nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2022‒01‒17
nine papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Perspectives in Public and University Sector Co-operation in the Change of Higher Education Model in Hungary, in Light of China's Experience By Attila Lajos Makai; Szabolcs Ramhap
  2. Effects of Policy Reforms on Firm Innovation By Murat Seker; Mehmet Fatih Ulu
  3. Hiring entrepreneurs for innovation By Louise Lindbjerg; Theodor Vladasel
  4. Innovation under central planning: patenting and productivity in the GDR By Frieling, Titus
  5. An Empirical Study on the Relationship of Regional Entrepreneurial Activities and Utilization of Digital Technology in Knowledge-Intensive Business Services (KIBS) By Nobuo Kobayashi; Takeshi Mori
  6. The Innovation Linkages in Europe By Costantiello, Alberto; Laureti, Lucio; Leogrande, Angelo; Marco, Matarrese
  7. How does environmental regulation affect firm innovation? Evidence based on corporate life cycle By Hao, Miao; Lyv, Kangjuan; Li, Shiyuan; Hu, Wuyang
  8. On the Estimation of Cross-Firm Productivity Spillovers with an Application to FDI By Malikov, Emir; Zhao, Shunan
  9. From Immigrant Entrepreneurship to Plurinational Firms: Evidence from Italy By Arrighetti, Alessandro; Gnarini, Daniela; Lasagni, Andrea; Semenza, Renata

  1. By: Attila Lajos Makai; Szabolcs Ramhap
    Abstract: The model shift of higher education in Hungary brought not only the deepening of university-industry relations and technology transfer processes, but also contribute the emerging role of universities in shaping regional innovation policy. This process provides a new framework for cooperation between actors in regional innovation ecosystems and raises the relationship between economic-governmental-academic systems to a new level. Active involvement of government, the predominance of state resources, and the strong innovation-organizing power of higher education institutions are similarities that characterize both the Hungarian and Chinese innovation systems. This paper attempts to gather Chinese good practices whose adaptation can contribute to successful public-university collaboration. In the light of the examined practices, the processes related to the university model shift implemented so far can be placed in a new context, which are presented through the example of the Sz\'echenyi Istv\'an University of Gy\H{o}r.
    Date: 2021–12
  2. By: Murat Seker (Turkish Airlines Headquarter, Istanbul); Mehmet Fatih Ulu (Koc University, Istanbul)
    Abstract: The regulatory environment in a country is an important factor that affects firm performance. This study investigates the impact of a particular regulation – license requirements for certain firm activities – on the innovation performance of Indian firms in the 1990s. Using a unique firm-level panel data set, it shows that the removal of license requirements led to an eight percentage points higher innovation rate within two years following the reform. We measure innovation as the introduction of new product varieties that had not been produced by the firm before. It takes a longer time for firms to innovate in industries in which they were not producing before. The conclusions in this study are also robust to the inclusion of controls for other policy reforms that occurred during the period of licensing reform. They also persist in tests with different subgroups of firms and with the use of alternative estimation methods.
    Keywords: Innovation, research and development, regulatory environment, regulations, industrial policy, India.
    JEL: L11 L52 O14 O31 O3
    Date: 2022–01
  3. By: Louise Lindbjerg; Theodor Vladasel
    Abstract: Technical human capital improves firms' invention outcomes, but generating innovation revenue may require distinct skills in bringing new ideas to market. We argue that former founders are endowed with execution skills, a generalist ability to create and exploit market gaps by acquiring and mobilizing resources, so entrepreneurial human capital enhances innovation in established organizations. Combining register and Community Innovation Survey data from Denmark, we show that entrepreneur hires are associated with higher sales from new products and services. This result is driven by founder hires in middle management, a hierarchical position where broader decision rights and resource access increase execution skills' effectiveness. Founder hires are more tightly linked to innovation new to the firm or market, rather than world, consistent with our prediction that execution skills help bring incremental improvements to market, but do not necessarily generate radical innovation. Together, our findings suggest that entrepreneurial human capital may help firms appropriate a larger share of the value their knowledge generates.
    Keywords: innovation, learning by hiring, entrepreneurship, execution skills, human capital, middle management
    JEL: J24 L23 M12 M21 M51
    Date: 2021–12
  4. By: Frieling, Titus
    Abstract: This thesis employs novel datasets on patenting activity and TFP in the GDR to study the relationship between innovation and productivity. Patenting activity is chosen as a variable of interest due to its inherent link to the innovative process and high international and intertemporal comparability. No statistically significant relationship between patenting and future productivity growth is found in an analysis across 16 sectors of the GDR’s economy from 1950-1989. This result is unusual, and likely results out of the institutional framework of the GDR: firstly, it being a planned economy and the associated reduced productivity effects of innovations, and secondly, the GDR’s unique patent system which likely increased the number of patent applications while reducing their economic usefulness. By including the full breadth of the GDR’s patent stock, as well as robustly estimating the initial capital stock of the GDR, a more reliable account of both these variables can be made than was possible in previous studies. This thesis contributes to the literature through its use of new data and an adaptation of a proven empirical identification strategy to a new context. It also suggests avenues for further research on the relationship between patenting and innovation in the GDR and planned economies more widely.
