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on Economics of Strategic Management |
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Issue of 2021‒07‒12
three papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Jose Luis Hervas-Oliver; Mario Davide Parrilli; Andres Rodriguez-Pose; Francisca Sempere-Ripoll |
| Abstract: | European Union (EU) innovation policies have for long remained mostly research driven. The fundamental goal has been to achieve a rate of R&D investment of 3% of GDP. Small and medium-sized enterprise (SME) innovation, however, relies on a variety of internal sources —both R&D and non-R&D based— and external drivers, such as collaboration with other firms and research centres, and is profoundly influence by location and context. Given this multiplicity of innovation activities, this study argues that innovation policies fundamentally based on a place-blind increase of R&D investment may not deliver the best outcomes in regions where the capacity of SMEs is to benefit from R&D is limited. We posit that collaboration and regional specificities can play a greater role in determining SME innovation, beyond just R&D activities. Using data from the Regional Innovation Scoreboard (RIS), covering 220 regions across 22 European countries, we find that regions in Europe differ significantly in terms of SME innovation depending on their location. SMEs in more innovative regions benefit to a far greater extent from a combination of internal R&D, external collaboration of all sorts, and non-R&D inputs. SMEs in less innovative regions rely fundamentally on external sources and, particularly, on collaboration with other firms. Greater investment in public R&D does not always lead to improvements in regional SME innovation, regardless of context. Collaboration is a central innovation activity that can complement R&D, showing an even stronger effect on SME innovation than R&D. Hence, a more collaboration-based and place-sensitive policy is required to maximise SME innovation across the variety of European regional contexts. |
| Keywords: | regional innovation; SMEs; R&D; place-based; collaboration; EU regions |
| JEL: | O31 O32 L11 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2122&r= |
| By: | Makrevska Disoska, Elena; Toshevska-Trpchevska, Katerina; Tevdovski, Dragan; Jolakoski, Petar; Stojkoski, Viktor |
| Abstract: | In this paper, we perform a detailed longitudinal analysis on the innovation performance in nine European countries by using data stemming from the Community Innovation Survey. The temporal dimension of our dataset includes the period during the financial crisis of 2008 as well as the period after the crisis. As such, it allows us to fully evaluate the changes in the innovation processes within the countries during and after the crisis. Our findings suggest that there are no significant differences between the countries in the determinants for firms which decide to enter the innovation process. However, the effect of innovation output over labor productivity varies between economies: there is a positive relationship in the more developed economies compared to a negative or neutral relationship in the less developed. We use these results to speculate that the national innovation system in developing economies becomes more vulnerable in periods of financial crises. |
| Keywords: | CIS, European countries, national innovation systems, longitudinal studies, labor productivity |
| JEL: | C33 C36 O31 O33 |
| Date: | 2021–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108399&r= |
| By: | Gong, Yundan; Hanley, Aoife |
| Abstract: | Underpinning China's technological advancement are the twin-engines of exports and innovation. To better understand China's meteoric economic transformation, we explore the extent to which new products are triggered by exports (direct effects) and by exposure to other exporters (indirect effects). Our methodology (generalized propensity score model) tackles two sources of selectivity bias - at the level of the firm and neighbourhood. Given that production is highly specialized and localized, it would be unusual if firms failed to learn from exposure to local exporters. Our findings reveal an overwhelmingly positive direct effect of exports on new product introductions. Also, a more modest spillover effect. Interestingly, firms with a reduced need to innovate (processing exporters) can also appropriate export spillovers. Our findings have implications for other developing countries seeking to maximise exporting in economic clusters, promoting innovation and ultimately growth. |
| Keywords: | export and innovation,export spillovers,Generalized Propensity Score |
| JEL: | C38 D22 O12 O33 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kcgwps:24&r= |