proposed, which combine the breadth of knowledge used to innovate and R\&D investments. The empirical results show that: (i) firm's market valuation and excess returns increases are largely driven by the changing valuation of Innovation Efficiency, while innovation quantity, measured by patent intensity and R\&D intensity, has a strong and significant negative effect; (ii) the positive effect of Innovation Efficiency became larger over time from 1950 to 2010 and for high-technology industries; (iii) high efficient innovation firms are able to achieve higher and more persistent profitability and better operating performance through the effect of productivity.Chapter 4 introduces a dynamic general equilibrium growth model with policy uncertainty where policy uncertainty endogenously affects the dynamics of technical change, market leadership, firm entry and exit selection, and trade flows, in a world with two large open economies at different stages of development. The theoretical investigation illustrates that increase in policy uncertainty has a significant negative effect on exports and imports, but has ambiguous effects on innovation and welfare, while dynamically, trade liberalization boosts domestic innovation through induced international competition. In the empirical portion, this chapter studies how policy uncertainty affects innovation and firm decisions to enter into and exit from export markets by estimating the impact of trade policy uncertainty on patents applied by Chines manufacturing firms, as well as firm's entry and exit. Using Chinese patent applications and Chinese customs transactions between 2000-2006, this chapter exploits time-variation in product-level trade policy and the empirical results show that: (i) Chinese firms have less incentive in innovation activities when facing increased trade policy uncertainty; (ii) Chinese firms are less likely to enter new foreign markets when their products are subject to increased trade policy uncertainty; (iii) Chinese firms are more likely to exit from established foreign markets when policy uncertainty increases. |
| Date: | 2020–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:202001010800009179&r=all |
| By: | Asongu, Simplice; Kuada, John |
| Abstract: | Knowledge has emerged as a fundamental driver of economic growth and development by inter alia improving the effectiveness and efficiency of economic projects and boosting the process of finding new avenues of addressing developmental policy syndromes. Recent evidence suggests that Africa is on the threshold of significant and sustainable economic growth if its human and material resources can be effectively mobilised to support the process (Kuada & Mensah, 2017; Asongu & Tchamyou, 2019). Consequently, the World Bank’s Knowledge Economy Framework aims to explore and support the extent to which current policies in African countries affect the knowledge development process (and thereby competitiveness) on the continent. A knowledge economy is an economy in which economic prosperity largely depends on the accessibility, quality and quantity of information available, instead of the means of production (Asongu, 2017a, 2017b). This themed issue of Contemporary Social Science-‘Building Knowledge Economies in Africa’ - consists of papers that focus on, but are not limited to, the four dimensions of the World Bank’s Knowledge Economy Index. These are: information and communication technology, education, economic incentives and institutional regime, and innovation (Tchamyou, 2017). The themed issue engages with high quality contributions which, taken together, address the drivers towards knowledge-based economies. This introduction provides a context for understanding the importance of building knowledge economies in Africa and summarises the main contributions to the themed issue. The paper ends by advising scholars and policy makers regarding the risks associated with a colonial view of knowledge- notably the importance of proposing knowledge-based policies while avoiding hegemonic paradigms and hierarchical constructs. In summary, the issue consists of a set of theoretically informed, empirically robust, policy-relevant and accessible articles for both specialists and non-specialists. |
| Keywords: | Knowledge economy; Development; Africa |
| JEL: | O10 O30 O38 O55 O57 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:103136&r=all |
| By: | Alhusen, Harm |
| Abstract: | The 'doing-using-interacting mode' of innovation (DUI) is considered an important component of innovative activity. It describes informal innovative activities and complements the 'science-technology-innovation mode' (STI) which is based on research and development. A common demarcation criterion between both modes of innovation is the relevance of experiencebased knowledge, know-how and know-who for the DUI mode of innovation whereas the STI mode of innovation is said to rely on codified knowledge, know-what and know-why. Based upon 81 in-depth interviews with German SMEs and regional innovation consultants, this work focuses on the role of experience-based know-how for SMEs innovations within different modes of innovation. Experience-based know-how is found to be important for all modes of innovation, regardless of an SMEs mode of innovation. Results from qualitative interviews show that firms view experience-based know-how as important for at least one of the following domains: product innovation, business process innovation & organizational routines and customer knowledge. However, the acquisition, transfer and transformation of experience-based know-how can strongly differ, depending on the respective mode of innovation. As a recommendation, the idea that know-how is a suitable demarcation criterion for modes of innovation should be revised in future research. |
