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on Economics of Strategic Management |
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Issue of 2022‒04‒18
eight papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Vujanovic, Nina; Radosevic, Slavo; Stojcic, Nebojsa; Hisarciklilar, Mehtap; Hashi, Iraj |
| Abstract: | The beneficial effects of innovation for firm performance and competitiveness are well established but it has been suggested in recent years that innovation regimes differ between advanced and emerging economies. While advanced economies rely on knowledge generation, their emerging counterparts follow mainly knowledge use regime through the application of existing knowledge and technology. Climbing up the technological ladder can be helped through spillovers from foreign investors to local firms. We investigate whether FDI spillovers influence different phases of innovation process (from decision to innovate to productivity) among knowledge using and knowledge creating firms in an emerging European economy. The results show that innovation process in emerging economies is closer to imitation than creation of novel products. Local firms benefit from foreign counterparts in the early phase of innovation process. Stronger FDI effects are found on firms that undertake innovation through knowledge use than through knowledge generation. |
| Keywords: | knowledge use; knowledge generation; FDI; innovation; emerging economy |
| JEL: | O31 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112396&r= |
| By: | FUKUGAWA Nobuya |
| Abstract: | University spinoffs build on strong science, which allows them to create radical innovation. Radical innovation entails uncertainty in entrepreneurial outcomes, necessitating the participation of individuals and organizations that bridge the gap between science and the market. Recognizing that the commercial success of university spinoffs hinges on the entrepreneurial ecosystems they are embedded in, this study establishes unbalanced panel data (2015-2020) to examine the relationships among the key factors in university spinoff ecosystems: scientific productivity of academic researchers associated with university spinoffs, radicalness of the innovation created by the university spinoff, and entrepreneurial intermediaries who bridge the gap between science and the market. Estimation results reveal that h5-index positively affects venture capital funding. The quality of innovation does not affect the probability of university spinoffs receiving venture financing, negating the scout function of entrepreneurial intermediaries. Venture capital financing positively affects sales growth of university spinoffs, corroborating the coach function of entrepreneurial intermediaries. |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:22006&r= |
| By: | Rammer, Christian |
| Abstract: | Process innovation is an important part of firms' innovation activities and supposed to significantly contribute to positive returns from innovation. Measuring process innovation output at the firm level is still in its infancy, however. This paper reports empirical evidence on measures of process innovation output that have been collected in the German part of the Community Innovation Survey (CIS) over the past 25 years. Distinguishing between cost reduction and quality improvement, the paper finds low item non-response for the qualitative (yes/no) part of both indicators. Item non-response is much higher for quantitative information and does not decrease with questionnaire experience of firms. For both cost reduction and quality improvement, response to quantitative indicators is categorical in nature, and firms tend to report the same set of values when participating frequently in the survey. The determinants of realising the two types of process innovation output are very similar. The observed variance in the quantitative part is difficult to explain for both measures. The impact of process innovation output on firm performance is limited. While cost reduction seems to spur the export share, sales increase due to quality improvement is associated with higher profitability. |
| Keywords: | Process innovation,innovation output,panel data,Community Innovation Survey |
| JEL: | O31 O32 O33 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22002&r= |
| By: | Axenbeck, Janna; Niebel, Thomas |
| Abstract: | Although information and communication technologies (ICT) consume energy themselves, they are considered to have the potential to reduce overall energy intensity within economic sectors. While previous empirical evidence is based on aggregated data, this is the first large-scale empirical study on the relationship between ICT and energy intensity at the firm level. For this purpose, we employ administrative panel data on 28,600 manufacturing firms from German Statistical Offices collected between 2009 and 2017. Our results confirm a statistically significant and robust negative link between software capital as an indicator for the firm-level degree of digitalization and energy intensity, but the effect size is rather small. Hence, we conclude that energy intensity reductions related to the use of digital technologies are lower than expected. |
| Keywords: | ICT,Firm-level panel data,Energy intensity improvements |
| JEL: | D22 D24 L60 O12 O14 O33 Q40 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:21105&r= |
| By: | Riehl, Kevin; Kiesel, Florian; Schiereck, Dirk |
