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on Economics of Strategic Management |
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Issue of 2022‒05‒23
five papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Crescenzi, Riccardo; Dyevre, Arnaud; Neffke, Frank |
| Abstract: | We study whether and when Research and Development (R&D) activities by foreign multinationals facilitate the formation and growth of new innovation clusters. Combining information on nearly four decades’ worth of patents with socio‐economic data for regions that cover virtually the entire globe, we use matched difference‐in‐differences estimation to show that R&D activities by foreign multinationals have a positive causal effect on local innovation rates. This effect is sizeable: over a five‐year period, foreign research activities help a region climb 14 centiles in the global innovation ranks. This effect materializes through a combination of knowledge spillovers to domestic firms and the attraction of new foreign firms to the region. However, not all multinationals generate equal benefits. In spite of their advanced technological capabilities, technology leaders generate fewer spillovers than technologically less advanced multinationals. A closer inspection reveals that technology leaders also engage in fewer technological alliances and exchange fewer workers with local firms abroad than less advanced firms. Moreover, technology leaders tend to set up their foreign R&D activities in regions with lower levels of economic development than less advanced firms, yet with comparable public sector research capacity. These findings suggest that multinationals with high levels of technological sophistication face comparatively unfavorable tradeoffs between the costs and benefits of local spillovers, underscoring the importance of understanding corporate strategy when analyzing innovation clusters. |
| Keywords: | innovation; regions; foreign direct investment; patenting; cluster emergence; European Union Horizon 2020 Program H2020/2014‐2020) (Grant Agreement n 639633‐MASSIVE‐ERC‐ 2014‐STG; T&F deal |
| JEL: | O32 O33 R11 R12 |
| Date: | 2022–04–21 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:112597&r= |
| By: | Leogrande, Angelo; Laureti, Lucio; Costantiello, Alberto |
| Abstract: | The following article analyzes the determinants of the innovation index in Europe. The data refer to the European Innovation Scoreboard-EIS of the European Commission for the period between 2010 and 2019 for 36 countries. The data are analyzed using the following econometric techniques: Panel Data with Random Effects, Panel Data with Fixed Effects, Dynamic Panel Data, Pooled OLS, WLS. The results show that the Innovation Index is negatively connected to some variables, among which the most significant are "GDP per capita", "R&D expenditure public sector", "Venture capital", "Tertiary education", and positively connected to some variables among which the most relevant are: "Government procurement of advanced technology products", "Average annual population growth", "Finance and support", "Human resources", "Marketing or organisational innovators", "Linkages". A clustering was then carried out using the unsupervised k-Means algorithm optimized with the Silhouette coefficient which shows the presence of 2 clusters per value of the Innovation Index. Eight machine learning algorithms has been used for prediction with real data. The Tree Ensemble Regression algorithm has been chosen as best performer. A further prediction has been made with the augmented data. The result shows that the best performing algorithm is Linear Regression with an innovation index value predicted to grow by approximately 3.38%. |
| Keywords: | Innovation, and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Diffusion Processes; Open Innovation. |
| JEL: | O30 O31 O32 O33 O34 |
| Date: | 2022–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112841&r= |
| By: | Miriam Juárez-Torres; Jonathan Puigvert; Francisco Zazueta-Borboa |
| Abstract: | This paper follows an algorithm that considers different dimensions of linkages across service and manufacturing industries to identify a cluster configuration of the Mexican economy and analyze their role in the economic performance of regions. It identifies 24 clusters and analyzes their geographical distribution, their role in regional growth, the evolution of their employment concentration, and their spillover effects. The main findings suggest that manufacturing-oriented clusters have a strong presence in the Northern states of the country, while services-oriented clusters in the Central ones. Finally, clusters such as plastic products manufacturing; retail and eating services; food and beverage manufacturing; and, automotive show relatively high direct and indirect spillover effects on the economy. |
| JEL: | L60 L80 O54 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:bdm:wpaper:2022-06&r= |
| By: | Drydakis, Nick (Anglia Ruskin University) |
| Abstract: | The lack of awareness of digital services and outcomes is a concern in business environments since small firms need to improve their digital competencies. The present exploratory study investigated whether business apps training was associated with entrepreneurs' and firms' digital advancements. The business apps training was offered to migrant entrepreneurs running small firms in Athens (Greece) over three months, with data collected before and after the training. The analysis revealed that business apps training was positively associated with entrepreneurs' attitudes toward technology, willingness to change (relating to technology/skills/operations), and internet/digital skills, as well as increased use of business apps. Moreover, the training was positively associated with firms' digital competencies related to communication, networking, social media, customer relationship management, payments, accounting and finance, and project management operations. Furthermore, the business apps training was positively associated with migrant entrepreneurs' integration into Greek society. Given the increased number of migrants in Europe, factors that positively impact their entrepreneurship and integration merit consideration. The study provides researchers with a systematic method for evaluating the association between business app training and entrepreneurs' and firms' digital advancements. |
| Keywords: | training, entrepreneurs, small firms, business apps, digital skills, digital competencies, artificial intelligence, integration |
| JEL: | M53 L26 O31 O33 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15204&r= |
| By: | Meitong Dong (HKU - The University of Hong Kong); Liwen Wang (Audencia Business School, Shenzhen Univerisity [Shenzhen]); Defeng Yang (Jinan University [Guangzhou]); Kevin Zhou (HKU - The University of Hong Kong) |
| Abstract: | Building on the behavioral theory of the firm and institutional view, we examine how performance feedback (i.e., a focal firm's performance relative to its industry peers) affects export intensity and how institution-related factors moderate this relationship. Using a sample of Chinese private manufacturing firms, we find that positive performance feedback lowers export intensity while the relationship between negative performance feedback and export intensity is insignificant. Moreover, outperforming firms are likely to decrease their export intensity even more when they are located in regions of better institutional development or have political connections. Underperforming firms with political connections tend to increase their export intensity. These findings enrich our understanding of the export behavior of emerging market firms. |
| Keywords: | performance feedback,export intensity,institutional development,political connections,behavioral theory of the firm,institutional view |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03628381&r= |