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on Economics of Strategic Management |
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Issue of 2021‒03‒01
eight papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Ufuk Akcigit (University of Chicago - Department of Economics; NBER; CEPR); Sina T. Ates (Federal Reserve Board of Governors); Josh Lerner (Harvard University - Harvard Business School; NBER); Richard R. Townsend (University of California at San Diego - Rady School of Management); Yulia Zhestkova (University of Chicago - Department of Economics) |
| Abstract: | The treatment of foreign investors has been a contentious topic in U.S. entrepreneurship policy in recent years. This paper examines foreign corporate investments in Silicon Valley from a theoretical and empirical perspective. We model a setting where such funding may allow U.S. entrepreneurs to pursue technologies that they could not otherwise, but may also lead to spillovers to the overseas firm providing the financing and the nation where it is based. We show that despite the benefits from such inbound investments for U.S. firms, it may be optimal for the U.S. government to raise their costs to deter investments. Using as comprehensive as possible a sample of investments by non-U.S. corporate investors in U.S. start-ups between 1976 and 2015, we find evidence consistent with the presence of knowledge spill-overs to foreign investors. |
| Keywords: | Innovation, foreign direct investment, corporate venture capital |
| JEL: | G24 O33 O34 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:bfi:wpaper:2020-136&r=all |
| By: | Isa, Filzah Md; Muhammad, Nik Maheran Nik; Ahmad, Azizah; Noor, Shaista; Institute of Research, Asian |
| Abstract: | Women entrepreneur has gained utmost importance in the past few decades in Malaysia due to their significant contribution to the country's economic development. However, few business challenges create a constant obstruction for many women entrepreneurs such as lack of ICT knowledge, time constraint to learn ICT, lack of technological expertise, etc. The present study aims to identify the effect of ICT adoption on business performance and examine how ICT usage helped them handle operational business matters. The present study adopted the qualitative research strategy, and researchers interviewed ten (10) women entrepreneurs for this study. A semi-structured interview technique was applied, and six Malay and four Chinese entrepreneurs made the study population. The result highlights that Malay and Chinese entrepreneurs use ICT in their business operation such as warehousing system, purchasing system, HRM software and accounting system, purchase order system, production system, internal communication, and AutoCAD. The present study may support the prospective entrepreneurs in considering the ICT usage to embark on technology and innovation and provide inputs to policymakers to design a proper support system for Malaysian women entrepreneurs, particularly those new entrepreneurs who are mostly young and inexperienced. |
| Date: | 2021–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:yqkxf&r=all |
| By: | Hyojung Kang (Economics Department and International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University); Jorge Martinez-Vazquez (International Center for Public Policy, Georgia State University, USA) |
| Abstract: | Foreign Direct Investment (FDI) is widely considered among the most effective instruments for the promotion of economic development. However, not all FDI leads to inclusive economic growth, lifting the welfare of the poorest groups in developing countries. This paper examines the conditions under which FDI can effectively lead to inclusive growth. By using a fixed effects regression with annual data for 68 countries from 1990 to 2015, we find that FDI has the most positive effect on inclusive growth when there is a sufficiently large manufacturing sector and a developed enough infrastructure base in the host country. These not very optimistic results emphasize the critical importance of the host country’s absorptive capacity. A smaller technological or knowledge gap with the foreign firms is required for FDI to lead to more linkages and spillovers, and ultimately job creation for the poor. The results cast doubt on development strategies that rely on FDI as a sufficient policy for inclusive growth. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper2104&r=all |
| By: | Valeria Cirillo; Lucrezia Fanti; Andrea Mina; Andrea Ricci |
| Abstract: | New enabling technologies are shaping the transformation of production activities. This process of change is characterised by growing digitization, inter-connectivity and automation. The diffusion of new technologies is, however, very uneven, and firms display different adoption behaviours. By using panel data on a large representative sample of Italian firms, we explore the patterns and determinants of new digital technology adoption. We build our theoretical framework on the nexus between technology, skills and the organisation of work. We then provide novel econometric evidence on the positive effects of human capital and training. Among the notable results of the paper, labour flexibility does not seem to favour new technology adoption, whereas second-level collective bargaining plays a positive role in the process. Results also show heterogeneous effects between large vs. small and medium-size firms, and between manufacturing and service sectors. |
