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on Economics of Strategic Management |
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Issue of 2024‒06‒17
eleven papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Federico Moscatelli; Christian Chacua; Shreyas Gadgin Matha; Matte Hartog; Eduardo Hernandez Rodriguez; Julio Raffo; Muhammed A. Yildirim |
| Abstract: | Recent years have witnessed a resurgence of industrial policies globally. Through various industrial policy instruments, governments make critical scientific and technological choices that shape innovation paths and resource allocations. Our paper explores innovation capabilities as essential drivers of competitive outcomes, spanning science, technology, and production domains. Based on the economic complexity literature, we propose a methodological framework to measure the innovation capabilities empirically, leveraging data on scientific publications, patents, and trade. Our findings highlight the multidimensional nature of innovation capabilities and underscore the importance of understanding both the specialization and quality of these capabilities. Our results are in line with the complexity literature, as we also find: (i) positive correlations between the innovation complexity and economic growth; and, (ii) the predictive power of existing innovation capabilities for fostering new ones. Based on these findings, we propose novel indicators informing innovation policymaking on the innovation potential across science, technology, and production fields of an ecosystem. We suggest that innovation policymaking needs to be informed by deeper insights into innovation capabilities that are crucial for long-term growth and competitiveness improvement. |
| Keywords: | Innovation capabilities, Complexity metrics, Innovation ecosystems, Science and technology policy, Industrial policy, Economic development, Smart specialization |
| JEL: | O25 O31 O33 O30 O11 O14 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:81&r= |
| By: | Ackah, Charles; Alemayehu Geda Fole; Görg, Holger; Merchan, Federico |
| Abstract: | Foreign investments bring in not only new employment but also novel technology, managerial skill and know-how, that may also dissipate into the local economy. It is not clear whether this effect differs by the nationality of source countries, in particular between Chinese and non-Chinese firms. Based on a firm level survey on Ethiopia and Ghana, we found that all types of firms are engaged in limited R&D and innovation activity and their transfer to host countries in both countries. There is little difference between Chinese and non-Chinese foreign firms in such technology and managerial skill transfer once controlling for firm size and industry characteristics in the majority of metrices (R&D activities, horizontal & vertical spillover, directly adopting techniques). However, we found for Ghana that Chinese firms have more suppliers but are less likely to transfer technology to them. Chinese firms are more likely to transfer managerial skills than non-Chinese firms in Ghana though not in Ethiopia. Also, there is little evidence that foreign firms transfer technology via horizontal or backward spillovers in either countries. Finally, Chinese firms are much more likely to receive host country policy support than other foreign firms in Ghana but not in Ethiopia. |
| Keywords: | Foreign direct investment, China, Africa, technological transfer, Ethiopia, Ghana |
| JEL: | F2 O1 O3 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:295225&r= |
| By: | Homonenko, Vladyslava; Suprun, Ivan; Platonovska, Vladyslava |
| Abstract: | This research paper explores the determinants of countries' innovation levels as measured by the Global Innovation Index, focusing on the essential factors that strengthen a country's innovative capabilities. Through a comprehensive cross-country regression analysis, the findings highlight the role of GDP per capita, Median age and the Share of the population aged 25-49 as significant factors of innovation. Contrary to our initial hypotheses, the analysis demonstrates that other variables such as the democracy level, birth rate, net migration, and life expectancy, initially provided in our model, do not significantly influence the innovation process. This indicates that economic prosperity, a youthful age profile, and a significant part of the population within their most productive years are crucial in enhancing a nation's innovation. The results are particularly significant for Ukraine, emphasizing the need to enhance technological progress in its post-war recovery efforts. This study confirms the importance of a relatively young population and stable economic health in fostering technological progress, providing guidance for policymakers aiming to enhance innovation strategies. |
| Keywords: | Global Innovation Index, Technological progress, Age distribution, Economic health. |
| JEL: | O30 O31 O33 |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120909&r= |
| By: | Ricardo Hausmann; Muhammed A. Yildirim; Christian Chacua; Matte Hartog; Shreyas Gadgin Matha |
