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on Economics of Strategic Management |
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Issue of 2024‒08‒26
seven papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| 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 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:147985 |
| By: | Xavier Giroud; Ernest Liu; Holger Mueller |
| Abstract: | The vast majority of U.S. inventors work for firms that also have inventors and plants in other tech clusters. Using merged USPTO–U.S. Census Bureau plant-level data, we show that larger tech clusters not only make local inventors more productive but also raise the productivity of inventors and plants in other clusters, which are connected to the focal cluster through their parent firms' networks of innovating plants. Cross-cluster innovation spillovers do not depend on the physical distance between clusters, and plants cite disproportionately more patents from other firms in connected clusters, across large physical distances. To rationalize these findings, and to inform policy, we develop a tractable model of spatial innovation that features both within- and cross-cluster innovation spillovers. Based on our model, we derive a sufficient statistic for the wedge between the social and private returns to innovation in a given location. Taking the model to the data, we rank all U.S. tech clusters according to this wedge. While larger tech clusters exhibit a greater social-private innovation wedge, this is not because of local knowledge spillovers, but because they are well-connected to other clusters through firms' networks of innovating plants. In counterfactual exercises, we show that an increase in the interconnectedness of U.S. tech clusters raises the social-private innovation wedge in (almost) all locations, but especially in tech clusters that are large and well-connected to other clusters. |
| JEL: | G30 O30 R30 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32677 |
| By: | Damioli, Giacomo; Van Roy, Vincent; Vertesy, Daniel; Vivarelli, Marco |
| Abstract: | Artificial intelligence (AI) is emerging as a transformative innovation with the potential to drive significant economic growth and productivity gains. This study examines whether AI is initiating a technological revolution, signifying a new technological paradigm, using the perspective of evolutionary neo-Schumpeterian economics. Using a global dataset combining information on AI patenting activities and their applicants between 2000 and 2016, our analysis reveals that AI patenting has accelerated and substantially evolved in terms of its pervasiveness, with AI innovators shifting from the ICT core industries to non-ICT service industries over the investigated period. Moreover, there has been a decrease in concentration of innovation activities and a reshuffling in the innovative hierarchies, with innovative entries and young and smaller applicants driving this change. Finally, we find that AI technologies play a role in generating and accelerating further innovations (so revealing to be "enabling technologies", a distinctive feature of GPTs). All these features have characterised the emergence of major technological paradigms in the past and suggest that AI technologies may indeed generate a paradigmatic shift. |
| Keywords: | Artificial Intelligence, Technological Paradigm, Structural Change, Patents |
| JEL: | O31 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1467 |
| By: | Dietlmeier, Simon Frederic |
| Abstract: | In this paper, a qualitative model is inductively developed describing a dynamic “policy mix” -system of innovation enabling and outbalancing dimensions for the deployment of narrow artificial intelligence (AI) in the manufacturing value chain. A literature review first identifies and summarizes general policy recommendations on AI as an emerging technology presented by authors prior to this research. In the empirical part, policy dimensions and suggestions of policy remedies with a focus on the manufacturing value chain were taxonomized based on exploratory interviews with 37 international elite experts on AI across several stakeholder groups. The findings were refined in a survey with participants of the workshop “AI in Manufacturing” organized by the European Commission. The dimensions build the foundation for an industrial policy in the form of a “four-wing industrial policy system model” that can unleash the value of narrow AI in the manufacturing value chain and addresses barriers to scale-up. It represents a qualitative modelling approach and confirms previous views in the literature that innovation policies need to be thought as “policy mix” and systems. A case study of the European Union’s policy mix for AI validates the model empirically based on additional interviews with ten European civil servants. |
| Keywords: | Artificial Intelligence • Emerging Technologies • Manufacturing • Value Chain • System • Policy Mix |
| JEL: | A20 B5 B52 H70 M29 O3 Q5 Y4 Z1 |
| Date: | 2024–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121183 |
| By: | Gulfam Haider; Laiba Zubair; Aman Saleem |
