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on Economics of Strategic Management |
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Issue of 2026–01–19
twelve papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Evgenidis Anastasios; Fasianos Apostolos; Papapanagiotou George; Lazarou Nicholas Joseph (European Commission - JRC) |
| Abstract: | Recent advances in Artificial Intelligence (AI) and the growing role of these technologies in enhancing productivity have attracted significant research and policy attention, yet the determinants of AI innovation remain relatively understudied. This study contributes to this emerging literature by examining the role of public R&D spending in fostering AI-related innovation across EU regions. Our analysis draws on bibliographic information from all patents registered at the European Patent Office (EPO) between 1980 and 2023. Using textual analysis of patent abstracts, we identify the share of AI patents among total patents and construct a novel dataset that allocates AI patents to NUTS-2 regions based on inventor addresses. This regional mapping enables us to assess the impact of public R&D funding on AI innovation while addressing endogeneity concerns by instrumenting regional public R&D spending with national defence-related R&D expenditure. The results show that public R&D plays a significant role in driving AI innovation: a 1% increase in public R&D spending raises AI patent output by approximately 0.27%. These findings speak directly to Europe’s innovation policy framework, providing evidence that public investment remains a powerful lever for stimulating AI development. They also reinforce the rationale for sustained funding under Horizon Europe, the Digital Europe Programme, and national innovation strategies aimed at building technological and reducing regional disparities in AI advancement. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:termod:202512 |
| By: | Atsushi KAWAKAMI; Yasuhiro KIUCHI; Tsutomu MIYAGAWA |
| Abstract: | Product diversification is an important issue in management science and industrial organization. Many studies have argued that product diversification is related to the scale of headquarters, and productivity studies find that multi-product firms have higher productivity than single-product firms. Our study examines the role of headquarters in product diversification using the Business Survey of Japanese Business Structure and Activities (BSJBSA). We focus not only on the scale of headquarters but also on their efficiency, which varies across industries. In manufacturing sectors such as electric appliance equipment, electric measuring instruments, and computer industries, many firms have highly efficient headquarters. Our empirical results show that headquarters efficiency contributes to product diversification in firms with higher TFP. Although increasing headquarters scale induces product diversification, its effect becomes negative once it exceeds a certain level. Our findings imply that government support for product innovation or diversification should consider not only the growth of new products but also the capacity and efficiency of headquarters. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:eti:rdpsjp:25031 |
| By: | Sciarra Carla (European Commission - JRC); Caldarola Bernardo (European Commission - JRC); Domnick Clemens (European Commission - JRC); Hervas Fernando (European Commission - JRC) |
| Abstract: | This policy brief provides a digest of the scientific evidence and policy implications of the European Commission’s Conference on Corporate R&D and Innovation (CONCORDi 2025), which took place in Seville on 24-26 September 2025. The conference focused on strategic technologies, industrial policies, economic competitiveness, and sustainability, and it featured 63 academic presentations, 2 keynote talks, 2 policy round tables, 4 policy special sessions, and a science-for-policy debate. The conference highlighted the role of strategic technologies, such as AI, in helping Europe overcome the mid-tech trap, while also addressing their heterogeneous effects on labor markets. It emphasised the necessity for Europe to avoid low-productivity R&D and the importance of large R&D investors in driving higher returns through riskier and higher quality projects. This policy brief underscores the significance of supporting universities and public research centers in long-term research and fostering collaboration with firms. It addresses the incompleteness of the EU single market and calls for more capital market policies and integration efforts to remove barriers preventing firm growth. The integration of green and digital strategies is identified as essential for sustainable innovation, requiring complementary investments and institutional support. The brief discusses the importance of tailored industrial policies with directionality to accelerate transitions and strengthen technological sovereignty while minimizing negative side effects. The brief concludes by remarking that further research is needed to understand the enabling conditions for strategic technologies and to improve the measurement of policy impacts, ensuring adaptive and evidence-based policymaking. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc144677 |
| By: | Borsekova, Kamila; Korony, Samuel; Rodríguez-Pose, Andrés; Styk, Michal; Westlund, Hans |
| Abstract: | The importance of institutions and innovation for regional development is well established. How these two factors interact under different historical legacies and urban-regional contexts remains, however, insufficiently understood. This paper identifies which combinations of institutional and innovation indicators most effectively classify regions into distinct developmental archetypes, revealing critical thresholds that redirect regional trajectories. Employing decision-tree analysis on 233 EU NUTS-2 regions, we analyse 15 indicators spanning institutional quality, technological readiness, business sophistication, and innovation. This methodology uncovers non-linear relationships that traditional approaches cannot capture. The findings demonstrate that institutional quality acts as a necessary condition for innovation-led growth. High-performing regions, predominantly in Western and Northern Europe, benefit from robust institutions and strong innovation outputs. Many lower-performing regions, particularly in Central and Eastern Europe, exhibit innovation potential but are constrained by governance deficits. By integrating institutional and innovation indicators within a single analytical framework, we underscore how addressing governance and innovation in tandem can result in balanced and sustainable growth across Europe. |
