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on Economics of Strategic Management |
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Issue of 2025–09–22
three papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Martin, Ralf; Solorzano Mosquera, Jenniffer; Thomas, Catherine; Verhoeven, Dennis |
| Abstract: | We examine the relationship between firms' markups and the economic value of their innovation, including both the private value captured by the innovating firm and the knowledge spillovers that benefit other firms. Using a sample of over 14, 500 EU firms and 2, 400 US firms granted patents between 2005 and 2014, we find that innovation by high-markup firms is more valuable privately and also creates more external value. These associations are robust to controlling for the stock of past innovation and to estimating innovation value in various ways. |
| JEL: | D24 L11 O31 O33 |
| Date: | 2025–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129003 |
| By: | Golebiowska-tataj Daria; Reimeris Ramojus (European Commission - JRC) |
| Abstract: | In the era of global geopolitical shifts, innovation and entrepreneurship are essential to Europe’s resilience, competitiveness, and strategic autonomy. This paper focuses on increase Europe’s competitiveness through instruments feeling innovation and entrepreneurial culture. The paper analyzes the position of European Union at national and regional level according to various global innovation indexes. It examines how to leverage the power of key innovation regions in Europe and how to tap on the potential of the most dynamic innovation hubs in Central and Eastern Europe. The authors examine quantitative databased and present two cases of Paris and Vilnius. The analysis leads to a conclusion that European innovation policy needs to reexamine innovation instruments which are not sufficiently focused on competitiveness and invest more in such instruments as for example the European Innovation Council. On the other hand, the most dynamic innovation ecosystems in CEE regions should be better networked with the leading hubs and used to test new policy approaches. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142615 |
| By: | Bijan Aghdasi; Abhijit Tagade |
| Abstract: | Do markets price knowledge spillovers? We show that patent grants influence the stock returns of firms that are connected through technological knowledge dependencies. Using directed patent citations among publicly listed companies in the United States, we construct a granular measure of each firm's exposure to new patents granted to its technologically upstream firms. Patents granted to these upstream companies significantly boost its abnormal stock returns during the week of the grant. We find that these financial spillovers are predominantly localized within a firm's immediate technological connections. Additionally, we provide a novel empirical decomposition of financial spillovers generated from patent grants, by distinguishing those spillovers emerging from sources of technological knowledge, from those emerging from product market rivals (negative effect) and suppliers (positive effect). Our findings are robust to alternative specifications and placebo tests, and they suggest that technological knowledge spillovers create important market-priced ties between firms that are not fully captured by traditional product market relationships. |
| Keywords: | innovation, networks, spillovers, patents, stock returns, supply chains |
| Date: | 2025–08–13 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2117 |