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on Economics of Strategic Management |
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Issue of 2024‒10‒21
twelve papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Filimonovic, Dragan; Macher, Jeffrey T.; Rutzer, Christian; Weder, Rolf |
| Abstract: | We examine whether 'pioneer' regions - early leaders in generating new ideas in emerging scientific fields - develop and maintain an innovation advantage in the same fields over time. Our analysis covers 24 disruptive technologies (e.g. AI, cloud computing) in thousands of OECD regions over 20 years. The results show that pioneer regions gain a significant and growing innovation advantage over non-pioneer regions. This advantage is most pronounced in "super-cluster" regions, which are leaders in both science and related innovation. These findings highlight the importance of early scientific leadership for sustained regional innovation and suggest important policy implications. |
| Keywords: | Science, Innovation, Regional Advantage, Emerging Technology |
| JEL: | O30 O33 R11 |
| Date: | 2024–10–02 |
| URL: | https://d.repec.org/n?u=RePEc:bsl:wpaper:2024/11 |
| By: | Hans Degryse (KU Leuven and CEPR); Olivier De Jonghe (National Bank of Belgium, Economics and Research Department, European Central Bank, Tilburg University and Ghent University); Leonardo Gambacorta (Bank for International Settlements and CEPR); Cédric Huylebroek (KU Leuven and FWO) |
| Abstract: | Theory offers conflicting predictions on whether and how lenders’ sectoral specialization would affect firms’ innovation activities. We show that the sign and magnitude of this effect vary with the degree of “asset overhang” across sectors, which is the risk that a new technology has negative spillovers on the value of a bank’s legacy loan portfolio. Using both patent data and micro-level innovation survey data, we find that lenders’ sectoral specialization improves innovation for firms operating in sectors with low asset overhang, but impedes innovation for firms operating in sectors with high asset overhang. These results hold for two distinct measures of asset overhang and using bank mergers as a source of exogenous variation in bank specialization. We further show that these heterogeneous effects arise through financial contracting. Overall, our findings provide novel insights into the dual facets of bank specialization and, more broadly, the link between banking and innovation |
| Keywords: | Bank specialization, Bank lending, Corporate innovation, Asset overhang, Financial frictions |
| JEL: | G20 O30 L20 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202410-458 |
| By: | Farahmand, Elham; Muñoz I Busto, Isaac; Khan, Mudassir Akber; Adur, Hilda |
| Abstract: | Digitalization is transforming industries, creating opportunities and challenges for established companies and startups (Rachinger et al., 2018). The LEGO Group, despite facing challenges, has successfully embraced digital transformation to enhance success. However, concerns about data security and ethical usage arise from extensive data collection from platforms like LEGO Ideas and Bricklinks (Holland & Wise, 2023). This research aims to address these issues and provides valuable insights from the LEGO Group's experiences to help organizations navigate their digital transformation initiatives effectively in today's digital landscape. |
| Keywords: | Business Model Innovation, Digital Transformation, Open Innovation, Dynamic Capabilities, The LEGO Group |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302493 |
| By: | Andersson, Per; Rosenqvist, Christopher |
| Abstract: | This paper investigates the transformative role of Artificial Intelligence (AI) in shaping Education Technology (EdTech) business models, focusing on key components such as value creation, delivery, and capture. Through qualitative analysis and detailed case studies of companies like Sensavis, Duolingo, Byju's, and Coursera, we examine how AI integration drives personalized learning and optimizes educational delivery. Our findings highlight the dynamic nature of EdTech business models, emphasizing the necessity for continuous innovation and strategic adaptation in response to AI advancements. We conclude with potential AIdriven scenarios for future education, exploring their implications for EdTech business models and the broader educational landscape. |
| Keywords: | Education Technology (EdTech), Business Model Innovation, Artificial Intelligence (AI), Digital Transformation, Personalized Learning |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302534 |
| By: | Ron Boschma; Rune Fitjar; Elisa Giuliani; Simona Iammarino; |
| Abstract: | Notwithstanding the wide consensus around the undeniable positive effects of innovation, there is increasing awareness that innovations may also have their dark sides. These dark sides of innovations have received little attention in regional studies. This editorial to a special issue on The Dark Side of Innovation and its Geography argues there are clear geographical footprints to this, which are related to both the inputs and the outcomes of innovation processes. In particular, we discuss how innovation activities have geographically uneven outcomes, driving spatial inequality, and how they require material inputs located in certain places, meaning that their costs are also unevenly distributed across space. |
| Keywords: | dark side of innovation, harmful innovations, critical and conflict materials, regional inequality, geography of innovation |
| JEL: | O25 O30 O31 O33 Q34 Q55 R11 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2428 |
| By: | Choi, Jaeseo |
| Abstract: | The advancements in digital technology have not only transformed business operations across various industries but also driven rapid changes and innovations within business landscape. Digital technology operates independently of economic development levels, and the emergence of novel technologies enables diverse business to explore new business model (Ali et al., 2020). There has been a movement towards anticipating a paradigm shift in technological frameworks to establish the groundwork for Web 3.0 and to incorporate these changes into business model (Yoo et al., 2022). To keep up with the paradigm shift on the technological front, companies are navigating significant growth in the business domains related to information collection, management, and storage. Moreover, digitalization has recently emerged as a new aspect in information investment, coinciding with the growth (Ali et al., 2020). In the situation of the changing landscape information and communication technology utilization, survival for businesses entails leveraging aspects if the innovation lifecycle. This involves applying new strategies based on it, introducing innovative business model, and harnessing digital technology (Kaijkawa et al., 2022). Non-Fungible Token (NFT) can be regarded as a prime example where the emergence of digital technology has reshaped business approaches for enterprises (Ali et al., 2023). |