| Keywords: | DUI,STI,tacit knowledge,experience-based knowledge,learning processes,modes of innovation |
| JEL: | O3 O30 O31 R10 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:272020&r=all |
| By: | Higham, Kyle; de Rassenfosse, Gaetan; Jaffe, Adam B |
| Abstract: | The ‘quality’ of novel technological innovations is extremely variable, and the ability to measure innovation quality is essential to sensible, evidence-based policy. Patents, an often vital precursor to a commercialised innovation, share this heterogeneous quality distribution. A pertinent question then arises: How should we define and measure patent quality? Accepting that different stakeholders have different views of this concept, we take a multi-dimensional view of patent quality in this work. We first test the consistency of popular post-grant outcomes that are often used as patent quality measures. Finding these measures to be generally inconsistent, we then use a raft of patent indicators that are defined at the time of grant to dissect the characteristics associated with different post-grant outcomes. We find broad disagreement in the relative importance of individual characteristics between outcomes and, further, significant variation of the same across technologies within outcomes. We conclude that measurement of patent quality is highly sensitive to both stakeholder viewpoint and technology type. Our findings bear implications for scholarly research using patent data as well as for policy discussions about patent quality. |
| Date: | 2020–09–23 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:49qxk&r=all |
| By: | Kyle W. Higham; Gaétan de Rassenfosse; Adam B. Jaffe |
| Abstract: | The 'quality' of novel technological innovations is extremely variable, and the ability to measure innovation quality is essential to sensible, evidence-based policy. Patents, an often vital precursor to a commercialised innovation, share this heterogeneous quality distribution. A pertinent question then arises: How should we define and measure patent quality? Accepting that different stakeholders have different views of this concept, we take a multi-dimensional view of patent quality in this work. We first test the consistency of popular post-grant outcomes that are often used as patent quality measures. Finding these measures to be generally inconsistent, we then use a raft of patent indicators that are defined at the time of grant to dissect the characteristics associated with different post-grant outcomes. We find broad disagreement in the relative importance of individual characteristics between outcomes and, further, significant variation of the same across technologies within outcomes. We conclude that measurement of patent quality is highly sensitive to both stakeholder viewpoint and technology type. Our findings bear implications for scholarly research using patent data as well as for policy discussions about patent quality. |
| JEL: | O31 O34 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27598&r=all |
| By: | Mathew, Nanditha (UNU-MERIT); Napolitano, Lorenzo (Joint Research Center (JRC), European Commission); Rizzo, Ugo (Department of Mathematics and Computer Science, University of Ferrara) |
| Abstract: | In this paper we analyze the impact of foreign R&D collaborations on the performance of domestic firms and how the relationship is augmented by the pre-existing capabilities of the domestic firms. Using data on Indian firms, we study patterns of co-invention of Indian firms with foreign partners. The results from a causal mediation analysis confirm the crucial role played by domestic firms' absorptive capacity in enhancing the benefits from a foreign collaboration. The evidence we present in this work highlights the microeconomics behind the process of technological capability accumulation and catching up in developing countries. |
| Keywords: | Co-patenting, Foreign Collaboration, Absorptive Capacity, Capability accumulation, Corporate Performance |
| JEL: | D24 L20 O12 O32 O33 O34 |
| Date: | 2020–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2020044&r=all |
| By: | Roberta De Santis; Piero Esposito; Cecilia Jona-Lasinio |
| Abstract: | In this paper, we investigate the environmental regulation-productivity nexus for 14 OECD countries over the years 1990-2015 and discuss its main policy challenges. Our findings support the hypothesis that environmental policies generate positive productivity returns through innovation as suggested by Porter and Van Der Linde (1995). We find that environmental policies have a productivity growth-promoting effect. Both market and non-marked based policies exert a positive but differentiated impact on labour and multifactor productivity growth. Environmental policy measures generate also potentially mixed redistributive impacts. As for specific polices, green taxes display the largest effect on multifactor productivity although with potentially negative redistributive impact. We also find that environmental regulation exerts indirect positive effect on productivity growth fostering capital accumulation especially in high ICT intensive countries. |
| Keywords: | Environmental regulation, productivity, innovation, Porter hypothesis |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:eiq:eileqs:158&r=all |
