nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2021‒02‒22
seven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Attraction or Repulsion? Testing Coagglomeration of Innovation between Firm and University By Rudkin , Simon; He, Ming; Chen, Yang
  2. Do high-quality local institutions shape labour productivity in Western European manufacturing firms? By Ganau, Roberto; Rodríguez-Pose, Andrés
  3. Активность и кооперация университета, бизнеса и государства в Акмолинской области Республики Казахстан By Myrzakhmet, Marat; Myrzakhmet, Zhanat; Myrzakhmet, Bolat
  6. The Contribution of Vocational Education and Training to Innovation and Growth By Uschi Backes-Gellner; Patrick Lehnert
  7. Christianty, R and Hidayati, R. 2020. Strategy to Increase the Competitiveness of SMEs and their Integration into Global Value Chain. The International Journal of Business Management and Technology, Volume 4 Issue 1 January – February 2020 (97-103) . By Christianty, Restia; Hidayati, Ratnaningsih

  1. By: Rudkin , Simon (Swansea University); He, Ming (Xi’an Jiaotong-Liverpool University); Chen, Yang (Xi’an Jiaotong-Liverpool University)
    Abstract: Agglomeration theory supports and existing findings confirm the geographical proximity of similar firms and spatial attraction of firms to universities. In addition to that, we are able to identify whether universities as one type of innovative units are attracted by firm-type innovators and the size of such attraction. Testing the bidirectional spatial innovation linkage contributes to the debate on firm- or university-led innovation. Using a large patent dataset from Shenzhen, the first innovation-led city in the People’s Republic of China, and employing a spatial point process analysis technique, underutilized in the literature that allows the bidirectional testing of coagglomeration, we find varying attraction distances between the same type of innovative units and across university–firm innovation pairs. Attractions are not only limited to identical technology fields but also generate coagglomerations across different technology fields of firms and universities. We find the attraction from firms to universities is more than that from universities to firms. Support is offered to the integration of firms into the university-led innovation clusters in science parks; firm innovation in patent fields like human necessities, physics, and electrical deserve more policy focus to benefit university research and innovation.
    Keywords: agglomeration; innovation; patents; spatial distribution; universities
    JEL: O31 R11 R12
    Date: 2020–02–25
  2. By: Ganau, Roberto; Rodríguez-Pose, Andrés
    Abstract: We investigate the extent to which regional institutional quality shapes firm labour productivity in Western Europe, using a sample of manufacturing firms from Austria, Belgium, France, Germany, Italy, Portugal and Spain, observed over the period 2009–2014. The results indicate that regional institutional quality positively affects firms' labour productivity and that government effectiveness is the most important institutional determinant of productivity levels. However, how institutions shape labour productivity depends on the type of firm considered. Smaller, less capital endowed and high-tech sectors are three of the types of firms whose productivity is most favourably affected by good and effective institutions at the regional level.
    Keywords: cross-country analysis; labour productivity; manufacturing firms; regional institutions; Western Europe
    JEL: C23 D24 H41 R12
    Date: 2019–08–01
  3. By: Myrzakhmet, Marat; Myrzakhmet, Zhanat; Myrzakhmet, Bolat
    Abstract: The paper is aimed at studying the interaction of regional universities with the environment (enterprises and regional authorities) in the regions of Kazakhstan with the mining and metallurgical industries. Regional universities and their surroundings are studied using webometric methods. Universities with large Internet sites are more inclined to cooperate in their innovation activities but are inert in terms of activity. At the same time, smaller universities are more active. Less cooperation or activity in the educational field, for example, may indicate that the university in the preparation and implementation of educational programs is more focused on its preferences and requirements of the state (which allocates grants for education), rather than on the market and the wishes of employers. Therefore, small universities focused on the local market are naturally more active. There are correlations between webometric data and data from enterprise reporting, for example, a direct relationship between innovation potential and the number of employees in an enterprise. The activity and innovative potential of enterprises correlate well with the number of employees, and the degree of popularity on the websites of the region and universities correlates well with the amount of income and tax paid. Regional universities should strengthen their structural flexibility (cooperation of factors within themselves) and as well as to establish broad interaction with enterprises in the region. The results of the study will analyze the current industrial policy and consider several management decisions facing both authorized bodies, in particular the Ministry of Industry and Infrastructure Development Republic of Kazakhstan and associations of industrialists and entrepreneurs.
    Keywords: Innovation potential, educational potential, resource potential, production potential, regional university, university model, webometric method, cooperation, Akmola region, Kazakhstan, mining industry.
    JEL: L16 O14 O25 P25 R11 R38 R58
    Date: 2021–02–14
  4. By: Rosemary Mnongya (P.O. Box 307, Mwanza, St. Augustine University of Tanzania, Tanzania)
    Abstract: This study was conducted as a performance evaluation to examine the impact of clustering on the growth of individual firms in an agrarian economy with the case of Tanzania under study. Specifically, it focused on how the employment levels differ across individual firms that are located inside the industrial clusters and across those located outside existing industrial clusters; and how the age of firms influences their growth in clusters and in isolation. It is a critical study that brings answers to questions relating to the current state of Tanzania’s industries in terms of clustering of firms and growth of industrial clusters and contributes to policy geared towards growth of the industrial economy. Significant findings confirm that the employment level is high in firms operating in clusters than in the firms operating in isolation. It confirms that a manufacturing firm existing alone in an agrarian economy grows at a slower rate compared to the one operating in a cluster, which highlights the importance of clusters. The study revealed that a firm's age has a positive influence on its growth regardless of whether in a cluster or not in the short-run, but the long run, old firms in isolation can perform well or grow than the old firms in clusters. Key recommendations revolving around good cluster policies and initiatives that encourage clustering of firms to contribute to regional and national economic growth were outlined by the research.
