nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2023‒11‒27
ten papers chosen by
João José de Matos Ferreira, Universidade da Beira Interior

  1. Efficient industrial policy for innovation: standing on the shoulders of hidden giants By Charlotte Guillard; Ralf Martin; Pierre Mohnen; Catherine Thomas; Dennis Verhoeven
  2. Knowledge spillovers from clean innovation. A tradeoff between growth and climate? By Ralf Martin; Dennis Verhoeven
  3. The Convergence of Business, Information Technology, and Education: A Review of Interdisciplinary Approaches By Rojab, Ahmad
  4. Spatial patterns and drivers of SME digitalisation. By Adelheid Holl; Ruth Rama
  5. FDI and superstar spillovers: Evidence from firm-to-firm transactions By Mary Amiti; Cedric Duprez; Jozef Konings; John Van Reenen
  6. Knowledge spillovers from clean and emerging technologies in the UK By Ralf Martin; Dennis Verhoeven
  7. Market power and innovation in the intangible economy By Maarten de Ridder
  8. Incorporating innovation in competition policy By Bethany Carter; Ignacio Loeser; Maria Jose Lopez; Martin de Dios; Mariana del Rio
  9. FDI spillovers and productivity in Vietnamese manufacturing industries - New insights from the unconditional quantile regression By Thanh Tam Nguyen-Huu
  10. Predictors of entrepreneurial attitude among administrators of selected community colleges and universities in Leyte By Jereco Jims J. Agapito; Liza Lorena C Jala; Rosemarie Cruz-Español; Anthony G Esguerra

