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on Economics of Strategic Management |
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Issue of 2025–10–27
eleven papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Xu, Tao Louie; Liu, Li |
| Abstract: | This review revisits endogenous innovation as a co-evolutionary process of dynamic capabilities amidst the global techno-nationalist Tech Cold War. Integrating micro organisational and macro institutional perspectives, it articulates a triple-staged capability growth chain: technology exploration, market exploitation, and ecosystem orchestration to capture the innovation-oriented adaptive ambidexterity by which emerging tech firms transition from component supplier to supply-chain ecosystem orchestrator. Proposing a research agenda of innovation ecosystem, mega-science infrastructure, regional cluster, and organisational culture, this research offers an alternative analytical approach to endogenous innovation in fractured environments across firm, regional, and national dimensions. |
| Keywords: | endogenous innovation; Tech Cold War; neo-techno-nationalism; dynamic capabilities; industrial development; emerging-markets firms |
| JEL: | O3 O31 O32 O33 |
| Date: | 2025–06–19 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126220 |
| By: | Damián Tojeiro-Rivero (University Rovira i Virgili); Rosina Moreno (AQR-IREA, University of Barcelona) |
| Abstract: | Prior literature has argued that, although both captive knowledge sourcing (CKS) and non-captive knowledge sourcing (NCKS) are effective strategies for enhancing firm innovativeness, the former plays a more defined role in determining the likelihood of a firm achieving product innovations. However, we contend that the focus should not only be on the decision to innovate but, more importantly, on the profitability firms derive from such innovations. Given that knowledge acquired from external sources can provide firms with ideas that differ from their existing competencies, NCKS may be more advantageous, as the resulting innovations are likely to exhibit higher levels of novelty. Additionally, we examine the complementarity or substitutability between CKS and NCKS in driving innovation. Our findings for Spanish firms suggest that NCKS yields greater benefits than CKS. Moreover, adopting both strategies simultaneously does not result in higher benefits; instead, a minimum threshold of NCKS, above the median, is necessary to realize observable gains. This indicates that firms must demonstrate a substantial level of commitment to NCKS to effectively exploit its potential for generating returns from their most novel innovations. |
| Keywords: | Radical Innovation, Captive Knowledge Sourcing; Non-Captive Knowledge Sourcing; Spanish firms; Panel data; Complementarity/Substitutability JEL classification: |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:aqr:wpaper:202503 |
| By: | Cyril Verluise (QuantumBlack); Gabriele Cristelli (London School of Economics); Kyle Higham (Motu Economic and Public Policy Research); Gaetan de Rassenfosse (Ecole polytechnique federale de Lausanne) |
| Abstract: | This study introduces in-text patent-to-patent citations—references embedded in the body of patent documents—as a novel data source to trace knowledge flows. Unlike front-page citations, which often reflect legal requirements, in-text citations are more likely to originate from inventors and signal meaningful technological linkages. We show that they exhibit stronger geographic and semantic proximity, greater self-referentiality, and closer alignment with inventor knowledge. Though less frequent than front-page citations, they yield robust results in models of knowledge diffusion. We release a validated dataset and reproducible code to support future research. Our findings offer new opportunities for strategy scholars interested in the microfoundations of innovation, the geography of knowledge flows, and the role of inventors in shaping firms’ knowledge trajectories. |
| Keywords: | citation; patent; knowledge flow; open data; spillover |
| JEL: | O31 O33 R12 C81 D83 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:iip:wpaper:30 |
| By: | Ghauri, Muhammad Aurang Zaib; Mudassar, Minza; Audi, Marc |
| Abstract: | Digitalization has emerged as a transformative force in modern industrial development, reshaping operational models, innovation practices, and competitive structures. This study investigates the impact of digitalization on the financial performance of industrial growth. Drawing on the resource-based view, dynamic capabilities theory, and transaction cost economics, the study develops a comprehensive framework linking digital strategy alignment, digital capabilities, technology adoption, innovation culture, and external support to industrial financial performance. Using panel data regression analysis on industrial firms, the results reveal that digital strategy alignment consistently exerts the strongest positive influence across measures of return on equity, return on assets, and asset turnover. Digital technology adoption and innovation culture show mixed effects, enhancing equity returns and operational efficiency while imposing short-term costs on asset-based performance. Digital capabilities display both transitional inefficiencies and long-term benefits, while external support emerges as statistically insignificant. These findings emphasize that the financial gains of digitalization are contingent on strategic coherence, organizational readiness, and cultural transformation rather than on technology adoption alone. The study contributes to both theory and practice by highlighting that firms must view digitalization as a holistic transformation process to overcome short-term paradoxes and achieve sustainable growth, while policymakers should focus on creating supportive ecosystems that strengthen firm-level capacities. |
