|
on Economics of Strategic Management |
|
Issue of 2022‒07‒25
nine papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Xiang Ding (Georgetown University); Teresa C. Fort (Dartmouth College); Stephen J. Redding (Princeton University); Peter K. Schott (Yale University) |
| Abstract: | We document the role of intangible capital in manufacturing firms' substantial contribution to non-manufacturing employment growth from 1977-2019. Exploiting data on firms' "auxiliary" establishments, we develop a novel measure of proprietary in-house knowledge and show that it is associated with increased growth and industry switching. We rationalize this reallocation in a model where firms combine physical and knowledge inputs as complements, and where producing the latter in-house confers a sector-neutral productivity advantage facilitating within-firm structural transformation. Consistent with the model, manufacturing firms with auxiliary employment pivot towards services in response to a plausibly exogenous decline in their physical input prices. |
| Keywords: | Intangible capital, Manufacturing, Employment Growth, Non-manufacturing employment, Firms |
| JEL: | D24 F14 L16 O47 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:pri:econom:2022-7&r= |
| By: | Xiang Ding (Georgetown University); Teresa C. Fort (Tuck School of Business, CEPR, and NBER); Stephen J. Redding (Princeton University, CEPR, and NBER); Peter K. Schott (Yale School of Management, CEPR, and NBER) |
| Abstract: | We document the role of intangible capital in manufacturing firms’ substantial contribution to non-manufacturing employment growth from 1977-2019. Exploiting data on firms’ “auxiliary†establishments, we develop a novel measure of proprietary in-house knowledge and show that it is associated with increased growth and industry switching. We rationalize this reallocation in a model where firms combine physical and knowledge inputs as complements, and where producing the latter in-house confers a sector-neutral productivity advantage facilitating within-firm structural transformation. Consistent with the model, manufacturing firms with auxiliary employment pivot towards services in response to a plausibly exogenous decline in their physical input prices. |
| Keywords: | structural transformation, professional services, intangible knowledge, economic growth |
| JEL: | D24 L16 O47 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:pri:cepsud:297&r= |
| By: | Gómez-Aguayo, Ana María; Azagra-Caro, Joaquín M.; Benito-Amat, Carlos |
| Abstract: | Economic ups and downs condition science and innovation. The research strength of business firms and their cooperation with universities are important functions of science systems. The aim of this research is to analyse some of the links between business scientific output co-creation and impact throughout the economic cycle. Economic growth increases the probability of firms increasing both their scientific knowledge co-creation output and their scientific impact (during crises), until reaching an inflection point, after which those relationships become negative (during expansions). Co-creation with universities intensifies the scientific impact of firmsâ output; however, although in theory this effect should vary according to the economic phase, the evidence shows that it remains steady. In this study, the theory is grounded through interviews with key university and firm co-authors, and an empirical test is conducted on publications from 15,000 Spanish firms between 2000 and 2016 and their citations â a period which includes the Spanish Great Recession (2008â2014). The analysis suggests that policies to promote business co-creation output with universities should be more stable throughout economic cycle: in expansions, governments should maintain the support for co-creation that is typical of crises; in crises, governments should not expect co-creation with universities to have an even greater positive effect on firmsâ scientific quality than it already has during expansions. |
| Date: | 2022–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:202202&r= |
| By: | Capucine Riom; Anna Valero |
| Abstract: | We present new data from a survey of 375 UK businesses conducted in July 2020 in partnership with the Confederation of British Industry (CBI), which seeks to understand the way in which firms have innovated in response to the crisis. We find that the pandemic has caused enormous business disruption, which has prompted many firms to focus on innovation. Over 60% of firms report that they have adopted new technologies or management practices since the onset of the pandemic, while a third have invested in new digital capabilities. We find similar patterns in terms of the introduction of new products or services. We describe how these responses differ across types of businesses and find that previous technology adoption is a strong predictor of a rapid innovation response to the crisis, even after controlling for other factors. Nearly all firms report that they expect the adoption of new technologies or practices to be permanent and to have a positive impact on firm performance. We will test these predictions with a follow-up survey one year on. |
| Keywords: | Covid-19, business performance, innovation, CBI, UK |
| Date: | 2020–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcvd:cepcovid-19-009&r= |
| By: | Subash Sasidharan (Indian Institute of Technology Madras); Ketan Reddy (Indian Institute of Technology Madras) |
| Abstract: | The present study investigates the role of innovation on global market survival of Indian manufacturing firms. Specifically, the study examines whether research and development (R&D) investment enables firms to survive longer in export markets and global value chain markets. To achieve this objective, we source information on firms trading behaviour and R&D investments from the CMIE-Prowess database for the period 2001–18. Using a complementary log-log model, we find that firms investing in R&D experience a lower probability of exiting international markets. In addition, multiple sub-sample analysis indicates that importance of R&D becomes even more prominent for small and medium-sized firms. Based on the empirical findings, the study proposed policy suggestions for India. |
| Keywords: | Global Value Chains; Research and Development; Survival analysis |
