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on Economics of Strategic Management |
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Issue of 2026–07–27
sixteen papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Iglesias-Osores, Sebastian |
| Abstract: | This working paper develops a conceptual and contextual framework for understanding corporate research in Peru as a value-creation capability rather than as an activity mainly induced by public grants or tax incentives. The central argument is that public innovation funds and tax benefits can accelerate business innovation, but they cannot substitute for the internal routines through which firms learn, document, protect, and capture value from knowledge. Drawing on the resource-based view, the knowledge-based theory of the firm, absorptive capacity, dynamic capabilities, open innovation, technological capability accumulation in emerging economies, and the appropriability literature, the paper proposes an integrated pathway linking corporate research, structured learning, firm-specific know-how, appropriability decisions, innovation capability, and economic value capture. The argument is situated in the Peruvian context through indicators of low R&D intensity, public information on Law No. 30309, patenting evidence, and sectoral illustrative cases. The paper contributes by reframing public innovation instruments as levers of pre-existing capabilities rather than substitutes for strategy, and by offering a practical maturity framework for managers seeking to transform research activities into intangible assets, technical reputation, and new sources of income. |
| Keywords: | corporate research; R&D management; innovation strategy; Peru; know-how; intellectual property; technological capabilities; appropriability; value capture; public innovation policy |
| JEL: | O31 O32 O34 O38 O54 |
| Date: | 2026–06–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:129921 |
| By: | Thabit Atobishi; Saeed Nosratabadi |
| Abstract: | While the operational benefits of Artificial Intelligence (AI) are well-documented, the mechanisms through which firms leverage AI for strategic exploration and radical innovation remain under-theorized. This study addresses the black box of AI value creation by integrating the Technology-Organization-Environment (TOE) framework with the Dynamic Capabilities View (DCV). We propose that AI adoption is not a direct antecedent to performance but a multi-stage process wherein technological, organizational, and environmental factors enable the development of sensing capability, which in turn fosters a novel capability we term AI-Enabled Exploration. Analyzing survey data from 245 senior executives in Saudi Arabia, a high-growth economy undergoing state-led digital transformation, we employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the model. The results confirm a serial mediation chain: organizational readiness and technology compatibility drive sensing capability, which subsequently powers AI-enabled exploration to enhance innovation performance. Contrary to expectations, government support was not a significant predictor of sensing capability, suggesting that in resource-rich environments, external incentives are necessary but insufficient for capability building. Furthermore, competitive pressure was found to positively moderate the relationship between organizational readiness and exploration, acting as a critical catalyst that converts latent resources into active experimentation. These findings offer a theoretical roadmap for firms attempting to transition from AI-driven efficiency to AI-driven ambidexterity. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.02645 |
| By: | Aghion, Philippe; Bergeaud, Antonin; Boppart, Timo; Klenow, Peter J.; Li, Huiyu |
| Abstract: | Firm price-cost markups may reflect (a) bigger step sizes from quality innovations that confer significant knowledge spillovers onto other firms, and/or (b) higher process efficiency than competing firms or other factors which bear no obvious knowledge externality. We write down an endogenous growth model with innovation step size and process efficiency as alternative sources of markup heterogeneity. Compared with the laissez-faire equilibrium, the social planner wants to reallocate research towards high step size firms but not high process efficiency firms. We then use price and productivity data across firms in French manufacturing to infer firm step sizes and process efficiency. We find that the planner could achieve faster growth by reallocating research toward high step size firms, and more so if high step size firms could freely license their innovations to high process efficiency firms. |
| Keywords: | Innovations; Creative destruction |
| JEL: | E23 O31 O40 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20654 |
| By: | Chikis, Craig A.; Kleinman, Benny; Prato, Marta |
| Abstract: | Most U.S. innovation output originates from firms that operate R&D facilities across multiple local markets. We study how this geographic structure influences aggregate innovation and growth, and whether it is socially optimal. First, we develop an endogenous growth model featuring multi-market innovative firms that generate knowledge spillovers to geographically proximate firms. In equilibrium, firms may operate in too few or too many local markets, depending on how sensitive the local spillovers they generate are to their local size. Second, to quantify these effects, we link the model to data on firms’ R&D locations, patents, and citation networks. Using an event-study design, we show that firms’ spatial expansion increases spillovers to other firms and estimate how these spillovers depend on a firm’s local footprint. Our estimates imply that U.S. innovative firms operate in too few markets relative to the social optimum. Third, using quantitative counterfactuals, we find that policies promoting broader spatial scope yield larger welfare gains than standard R&D subsidies. Moreover, unlike R&D subsidies, such policies can also reduce regional inequality. |