  1. By: Charlotte Guillard; Ralf Martin; Pierre Mohnen; Catherine Thomas; Dennis Verhoeven
    Abstract: Research and development is underprovided whenever it creates knowledge spillovers that drive a wedge between its total and private economic returns. Heterogeneity in the intensity of this market failure across technological areas provides an argument to vertically target public support for R&D. This paper examines potential welfare gains of such vertical industrial policy for innovation. It develops measures of private and spillover value of patented innovations using global data on patents and their citations. Our new method identifies a large number 'Hidden Giants' - i.e. innovations scoring higher on our new spillover measure than on the traditional forward citation count measure which are shown to be particularly prevalent among patents applied for by universities. The estimated distributions of private values by technology area are then used to parameterize a structural model of innovation. The model permits estimation of the marginal returns to technology-area-specific subsidies that reduce innovators' R&D costs. Marginal returns are high when knowledge spillovers in the technology area are valuable, when private innovation costs are low, and when private values in a technology sector are densely distributed around the private cost. The results show large variation in the marginal returns to subsidy and suggest that targeted industrial policy would have helped mitigate underprovision of R&D over the time period studied. Variation in the extent to which knowledge spillovers are internalized within countries also makes a compelling case for supranational policy coordination, especially among smaller countries.
    Keywords: research and development, patented innovations, decoupling, targeted industrial policy, Productivity
    Date: 2022–12–15
  2. By: Ralf Martin; Dennis Verhoeven
    Abstract: Innovation policy faces a tradeoff between growth and climate objectives when the knowledge spillover externality from clean innovation is low compared to other sectors. To make such a comparison, we use patent data to estimate field-specific spillover returns generated by R&D support. Supporting Clean presents itself as a win-win opportunity, yielding global returns one-eighth higher than those of an untargeted policy. Nevertheless, only a modest portion of the returns stays within country borders, raising the question of whether national interests distort efficient allocation. Our policy simulations underscore the benefits of supranational coordination in clean innovation policy, potentially boosting returns by approximately 25% for the EU and over 60% globally. Moreover, the EU benefits strongly from US Clean innovation spillovers, impacting the debate on the Inflation Reduction Act. Overall, we identify no explicit innovation policy tradeoff in tackling the twin challenges of economic growth and climate change but emphasize the necessity for international cooperation.
    Keywords: innovation, knowledge spillovers, clean technology, innovation policy, green transition, net-zero, patent data, Economic geography, Green Growth, Productivity, Technological change
    Date: 2023–07–12
  3. By: Rojab, Ahmad
    Abstract: The intricate relationship between business, information technology (IT), and education, exploring their convergence. The primary issue addressed is the dynamic interaction among these fields, emphasizing the transformation of education and business practices. The study aims to provide a comprehensive overview of interdisciplinary approaches in education and their implications for business and IT. Employing a systematic literature review methodology, the findings reveal that interdisciplinary models, collaboration between academia and industry, and the integration of IT are pivotal in fostering innovation and adaptability. Furthermore, emerging trends in technology adoption and pedagogical strategies for effective interdisciplinary learning are identified as promising research directions. The article underscores the significance of interdisciplinary education in preparing individuals for the evolving landscape of the digital age, while providing insights for educators, researchers, and practitioners navigating this dynamic terrain.
    Date: 2023–10–26
  4. By: Adelheid Holl; Ruth Rama
    Abstract: Digital transformation plays an increasingly important role in the growth and competitiveness of small and medium-sized enterprises (SMEs), yet little is known regarding spatial inequalities in their adoption of advanced digital technologies. Using recent data from the Flash Eurobarometer 486, we study the spatial patterns of drivers for the implementation of new digital technologies in SMEs in Europe. In our analysis, the focus is on the possible influence of location. Considerable heterogeneity of SMEs is found in their propensity to adopt advanced digital technologies related to the strength of the local business environment and to the urban/rural hierarchy.
    Keywords: SMEs, Digitalisation, technology adoption, location.
    Date: 2022–07
  5. By: Mary Amiti; Cedric Duprez; Jozef Konings; John Van Reenen
    Abstract: Using firm-to-firm transactions, we show that starting to supply a 'superstar' firm (large domestic firms, exporters, and multinationals) boosts productivity by 8% in the medium run. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of "superstar spillovers". Consistent with a model of technology transfer, we find falls in markups and bigger treatment effects from technology intensive superstars. We also show that the increase in new buyers is particularly strong within the superstar firm's network, a "dating agency" effect. This suggests an important role for raising productivity through superstars' supply chains regardless of their multinational status.
    Keywords: productivity, FDI, spillovers
    Date: 2023–04–27
  6. By: Ralf Martin; Dennis Verhoeven
    Abstract: The UK government has committed to increase R&D support for clean technologies in an effort to meet its net-zero target by 2050. The opportunity cost of such programs crucially depends on the value of knowledge spillovers that accrue from clean relative to other (emerging) technologies. Using patent information to measure the value of direct and indirect knowledge spillovers, we derive estimates for the expected economic returns of subsiding a particular technology field. Our method allows comparing fields by the returns a hypothetical additional subsidy would have generated within the UK or globally. Clean technologies are top-ranked in terms of within-UK returns, with Tidal and Offshore Wind showing particularly high returns. In terms of global returns, emerging technologies such as Wireless, as well as Electrical Engineering outperform Clean by a small margin. We also find that cross-border knowledge spillovers are important for all technology fields, with global return rates over ten times larger than within-UK ones. In sum, our results suggest that the opportunity cost of R&D support programs for clean innovation in the UK is low at worst.
    Keywords: innovation, knowledge spillovers, clean technology, innovation policy, patent data, Productivity, Productivity
    Date: 2022–12–15
  7. By: Maarten de Ridder
    Abstract: This paper offers a unified explanation for the slowdown of productivity growth, the decline in business dynamism and the rise of market power. Using a quantitative framework, I show that the rise of intangible inputs - such as software - can explain these trends. Intangibles reduce marginal costs and raise fixed costs, which gives firms with high-intangible adoption a competitive advantage, in turn deterring other firms from entering. I structurally estimate the model on French and U.S. micro data. After initially boosting productivity, the rise of intangibles causes a decline in productivity growth, consistent with the empirical trends observed since themid-1990s.
    Keywords: Productivity, Growth, Business Dynamism, Intangible Inputs, Market Power
    Date: 2022–12–20
  8. By: Bethany Carter; Ignacio Loeser; Maria Jose Lopez; Martin de Dios; Mariana del Rio
    Abstract: This report, conducted by a group of Master of Public Administration (MPA) students at the London School of Economics and Political Science, seeks to inform the UK Competition and Markets Authority (CMA) on how it should assess innovation in its investigations of potential mergers and acquisitions. From our analysis, we propose four policy recommendations aimed at validating the CMA's changing approach towards innovation and improving its performance through more efficient use of its scarce human resources.
    Keywords: Innovation, competition policy, CMA, diffusion
    Date: 2023–01–12
  9. By: Thanh Tam Nguyen-Huu (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie)
    Abstract: This research investigates the effects of FDI spillovers on the productivity of domestic firms by relying on unconditional quantile regression. Using panel data of Vietnamese enterprises over the period 2000–2012, we find evidence of positive spillovers for firms at the lower tails and negative spillovers for those at the upper tails of the productivity distribution. Time and the firm's legal status are other factors determining the effect of FDI spillovers. Notably, only low productivity state-own enterprises benefit from positive horizontal spillovers, but in the long run rather than in the short run.
    Keywords: FDI spillovers, Total factor productivity, Unconditional quantile regression
    Date: 2023–07–11
  10. By: Jereco Jims J. Agapito (University of the Visayas); Liza Lorena C Jala (University of the Visayas); Rosemarie Cruz-Español (University of the Visayas); Anthony G Esguerra (University of the Visayas)
    Abstract: The school administrators adopted an "Entrepreneurial Attitude" approach to run the school profitably. Furthermore, administrators who embrace successful entrepreneur techniques were able to attain and establish an effective school, as the literature says. Using a descriptive survey method, this study determined the factors that affect the entrepreneurial attitudes of school administrators and faculty in selected universities and colleges in the 4th congressional district of Leyte through model generation. Hierarchical regression analysis showed that cognition is the most dominant and significant predictor of entrepreneurial attitude, which generated two models. An emergent model can enhance the lens to see a better picture of what school administrators should prioritize in improving their school management strategy. A simple model equation can be a foundation for enhancing someone's entrepreneurial attitude. A critical takeaway from the simple equation model was that enhancing someone's cognition can help school administrators transform their entrepreneurial mindset and attitude.
    Keywords: Entrepreneurial attitude, school administrators, hierarchical regression, aptitude, boundaries, cognition, Leyte, Philippines
    Date: 2022–12–30

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