    JEL: R14 J01 N0
    Date: 2021–12
  5. By: Nobuo Kobayashi (School of Economics, Kwansei Gakuin University); Takeshi Mori (Nomura Research Institute)
    Abstract: This paper presents an analysis of factors that promote and suppress the regional start-up activities of knowledge-intensive business services (KIBS) in Japan, based on the Digital Capability Index (DCI). The results showed that rapid progress in the digitization of public services and local residents f high ICT skills were factors that promoted KIBS start-ups. In addition, the results revealed that the establishment of a high-speed information and communication environment in the region has promoted T-KIBS startups, which utilize the Internet. Regarding factors not included in the DCI, the results showed a positive effect of the concentration of human resources and business establishments in metropolitan areas, which was in line with the findings of previous studies. In contrast, the start-up rates of T-KIBS were high in areas where the ratios of day and night populations were low. This finding suggests that although the main customers of T-KIBS are companies in metropolitan areas, such as Tokyo and Osaka, they locate their offices in the suburbs, where commercial rents are lower than in urban areas.
    Keywords: Knowledge Intensive Business Services (KIBS), Digital Capability Index (DCI), start-up activity
    JEL: L26 L84 L86 R30
    Date: 2022–01
  6. By: Costantiello, Alberto; Laureti, Lucio; Leogrande, Angelo; Marco, Matarrese
    Abstract: In this article we investigate the determinants of the Innovation Linkages in Europe. We use data from the European Innovation Scoreboard of the European Commission in the period 2000-2019 for 36 countries. Data are analyzed using Panel Data with Fixed Effects, Random Effects, Dynamic Panel at 1 Stage, Dynamic Panel at 2 Stage, Pooled OLS, WLS. Results show that the Innovation Linkages in Europe is positively associated with “Buyer Sophistication”, “Government Procurement of Advanced Technology Products”, “Finance and Support”, “Firm Investments”, “Human Resources”, and negatively associated with “Population Density”, “Employment Share Services”.
    Keywords: O30; O31, O32; O33; O36.
    JEL: O3 O30 O31 O32 O33 O34
    Date: 2021–01
  7. By: Hao, Miao; Lyv, Kangjuan; Li, Shiyuan; Hu, Wuyang
    Abstract: Environmental regulation can be an effective tool for the government to balance the relationship between the ecology and economic development. In this paper, the corporate life cycle theory is incorporated into environmental regulation policy evaluation, and the impact of environmental regulation on the output of innovation by China’s enterprises in different development stages is analyzed. The results show that environmental regulation significantly promotes innovation and particularly green innovation of all enterprises in China. The effect is especially strong for enterprises in the start-up and growing stage, and the impetus for innovation among private enterprises is significantly greater than that of state-owned enterprises. The mechanism behind these results is also analyzed. This paper extends the existing theoretical framework and provides empirical reference for future environmental policy research. Also, we provide guidance for the government to formulate environmental policies according to the development tasks of different stages and the nature of different enterprises, so as to achieve the social and economic goals effectively.
    Keywords: Corporate Life Cycle; Two Control Zones; Innovation; Environmental Regulation; Difference-in-Difference
    JEL: L51 O44 Q55
    Date: 2021–10
  8. By: Malikov, Emir; Zhao, Shunan
    Abstract: We develop a novel methodology for the proxy variable identification of firm productivity in the presence of productivity-modifying learning and spillovers which facilitates a unified "internally consistent" analysis of the spillover effects between firms. Contrary to the popular two-step empirical approach, ours does not postulate contradictory assumptions about firm productivity across the estimation steps. Instead, we explicitly accommodate crosssectional dependence in productivity induced by spillovers which facilitates identification of both the productivity and spillover effects therein simultaneously. We apply our model to study cross-firmspillovers in China’s electric machinery manufacturing, with a particular focus on productivity effects of inbound FDI.
    Keywords: Production Economics, Productivity Analysis
    Date: 2022–01
  9. By: Arrighetti, Alessandro; Gnarini, Daniela; Lasagni, Andrea; Semenza, Renata
    Abstract: The article contributes to the current debate on the relationship between migration and entrepreneurship, highlighting the evolution of processes and practices, from the traditional monoethnic firm towards new models, we defined as “plurinational”. It refers precisely to the cases, widespread in the evolving cosmopolitan society, where both entrepreneurs and workers belong to different nationalities. The article outlines the findings of a qualitative research study, based on interviews with a series of entrepreneurs of plurinational firms in Italy. Firstly, we found that plurinational firms originate from “weak ties” (through acquaintances and previous work experiences) rather than “strong ties” (through family and co-ethnic community networks). Secondly, far for being univocal models, we found a variety of plurinational entrepreneurships which derives from different scales of priority assigned by ownership or management to plurinationalism as “opportunity” or plurinationalism as “value”.
    Keywords: immigrant entrepreneurship,plurinationalism,migration,break-out strategies,organizational diversity,Italy
    Date: 2021

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