nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2023‒08‒28
five papers chosen by
João José de Matos Ferreira, Universidade da Beira Interior

  1. Technological Transfer Channels of Food and Beverage Processing Multinationals to Host Countries: An Empirical Analysis By Rama, Ruth
  2. Innovation in the creative industries: Linking the founder's creative and business orientation to innovation outcomes By Koch, Florian; Hoellen, Max; Konrad, Elmar D.; Kock, Alexander
  3. Determinants of Commercialization Modes of Science: Evidence from panel data of university technology transfer in Japan By FUKUGAWA Nobuya
  4. Quadruple helix analysis of the university-government-industry-civil society nexus in Philippine sardines industry By Sulasula, Josephine
  5. Innovation, industry equilibrium, and discount rates By Bustamante, Maria Cecilia; Zucchi, Francesca

  1. By: Rama, Ruth
    Abstract: Purpose. This research examines the possibility of food and beverage (F&B)-processing multinational corporations serving as a viable conduit for the international diffusion of technology. Methodology. This study utilizes existing literature to analyse three potential avenues through which technology transfer occurs from these corporations to host sectors: contract farming, domestic collaboration for innovation, and spillover effects of Foreign Direct Investment (FDI). Findings. In specific instances, these firms might provide support to local innovators through financial assistance or complementary resources. Additionally, they may actively facilitate technology transfers to particular types of local partners and they may generate demonstration effects. Nevertheless, the prevailing evidence consistently indicates that the impact of FDI on the host sector is generally limited or selective. Practical implications. The findings of this study cast doubt on the overly optimistic views held by international organizations and host governments regarding FDI in the food sector as a major source of cutting-edge technology for host countries. The incentives offered to food and beverage multinationals should be carefully calibrated to strike a balance between acknowledging potential benefits to the sector's innovation system and maintaining a realistic perspective on the actual outcomes. Originality. This study combines and analyses three separate empirical lines of research in parallel to offer factual elements for a policy debate. By integrating these different research approaches, the study aims to contribute to a well-informed discussion on relevant policy matters.
    Keywords: Innovation, internationalisation of R&D, FDI policy, food and beverage sector, contract farming, spillovers of knowledge, cooperation for innovation.
    JEL: F6 F63 F69 O3 O33
    Date: 2023–08–01
  2. By: Koch, Florian; Hoellen, Max; Konrad, Elmar D.; Kock, Alexander
    Abstract: Creative industries contain paradoxes because conflicting tensions arise between the market and the arts. Entrepreneurs need to find and maintain a balance between those two sides to create innovation. This study tests the interaction between business and creative orientations of a founder in their influence on innovation in the context of creative entrepreneurial firms and provides recommendations for how creative agents can leverage and manage their innovations based on their creative visions. Determinants on the individual level, such as the founder's creative or business orientations, have a lasting impact on the practices and process of their venture. To trace the imprinting influence of the founder's orientation on innovation, the empirical setting is a time‐lagged study of German firm owners in the cultural and creative industries surveyed 5 years apart. The results show a significant relationship between creative orientation and innovation, whereas business orientation does not significantly relate to innovation. However, creative and business orientations reveal a negative interaction effect. This study contributes empirical evidence to the paradox theory and the interaction between the opposite poles. Our findings provide valuable insights about the relevance of creative orientation and its visionary impact on the firms' innovation process. Furthermore, the results shed new light on the tension between art and the market, as different compositions of the two orientation poles seem to have a varying impact on the degree of innovation. Thus, the study reveals the complexity of creative entrepreneurship and provides managerial guidance for other knowledge‐based industries.
    Date: 2023
  3. By: FUKUGAWA Nobuya
    Abstract: Growth of knowledge-based economies hinges on the systematic application of science, which makes the efficient commercialization of university knowledge critical. Economic theory identifies determinants of the commercialization modes of science (license and entrepreneurship), such as search costs for licensees, post-license development costs, intellectual property ownership, commercialization skills of firms, and the efficiency of innovation intermediaries. Based on this theoretical framework, this study analyzes comprehensive university-level panel data (2018–2021) and presents the first evidence of the factor that most influences the commercialization modes of science. Estimation results reveal that universities that intensively engage in basic research create more university spinoffs. Basic research is conducive to radical innovation which tends to be commercialized by entrepreneurial firms that do not suffer from the replacement effect. Therefore, encouraging a broad range of universities to engage in basic research facilitates academic entrepreneurship, which should have positive implications on economic growth.
    Date: 2023–07
  4. By: Sulasula, Josephine
    Abstract: This research report analyzes the Philippine sardine industry using the Quadruple Helix Model, which highlights the interplay between government, industry, academia, and civil society in promoting sustainable development. The report first examines the current status of the sardine industry in Zamboanga City, which is the largest producer of sardines in the Philippines. It discusses the challenges faced by the industry, such as overfishing, declining catches, and competition from other countries. It uses the Quadruple Helix Model to analyze the seven challenges that the Philippine sardine industry needs to navigate through. These challenges include strengthening collaboration among stakeholders, implementing sustainable fishing practices, developing organic sardine products, promoting the quality and value of Philippine sardines, supporting community-based sardine production enterprises, strengthening regulations on fishing activities, and expanding the market for Philippine sardines. Then, it discusses the strategies and initiatives that can be undertaken to address these challenges, such as promoting knowledge sharing and exchange of best practices, investing in research and development, strengthening regulations, and expanding markets. The report also emphasizes the importance of collaboration among stakeholders in achieving sustainable development in the sardine industry. In particular, the report highlights the role of universities in strengthening research and development and promoting collaboration. It discusses how universities can provide technical assistance, develop education and training programs, and conduct studies on sustainable fishing practices, alternative sources of protein, market trends, and consumer preferences. The report also emphasizes the importance of collaboration with the industry, government, and civil society in promoting sustainable development. Overall, this research report provides a comprehensive analysis of the Philippine sardine industry using the Quadruple Helix Model. It offers insights into the challenges faced by the industry and provides recommendations for promoting sustainable development. Finally, the report highlights the importance of collaboration among stakeholders and the role of universities in driving research and development and promoting sustainable development.
    Date: 2023–05–05
  5. By: Bustamante, Maria Cecilia; Zucchi, Francesca
    Abstract: We develop a model to examine how discount rates affect the nature and composition of innovation within an industry. Challenging conventional wisdom, we show that higher discount rates do not discourage firm innovation when accounting for the industry equilibrium. Higher discount rates deter fresh entry—effectively acting as entry barriers—but encourage innovation through the intensive margin, which can lead to a higher industry innovation rate on net. Simultaneously, high discount rates foster explorative over exploitative innovation. The model rationalizes observed patterns of innovation cyclicality, and predicts that lower entry in downturns hedges innovating incumbents against higher discount rates. JEL Classification: G31, G12, O31
    Keywords: creative destruction, risk premia, time-varying discount rates, Vertical and horizontal innovation
    Date: 2023–08

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