| Abstract: | Recent geopolitical challenges have revived the implementation of industrial and innovation policies. Ongoing discussions focus on supporting cutting-edge industries and strategic technologies but hardly pay attention to their impact on economic growth. In light of this, we discuss the design of innovation policies to address current development challenges while considering the complex nature of productive activities. Our approach conceives economic development and technological progress as a process of accumulation and diversification of knowledge. This process is limited by the tacit nature of knowledge and by countries' binding constraints to growth. Consequently, effective innovation policies should be place-based and multidimensional, leveraging countries' existing capabilities and addressing countries’ current problems. This contrasts policies that lead to economic efficiencies, such as copying other countries' solutions to problems that countries do not currently have. |
| Keywords: | Innovation policy, Industrial policy, Economic complexity, Know-how |
| JEL: | O25 O30 O38 F60 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:79&r= |
| By: | Gupta, Apoorva; Stiebale, Joel |
| Abstract: | We study the effect of stronger patent protection on innovation activities of firms and firm-product level markups. Relying on cross-industry differences in the use of patents, we exploit firm-level variation in exposure to India's patent reform. For firms more exposed to stronger patent protection, we find an increase in patenting and R&D expenditure post-reform. Additionally, we estimate an increase in firm-product level markups after the reform, driven primarily by lower marginal costs rather than higher prices. Our results indicate that process innovations and output expansion contributed to these cost-savings, and incomplete pass-through accounts for a substantial part of rising markups. |
| Keywords: | Intellectual property rights, patent protection, innovation, R&D, markups, patents |
| JEL: | L10 O30 O31 O00 D22 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:295746&r= |
| By: | Ricardo Hausmann; Muhammed A. Yildirim; Christian Chacua; Matte Hartog; Shreyas Gadgin Matha |
| Abstract: | Technological know-how in a country shapes its growth potential and competitiveness. Scientific publications, patents, and international trade data offer complementary insights into how ideas from science, technology, and production evolve, combine, and are transformed into capabilities. Analyzing their trajectories enables a more comprehensive and multifaceted understanding of the whole innovation process, from generating ideas to internationally commercializing products. We analyze the production patterns in these three domains, documenting the differences between advanced and emerging market economies. We find that future income, patenting, and publishing growth correlate with the economic complexity indices calculated from these domains. Capabilities embedded in the country also shape future diversification opportunities and make the innovation process path dependent. Lastly, we also show that diversification opportunities can be inferred across innovation domains. |
| Keywords: | Economic complexity, Innovation complexity, Scientific complexity |
| JEL: | O25 O30 O38 F60 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:80&r= |
| By: | Phoebe Koundouri; Konstantinos Dellis; Olympia Miziaki |
| Abstract: | This paper explores the transformative potential of green innovation within Greece's agricultural sector. Leveraging the analytical power of the FABLE (Food, Agriculture, Biodiversity, Land Use, and Energy) Calculator, we quantify the impacts of enhanced crop and livestock productivity on key Agricultural, Forestry, and Other Land Use (AFOLU) environmental indicators. By employing empirical evidence and sophisticated modelling techniques, we investigate the intricate interplay between agricultural innovation and environmental sustainability. Examining the pathways under distinct scenarios of the FABLE Calculator, we demonstrate how improved crop and livestock practices can mitigate greenhouse gas emissions, reduce land degradation, and promote biodiversity conservation. We identify precision agriculture technologies like drones, soil moisture sensors, and variable rate technology advancements in precision livestock technologies such as automated feeding systems and health monitoring sensors as levers for bolstering agricultural productivity. We find that enhancing productivity in the livestock and crop sector significantly reduces GHG emissions from agriculture, with the result being most pronounced when embedded in a holistic transformational strategy following national commitments. Moreover, the paper elucidates the potential synergies and trade-offs associated with different agricultural strategies, offering insights into optimal pathways for sustainable development. In addition to its empirical findings, the paper delineates policy recommendations to support green innovation within the Greek agricultural sector, focusing on horizontal and vertical measures. Overall, this paper underscores the importance of integrating green innovation into agricultural policies to achieve both environmental and economic objectives. By harnessing the analytical capabilities of the FABLE Calculator, it offers valuable insights into the multifaceted effects of agricultural innovation, paving the way for evidence-based decision-making in sustainable agricultural development. |