| JEL: | F14 F15 O32 L6 |
| Date: | 2021–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2021-45&r= |
| By: | Hansmeier, Hendrik; Koschatzky, Knut; Zenker, Andrea; Stahlecker, Thomas |
| Abstract: | While societal challenges are global in nature, solving and addressing them usually tends to take place at smaller spatial scales. As place-specific technological, institutional and actor settings have a decisive influence on the direction, scope and speed of transformative dynamics, regions vary greatly in the generation and application of innovations required for socio-technical transitions. With a broader understanding of regional innovation systems (RIS), on the one hand, and spatial considerations in transition studies, on the other, geographic research has recently contributed to a better understanding of innovation-based structural and systemic change. At the same time, the research findings are still insufficiently linked with one another. We argue that recent theorizing on expanded regional innovation systems provides additional explanatory power in the context of sys-temic transitions by considering similar aspects, e.g. the role of experimentation and different modes of innovation, yet incorporating a more spatial perspective. Against this background, we show that innovation policies at the regional level seem to be particularly effective when they sup-port innovation dynamics aimed at sustainability through the inclusion of various actor groups and the attention to both the production and application side. Given the increasing spatial disparities in innovation dynamics, however, further research is needed on the opportunities and barriers of different regional settings for sustainability transitions. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisifr:r22022&r= |
| By: | Laatsit, Mart (CIRCLE, Lund University); Grillitsch, Markus (CIRCLE, Lund University); Fünfschilling, Lea (CIRCLE, Lund University) |
| Abstract: | In the policy discourse on societal challenges it has become common to think of innovation policy as the universal tool for addressing societal challenges. However, we argue that innovation policy has limits to what it can do, and for it to remain a useful tool for tackling societal challenges, it is necessary to re-assess its role. Thus, this paper addresses the following research questions: What are the theoretical implications of the augmented expectations of innovation policy to deliver system change, what role can innovation policy play in contributing to system change, and what conditions this role. Linking to the literature on wicked problems and radical innovations, we differentiate between disruptive and progressive system change, and show that the potential role of innovation policy differs between these two types of change. Acknowledging both the potential and limitations of innovation policy, we make a proposition for how an ambitious innovation policy contributing to system change may be conceived. |
| Keywords: | Innovation policy; System change; Societal challenges |
| JEL: | O38 |
| Date: | 2022–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2022_009&r= |
| By: | Juan R. Ferrer (Universidad Politécnica de Madrid); María Carmen García-Cortijo (Instituto de Desarrollo Regional, Universidad de Catsilla-La Mancha); Vicente Pinilla (Universidad de Zaragoza); Juan Sebastián Castillo-Valero (Instituto de Desarrollo Regional, Universidad de Catsilla-La Mancha); Raúl Serrano (Universidad de Zaragoza) |
| Abstract: | The globalisation of the economy, which is a complex environment with changing dynamics, means that the factors that condition and promote the growth of firms need to be determined. This is because growth is an indicator of competitiveness; the capital markets value more highly those companies with positive growth prospects. In this respect, the objective of this study is to analyse the growth of Spanish wine-making companies and its relationship with their orientation towards sustainability. It also examines the possible existence of resources and structural factors that favour the growth of these firms. To do this, a database of 411 wineries operating in Spain has been used, constructed through surveys carried out during 2020 and 2021. The results of the regression model, estimated by OLS with Robust Errors proposed by Eiker-White, indicate that sustainability has come to form part of the growth model of wineries in Spain. |
| Keywords: | growth, sustainability, wineries, resources and capacities. |
| JEL: | L21 L66 N64 Q13 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:zar:wpaper:dt2022-03&r= |
| By: | Murphy, Colin; Pellaton, Paige; Fuller, Sam |
| Abstract: | Many scientific projects are intended to inform public policy, however there are often difficulties transferring or translating research from scientists to policy makers. This paper reviews the existing literature on the quality of communication between scientists or field experts and policy makers and the challenges they face in conveying their research. A majority of best practice recommendations related to effective communication are rooted in anecdotal evidence and have not yet been subjected to systematic scientific study. This is, in part, because the nature of public policy makes data collection, randomization, or correcting for confounding factors extremely challenging. Studies that do put these recommendations to the test are most commonly fielded as national surveys of field experts and policy makers in comparative contexts. Few studies examine this subject in the United States, however, and most find mixed results as to the efficacy of well-accepted scientific communication strategies. Further, existing work often fails to account for the impact of reputation on the willingness of scientists to engage in policymaking and the willingness of political actors to seek and accept expert input in the policymaking process, unless it confirms pre-existing biases. The authors explain how this gap in the literature has important consequences for the quality of policies produced and suggest future avenues of research in the pursuit of sincere evidence-based policymaking. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Science communication, knowledge transfer, policymaking, reputation costs |
| Date: | 2022–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt587588hr&r= |