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on Economics of Strategic Management |
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Issue of 2025–10–20
seven papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Arenas Díaz, Guillermo (Università Cattolica del Sacro Cuore); Piva, Mariacristina (Università Cattolica del Sacro Cuore); Vivarelli, Marco (Università Cattolica del Sacro Cuore) |
| Abstract: | This study investigates the relationship between Artificial Intelligence (AI) and innovation inputs in Spanish manufacturing firms. While AI is increasingly recognized as a driver of productivity and economic growth, its role in shaping firms’ innovation strategies remains underexplored. Using firm-level data, our analysis focuses on whether AI complements innovation inputs - specifically R&D and Embodied Technological Change (ETC) - and whether AI can be considered as a Method of Invention, able to trigger subsequent innovation investments. Results show a positive association between AI adoption and both internal R&D and ETC, in a static and a dynamic framework. Furtheremore, empirical evidence also highlights heterogeneity, with important peculiarities affecting large vs small firms and high-tech vs low-tech companies. These findings suggest that AI may act as both a complement and a catalyst, depending on firm characteristics. |
| Keywords: | innovation inputs, R&D, method of invention, Artificial Intelligence, innovative complementarities |
| JEL: | O31 O32 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18175 |
| By: | Arenas Díaz, Guillermo; Piva, Mariacristina; Vivarelli, Marco |
| Abstract: | This study investigates the relationship between Artificial Intelligence (AI) and innovation inputs in Spanish manufacturing firms. While AI is increasingly recognized as a driver of productivity and economic growth, its role in shaping firms' innovation strategies remains underexplored. Using firm-level data, our analysis focuses on whether AI complements innovation inputs - specifically R&D and Embodied Technological Change (ETC) - and whether AI can be considered as a Method of Invention, able to trigger subsequent innovation investments. Results show a positive association between AI adoption and both internal R&D and ETC, in a static and a dynamic framework. Furtheremore, empirical evidence also highlights heterogeneity, with important peculiarities affecting large vs small firms and high-tech vs low-tech companies. These findings suggest that AI may act as both a complement and a catalyst, depending on firm characteristics. |
| Keywords: | Artificial Intelligence, Method of Invention, R&D, Innovation Inputs, Innovative Complementarities |
| JEL: | O31 O32 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1676 |
| By: | Martinez Cillero Maria (European Commission - JRC); Napolitano Lorenzo (European Commission - JRC); Rentocchini Francesco (European Commission - JRC); Seri Cecilia; Zaurino Elena (European Commission - JRC) |
| Abstract: | "Rising market concentration and the dominance of `superstar' firms have sparked concerns about declining competition and innovation. While technological change and globalisation are key drivers, mergers and acquisitions (M&As) may also play a role. This paper investigates whether firms use technological M&As — acquisitions of innovative subsidiaries with patent portfolios — to enhance market power. Using a global panel of 8, 314 publicly listed firms from 2008 to 2020 and a staggered difference-in-differences approach, we find that such acquisitions increase acquiring firms’ markups by 2% on average. Effects are stronger among top R&D investors, US-based firms, and those in high-tech manufacturing. The main mechanism appears to be greater insulation from competitors via acquired patents, which limit knowledge spillovers and raise entry barriers. These findings highlight the need for antitrust policies that balance innovation incentives with the risks of growing market power." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:wpaper:202503 |
| By: | Mohammad Zeqi Yasin |
| Abstract: | Do industrial "superstars" help others up or crowd them out? We examine the relationship between the spillovers of superstar firms (those with the top market share in their industry) and the productivity dynamics in Indonesia. Employing data on Indonesian manufacturing firms from 2001 to 2015, we find that superstar exposures in the market raise both the productivity level and the growth of non-superstar firms through horizontal (within a sector-province) and vertical (across sectors) channels. When we distinguish by ownership, foreign superstars consistently encourage productivity except through the horizontal channel. In contrast, domestic superstars generate positive spillovers through both horizontal and vertical linkages, indicating that foreign firms do not solely drive positive externalities. Furthermore, despite overall productivity growth being positive in 2001-2015, the source of negative growth is mainly driven by within-group reallocation, evidence of misallocation among surviving firms, notably by domestic superstars. Although Indonesian superstar firms are more efficient in their operations, their relatively modest growth rates suggest a potential stagnation, which can be plausibly attributed to limited innovation activity or a slow pace of adopting new technologies. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.11139 |
| 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: | Pharmaceutical Regulation, Innovation, R&D, International Spillovers |
| JEL: | L10 L20 I10 I11 I18 |
| Date: | 2025–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:131002 |
| By: | Signorelli Serena (European Commission - JRC); Fernández Cruzado Ana (European Commission - JRC); De Prato Giuditta (European Commission - JRC) |
| Abstract: | "The Science for Policy Brief explores the digital ecosystem in EU regions through the DGTES approach, focusing on research, innovation, and startups. It first highlights key NUTS 3 regions where research organizations are concentrated and discusses strategies to enhance competitiveness in Europe. The brief then identifies top NUTS 3 regions for research and innovation activities and examines economic indicators (GDP, employment and number of startups) to uncover potential growth opportunities." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143080 |
| By: | Soguero Escuer Jorge (European Commission - JRC); Abendroth Dias Kulani (European Commission - JRC); Aldave De Las Heras Laura (European Commission - JRC); De Prato Giuditta (European Commission - JRC); Fernández Cruzado Ana (European Commission - JRC); Fuetterer Michael (European Commission - JRC) |
| Abstract: | "This report provides an overview on the state of play for small modular reactors (SMRs) in a techno-economic perspective by presenting a preliminary mapping of the SMR ecosystem using the Techno-Economic Ecosystem (TES) approach. This methodology allows for a comprehensive mapping of the complex ecosystem constituting the SMR industrial landscape. Through the identification of activities and public and private actors interplaying, we can outline the EU strategic positioning as well as interdependencies, vulnerabilities, and opportunities for the development of these types of advanced reactors. The study offers insights on the EU role in the SMR network through collaboration and participation in the information flows.The main findings exhibit the critical need to transform European research into innovation to stay at the competitive forefront. A well-developed research network is a valuable asset to keep up with SMR technological progress, but the EU needs to foster its business network. Observing SMR activities that are related to other industrial ecosystems, we highlight the importance of these reactors to support the development and decarbonisation of energy-intensive industries and meet other objectives of the Clean Industrial Deal.While the present study offers a first overview of the results of the SMR techno-economic ecosystem mapping, the TES approach allows for exploring further analytical avenues and fine-tuning classification criteria. This novel analysis could provide strategic guidance to support public policies and international collaboration initiatives for further SMR development and deployment." |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142326 |