| Keywords: | Innovation |
| JEL: | O30 O40 R10 L10 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20408 |
| By: | Chacua, Christian; Gadgin Matha, Shreyas; Hartog, Matte; Hausmann, Ricardo; Yildirim, Muhammed |
| Abstract: | Recent geopolitical challenges have revived the implementation of industrial and innovation policies. Ongoing discussions focus on supporting cutting-edge industries and strategic technologies, but hardly pay attention to their impact on economic growth. In light of this, we discuss the design of innovation policies to address current development challenges while considering the complex nature of productive activities. Our approach conceives economic development and technological progress as a process of accumulation and diversification of knowledge. This process is limited by the tacit nature of knowledge and by countries’ binding constraints to growth. Consequently, effective innovation policies should be place-based and multidimensional, leveraging countries’ existing capabilities and addressing countries’ current problems. This contrasts policies that lead to economic efficiencies, such as copying other countries’ solutions to problems that countries do not currently have. |
| JEL: | O25 O30 O38 F60 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20678 |
| By: | Dubois, Pierre |
| Abstract: | We examine pharmaceutical regulations and incentives for innovation from an international perspective, highlighting the public good nature of healthcare innovation and its cross-border diffusion. We summarize the empirical evidence on how push and pull incentives shape R\D investment, innovation, and global access. We emphasize the role of strategic interdependencies and spillovers, including free-riding in R\D financing, learning-by-doing effects, drug shortages, reference pricing, and parallel trade. We then provide new evidence on the international spillovers of pull incentives on innovation, showing that international cooperation and innovative institutions are necessary to better align national regulations with the global objective of sustaining pharmaceutical innovation. |
| Keywords: | Innovation |
| JEL: | L10 L20 I10 I11 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20728 |
| By: | Tinnefeld, Franziska; Wagener, Florian |
| Abstract: | We develop a multi-region, multi-sector Romer-type dynamic partial equilibrium model of endogenous growth. We calibrate on equally sized regions North, East, and South, based on data from Germany, Poland, and China. We compare the effect of trade block formation on innovation outcomes. Integration leads to aggregate increase in both product and process innovation, resulting in aggregate welfare gains. These are concentrated in North: the research sectors of East and South collapse. Our findings explain data from eastern European countries, as well as current R&D policies in China that are designed to avoid downstream lock-in. |
| Keywords: | Industrial Organization, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2026–07–16 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:404836 |
| By: | Vincenzo Varriale (UNISA - Università degli Studi di Salerno = University of Salerno); Antonello Cammarano (UNISA - Università degli Studi di Salerno = University of Salerno); Moacir Godinho‐filho (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School, UFSCar - Federal University of São Carlos = Universidade Federal de São Carlos) |
| Abstract: | This study investigates how advanced technologies support Sustainable Development Goals (SDGs) within supply chain management (SCM) through a structured analysis of 4448 sustainable practices. By integrating perspectives from sustainability-oriented innovation (SOI) and contingent dynamic capabilities, the research conceptualizes technology adoption as a context-dependent driver of environmental, economic, and social performance. Eleven advanced technologies are mapped across 25 supply chain (SC) processes and 169 SDG targets using association indices and Pearson correlations, revealing hidden linkages and recurrent technological configurations. The results highlight the central role of AI, IoT, blockchain, and computing in accelerating sustainability transitions, while exposing a persistent underrepresentation of social-oriented practices. An integrated mapping synthesizes patterns of technological implementation across SC processes, offering a holistic understanding of SOI alignment. Building on these insights, the study proposes a framework for guiding digital transformation in SCs, providing actionable managerial and policy implications to strengthen strategic coherence and support SDG-oriented decision-making. |
| Keywords: | Sustainable supply chain management, SDG, Internet of things, Blockchain, Artificial intelligence, Advanced technologies |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05654137 |
| By: | Fangchen Song; Yixuan Liu; Ashish Agarwal |
