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on Economics of Strategic Management |
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Issue of 2024‒10‒07
eight papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Patricia Peñalosa; Lukas Kleine-Rueschkamp |
| Abstract: | This paper explores the geography of “green innovation hubs” and the relationship between green patents and local labour markets. The analysis considers the spatial distribution and evolution of patenting activity for green inventions and identifies green innovation hubs, i.e., regions demonstrating notable strength in green patenting. It also explores the relationship between the regional level of green patenting, economic activity, education, and local labour dynamics across OECD regions. Greater Copenhagen (a cross-border area including parts of Denmark and Southern Sweden) is used as an example to illustrate one region's green innovation ecosystem, assessing its progress, unique opportunities, and challenges. |
| Date: | 2024–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:oec:cfeaaa:2024/09-en |
| By: | Xiao, Jing (CIRCLE, Lund University); Lindholm Dahlstrand, Åsa (CIRCLE, Lund University) |
| Abstract: | Recently, acqui-hiring, which refers to the acquisitions driven by gaining access to target human capital, has emerged as a proliferating phenomenon in acquisitions of small technology firms. However, we still know little about this phenomenon, particularly outside the community of Silicon Valley. This study sheds new light on the nature of acqui-hiring by focusing on what drives acqui-hiring. Using a sample of 213 technological acquisitions of Swedish technology firms, our results show that firms tend to be acqui-hired when they are younger and when they are based on the development of deep tech, a group of emerging disruptive technologies, of which the technological base involves high levels of technological newness and complexity. The results show a support to our initial idea that acqui-hiring could be driven by the acquiring firm’s need to acquire complex knowledge and/or new capabilities that are embodied in target key employees or engineering teams. In addition, we develop a typology and identify four types of acqui-hiring. We use case illustrations of deep-tech acqui-hiring to demonstrate four differentiated acquisition strategies, including technology strengthening, product expansion, product experimentation and technology experimentation. |
| Keywords: | Acqui-hiring; deep tech; technological acquisitions; technological newness and complexity; combined methods; Sweden |
| JEL: | G34 L26 O32 O33 |
| Date: | 2024–09–04 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:lucirc:2024_011 |
| By: | Krieger, Bastian |
| Abstract: | The access to foreign knowledge via service imports fosters the success of innovations in Germany. The probability of firms in- troducing new or significantly improved products, services, or processes is more than twice as high for those that import knowl- edge services than for non-importers (68 per cent vs. 33 per cent). Furthermore, knowledge importers experience a greater av- erage percentage reduction in their unit costs due to new processes (three per cent vs. one per cent), and a larger revenue share from new products and services (18 per cent vs. eight per cent). Over the course of the previous decade, Germany witnessed a notable surge in the importation of knowledge services, with the value of such imports more than doubling from $16, 949 million in 2010 to $46, 392 million in 2022. Moreover, Germany's focus on the European Union as a trade partner significantly increased. The European Union's share of Germany's total imports of knowledge services rose from 35 per cent in 2010 to 44 per cent in 2019. This trend follows the proposed strategy of the German Federal Ministry of Education and Research (BMBF) to focus on a specific selection of countries as knowledge sources to enhance Germany's technological sovereignty and resilience to global challeng- es. However, to compensate for rising protectionism worldwide, trade barriers between Germany and its selected countries - in particular the EU single market - have the potential to be further reduced. |
| Keywords: | Innovation, trade in services, knowledge, service, import, Germany |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewpbs:302801 |
| By: | Gianluca Biggi; Martina Iori; Julia Mazzei; Andrea Mina |
| Abstract: | This paper investigates the contribution of Artificial Intelligence (AI) to environmental innovation. Leveraging a novel dataset of USPTO patent applications from 1980 to 2019, it explores the domain of Green Intelligence (GI), defined as the application of AI algorithms to green technologies. Our analyses reveal an expanding landscape where AI is indeed used as a general purpose technology to address the challenge of sustainability and acts as a catalyst for green innovation. We highlight transportation, energy, and control methods as key applications of GI innovation. We then examine the impact of inventions by using measures and econometric tests suitable to establish 1) how AI and green inventions differ from other technologies and 2) what specifically distinguishes GI technologies in terms of quality and value. Results show that AI and green technologies have a greater impact on follow-on inventions and display greater originality and generality. GI inventions stand out even further in these dimensions. However, when we examine the market response to these inventions, we find positive results only for AI, indicating a mismatch between the technological vis-Ã -vis market potential of green and GI technologies, arguably due to greater uncertainty in their risk-return profiles. |
