nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2013‒04‒20
nine papers chosen by
Frederic S. Lee
University of Missouri-Kansas City

  1. Antecedents of radical innovations: the discovery of dna structure and the invention of dsl By Francesco Paolo Appio; Bart Van Looy; Alberto Di Minin
  2. The evolution of innovation networks: The case of a German automotive network By Buchmann, Tobias; Pyka, Andreas
  3. Network! Network! Network! How global technology start-ups access modern business ecosystems By Tahvanainen, Antti-Jussi; Steinert, Martin
  4. Firm Size and Credit in Argentina By Sebastian Auguste; Ricardo N. Bebczuk; Gabriel Sanchez
  5. Changes in the patterns of poverty duration in Germany, 1992-2009 By KYZYMA Iryna
  6. What Drives the Dynamics of Business Growth? By Albert Bravo-Biosca; Chiara Criscuolo; Carlo Menon
  7. Knowledge Networks and Their Impact on New and Small Firms in Local Economies: The Case Studies of the Autonomous Province of Trento and Magdeburg By Alessandra Proto; Simone Tani; Joerg Bühnemann; Olaf Gaus; Mathias Raith
  8. Why Weak Ties' Help and Strong Ties' Don't: Reconsidering Why Tie Strength Matters By Smith, Sandra Susan
  9. “A Note on the Relationship Between the Cyclicality of Markups and Fiscal Policy” By Peter Claeys; Luis Costa