| Abstract: | As firms adopt divergent policies regarding work-from-home (WFH), the implications of remote work for collaborative and interdependent outcomes such as digital product innovation remain uncertain. This study examines how remote work adoption affects continuous digital product innovation using a panel dataset of mobile applications. We identify firm-level remote work adoption from job postings data and estimate its effects on app innovation using a staggered difference-in-differences design. We find that remote work significantly increases both major releases and new feature introductions per app, indicating enhanced digital product innovation performance. To assess whether these gains come at the expense of originality, we distinguish between novel and imitative feature introductions and show that remote work does not reduce the originality of digital product innovation. Moreover, improvements in digital product innovation translate into greater market success, as reflected in increased app downloads. The positive effects of remote work are stronger for app development teams with prior modular collaboration experience through open-source participation, suggesting that teams with greater experience coordinating modular work can better leverage remote work arrangements. We also find that remote work enables teams to expand their workforce and increase their collective skill capacity, both of which are associated with improved digital product innovation outcomes. In contrast, reductions in commuting time and app maturity do not explain the observed digital product innovation gains. Overall, our findings suggest that remote work can enhance continuous digital product innovation at the team level without compromising innovation novelty. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.03718 |
| By: | DADAKPETE, David; DOSSA, Moïse |
| Abstract: | Often described as a powerful strategy in inter-firm competition, innovation remains a timeless topic in economics. Although a large body of empirical literature finds evidence for an “innovation premium” (Cefis and Marsili, 2005) associated with better survival prospects for firms, numerous studies highlight the inherent risks associated with innovation activity, which could shorten a firm’s market longevity ("liability of innovativeness"(Deng et al., 2014)). This paper investigates whether the “innovation premium” or “liability of innovativeness” prevails among young French firms during their first five years. According to our estimates, the two effects seem to offset each other in most cases. Indeed, for three (process, product, organization) of the four types of innovation considered, no significant effect on firm survival is observed. However, for marketing innovation, the “liability of innovativeness” appears to prevail. Our estimates suggest that firms introducing marketing innovation upon market entry face an 11.3% higher risk of closure. |
| Keywords: | Innovation, Firm survival, Duration models |
| JEL: | L25 L26 O3 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127936 |
| By: | Marcos Medina-Tabares (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Manon Enjolras (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Ferney Osorio (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Brigitte Schönberger (University of Stuttgart = Universität Stuttgart); Laurent Rollet (AHP-PReST - Archives Henri-Poincaré - Philosophie et Recherches sur les Sciences et les Technologies - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This research examines how Diversity, Equity, and Inclusion (DEI) principles function as both enablers and barriers in the management of community-driven innovation initiatives. Through a meta-ethnography of 30 cases and empirical fieldwork in French ‘third places', we identify what we term ‘lay management': an unconventional, experience-based governance approach that reconciles strategic intentions with daily practice. Findings suggest that when DEI is integrated as a fundamental strategic orientation, it produces multi-dimensional territorial, social, and ecological value. Furthermore, the study reveals a framework of eight management enablers, such as needs-based facilitation and proximity management, and ten barriers shaping value-based innovation, including a lack of adapted management structures. Our findings contribute to strategic intent theory and innovation management by bridging organisational values with concrete practices. This offers practical insights for social economy managers, public authorities, and researchers navigating value-based innovation spaces and ecosystems oriented toward solving societal challenges. |
| Keywords: | Value-based innovation management Diversity, Diversity, Third places, Territorial Innovation, Social and solidarity economy, Strategic Intent, Equity and Inclusion (DEI) Third places Territorial Innovation Social and solidarity, Value-based innovation management, Social and solidarity, Equity and Inclusion (DEI) |
| Date: | 2026–06–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05667090 |
| By: | Gazzani, Andrea; Martinez, Joseba; Natoli, Filippo; Surico, Paolo |