| Keywords: | Artificial Intelligence, Environmental innovation, Green Intelligence (GI), Twin transition, Digitalization, Green technologies |
| Date: | 2024–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2024/23 |
| By: | Jeremy Pearce; Liangjie Wu |
| Abstract: | We study the interaction of customer capital and productivity through brand reallocation across firms. We develop a firm dynamics model with brands as transferable customer capital, heterogeneous firm productivity, and variable markups. We study the matching process between transferable brand capital and core productivity, which can be inefficient with significant welfare implications. We link USPTO trademark data with Nielsen sales data to study the prevalence of brand reallocation and the response of sales and prices to reallocation. Quantitatively, brand reallocation reduces welfare. Optimal policies deviate substantially from the literature due to the complementarity between brand capital and productivity. |
| Keywords: | firm dynamics; productivity; market concentration; product innovation; reallocation; Mergers & acquisitions; brands; Trademarks; intangible assets |
| JEL: | O31 O32 O34 O41 D22 D43 L11 L13 L22 |
| Date: | 2024–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednsr:98772 |
| By: | Azzeddine Allioui (ESCA Ecole de Management, Morocco); Hanane Allioui (Ibn Tofail University, Morocco) |
| Abstract: | The article explores the challenges and success factors of digital transformation in family-owned enterprises, focusing on organizational theories, power dynamics, and the VUCA (Volatility, Uncertainty, Complexity, Ambiguity) environment. It highlights the importance of adaptability, resource and competence orchestration, and the need for ongoing communication, cooperation, and staff training. The study also explores the role of technological surveillance, specialized digital consulting, and intelligence technology in digital ventures. It emphasizes the need for active participation, clear objectives, effective leadership, and ongoing oversight. The article concludes that success in the digital age requires strategic resource allocation, effective management of power dynamics, and an innovative organizational culture. |
| Keywords: | strategic management, family businesses, digital horizons, transformation |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0363 |
| By: | Gagliardi, Nicola (Free University of Brussels); Grinza, Elena (University of Turin); Rycx, François (Free University of Brussels) |
| Abstract: | We investigate the impact of rising temperatures on firm productivity using longitudinal firm-level balance-sheet data from private sector firms in 14 European countries, combined with detailed weather data. Our findings, based on control-function techniques and fixed-effects regressions, reveal that global warming significantly and negatively impacts firms' TFP. Labor productivity declines markedly as temperatures rise, while capital productivity remains unaffected – indicating that TFP is primarily affected through the labor input channel. Sensitivity tests show that firms involved in outdoor activities, such as agriculture and construction, are more adversely impacted. Manufacturing, capital-intensive, and blue-collar-intensive firms also experience significant productivity declines. Geographically, the negative impact is most pronounced in temperate and mediterranean climate areas. |
| Keywords: | climate change, global warming, firm productivity, Total Factor Productivity (TFP), semiparametric methods to estimate production functions, longitudinal firm-level data |
| JEL: | D24 J24 Q54 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17241 |
| By: | Domenico Delli Gatti; Tommaso Ferraresi; Filippo Gusella; Lilit Popoyan; Giorgio Ricchiuti; Andrea Roventini |
| Abstract: | We extend the multi-country, multi-sector agent-based model in Dosi et al. (2019, 2021) by incorporating an exchange rate market where heterogeneous chartist and fundamentalist financial traders exchange foreign currencies. This introduces complex interactions between the real and financial side of the economies that reverberate on the dynamics of the exchange rate, which acts both as a transmission channel of endogenous fluctuation and as a source of shocks. Simulation results show that model is able to account for a rich ensemble of stylized facts (e.g., fat tails, volatility clustering, fluctuations and contagion among others) concerning the exchange market and its interactions with the real economy dynamics at different level of aggregation. Moreover, our findings reveal that speculative behavior in the exchange rate market substantially increases financial turbulence and contributes to real economic fluctuations. On the policy side, we highlight the power and limitations of central bank interventions in the exchange rate market. |
| Keywords: | agent-based model, exchange rate dynamics, financial crises, endogenous business cycles, heterogeneous traders, central bank interventions |
| Date: | 2024–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2024/24 |