| Keywords: | Agricultural Productivity, FABLE, Green Innovation, AFOLU, GHG Emissions |
| Date: | 2024–06–03 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2412&r= |
| By: | Hakan Ozalp |
| Abstract: | This study explores the evolution and success drivers of the global video game industry, focusing on key hubs within Finland, Poland, Japan, and the United States. Using a qualitative methodology, the research delves into how unique capabilities and historical development have contributed to the industry's growth across these nations. The findings reveal diverse pathways to building video game industry clusters, emphasizing the role of cross-industry skill transfer, intellectual property, and government support. In traditional hubs like Japan and the United States, the crossover of capabilities from entertainment and hardware industries has been crucial, whereas, in newer hubs like Finland and Poland, the growth is attributed to unique local developments such as hobby coder communities or leveraging the initial localization efforts to build globally appealing games. It further highlights the pivotal role of education in sustaining the growth of video game industry hubs. |
| Keywords: | Innovation, Video Games, Intellectual property |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:84&r= |
| By: | Hanqiao Zhang |
| Abstract: | Neighborhood characteristics have been broadly studied with different firm behaviors, e.g. birth, entry, expansion, and survival, except for firm exit. Using a novel dataset of foreign-invested enterprises operating in Shenzhen's electronics manufacturing industry from 2017 to 2021, I investigate the spillover effects of firm exits on other firms in the vicinity, from both the industry group and the industry class level. Significant neighborhood effects are identified for the industry group level, but not the industry class level. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.18009&r= |
| By: | Schrape, Jan-Felix |
| Abstract: | This paper provides a brief overview of the concepts of collective invention, user innovation, and open innovation. All three terms describe variants of distributed innovation processes and can be linked to further ideas of socio-economic decentralization. First, the conceptual differences between collective invention, user innovation, and open innovation are elaborated. Second, exemplary case studies from the past decades are presented before more recent forms of distributed innovation in the development of information technologies are discussed. In this context, it becomes evident that distributed innovation processes and internal research and development activities in public and private sector organizations are not in competition with each other but rather in a complementary relationship. |
| Abstract: | Das vorliegende Diskussionspapier bietet einen kompakten Überblick über die Konzepte der Collective Invention, User Innovation und Open Innovation, die unterschiedliche Ausprägungen verteilter Innovationsprozesse beschreiben. Nach einer Aufarbeitung ihrer jeweiligen konzeptuellen Schwerpunkte wird ihr praktisches Zusammenspiel anhand exemplarischer Fallstudien aus den letzten Jahrzehnten illustriert. Daran anknüpfend erfolgt die Diskussion neuerer Entwicklungen auf dem Feld der Informationstechnologien sowie eine kritische Würdigung. Dabei wird ersichtlich, dass verteilte Innovationsprozesse und interne Forschungs- und Entwicklungsaktivitäten in öffentlichen und privatwirtschaftlichen Organisationen in der Regel nicht in einem konkurrierenden, sondern in einem komplementären Verhältnis zueinander stehen. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:stusoi:295232&r= |
| By: | Ekonomou, George; Halkos, George |
| Abstract: | Climate change and environmental degradation constitute challenging and demanding issues that need mitigation and adaptation strategies and plans, as well as scientific research to test the causality between economic growth and pollution levels. From this viewpoint, the present theoretical approach defines the concept of circular economy in the high-leverage economic sector, which is the agribusiness sector. A circular economy approach can help agribusiness develop its potential in terms of quality and sustainability without losing its economic orientation and perspective. The circular economy assists in becoming competitive, producing eco-friendly products, minimizing materials used and wastes, and protecting the good ecological status of natural resources, such as land and water resources. Management approaches such as the project management methodology and the construction of a circular business model canvas will provide a solid bedrock on which the circular economy projects within the business will create tangible and sustainable results in a sustainable manner. Furthermore, the concept of environmental benchmarking is a valuable tool for comparing the business's environmental performance with those considered leaders or bets in class in the field. |
| Keywords: | Environmental degradation; circular economy; agribusiness sector; sustainability. |
| JEL: | Q10 Q13 Q18 Q50 Q53 Q54 Q56 Q58 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120929&r= |