| Keywords: | regional development; institutions; innovation; decision tree modelling; regional competitiveness |
| JEL: | J1 |
| Date: | 2026–02–28 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:130741 |
| By: | Sillero Illanes Carmen (European Commission - JRC); Durth Melanie; González Raul; Castilla Barea Juan C.; Caro Gómez Esperanza |
| Abstract: | This report documents the findings of a review of the space ecosystem of Andalusia (Spain), carried out in 2025 within the framework of REGDUALOSA (Regions, Dual Use, Open Strategic Autonomy), an exploratory research initiative of the Joint Research Centre of the European Commission. The review was developed in partnership with the Regional Ministry of Industry, Energy and Mining and explores some of the policy pathways Andalusia might take to develop the space domain as a dual-use industry, thereby boosting regional competitiveness and contributing to European strategic autonomy. The analysis adapts the POINT methodology developed by the JRC, combining documentary research, expert interviews, and stakeholder consultations. The study positions Andalusia within a volatile global landscape in which competitiveness, security, defence, and preparedness have emerged as central priorities of the European Union. Recent geostrategic tensions and the imperative of enhancing European defence capabilities, as underscored in the White Paper on European Defence Readiness 2030 and the Readiness 2030 initiative, highlight the urgency of consolidating the European Defence Technological and Industrial Base (EDTIB). Andalusia, home to Spain’s second-largest aerospace cluster, aspires to develop its space domain, while diversifying beyond its traditional reliance on aerostructures. The report advances seven lines of action: scaling up the industry through defence integration and international expansion; streamlining access to finance; reinforcing industrial competitiveness; strengthening multi-level governance; fostering demand-driven innovation; and addressing talent shortages. Furthermore, it incorporates preparedness as a driver of transformative innovation and explores its interlinkages with dual-use technologies, promoting policy experimentation to address responses to climate-related disasters and hybrid threats. The report thus provides a timely foundation for Andalusia’s forthcoming steps. The participation of the Regional Government of Andalusia in the Experimentation Journey on Territorial Preparedness, under the Preparatory Action Innovation for Place-Based Transformation led by the Joint Research Centre and financed by the European Parliament, constitutes a unique opportunity to translate the insights of this report into new initiatives in cooperation with other European territories. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143531 |
| By: | Lei, Xinyuan; Shi, Guanming; Qiu, Huanguang; Wang, Shukun |
| Abstract: | Governments worldwide have been increasingly focused on how to foster innovation through regulatory frameworks, particularly in developing countries. In 2016, China revised the "Seed Law, " marked a shift from a control-based to a market-oriented framework. This study uses a difference-in-differences strategy to examine the impact of deregulation reform on firms' innovation in China's seed industry from 2013 to 2021. The results reveal a significant positive effect on innovation. We also found that the reform had a significantly greater impact on innovation quantity for larger firms compared to smaller ones, with results remaining robust across extensive checks. Mechanism analysis suggests that for large firms, the increase in approved varieties is driven by both short-term factors such as expanded approval channels and technology licensing, and long-term R&D investments. In contrast, for small firms, it primarily stems from short-term factors, with limited impact from long-term R&D efforts. Additionally, the reform increased innovation quantity without compromising quality for smaller firms, while further enhancing innovation quality among larger firms. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360608 |
| By: | Yueyuan Ma |
| Abstract: | Using firm-level data from the US Census Longitudinal Business Database (LBD), this paper exhibits novel evidence about a wave of specialization experienced by US firms in the 1980s and 1990s. Specifically: (i) Firms, especially innovating ones, decreased production scope, i.e., the number of industries in which they produce. (ii) Innovation and production separated, with small firms specializing in innovation and large firms in production. Higher patent trading efficiency and stronger patent protection are proposed to explain these phenomena. An endogenous growth model is developed with potential mismatches between innovation and production. Calibrating the model suggests that increased trading efficiency and better patent protection can explain 20% of the observed production scope decrease and 108% of the innovation and production separation. They result in a 0.64 percent point increase in the annual economic growth rate. Empirical analyses provide evidence of causality from pro-patent reforms in the 1980s to the two specialization patterns. |
| Keywords: | specialization, production scope, R&D, intellectual property rights, patent trade, endogenous growth |
| JEL: | E23 L22 O32 O34 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-77 |
| By: | Fritsch, Michael; Greve, Maria; Wyrwich, Michael (University of Groningen) |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:gro:rugfeb:2025010-i&o |
| By: | Paul David Richard Griffiths (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School); Abhishek Mukherjee (University of Waikato [Hamilton]); Paresha N Sinha (University of Waikato [Hamilton]) |