| Abstract: | We study the macroeconomic effects of government-funded and privately funded innovation on postwar U.S. productivity and economic growth. Using newly digitized data that allow us to distinguish innovations by funding source and ownership, we document systematic differences in how public and private innovation translate into aggregate outcomes. Government-funded but privately owned patents—though accounting for only about 2% of total patenting—explain roughly 20% of medium-term fluctuations in total factor productivity and GDP growth and are associated with strong spillovers to business-sector R&D and investment. Privately funded patents also contribute to aggregate fluctuations, but with smaller effects, while publicly owned patents display muted average impacts despite being disproportionately represented among highly disruptive innovations, particularly in health and biotechnology. Across federal agencies, innovations funded by the NIH and NSF exhibit the strongest links to subsequent productivity growth, and research institutes and universities outperform for-profit firms in converting public funding into aggregate gains. Taken together, our results highlight how the institutional design of public support for innovation shapes medium-term productivity dynamics and plays a central role in sustaining U.S. economic growth. |
| JEL: | E32 E22 O41 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20788 |
| By: | Yan Luo (Fudan University); Shula Wu (Fudan University); Shu Tian (Asian Development Bank) |
| Abstract: | This paper examines the impact of corporate digital transformation on environmental performance and the underlying mechanisms. Utilizing textual analysis of annual reports, we develop a fourdimensional measure of digital transformation comprising technological, business, manufacturing, and operational aspects. Analyzing data from Chinese A-share listed firms between 2009 and 2022, we demonstrate that corporate digital transformation significantly enhances environmental performance. While all dimensions of digital transformation contribute positively, manufacturing digital transformation exhibits the most substantial impact, followed by operational and technological digital transformation. We identify that green innovation, strengthened environmental monitoring and communication, increased environmental information transparency, and greater external attention are pivotal mechanisms through which digital transformation affects environmental performance, with transparency emerging as the strongest factor in this context. This paper offers new insights into the role of digital transformation in advancing sustainability. |
| Keywords: | corporate digital transformation;environmental performance;textual analysis;nnovation;transparency |
| JEL: | D22 O33 Q56 |
| Date: | 2026–06–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:023024 |
| By: | Ignaszak, Marek; Robbins, Daniel; SedláÄ ek, Petr |
| Abstract: | How do R&D incentives affect individual firms and, in turn, shape aggregate growth? We develop a novel empirical framework, grounded in endogenous growth theory, allowing us to measure firms’ responsiveness to R&D incentives and to aggregate such responses. After validating the predictions of our framework using three different micro-datasets, we apply it to Compustat data. We find that (i) ignoring firm heterogeneity severely under-states the aggregate effectiveness of R&D incentives, (ii) per dollar spent on R&D incentives, young (rather than small) firms raise aggregate growth the most and (iii) our results are robust to knowledge spillovers, dynamics and borrowing constraints. |
| Keywords: | R&d policy; Heterogeneous firms; Economic growth |
| JEL: | O31 O38 L1 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20653 |
| By: | Aghion, Philippe; Bergeaud, Antonin; Boppart, Timo; Brouillette, Jean-Félix |
| Abstract: | We propose a model of endogenous economic growth with "weak'' scale effects and diminishing returns to innovation at the micro level. In our model, entrants introduce new technologies through research and incumbents incrementally improve them through development. Over time, further improvement becomes harder such that firms ultimately run out of ideas and exit, paving the way for entrants that discover new technologies with further room for improvement. This turnover gives rise to a continuous stream of (temporary) opportunities for technological improvements that sustain economic growth. In a stationary equilibrium, the growth rate is constant and endogenous to market incentives. |
| Keywords: | Endogenous growth theory; Market size effect; Firm dynamics |
| JEL: | O31 O40 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20761 |
| By: | Rados{\l}aw A. Kycia; Agnieszka Niemczynowicz; Andrzej Buszko |
| Abstract: | This article is devoted to the process of diffusing tacit knowledge. This intangible asset has proven crucial for achieving a competitive advantage among market-oriented companies. A novel model of tacit knowledge diffusion is presented, employing the concept of heat diffusion from physics. Furthermore, graph theory and the dynamics it defines are utilized. We defined a Tacit Knowledge Transfer Graph that encodes data from questionnaires. It enables us to identify employees' learning needs, allowing for the planning of classes within the same period, such as a day, to schedule them optimally. Moreover, the model can be used to identify employees with high knowledge demands. The application is not limited to companies; a simple example of planning classes in a school/university is provided. The presented model can help with optimal scheduling, enhance operational efficiency, and improve talent management within the company. It can also identify risks associated with critical sources of knowledge and help improve organizational culture and knowledge management policy. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.10919 |