nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2021‒01‒11
ten papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. LOCATION DETERMINANTS OF ECOINNOVATIVE FIRMS IN FRANCE By Eva Coll-Martinez; Malia Kedjar; Patricia Renou-Maissant
  2. Cooperative R&D with Differentiated Products in Vertically Related Industries By Gamal Atallah; Parisa Pourkarimi
  3. International Sourcing in Portuguese Companies Evidence from Portuguese Micro Data By Ana Martins; Guida Nogueira; Eva Pereira
  4. Enhancing Port Performance: A Case of Jawaharlal Nehru Port Trust By Rathi, Aman; Singh, Ambesh Pratap; Narayanaswami, Sundaravalli
  5. Measuring the contribution of the bioeconomy: the case of Colombia and Antioquia By Alviar, Mauricio; García-Suaza, Andrés; Ramírez-Gómez, Laura; Villegas-Velásquez, Simón
  6. Eco-inclusive entrepreneurship: Addressing climate change through technological innovation. The case of cleantech industry By Alina Petronela Alexoaei; Raluca Georgiana Robu
  7. Which Innovations for a Circular Business Model? A Product Life-Cycle Approach By Chioatto, Elisa; Zecca, Emy; D’Amato, Alessio
  8. The impact of Covid-19 on productivity By Bloom, Nicholas; Bunn, Philip; Mizen, Paul; Smietanka, Pawel; Thwaites, Gregory
  9. Fragile, yet resilient: Adaptive decline in a collaboration network of firms By Frank Schweitzer; Giona Casiraghi; Mario V. Tomasello; David Garcia
  10. Place-based SME finance policy and local industrial revivals: An empirical analysis of a directed credit program after WW2 By Takano, Keisuke; Okamuro, Hiroyuki

  1. By: Eva Coll-Martinez (Sciences Po, Toulose); Malia Kedjar (Normandie University); Patricia Renou-Maissant (EconomiX, CNRS, University of Paris Nanterre))
    Abstract: This paper analyses the location determinants of eco-innovative firms in France. The analysis is based on a dataset obtained after merging firm-level microdata on the location of new firms from DIANE Mercantil Register (Bureau van Dijk) and patents information from the OECD REGPAT (2018) database for the period 2003 and 2013. This paper departs from previous contributions on the location determinants of eco-innovation in three main ways. First, it analyses the effects of the regional technological knowledge base and its composition focusing on environmental-based innovations. Second, it introduces spatial econometrics techniques to capture any potential spatial spillovers arising from the location of eco-innovative firms. And third, it focuses on the French case which is of special interest in view of the relevance of regional eco-innovation policies. Main results show that unrelated knowledge variety for environmental technologies and the political support in terms of investments for the protection of the environment are the main factors explaining the location of eco-innovative firms. Indeed, by applying spatial econometrics we found that there is a clear spatial dependence on the creation. However, our results also show that the impact of the knowledge composition is quite local. These results may have many implications for French departments’ environmental performance and sustainable growth.
    Keywords: eco-innovative firms’ entry, industrial location, knowledge spillovers, environmental technologies, France
    JEL: L
    Date: 2020
  2. By: Gamal Atallah (Department of Economics, University of Ottawa, Ottawa, ON); Parisa Pourkarimi (Department of Economics, Carleton University)
    Abstract: This paper studies the impact of cooperative R&D on innovation, welfare, and profitability in vertically related industries where products are differentiated. The model incorporates two vertically related industries, with horizontal spillovers within each industry and vertical spillovers between the two industries. Upstream firms produce a homogeneous intermediate good, while downstream firms provide differentiated products. Three types of R&D cooperation are studied: no cooperation, horizontal cooperation, and vertical cooperation. The comparison of cooperation settings in terms of R&D and of profitability shows that although vertical cooperation yields higher innovation and welfare, it may lead firms to over–invest in R&D.
    Keywords: Vertical spillovers, Horizontal spillovers, Product differentiation, R&D Cooperation.