| Abstract: | Purpose -This study aims to investigate the diffusion of financial technology (Fintech) in Vietnam by applying a service ecosystem perspective. It reconsiders traditional innovation diffusion approaches by focusing on the interplay of services, institutions and ecosystem dynamics across distinct Fintech service domains. Design/methodology/approach -This study employed a qualitative approach using the Knowledge Cafe method for data collection. Transcripts were coded and analysed thematically across different diffusion phases. Findings were validated through a half-day workshop with banking professionals. Findings -Government regulation in Vietnam has enhanced trust within the Fintech ecosystem, driving digital transactions and financial inclusion. However, as the regulations are heavily focused on the payment services, an uneven diffusion of innovation across the seven Fintech service domains is evident. Practical implications -Regulation can accelerate Fintech diffusion in early stages, as seen in Vietnam's payments sector, but may hinder innovation as technologies mature. Policymakers must adapt regulatory frameworks to balance stability with ongoing innovation. Originality/value -This study advances theory by analysing Fintech diffusion by service domain rather than as a unified sector and by extending the innovation diffusion theory to an emerging market context. Applying a service ecosystem lens reveals the multi-level dynamics shaping Fintech adoption, offering a more nuanced understanding across domains. |
| Keywords: | Vietnam, Innovation diffusion, Fintech, Financial services, Emerging market institutions |
| Date: | 2025–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05398969 |
| By: | Schilirò, Daniele |
| Abstract: | This study explores the transformative role of financial technology (FinTech) within the broader context of innovation ecosystems and its interconnections with financial inclusion. Financial technology has grown significantly in recent years. It encompasses sectors such as digital payments, blockchain, artificial intelligence, regulatory technology and insurance technology, reshaping the operational dynamics of financial systems, improving efficiency, competition, and transparency. In turn, the rapid adoption of data-intensive technologies introduces new regulatory and ethical challenges. Following an approach based on an examination of scientific literature the study first emphasizes the need to move beyond a technology-centric view and adopt an ecosystem-oriented perspective. This view highlights the interaction between technological advances, institutional frameworks, and market structures, as well as their impact on innovation. The analysis also shows that global connections and collaborations within FinTech ecosystems favor the development and diffusion of new innovations. Furthermore, FinTech and its ecosystem promote financial inclusion by reducing barriers to entry, making access to services affordable, and tailoring solutions to diverse customer needs. This benefits disadvantaged and underbanked populations, thereby expanding economic participation and reducing inequality. Given that current literature does not explicitly highlight the interrelationship among FinTech, innovation ecosystems, and financial inclusion, this study — without pretending to be exhaustive — underscores their interconnection. It demonstrates how collaborative technological innovation can expand access to financial services, despite the challenges and problems that remain to be solved. The article concludes that financial technology should be understood as a systemic force with profound implications for economic transformation, regulatory adaptation, the democratization of access, and the reduction of inequality. |
| Keywords: | Fintech; digital technologies; financial inclusion; innovation ecosystems; technological innovation; regulation |
| JEL: | F30 G2 G32 O31 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127045 |
| By: | Mohamed Amine M'Henna (TU - Taif University - Partenaires INRAE) |
| Abstract: | Over the past decade, sustainable tourism has emerged as a strategic issue for hotel organisations amid growing environmental, social, and economic pressures. In this context, hotels are seeking to integrate sustainability practices not only into resource management, but also into their organisational and relational models. Among the internal levers that can be mobilised, internal relationship marketing is emerging as a key determinant of sustainable performance, as it aims to develop employee engagement, satisfaction, and active participation in organisational initiatives (Ahmed et al., 2021; Kim & Lee, 2022). Thus, the question of whether internal relationship marketing can be considered an essential element of sustainable tourism is of major scientific interest, as it allows us to explore a dimension that has received little attention in the literature, at the intersection of human resource management, hotel marketing, and sustainability. By introducing three essential relational variables-job satisfaction, organizational trust, and organizational commitment-this article aims to better understand the role hlo otoet tet foetf eht fo aaeh po between employees' well-being at work and their performance in terms of productivity and innovative behavior. To carry out this work, we used a quantitative study based on a database of 258 employees of several hotels in Saudi Arabia. The results show that well-being at work is an input variable to the internal relational model. Two central and mediating relational variables are job satisfaction and organizational trust. Finally, the internal relational chain has three outputs: the employee's commitment to the organization, their willingness to try new things, and their productivity. These results confirm and recommend the importance of good management through an internal relational approach within a company. |
| Keywords: | Work Performance, Organizational Trust, Organizational Commitment, Well-being at work, Relationship Marketing, Job Satisfaction, Job Satisfaction Relationship Marketing Well-being at work Organizational Commitment Organizational Trust Work Performance |
| Date: | 2025–12–14 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05419688 |
| By: | Matěj BAJGAR; Keiko ITO; Jonathan TIMMIS |
| Abstract: | We study how R&D spillovers propagate through buyer–supplier networks. The R&D tax credit for large firms in Japan—originally based on incremental increases in R&D expenditures—was revised in 2003 to cover total R&D expenditures. This reduced the cost of marginal R&D outlays for large firms below the ceiling on R&D expenditure, but not for large firms above the ceiling or for SMEs. In a difference-in-differences setting, we find that the reform increased R&D expenditure, innovative output and sales of the treated firms. We further present evidence of positive forward spillovers to downstream firms: the reform led to productivity increases among firms that had a greater share of suppliers treated by the reform. Conversely, we do not find any evidence of backward spillovers to upstream firms. We also do not find any robust effects of the reform on the R&D expenditure and economic performance of Japanese firms' overseas affiliates. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25127 |