| Keywords: | Digitalization, Industrial Growth, Financial Performance, Innovation Culture |
| JEL: | O1 O3 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126074 |
| By: | Nam, Jaejun; Kim, Nayeon |
| Abstract: | We examine the role of knowledge spillovers in shaping economic growth in developing countries, with a focus on their limitations in promoting convergence with advanced economies. Extending Romer (1986) and the North–South model, we construct a theoretical model in which government-funded knowledge accumulation drives long-run growth, while developing countries benefit from costless technology diffusion from advanced economies. Within this framework, we derive steady states for each economy and analyze how policy choices—such as taxation, savings, and technology protection—affect the growth trajectory of both economies through the spillovers. We then test the model’s predictions, setting the United States as the technological frontier. The analysis utilizes fixed-effects regression and incorporates foreign direct investment inflows and imports from the U.S. as proxies for openness to spillovers. Our results suggest that knowledge spillovers alone are insufficient for convergence, requiring substantial domestic investment by developing countries. This highlights the structural challenges these countries face in catching up to advanced economies. Additionally, technology protection ensures the long-term economic dominance of developed countries, but only when paired with significant domestic investment. Finally, we empirically demonstrate a complementary relationship between openness and technological disparity in determining the magnitude of spillovers, lending further support to our findings. |
| Keywords: | Knowledge Spillovers, Romer (1986), North–South Framework, Endogenous Growth Model, Technology Protection |
| JEL: | F43 O33 O41 |
| Date: | 2025–10–04 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126362 |
| By: | Michela Laura Bergamini; Leo Sleuwaegen; Bart Van Looy |
| Abstract: | Since the introduction of the notion ‘creative class’, artists have been portrayed as contributing to the innovation dynamics of cities and regions. While insights from qualitative studies suggest positive externalities from the arts to the knowledge economy, quantitative analyses so far offer only limited or no support for a systematic positive contribution to the (overall) innovative performance of regions. In this paper, we focus simultaneously on innovations of a technical nature (measured by patents) and of an aesthetic nature (measured by design rights). Relying on data of a large set of European regions (NUTS 2), we examine their joint impact on regional economic growth, and we analyze how different types of human capital – besides scientists and engineers, also artists – are associated with regional innovative performance. Our findings reveal that both types of innovation are relevant for explaining differences in regional growth. In addition, the analysis signals a distinctive contribution both from artists and from scientists and engineers, albeit in different activity realms. While scientists and engineers’ contribution towards regional innovation is very outspoken but confined to technological innovation, the presence of artists in the region is associated with technological and, more pronounced, with aesthetic innovation. Overall, our findings suggest the relevance of adopting a more encompassing view on innovation and creativity when assessing regional growth dynamics. |
| Keywords: | Creative class, artists, design rights, patents, regional innovation, economic growth |
| Date: | 2025–10–14 |
| URL: | https://d.repec.org/n?u=RePEc:ete:msiper:774092 |
| By: | Yousra Nassou; Zakaria Bennani (ENCGT - Ecole Nationale de Commerce et de Gestion de Tanger - UAE - Abdelmalek Essaadi University [Tétouan] = Université Abdelmalek Essaadi [Tétouan]) |
| Abstract: | This study explores the historical evolution of SMEs in Morocco, emphasizing their diversity and the challenges they face. Through a comprehensive literature review, the analysis focuses on aspects specific to SMEs, including owner-driven management, limited resources, and performance measurement systems tailored to these structures. It also highlights the distinctive challenges of Moroccan SMEs, the influences of the economic environment, and government interventions, particularly the INTELAKA program, aimed at strengthening the competitiveness of SMEs in the country. |
| Keywords: | Government Support, Morocco, SMEs |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05217049 |
| By: | Léa Barbaut (MAGELLAN - Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon); Valérie Revest (MAGELLAN - Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon); Hervé Goy (COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne) |