    Date: 2020
  3. By: Ana Martins (Research Office of the Portuguese Ministry of the Economy and Digital Transition); Guida Nogueira (Research Office of the Portuguese Ministry of the Economy and Digital Transition); Eva Pereira (Research Office of the Portuguese Ministry of the Economy and Digital Transition)
    Abstract: Outsourcing is one of the main drivers behind economic globalization, especially international outsourcing. In general terms it refers to the process of moving stages of production to external providers, either domestic (usually labelled as domestic outsourcing) or international (commonly labelled as offshoring or simply outsourcing). Over time, technological advances in transportation and ICT developments, led to a substantial rise in this phenomenon, growing in extent and nature, from simple to more complex tasks related to both manufactures and services supply. International outsourcing is usually expected to reduce production costs and to increase efficiency, however it has received substantial attention from policy makers for its potential negative consequences on the labour market. This paper combines Portuguese firm-level data from the International Sourcing surveys and longitudinal administrative business record data, to explore the impacts of the sourcing status on a variety of firms’ performance measures specially focusing on employment, competitiveness and productivity. The results suggest that international sourcing has an ambiguous effect on firm level total employment, but a positive effect on both the subset of workers that receive a salary (a proxy to employees) and on R&D jobs, coupled with an increasing effect on firm level total labour costs. Alongside these results, our findings also show that offshoring has a positive causal effect on both firm-level export intensity and trade balance, however the efficiency gains hypothesis was not confirmed. In fact, the results show that newly offshoring firms experienced lower labour productivity growth with a negative effect on both capital stock and capital per person employed.
    Keywords: Outsourcing, international sourcing, offshoring, internationalization, productivity, employment and firm productivity, Propensity score matching
    JEL: F23 L24 F61 D24 J24 F16
    Date: 2020–12
  4. By: Rathi, Aman; Singh, Ambesh Pratap; Narayanaswami, Sundaravalli
    Abstract: Ports are critical infrastructure and contribute significantly to international trade. They play a crucial role in connecting developing countries to the global market and boost the business and growth of the economy. This infrastructure is growing and becoming more complex. Hence, there is a demand for performance indicators to measure competitiveness and undertake strategic planning for improving them. Port performance tools can be an internal strategic management tool and benchmarking tool across the network of ports. This study is on evaluating operational efficiency of a port, and application of the approach for Jawaharlal Nehru Port Trust (JNPT) and diagnose and recommend areas of improvement.
    Date: 2020–12–31
  5. By: Alviar, Mauricio; García-Suaza, Andrés; Ramírez-Gómez, Laura; Villegas-Velásquez, Simón
    Abstract: The bioeconomy has gained attention in policy and academia scenarios as well as the need for strategies to foster the transition toward a more sustainable economic model. This paper provides evidence of the contribution of the bioeconomy to the value added and employment in Colombia and Antioquia, one of its regions. Since knowledge and scientific research are determinant factors for the bioeconomy strategies, relevant indicators of human capital and bioeconomy-related research capacities are studied for the case of Antioquia. The results show that bioeconomy in Colombia represents around 11% of the total value added and 21% of the national employment, which provides a baseline to building a monitoring strategy of the bioeconomy in Colombia and its regions.
    Keywords: Knowledge-based bioeconomy; Sustainable development; Bio-based industries; Colombia
    JEL: Q01 Q57 R58
    Date: 2020–12
  6. By: Alina Petronela Alexoaei (The Bucharest University of Economic Studies); Raluca Georgiana Robu (The Bucharest University of Economic Studies)
    Abstract: The article covers the role of entrepreneurs in developing climate-resilient solutions and business models for sustainable development with a special focus on technological innovation. Building on the concept of social entrepreneurship, the research attempts to investigate the role and the reasons that explain entrepreneurs? engagement in climate change mitigation and in developing new eco-inclusive technologies. The focus will lay on the case of the cleantech industry by attempting to provide a definition of the industry, an analysis of the typology of the financing involved the sectors with the largest impact, and the most innovative types of projects. The results are meant to anticipate key directions and serve as a possible guide to future entrepreneurs and investors interested in cleantech businesses.