| Abstract: | This study, rooted in dynamic capability theory and the developing era of Big Data Analytics, explores the transformative effect of BDA EDCs on marketing. Ambidexterity and firms market performance in the textile sector of Pakistans cities. Specifically, focusing on the firms who directly deal with customers, investigates the nuanced role of BDA EDCs in textile retail firms potential to navigate market dynamics. Emphasizing the exploitation component of marketing ambidexterity, the study investigated the mediating function of marketing ambidexterity and the moderating influence of competitive pressure. Using a survey questionnaire, the study targets key choice makers in textile firms of Faisalabad, Chiniot and Lahore, Pakistan. The PLS-SEM model was employed as an analytical technique, allows for a full examination of the complicated relations between BDA EDCs, marketing ambidexterity, rival pressure, and market performance. The study Predicting a positive impact of Big Data on marketing ambidexterity, with a specific emphasis on exploitation. The study expects this exploitation-orientated marketing ambidexterity to significantly enhance the firms market performance. This research contributes to the existing literature on dynamic capabilities-based frameworks from the perspective of the retail segment of textile industry. The study emphasizes the role of BDA-EDCs in the retail sector, imparting insights into the direct and indirect results of BDA EDCs on market performance inside the retail area. The study s novelty lies in its contextualization of BDA-EDCs in the textile zone of Faisalabad, Lahore and Chiniot, providing a unique perspective on the effect of BDA on marketing ambidexterity and market performance in firms. Methodologically, the study uses numerous samples of retail sectors to make sure broader universality, contributing realistic insights. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.15522 |
| By: | Wongpit, P.; Sisengnam, K. |
| Abstract: | This study focuses on addressing the innovation gap in the agricultural sector of Lao PDR, a critical component of the population's primary livelihood. Emphasizing the 9th National Socio-Economic Development Plan for 2021-2025 and the Ministry of Agriculture and Forestry Strategy 2025 and Vision 2030, the research examines recent innovation models in agriculture and rural development in the country. Out of the 30 models interviewed, 10 are highlighted for their significant impact on the development of agriculture, rural areas, and smallholder farmers, demonstrating the applicability of these innovations. The study explores potential innovations, such as the role of the Lao Farmer Network as a national platform for information sharing, the Coffee Production Cooperative in connecting domestic producers with foreign consumers, and the creative use of saffron to reduce waste from coffee processing. Despite their potential, certain innovations, including Beef Research and Development Farm cost-effective animal feed formulas and specific rice-growing techniques, encounter limited adoption among farmers or production groups. Challenges impeding widespread implementation encompass insufficient investment, an unsuitable environment, and limited markets. Notably, hydroponics vegetable farming poses challenges due to its requirement for significant investment and specialized knowledge, potentially excluding smallholder farmers. To foster agricultural innovation, the study proposes several policy implications: collaboration between governments and the private sector in R&D investment, improving access and adopt innovations through tax incentives and financial support, establishing a platform for technology sharing, allocating resources to education and training programs, prioritizing environmental sustainability in agricultural innovation to prevent harm to the environment. |
| Keywords: | Environmental Economics and Policy, Production Economics, Research and Development/Tech Change/Emerging Technologies, Sustainability |
| Date: | 2024–04–28 |
| URL: | https://d.repec.org/n?u=RePEc:ags:asea24:344455 |
| By: | Siyu Chen; Qing Guo |
| Abstract: | Employing a comprehensive survey of micro and small enterprises (MSEs) and the Digital Financial Inclusion Index in China, this study investigates the influence of fintech on MSE innovation empirically. Our findings indicate that fintech advancement substantially enhances the likelihood of MSEs engaging in innovative endeavors and boosts both the investment and outcomes of their innovation processes. The underlying mechanisms are attributed to fintech's role in fostering long-term strategic incentives and investment in human capital. This includes the use of promotions and stock options as rewards, rather than traditional perks like gifts or trips, the attraction of a greater number of university graduates, and the increase in both training expenses and the remuneration of technical staff. Our heterogeneity analysis reveals that fintech exerts a more pronounced effect on MSEs situated in economically developed areas, those that are five years old or younger, and businesses with limited assets and workforce. Additionally, we uncover that fintech stimulates the innovation of MSEs' independent research and development (R\&D) efforts. This paper contributes to the understanding of the nuanced ways in which fintech impacts MSE innovation and offers policy insights aimed at unleashing the full potential of MSEs' innovative capabilities. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.17293 |