| By: | Roberta De Santis; Valeria Ferroni |
| Abstract: | Over the period 1995–2016, the Italian performance in terms of productivity was poor in historical terms and in comparison with its main international partners. This issue goes beyond Italy, with declining productivity growth observed, from the second half of the nineties, in several other advanced economies. Possible explanations for the slowdown include factors such as lower capital investment by firms, decreased competition, excessive regulation, and capital misallocation. The diffuse slowing rates of measured productivity growth has also raised questions on whether GDP and output current compilation methods are adequate (i.e. the mis-measurement hypothesis). The “ICT revolution” has created new ways of exchanging and providing goods and services as result of increased connectivity. These developments challenge the way economic activity is traditionally measured. There are also measurement problems associated with estimating output and input volumes especially related to the quality of price indexes for some products and services. These problems have an impact on productivity estimates and might impair international comparability. In this paper, we intend to investigate what the core problems in productivity measurement and interpretation are in the European context, with a specific focus on Italy |
| Keywords: | Productivity, GDP, mismeasurement, prices, digitalization |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:eiq:eileqs:142&r=all |
| By: | Breithaupt, Patrick; Kesler, Reinhold; Niebel, Thomas; Rammer, Christian |
| Abstract: | Knowledge-based capital is a key factor for productivity growth. Over the past 15 years, it has been increasingly recognised that knowledge-based capital comprises much more than technological knowledge and that these other components are essential for understanding productivity developments and competitiveness of both firms and economies. We develop selected indicators for knowledge-based capital, often denoted as intangible capital, on the basis of publicly available data from online platforms. These indicators based on data from Facebook and the employer branding and review platform Kununu are compared by OLS regressions with firm-level survey data from the Mannheim Innovation Panel (MIP). All regressions show a positive and significant relationship between survey-based firm-level expenditures for marketing and on-the-job training and the respective information stemming from the online platforms. We therefore explore the possibility of predicting brand equity and firm-specific human capital with machine learning methods. |
| Keywords: | Web Scraping,Knowledge-Based Capital,Intangibles |
| JEL: | C81 E22 O30 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:20046&r=all |
| By: | Kim, Donghyuk |
| Abstract: | This paper examines how economic spillovers and political values affect strategies and welfare of governments bidding for firms. Government competition and firm location choice are modeled as a variant of a first-price scoring auction in which governments compete for firms that have unobserved geographic preferences. Within-metro economic spillovers generate freeriding motives, implying that metro-level coordination can improve joint expected welfare of individual governments. However, presence of political values can steer governments away from coordination such as ceasefire on incentive provision. Reduced-form evidence suggests that political values increase with the intensity of within-metro competition and that governments freeride when economic values spill over. Measures of economic spillovers are informative of the size of political values; back-of-the-envelope calculations suggest that total political values for 112 firms that relocated within Kansas City amount to over $89 million. |
| Date: | 2020–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:202009280700001111&r=all |
| By: | Asongu, Simplice |
| Abstract: | This study extends the literature on fighting software piracy by investigating how Intellectual Property Rights (IPRs) regimes interact with technology to mitigate software piracy when existing levels of piracy are considered. Two technology metrics (internet penetration rate and number of PC users) and six IPRs mechanisms (constitution, IPR law, main IP laws, WIPO Treaties, bilateral treaties and multilateral treaties) are used in the empirical analysis. The statistical evidence is based on: (i) a panel of 99 countries for the period 1994-2010 and (ii) interactive contemporary and non-contemporary Quantile regressions.The findings show that the relevance of IPR channels in the fight against software piracy is noticeably contingent on the existing levels of technology embodied in the pirated software. There is a twofold policy interest for involving modern estimation techniques such as interactive Quantile regressions. First, it uncovers that the impact of IPR systems on software piracy may differ depending on the nature of technologies used. Second, the success of initiatives to combat software piracy is contingent on existing levels of the piracy problem. Therefore, policies should be designed differently across nations with high-, intermediate- and low-levels of software piracy. |
| Keywords: | Piracy; Business Software; Software piracy; Intellectual Property Rights |
| JEL: | F42 K42 O34 O38 O57 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:103150&r=all |