    Keywords: Eco-inclusive entrepreneurship, cleantech, social entrepreneurs, sustainable entrepreneurship, climate change
    JEL: L26 O44 O13
  7. By: Chioatto, Elisa; Zecca, Emy; D’Amato, Alessio
    Abstract: The Circular Economy concept has emerged to face current unsustainable economic trends. Circularity requires to go beyond mainstream linear business models in favour of new design strategies and production processes able to support an efficient use and a continuous flow of resources. Clarifying and promoting tools for embedding circularity in firms’ business models is becoming crucial to increase resource productivity and achieve competitive advantages. Notwithstanding eco-innovation has been recognized as a fundamental link to connect circular economy with business models restructuring, still little consensus exists on the boundaries and interlinkages among the concepts of Eco-Innovation, Circular Economy and Circular Business Models. This research contributes to the intersection of these different streams of the literature, and aims to understand which innovations can favour the transition from linear to closed-loop processes, and then to identify circular business models. Relying on a review of circular-oriented innovations, we recognize three main groups of innovations that are expected to change firms’ way of doing business in accordance with circularity, leading to the identification of an original Product Life-Cycle Archetype. Finally, relying on survey data in Emilia Romagna region, we check for the reliability of our theoretical framework in practice, analysing firms’ business strategies from a practical perspective and assessing the current implementation of an innovative path in accordance with circular priorities. The analysis reveals a positive engagement amongst the analysed firms in Emilia Romagna, in terms of cleaner production strategies. By contrast, any business innovation linked to the circular use of products has been found to be implemented.
    Keywords: Resource /Energy Economics and Policy
    Date: 2020–12–22
  8. By: Bloom, Nicholas (Stanford University); Bunn, Philip (Bank of England); Mizen, Paul (University of Nottingham); Smietanka, Pawel (Bank of England); Thwaites, Gregory (University of Nottingham)
    Abstract: We analyse the impact of Covid-19 on productivity in the United Kingdom using data derived from a large monthly firm panel survey. Our estimates suggest that Covid-19 will reduce TFP in the private sector by up to 5% in 2020 Q4, falling back to a 1% reduction in the medium term. Firms anticipate a large reduction in ‘within-firm’ productivity, primarily because measures to contain Covid-19 are expected to increase intermediate costs. The negative ‘within-firm’ effect is partially offset by a positive ‘between-firm’ effect as low productivity sectors, and the least productive firms among them, are disproportionately affected by Covid-19 and consequently make a smaller contribution to the economy. In the longer run, productivity growth is likely to be reduced by diminished R&D expenditure and diverted CEOs’ time spent on dealing with the pandemic.
    Keywords: Productivity; reallocation; Covid-19; growth
    JEL: O32 O33
    Date: 2020–12–21
  9. By: Frank Schweitzer; Giona Casiraghi; Mario V. Tomasello; David Garcia
    Abstract: The dynamics of collaboration networks of firms follow a life-cycle of growth and decline. That does not imply they also become less resilient. Instead, declining collaboration networks may still have the ability to mitigate shocks from firms leaving, and to recover from these losses by adapting to new partners. To demonstrate this, we analyze 21.500 R\&D collaborations of 14.500 firms in six different industrial sectors over 25 years. We calculate time-dependent probabilities of firms leaving the network and simulate drop-out cascades, to determine the expected dynamics of decline. We then show that deviations from these expectations result from the adaptivity of the network, which mitigates the decline. These deviations can be used as a measure of network resilience.
    Date: 2020–11
  10. By: Takano, Keisuke; Okamuro, Hiroyuki
    Abstract: This paper examined the effects on the performance of local SMEs of a modernization fund program for small business enterprises implemented by Osaka Prefecture in the early 1950s. Utilizing firm-level panel data based on business credit reports, we empirically evaluated the effects of the program. We found an improvement in production levels among the recipients. In addition, recipients in sectors related to munitions production or in industrial agglomerations specialized in these sectors achieved additional or larger improvements in their production levels.
    Keywords: place-based policy, postwar revival, directed credit, modernization, Osaka
    JEL: H84 N95 O12 R51 R58
    Date: 2020–10

This nep-cse issue is ©2021 by João José de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.