| Keywords: | Digital technologies; Industry 4.0; skills; human capital; work organisation. |
| Date: | 2021–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2021/04&r=all |
| By: | OECD |
| Abstract: | This paper examines how local-level policies can strengthen entrepreneurship and innovation in the region of Cambridgeshire and Peterborough in the United Kingdom. It investigates the quality of the local entrepreneurship ecosystem for generating innovative start-ups and scale-ups and the regional conditions for generating positive industry transitions by supporting the strategic sectors of life sciences, information technologies, agri-tech and advanced manufacturing. Key areas of focus are on skills development, entrepreneurship development and knowledge exchange for local economic development. A number of policy recommendations are offered based on the analysis together with international inspiring policy practice examples. |
| Keywords: | entrepreneurship, industry transition, knowledge exchange, regional policy, skills |
| JEL: | J24 L52 L53 R58 |
| Date: | 2021–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2021/01-en&r=all |
| By: | Heinrich, Torsten; Yang, Jangho; Dai, Shuanping |
| Abstract: | Understanding the microeconomic details of technological catch-up processes offers great potential for informing both innovation economics and development policy. We study the economic transition of the PR China from an agrarian country to a high-tech economy as one example for such a case. It is clear from past literature that rapidly rising productivity levels played a crucial role. However, the distribution of labor productivity in Chinese firms has not been comprehensively investigated and it remains an open question if this can be used to guide economic development. We analyze labor productivity and the dynamic change of labor productivity in firm-level data for the years 1998-2013 from the Chinese Industrial Enterprise Database. We demonstrate that both variables are conveniently modeled as Lévy alpha-stable distributions, provide parameter estimates and analyze dynamic changes to this distribution. We find that the productivity gains were not due to super-star firms, but due to a systematic shift of the entire distribution with otherwise mostly unchanged characteristics. We also found an emerging right-skew in the distribution of labor productivity change. While there are significant differences between the 31 provinces and autonomous regions of the PR China, we also show that there are systematic relations between micro-level and province-level variables. We conclude with some implications of these findings for development policy. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:udedao:1282021&r=all |
| By: | Kim, Seung Hwan; Jun, Bogang; Lee, Jeong-Dong |
| Abstract: | The principle of relatedness, which helps estimate the affinity between economic activities, suggests that cities, regions, and countries are more likely to undertake new economic activities when they already perform related activities. This empirical principle has been confirmed for various dimensions---cities, regions, and countries---and their activities--- developing new technologies, products, and industries. However, the technological diversification of firms is yet unexplored. Is a firm more successful at entering a new technology when it has already accumulated related technologies? Here, we explore this issue using a unique dataset that contains firms' patent data and financial and market information. In particular, we examine Korean firms listed in the Korean stock market that published patents at the patent offices in Korea, Europe, and the United States from 1984 to 2004. We develop a technological relatedness measure to estimate whether a firm has already published patents with similar technologies. We find that firms are more likely to develop a new technology when they already have related technologies. Interestingly, technological relatedness shows an increasing return to related knowledge. We also check the robustness of this effect using propensity score matching and find that the effects of technological relatedness and its increasing return behavior remain significant when controlling for potential confounding effects. These findings extend the concept of relatedness to a firm's technological diversification and show that the development of a firm's technological knowledge is shaped by its technological relatedness. |
| Date: | 2021–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:47ank&r=all |
| By: | Lee, Jonhoo |
| Abstract: | Small and medium-sized enterprises (SMEs) account for a significant share of the exports of the Republic of Korea, in large part thanks to the sophisticated digital support infrastructure available to these firms. This document analyses how the government implemented this infrastructure over the last decades in close coordination with the private sector. It also presents the prominent institutions and their digital SME export support instruments. Lastly, it identifies some future challenges and recommendations for Latin America and the Caribbean. |
| Date: | 2021–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:46650&r=all |