nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2021‒07‒12
three papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The drivers of SME innovation in the regions of the EU By Jose Luis Hervas-Oliver; Mario Davide Parrilli; Andres Rodriguez-Pose; Francisca Sempere-Ripoll
  2. A longitudinal overview of the European national innovation systems through the lenses of the Community Innovation Survey By Makrevska Disoska, Elena; Toshevska-Trpchevska, Katerina; Tevdovski, Dragan; Jolakoski, Petar; Stojkoski, Viktor
  3. Exports and new products in China - A generalized propensity score approach with firm-to-firm spillovers By Gong, Yundan; Hanley, Aoife

  1. 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
  2. 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
  3. 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

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.