    Keywords: Age of firms, employment, firm growth, industrial clusters, isolation
    JEL: L2 L6 D22 J3
    Date: 2020–12
  5. By: Venelin Terziev (Full Member of the Russian Academy of Natural History, Professor, Eng., D.Sc. (National Security), D.Sc. (Economics), D.Sc. (Social Activities), Ph.D. Georgi Rakovski Military Academy, Sofia, Bulgaria University of Rousse, Rousse, Bulgaria Kaneff University Hospital, Rousse, Bulgaria Russian Academy of Natural History, Moscow, Russia)
    Abstract: Defining social efficiency and social technology is the core element of assessment methods and models, taking into account a wide range of objective and subjective factors. The assessment methods of social programmes (projects) efficiency are related to the social system’s orientation towards social protection and social services of the population and the use of the process approach and the transition to programme-target methods, outlining the main issues and mechanisms for social services and tasks for assessment, determining the basic requirements for efficiency assessment of social programming and the various stages. Considering all these matters, the research offers social programming efficiency assessment model based on “organizational efficiency†approach that covers a number of certain elements: system for resources acquisition, choice of goals, assessment of the impact on the external environment, choice of strategy, following the “what if†principle and the priorities of social activity, arising from the dynamic changes in social environment. Special emphasis is put on the differentiated effect on higher education institutions, depending on the field in which universities carry out teaching and research activities, as well as on the peculiarities of the university business model in the changing environment for development of the higher education institutions.
    Keywords: Social economy, social development,higher education, science, WoS
    JEL: O00 O20 I20 I21 P41
    Date: 2020–09
  6. By: Uschi Backes-Gellner; Patrick Lehnert
    Abstract: Despite the common view that innovation requires academically educated workers, some countries that strongly emphasize vocational education and training (VET) in their education systems - such as Switzerland and Germany - are highly competitive internationally in terms of innovation. These countries have dual VET programs, i.e., upper-secondary-level apprenticeship programs that combine about three-quarters of workplace training with about one-quarter of vocational schooling, and design them in such a way that their graduates (i.e., dual apprenticeship-graduates) play crucial roles in innovation processes. Regular updates of VET curricula incorporate the latest technological developments into these curricula, thereby ensuring that dual apprenticeship-graduates possess up-to-date, high-level skills in their chosen occupation. This process allows these graduates to contribute to innovation in firms. Moreover, these graduates acquire broad sets of technical and soft skills that enhance their job mobility and flexibility. Therefore, conventional wisdom notwithstanding, dual apprenticeship-graduates in such countries not only have broad skill sets that accelerate innovation in firms, but also willingly participate in innovation because of their high flexibility and employability. Moreover, Switzerland and Germany have tertiary-level VET institutions that foster innovation. These are Universities of Applied Sciences (UASs), which teach and conduct applied research, thereby helping build a bridge between different types of knowledge (vocational and academic). UAS students have prior vocational knowledge through their dual apprenticeship and acquire applied research skills from UAS professors who usually have both work experience and a doctoral degree from an academic university. Thus UAS graduates combine sound occupational knowledge with applied research knowledge inspired by input from the academic research frontier and from practical research and development (R&D) in firms. Firms employ UAS graduates with their knowledge combination as an important input for R&D. Consequently, regions with a UAS have higher levels of innovation than regions without one. This effect is particularly strong for regions outside major innovation centers and for regions with larger percentages of smaller firms.
    Keywords: vocational education and training (VET), innovation, education systems, apprenticeship training, Universities of Applied Sciences, applied research
    Date: 2021–02
  7. By: Christianty, Restia; Hidayati, Ratnaningsih
    Abstract: Small and Medium Enterprises is one of economic pillars in Indonesia. However, Indonesian SMEs has not performed well comparing to other ASEAN countries, particularly in terms of participation in global and regional production networks. This study aimed to identify factors causing the low participation of Indonesia SMEs into the Global Value Chain (GVC). This research is conducted with literatur study and Internal & Eksternal factors analysis. Result shows that the low participation of SMEs and Indonesian companies in GVC is determined by the lack of optimal GVC support factors, namely infrastructure and use of communication and information technology, reliability and efficiency of logistics services, and high trade barriers. The relatively high level of wages is also an obstacle to increasing production efficiency. Likewise, the strict requirements for obtaining access to external financing from banks. Another problem faced by SMEs is that most of them do not know where their position are in the GVC. Increasing SMEs participation into GVC will automatically improve their competitiveness in the global economy. There are internal and external factors that determine the competitiveness of SMEs. Internal are human resources, marketing strategies, and innovation. Meanwhile, external factors are the ease of trying in Indonesia, access to finance and capital, market access and infrastructure.
    Date: 2020–02–07

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.