| Keywords: | NFT, Means-end Chain analysis, Laddering, Entertainment Industry |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302456 |
| By: | Christophe André; Peter Gal |
| Abstract: | This review takes stock of the large body of evidence on aggregate productivity growth, its structural drivers, and the role of a wide range of policies. It aims to synthesise evidence on how public policies can promote productivity through their impacts on both the incentives and the capabilities of businesses and workers, taking account of different specificities of firms at the frontier and below, and integrating complementarities across policy areas. It also identifies gaps in knowledge, thus offering potential directions for future work. |
| Keywords: | Economic policy, Efficiency frontier, Entrepreneurship, Firm Performance, Intangible capital, Investment, Productivity, Technological diffusion |
| JEL: | D24 E22 E24 E6 J24 L25 L26 L5 O31 O32 O33 O38 O47 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:oec:ecoaaa:1822-en |
| By: | Grimaud, André; Gray, Elie |
| Abstract: | We formalize inter-sectoral knowledge diffusion in a standard fully endogenous Schumpeterian growth model. Each sector is simultaneously sending and receiving knowledge; thereby, to produce new knowledge, the research and development activity of each sector draws from a pool of knowledge which stems from this diffusion. This enables us to revisit the scale effects issue by revealing how this property (inconsistent with empirical evidence) relates with knowledge diffusion (the importance of which is empirically highlighted). We show that suppressing knowledge diffusion across sectors is a sufficient but not necessary condition for obtaining scale-invariancy. Then, we identify several sets of assumptions which enable us to obtain models which are reasonably consistent with empirical evidence both on scale effects and how knowledge diffuses in the economy. Specifically, these models do not exhibit scale effects (or at least not significant ones) while considering various scope of knowledge diffusion (including possible occurrence of general-purpose technologies). |
| Keywords: | Schumpeterian growth theory, Scale effects, Knowledge diffusion, Knowledge; spillovers, Non rivalry, echnological distance |
| JEL: | O30 O31 O33 O40 O41 |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:129742 |
| By: | Paul Bergin; Ling Feng; Ching-Yi Lin |
| Abstract: | While the trade literature has tended to view export activity and innovation as complementary activities, we present evidence that financial constraints are a reason the two activities can act as substitutes for small exporters. In particular, we find that small exporters have lower expenditure on R&D than comparable non-exporters, and we find a corresponding pattern in the leverage ratio of the capital structure of small firms. A model that combines firm decisions regarding the amount of innovation, exporting, and endogenous financial capital structure is able to account for these empirical findings. The model implies that small firms are unable to fully reap the gains from exporting due to financial constraints, as they reduce R&D to finance the costs of export participation. |
| JEL: | E44 F41 G32 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32904 |
| By: | James Bessen; Iain Cockburn; Jennifer Hunt |
| Abstract: | Using our own data on artificial intelligence publications merged with Burning Glass vacancy data for 2007-2019, we investigate whether online vacancies for jobs requiring AI skills grow more slowly in US locations farther from pre-2007 AI innovation hotspots. We find that a commuting zone which is an additional 200km (125 miles) from the closest AI hotspot has 17% lower growth in AI jobs' share of vacancies. This is driven by distance from AI papers rather than AI patents. Distance reduces growth in AI research jobs as well as in jobs adapting AI to new industries, as evidenced by strong effects for computer and mathematical researchers, developers of software applications, and the finance and insurance industry. 20% of the effect is explained by the presence of state borders between some commuting zones and their closest hotspot. This could reflect state borders impeding migration and thus flows of tacit knowledge. Distance does not capture difficulty of in-person or remote collaboration nor knowledge and personnel flows within multi-establishment firms hiring in computer occupations. |
| Keywords: | Technological change, Economic geography, Growth |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2038 |
| By: | TORRECILLAS CARO Cristina; MERIDA MARTIN Fernando (European Commission - JRC); SASSO Simone (European Commission - JRC) |
| Abstract: | Innovation and entrepreneurship can play a central role in revitalizing rural areas and turning them into places of opportunity. This report, part of the Startup Village Forum initiative’s research activities, explores four cases of rural villages or groups of villages on their journey toward fostering innovation and entrepreneurial ecosystems. Using the Startup Village Conceptualization framework, it assesses resource endowments, institutional arrangements, stakeholder engagement, and outcomes. The findings underscore the importance of institutional support, collaborative leadership, and skill development for successful startup villages, advocating for bottom-up governance and network establishment to drive rural development. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137918 |
| By: | Laurent Loic Yves Bossavie; Erkan Duman; Aysenur Acar Erdogan; Mattia Makovec; Sirma Demir Seker |
| Abstract: | The central hypothesis of this research is that there is a strong, positive correlation between good management practices and firm performance, for which we find strong evidence in a survey on management practices of Turkish manufacturing firms. To better understand this relationship, we investigated the drivers of firm heterogeneity in management practices. We find that product market competition and firm-level factors such as size, multinational status, work effort in the workforce, the level of managerial hierarchy, and ownership are significant determinants of management practices. We also find that family ownership and management are significant deterrents to good management practices and are strongly associated with declines in firm performance. Through this study, we also explored whether the adoption of better management practices comes at the expense of a good work-life balance. In this regard, we find that better-managed firms, in addition to attaining higher performance levels, provide better working conditions for their employees, resulting in improved employee well-being. |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:hdnspu:193764 |