nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2021‒05‒24
six papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Urban Agglomeration and Firm Innovation: Evidence from Asia By Chen, Liming; Hasan, Rana; Jiang, Yi
  2. How do firms achieve corporate social performance? An integrated perspective By Walid Ben‐amar; Claude Francoeur; Sylvain Marsat; Aida Sijamic Wahid
  3. The transformation of the defense innovation system: knowledge bases, disruptive technologies, and operational capabilities By Pierre Barbaroux
  4. Intangible Capital and Firm-Level Productivity – Evidence from Germany By Roth, Felix; Sen, Ali; Rammer, Christian
  5. Key Sectors in Endogeneous Growth By Huang, Jingong; Zenou, Yves
  6. Industrial Clusters, Networks and Resilience to the Covid-19 Shock in China By Dai, Ruochen; Mookherjee, Dilip; Quan, Yingyue; Zhang, Xiaobo

  1. By: Chen, Liming (Asian Development Bank); Hasan, Rana (Asian Development Bank); Jiang, Yi (Asian Development Bank)
    Abstract: This paper presents evidence on the spatial distribution and effects of urban agglomeration on firm innovation. It uses a unique dataset that consistently defines city boundaries and identifies firms’ innovation-related activities across 25 developing countries in Asia. We find firm innovation to be highly concentrated at the city level. We also find substantial gains from increases in city population in terms of firms’ propensity to introduce process and product innovations and undertake research and development (R&D) activities. These gains remain even after addressing concerns regarding endogeneity through the use of historical population data as instruments. In addition, we present evidence that knowledge spillovers are an important channel through which agglomeration effects occur, specifically through the presence of top-tier universities in a given city and by raising the effectiveness of firms’ R&D efforts. These findings confirm the existence and significance of urban economies of scale in augmenting the knowledge flows that generate innovation.
    Keywords: agglomeration economies; innovation; knowledge spillovers
    JEL: O10 O30 R11
    Date: 2020–07–10
  2. By: Walid Ben‐amar; Claude Francoeur; Sylvain Marsat (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA [2017-2020] - Université Clermont Auvergne [2017-2020]); Aida Sijamic Wahid
    Abstract: This study provides an integrated view of the combined direct and indirect effects of the main drivers of CSR performance, at country, firm and CEO levels respectively. We extend prior literature by showing that the institutional context, firm CSR governance practices, and CSRrelated compensation incentives have impacts of different magnitudes on CSR performance, as well as significant combined effects. Using an international sample of 1,272 observations over 20 countries, we document significant indirect cascading effects of the institutional setting and firm-specific governance practices on CSR performance. From a managerial perspective, we find that firms operating in countries that are less oriented towards satisfying the needs of the stakeholders still have the ability to counterbalance this institutional impact and achieve relatively high CSR performance by implementing sound firm-level CSR governance practices and incentives.
    Keywords: Corporate social performance,Institutions,Corporate governance,Corporate social responsibility incentives
    Date: 2021–01–09
  3. By: Pierre Barbaroux (CReA - Centre de Recherche de l'École de l'air)
    Abstract: The forces that drive much of the transformation of Defense Innovation Systems are manifold. The economic structure and institutional organization supporting defense innovation have been altered by technological as well as political changes. Increasing competitive pressures, together with the growing complexity of knowledge and technology have also shaped how defense companies, military services and procurement agencies adapted their core business models, competences, and strategies in order to be capable of providing their customers with the innovative products and services they need. This contribution builds on a ISTE-Wiley edition's recently published book untitled Disruptive Technology and Defence Innovation Ecosystems ([BAR 19b]) that aimed at improving our understanding of the transformation of defense innovation systems, by focusing on three interrelated dimensions. The first dimension is concerned with changes affecting defense-related knowledge bases, in particular the development of dual-use knowledge and the increasing complexity of defense-related knowledge structures. The second dimension is related to technology itself with a particular emphasis on the disruptive impacts of certain technological trajectories emerging from the outside of traditional boundaries of the defense industrial base. The third dimension is connected to the evolution of military customers' doctrines and capabilities towards netcentricity and multi-domains command and control (C²), the latter having a structuring effect on defense innovation systems.
    Date: 2020–05–01
  4. By: Roth, Felix; Sen, Ali; Rammer, Christian
    Abstract: This paper analyses the impact of intangible capital on firm-level productivity for Germany using panel data from the Community Innovation Survey for the time period 2006 to 2018. Our paper presents three novel results. First, we find a highly significant positive relationship between intangible capital and firm-level productivity with elasticities overall in line with previous findings reported for other large EU economies. Second, our results show that both manufacturing and services are highly intangible-capital intensive, and that intangibles have a greater impact on firm-level productivity in services - particular in the business services sector. Third, our results show that intangible capital investments in German firms are equal to investments in tangible capital since the early 2000s. Overall, the evidence presented in our paper indicates that Germany - in line with other advanced economies - has undergone a structural transition into a knowledge economy in which intangibles act as an important driver of firm-level productivity.
    Keywords: Intangible capital,firm-level productivity,panel data,Germany
    JEL: D24 O30 L22 C33
    Date: 2021
  5. By: Huang, Jingong; Zenou, Yves
    Abstract: This paper develops a multi-sector endogenous growth model that includes an innovation network, which captures intrasectoral as well as heterogeneous intersectoral knowledge flows. We analyze the importance of sectors (nodes) and directed knowledge linkages (edges) in the innovation network by their contribution to the growth of knowledge in this economy. We show that the growth rate of knowledge is equal to the spectral radius of the innovation network. We also demonstrate that a sector's importance to growth (``key sectors'') is related to its positions in both the downstream and upstream technology network. Finally, the importance of a knowledge linkage is characterized by both the upstream centrality of its source sector, the downstream centrality of its target sector and the strength of knowledge flows from the source sector to the target sector.
    Keywords: Endogenous Growth; innovation networks; Key players
    JEL: D85 E2 O4
    Date: 2020–09
  6. By: Dai, Ruochen; Mookherjee, Dilip; Quan, Yingyue; Zhang, Xiaobo
    Abstract: We examine how exposure of Chinese firms to the Covid-19 shock varied with a cluster index (measuring spatial agglomeration of firms in related industries) at the county level. Two data sources are used: entry flows of newly registered firms in the entire country, and an entrepreneur survey regarding operation of existing firms. Both show greater resilience in counties with a higher cluster index, after controlling for industry dummies and local infection rates, besides county and time dummies in the entry data. Reliance of clusters on informal entrepreneur hometown networks and closer proximity to suppliers and customers help explain these findings.
    Keywords: China; Clusters; COVID-19; firms; Social Networks
    JEL: D31 I3 J12 J16
    Date: 2020–10

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