  1. By: Francesco Paolo Appio (Istituto di Management - Scuola Superiore Sant’Anna, Pisa); Bart Van Looy (Faculty of Business and Economics - Katholieke Universiteit Leuven); Alberto Di Minin (Istituto di Management - Scuola Superiore Sant’Anna, Pisa)
    Abstract: Outlining and characterizing the antecedents of Radical Innovation is the only way to unveil the complex traits of the path to those innovations that dramatically and irreversibly alter the status quo of the economic and industrial context and structure in which they come to life. The two brief accounts presented in this paper attempt to sketch the paths characterizing both the discovery of DNA structure and the invention of DSL. By digging into the chain of historical events, we aim at understanding the role of time in nurturing ex ante radicalness, the technological combinatorial evolution unchained by different degrees of knowledge recombination, the importance of forgotten and unpublished discoveries, the influence of experimental systems in determining the course of scientific and technological developments, the role of market and technological attributes in redefining the boundaries of industries, the more than often neglected role of the personality of inventors. Accordingly, a number of propositions are advanced and implications concerning ex ante indicators building, policy and ingredients of innovative processes discussed.
    Keywords: antecedents of radical innovation, innovation process, knowledge recombination, socio-technical dynamics, DNA, DSL
    Date: 2013–03–01
  2. By: Buchmann, Tobias; Pyka, Andreas
    Abstract: In this paper we outline a conceptual framework for depicting network development patterns of interfirm innovation networks and for analyzing the dynamic evolution of an R&D network in the German automotive industry. We test the drivers of evolutionary change processes of a network which is based on subsidised R&D projects in the 10 year period between 1998 and 2007. For this purpose a stochastic actor-based model is applied to estimate the impact of various drivers of network change. We test hypotheses in the innovation and evolutionary economics framework and show that structural positions of firms as well as actor covariates and dyadic covariates are influential determinants of network evolution. --
    Date: 2013
  3. By: Tahvanainen, Antti-Jussi; Steinert, Martin
    Abstract: to connect to critical stakeholders and, thereby, to integrate into foreign business ecosystems. Reverting to explorative, inductive methodology, the study contributes to the existing body of knowledge by approaching networking from a rare angle; networking as practice. The study examines (i) the precepts and principles that direct the start-ups’ networking efforts, (ii) the practices they employ to identify relevant partners and establish connections to them, (iii) the practices they make use of in the interface of newly established connections to sway and commit the respective partners to their cause and network, and finally (iv), the practices that offshore governmental agency nodes apply to help start-ups assimilate to foreign local ecosystems. We found that firms need to embrace and learn how to exploit serendipitous networking opportunities to gain access to stakeholders that purely ansoffian planning approaches could never uncover. The exploitation of serendipity necessitates flexibility with regard to the start-ups’ existing product or service concepts, strategies and business plans because in the serendipitous mode these are often re- and co-designed with newly encountered stakeholders. Many of the actual networking practices were found to have evolved together with the progress of other dominant megatrends such as the spread and acceptance of social and other digital media. Such progress seems to have endogenously affected some of the conventional cultural tenets of networking, helping to bypass hierarchical gatekeepers in organizations, for instance. In addition, the diffusion and acceptance of more content- and context-rich communication techniques such as social and mobile video, prototyping and story-telling have made pitching a proposal faster, more holistic, experiential and interactive. We further found that offshore governmental agency nodes can play a decisive role in accelerating and facilitating the integration of foreign newcomers into a local ecosystem. Important prerequisite for the capability to provide such services is a respected and established status within the ecosystem, a vast, cross-sectoral network, and professional employees with hands-on industrial experience in the respective ecosystem.
    Keywords: networking, practice, network access, entrepreneurship, ecosystem, globalization
    Date: 2013
  4. By: Sebastian Auguste; Ricardo N. Bebczuk; Gabriel Sanchez
    Abstract: The goal of this paper is to study the link between bank credit (and internal funding) and average firm size in Argentina. Besides the fact that economic growth tends to go hand in hand with larger firm size, the topic is of particular interest because of the severe credit crunch in Argentina in the aftermath of the 2001-2002 financial crisis. To this end, a novel three-digit industry-level dataset spanning the 2000-2010 period was constructed. The results confirm the expected positive impact of credit supply on average firm size. Furthermore, the study expands on common knowledge by testing the sensitivity of firm size to internal funding and the differential financing behavior of the primary and the manufacturing sector. The results do not seem to be driven by endogeneity bias.
    JEL: D22 D23 G21 G32
    Date: 2013–03
  5. By: KYZYMA Iryna
    Abstract: Using data from the German Socio-Economic Panel, this study explores how the duration of poverty and its determinants evolved in Germany between the early 1990s and the late 2000s. Shifts in the duration of poverty over time are captured with the application of a rolling window framework which allows us to identify when exactly a change occurred and to link it to trends in general macro-economic conditions and social policies. Joint modeling of poverty and non-poverty spells, controlling for unobserved heterogeneity, is applied within each window in order to uncover how the poverty experiences of individuals with different socio-economic characteristics have evolved over time. The results indicate that poverty has become more persistent and recurrent in Germany since the beginning of the 1990s. While those living in East Germany and in households with an EU head partially improved their situation over time, individuals over 55 years old, households with a disabled or uneducated head as well as single parent households have become more prone to poverty.
    Keywords: poverty duration; multiple spells; temporal changes; SOEP
    JEL: C41 D31 I32
    Date: 2013–04
  6. By: Albert Bravo-Biosca; Chiara Criscuolo; Carlo Menon
    Abstract: Differences in the dynamisms of economies are persistent. Notwithstanding the growing body of evidence documenting these large cross-country differences, our understanding of what drives them is still rather limited. This paper seeks to help close this gap. Using unique data for ten countries the analysis sheds light on the factors that shape the distribution of firm growth and on what role policies play in driving cross-country differences. The paper provides new evidence on the link of labour market regulation, bankruptcy legislation, financial market development and R&D support policies with growth dynamics. The study goes beyond looking at differences in average growth rates as it analyses changes in the whole distribution of firms.
    Date: 2013–04–04
  7. By: Alessandra Proto; Simone Tani; Joerg Bühnemann; Olaf Gaus; Mathias Raith
    Abstract: New and small firms can be important engines of job creation and local development when they identify and exploit entrepreneurial opportunities. We live in an economy more and more characterised by open innovation methods, where new companies and SMEs are benefitting from innovations, technological and non technological available on the market or from other companies and organisations part of their networks. Knowledge networks, understood as a three-component construction of (i) knowledge generation, (ii) knowledge transfer, and (iii) knowledge application, can play a crucial role in boosting companies performance. As many OECD researches shows, there is often a major networking gap, however, between knowledge sources in universities and research organisations and industry exploitation in new spin-off enterprises and SMEs. The analysis of the actors of the knowledge networks and the way they behave and interact with other component inside and outside the networks is a fundamental support to local policy making in entrepreneurship and innovation. <p>The OECD LEED Programme in cooperation with the University of Trento has prepared this paper to analyse in deep the behaviour of knowledge networks in two specific local contexts: the Autonomous Province of Trento in Italy and the Magdeburg Province in Germany. <p>The aim of this research project is to analyse the relevance of knowledge networks to entrepreneurship and the growth of young and small firms, the role of the different components and their interplay for network effectiveness, impeding and favouring factors, and the role of public policy.
    Date: 2012–01–31
  8. By: Smith, Sandra Susan
    Abstract: If jobholders are more motivated to help jobseekers to whom they are strongly tied rather than those to whom they are weakly tied, why do jobholders so often help acquaintances and strangers instead of kin and friends? The strength-of-weak-ties theory holds that weak ties are more likely to be conduits for information and influence that best leads to jobs. Recent research, however, calls into question the theory’s key assumption that this is because strongties cannot act as bridges (they can). Drawing from in-depth interviews with 146 blue- and white-collar workers at a large public sector employer, in this paper I offer an alternative explanation for why weak ties matter, one rooted in cognitive and affective processes: Jobholders often know too much about their close associates’ flaws and so assess the risks of making a bad match as high. They also worry more about the implications of close associates’ failures for their own reputations.
    Keywords: Sociology, Job Seekers, Strength of Weak Ties
    Date: 2012–07–01
  9. By: Peter Claeys (Faculty of Economics, University of Barcelona); Luis Costa (Instituto Superior de Economia e Gestão (ISEG))
    Abstract: -
    Keywords: JEL classification:
    Date: 2012–09

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