| Abstract: | Green innovation and technology diffusion must be financially and commercially attractive to convince corporate decision makers. This paper focuses on the factors that determine the financial outcome of successful green innovation activities conducted by large, listed companies. We employ a cross-industry dataset including more than 97,954 reports on corporate environmentalism from 286 international listed companies. Our results indicate that economic, political, cultural, firm-specific, investor-related, and governance factors significantly determine the financial performance of green innovation, measured by abnormal returns. Moreover, we can show that factors that reduce the competition in green innovation markets benefit the financial success of firms operating via them. Finally, we find an opposing influence for several factors that benefit earlier stages of innovation (e.g., research output) while harming the later stages (e.g., market introduction and financial performance). These findings imply that a spatial separation strategy for different stages of innovation supports corporate environmentalism activities. Moreover, physical property rights, the governments’ willingness to support green technologies, and economic framework conditions such as oil price, GDP, or public R&D budget need to be balanced by policymakers to address and stimulate green innovation. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:132099&r= |
| By: | Paras Bhatt; Claire Vishik; Govind Hariharan; H. Raghav Rao |
| Abstract: | Essential functionality in the ICT (Information and Communication Technology) space draws from standards such as HTTP (IETF RFC 2616, Bluetooth (IEEE 802.15) and various telecommunication standards (4G, 5G). They have fuelled rapid growth of ICT sector in the last decades by ensuring interoperability and consistency in computing environment. Research shows that firms that backed ICT standards and participated in standards development, have emerged as industry innovators. Standards development thus clearly has benefits for participating companies as well as technology development and innovation in general. However, significant costs are also associated with development of standards and need to be better understood to support investment in standardization necessary for todays ICT environment. We present a conceptual model that considers the potential for market innovation across a standards lifecycle and efficiency from standardization work, to build a forward-looking decision model that can guide an organizations standards development activities. We investigate and formalize motivations that drive firms to participate in standardization, specifically, changes in market innovation. Our model can serve as a strategic decision framework to drive assessments of a firms participation in standards development. We test our model with a use case on an established access control approach that was standardized more than two decades ago, Role Based Access Control (RBAC) using historical data. The investigation of the case study shows that change in market innovation is a significant indicator of success in standards development and are viable criteria to model a firms decision to participate (or not to participate) in a specific area of standardization. |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2204.03055&r= |
| By: | Van Reenen, John |
| Abstract: | If innovation is to be subsidized, a natural place to start is to increase the quantity and quality of human capital. Innovation, after all, begins with people. Simply stimulating the “demand side” through R&D subsidies and tax breaks may only drive up the price, rather than the volume of research activity. By contrast, increasing the supply of potential inventors can both directly increase innovation and reduce its cost. This paper examines the evidence on human capital policies for stimulating innovation such as expanding the home-grown workforce, fostering immigration, boosting universities and reducing barriers to entry into inventor careers, especially for under-represented groups. The evidence suggests targeting high ability but disadvantaged potential inventors at an early age is likely to have the largest long-run effects on growth. |
| Keywords: | innovation; R&D; intellectual property; tax; competition |
| JEL: | O31 O32 |
| Date: | 2021–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:114433&r= |
| By: | Czarnitzki, Dirk; Fernández, Gastón P.; Rammer, Christian |
| Abstract: | Artificial Intelligence (AI) is often regarded as the next general-purpose technology with a rapid, penetrating, and far-reaching use over a broad number of industrial sectors. A main feature of new general-purpose technology is to enable new ways of production that may increase productivity. So far, however, only very few studies investigated likely productivity effects of AI at the firm-level; presumably because of lacking data. We exploit unique survey data on firms' adoption of AI technology and estimate its productivity effects with a sample of German firms. We employ both a cross-sectional dataset and a panel database. To address the potential endogeneity of AI adoption, we also implement an IV approach. We find positive and significant effects of the use of AI on firm productivity. This finding holds for different measures of AI usage, i.e., an indicator variable of AI adoption, and the intensity with which firms use AI methods in their business processes. |
| Keywords: | Artificial Intelligence,Productivity,CIS data |
| JEL: | O14 O31 O33 L25 M15 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22005&r= |