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on Economics of Strategic Management |
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Issue of 2021‒10‒11
three papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Hugo Castro-Silva (Universidade de Lisboa); Francisco Lima (Universidade de Lisboa) |
| Abstract: | In the knowledge economy, skilled workers play an important role in innovation and economic growth. However, small firms may not be able to keep these workers. We study how the knowledge-skill complementarity relates to job duration in small and large firms, using a Portuguese linked employer-employee data set. We select workers displaced by firm closure and estimate a discrete-time hazard model with unobserved heterogeneity on the subsequent job relationship. To account for the initial sorting of displaced workers to firms, we introduce weights in the model according to the individual propensity of employment in a small firm. Our results show a lower premium on skills in terms of job duration for small firms. Furthermore, we find evidence of a strong knowledge-skill complementarity in large firms, where the accumulation of firm-specific human capital also plays a more important role in determining the hazard of job separation. For small firms, the complementarity does not translate into longer job duration, even for those with pay policies above the market. Overall, small knowledge-intensive firms struggle to retain high skill workers and find it harder to leverage the knowledge-skill complementarity. |
| Keywords: | knowledge intensity, technology, firm size, small firms, job duration, skills |
| JEL: | A1 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:inf:wpaper:2021.08&r= |
| By: | Attila Havas (Centre for Economic and Regional Studies, Institute of Economics) |
| Abstract: | The choice of indicators to measure innovation processes and assess performance is of vital significance. This paper argues that those economic theories give a more accurate, more reliable account of innovation activities that follow a broad approach of innovation, that is, consider all knowledge-intensive activities leading to new products (goods or services), processes, business models, as well as new organisational and managerial solutions, and thus take into account various types, forms and sources of knowledge exploited for innovation by all sorts of actors in all economic sectors. In contrast, the narrow approach to innovation focuses on the so-called high-tech goods and sectors. The broad approach is needed to collect data and other types of information, on which sound theories can be built and reliable and comprehensive analyses of innovation activities can be offered to decision-makers to underpin public policies and company strategies. |
| Keywords: | Schools of economics; Mainstream economics; Evolutionary economics of innovation; Measurement of innovation; Composite indicators; Scoreboards, league tables |
| JEL: | B52 C80 O31 O38 Y10 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:1921&r= |
| By: | Jay Hyun; Ziho Park; Vladimir Smirnyagin |
| Abstract: | Using administrative data on U.S. multisector firms, we document a cross-sectoral propagation of the import competition from China (“China shock”) through firms’ internal networks: Employment of an establishment in a given industry is negatively affected by China shock that hits establishments in other industries within the same firm. This indirect propagation channel impacts both manufacturing and non-manufacturing establishments, and it operates primarily through the establishment exit. We explore a range of explanations for our findings, highlighting the role of within-firm trade across sectors, scope of production, and establishment size. At the sectoral aggregate level, China shock that propagates through firms’ internal networks has a sizable impact on industry-level employment dynamics. |
| Keywords: | China shock, import competition, multisector firms, multiproduct firms, network propagation, trade |
| JEL: | D22 F14 F40 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:21-28&r= |