| Abstract: | Plastic pollution has become a critical global concern, highlighting the broader challenges posed by chemical contaminants and their impact on planetary boundaries. In response, political initiatives, such as France's Anti-Waste and Circular Economy Law, aim to promote a circular economy to mitigate these environmental risks. This study examines how the transition to a circular economy is reshaping France's plastic packaging value chain. By focusing on the interactions between micro (companies), meso (value chain) and macro (public policies) levels, the research provides a comprehensive analysis of how these dynamics are reshaping the industry. Drawing on a multi-level perspective and the systemic approach of business models, the study investigates how niche innovations—such as bio-based plastics and chemical recycling— drive the evolution of business models and contribute to a sociotechnical transition. Through qualitative research with key stakeholders in the plastic packaging value chain and innovation intermediaries, the findings elucidate how emerging niche innovations challenge traditional business practices. These innovations create opportunities for new business models and simultaneously impact incumbent firms, which are compelled to transform their business models to align with the growing demand for sustainability. In some cases, incumbents integrate these innovations into their existing business models, provided that they are compatible with the current sociotechnical system. However, not all incumbents are embracing change—some are maintaining the status quo. This analysis highlights the challenges of systemic change and the critical role of innovation in promoting sustainable practices in the plastic packaging industry. The dynamic interactions between innovative business models, incumbent supply chain companies and policymakers play a defining role in shaping the transition path, collectively shaping the transition towards a novel plastic packaging value chain. |
| Keywords: | Innovation - Business model - Multi-level perspective - Sustainable transition |
| Date: | 2025–06–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05308561 |
| By: | Hufnagl, Miriam |
| Abstract: | In times of multiple crises such as climate change or global pandemics, science, technology, and innovation (STI) are expected to contribute to solving these grand challenges of humankind. Regarding the related policies, we observably entered an era of strategy that started in the mid-2000s. Nation states set up large-scale policy strategies (e.g. Germany's Hightech Strategy 2025, UK's Innovation and Research strategy for growth) to support innovation-related research and development activities, which were supposed to generate solutions for existential problems. But how do individual policy practitioners perceive this development and how does it alter their practical work? This contribution focuses on the perception and practice of individual policy practitioners from formulators at ministries to implementers at agencies in Germany, Sweden, and the UK via a contextualised empirical investigation (including the qualitative analyses of 53 guideline-led interviews). |
| Keywords: | STI policy strategies and instruments, Policy coordination, Challenge-orientation, Policy practitioner, Empirical investigation |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:fisidp:329633 |
| By: | Luisa Alamá-Sabater (Department of Economics and IIDL, Universitat Jaume I, Castellón, Spain); Joan Crespo (Department of Economic Structure, Universidad de Valencia, Spain); Miguel Ángel Márquez (Department of Economics, Universidad de Extremadura, Spain); Emili Tortosa-Ausina (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | We empirically evaluate how the efficiency of Spanish public universities impacts regional economic performance in Spain during the period 2010–2019. Efficiency is measured using activity analysis methods that attempt to capture reflect how universities perform in their respective missions—namely, teaching, research, and knowledge transfer. We analyse the geography of higher education by examining efficiency at the provincial (NUTS3) and regional (NUTS2) levels, as well as for groups of regions (NUTS1). Our results offer several key insights. First, we find that geography plays a differential role primarily when knowledge transfer activities are considered, while geographical patterns are similar for teaching and research activities. Second, the impact of universities’ efficiency on regional economic activity varies across different outcome measures. While provinces with more efficient public university systems show higher labor productivity and capital intensity levels, there is no significant relationship with per capita income. The spatial analysis indicates that efficiency gains generate indirect and positive spillovers, particularly for capital intensity, suggesting that improvements in university performance can benefit broader regional areas. Additionally, institutional quality, measured through regional government performance indicators, reinforces these effects. Our findings suggest that policies aimed at enhancing university efficiency should prioritise the research mission. Among the three university missions, research has the greatest impact on improving productive processes and is the most effective in fostering regional economic development. |
| Keywords: | bias-corrected efficiency; capital intensity; higher education institutions; regional growth; productivity |
| JEL: | C61 J24 R11 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:jau:wpaper:2025/09 |
| By: | Michael Fritsch (Friedrich Schiller University Jena); Maria Greve (University of Utrecht); Michael Wyrwich (University of Groningen) |
| Abstract: | This paper examines how the legacy of socialist regime in countries of Central and Eastern Europe has affected innovation and R&D cooperation and compares this to Western Europe. Our analysis reveals that the negative impact of socialism on innovation Central and Eastern European countries is mediated by interpersonal trust and the quality of government. These findings highlight the significance of historical context for innovation activity. Our insights are particularly relevant for policymakers who are trying to create effective strategies to encourage technological development in post-socialist regions. |
| Keywords: | Innovation, socialist legacy, institutional quality, trust |
| JEL: | O31 O43 P20 R11 |
| Date: | 2025–10–16 |
| URL: | https://d.repec.org/n?u=RePEc:jrp:jrpwrp:2025-0010 |