nep-sbm New Economics Papers
on Small Business Management
Issue of 2021‒10‒04
23 papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Collaborative Innovation Blocs and Mission-Oriented Innovation Policy: An Ecosystem Perspective By Elert, Niklas; Henrekson, Magnus
  2. The Impact of Venture Capital Expenditures on Innovation in Europe By Leogrande, Angelo; Costantiello, Alberto; Laureti, Lucio
  3. Information leakage, imitation, and the patent system By Czarnitzki, Dirk; van Criekingen, Kristof
  4. Combining knowledge bases for system innovation in regions: Insights from an East German case study By Friedrich, Christoph; Feser, Daniel
  5. Does green public procurement trigger environmental innovations? By Krieger, Bastian; Zipperer, Vera
  6. The struggle of small firms to retain high-skill workers: Job duration and importance of knowledge intensity By Hugo Castro-Silva; Francisco Lima
  7. The consequences of intrapreneurship in exporting firms: a structural-model approach By Gonçalo Nuno Rodrigues Brás; Miguel Torres Preto
  8. Inward FDI, outward FDI, and firm-level performance in India By Koray Aktas; Valeria Gattai
  9. Exploring the sources of loan default clustering using survival analysis with frailty By Enrique Bátiz-Zuk Enrique; Abdulkadir Mohamed; Fátima Sánchez-Cajal
  10. FDI and Onshore Employment Dynamics : Evidence from German Firms with Affiliates in the Czech Republic By Körner, Konstantin; Moritz, Michael; Schäffler, Johannes
  11. The Role of Competition in Finland’s Weak Development of R&D Investments in the 2010s By Koski, Heli
  12. The tradeoffs of brokerage in innovation networks: a study of Latin American cities By Carlos Bianchi; Pablo Galaso; Sergio Palomeque
  13. Informality, innovation, and knowledge co-creation: characterising collaborative creativity and adaptation in rural development By Tasker, Alex
  14. Financing and advising early stage startups: The effect of angel investor subsidies By Berger, Marius; Gottschalk, Sandra
  15. Social Innovation and Entrepreneurship: Evolution and Principal Approaches. By Ilham Sayarh; Karim Bennis
  16. Big Loans to Small Businesses: Predicting Winners and Losers in an Entrepreneurial Lending Experiment By Gharad T. Bryan; Dean Karlan; Adam Osman
  17. Measuring the Impact of Urban Innovation Districts By Fatime Barbara Hegyi; Manran Zhu; Milan Janosov
  18. Are online platforms killing the offline star? Platform diffusion and the productivity of traditional firms By Hélia Costa; Giuseppe Nicoletti; Mauro Pisu; Christina von Rueden
  19. Open Innovation’s “Multiunit Back-End Problem”: How Corporations Can Overcome Business Unit Rivalry By Sea Matilda Bez; Sea Bez; Frédéric Le Roy; Johanna Gast; Thuy Seran; Sea Matilda Bez
  20. Exploring the Antibiotics Innovation System and R&D policies in China: Mission Oriented Innovation? By Yuhan Bao; Adrian Ely; Michael M. Hopkins; Xianzhe Li; Yangmu Huang
  21. The role of powerful incumbent firms: shaping regional industrial path development through change and maintenance agency By Simon Baumgartinger-Seiringer
  22. Academic Freedom, Institutions and Productivity By Berggren, Niclas; Bjørnskov, Christian
  23. Regional technological capabilities and Green opportunities in Europe By Nicolo Barbieri; Davide Consoli; Lorenzo Napolitano; Francois Perruchas; Emanuele Pugliese; Angelica Sbardella

  1. By: Elert, Niklas (Research Institute of Industrial Economics (IFN)); Henrekson, Magnus (Research Institute of Industrial Economics (IFN))
    Abstract: Among contemporary economists, Mariana Mazzucato stands out for her emphasis on the importance of innovation to solve pressing challenges and achieve a greater quality of life. However, the type of mission-oriented innovation policies she promotes usually rely on an overly mechanical view of innovation and economic growth. We employ an ecosystem perspective to demonstrate that innovative entrepreneurship takes place in a collaborative innovation bloc consisting of a myriad of nodes. Entrepreneurs, inventors, early- and later-stage financiers, key personnel, and customers are all actors whose skills and abilities are necessary to realize an entrepreneurial project. When mission-oriented policies play a large role in an industry’s production or financing, connections between actors in the innovation bloc risk being severed, severely curtailing the scope for actors to play their requisite roles. Thus, there is a risk that such policies do more harm than good for innovation and economic growth.
    Keywords: Entrepreneurial ecosystems; Collaboration; Entrepreneurship policy; Institutions; Innovation policy
    JEL: D20 G32 L23 L26 O33 O38
    Date: 2021–09–22
  2. By: Leogrande, Angelo; Costantiello, Alberto; Laureti, Lucio
    Abstract: We investigate the relationship between “Venture Capital Expenditures” and innovation in Europe. Data are collected from the European Innovation Scoreboard for 36 countries in the period 2010-2019. We perform Panel Data with Fixed Effects, Panel Data with Random Effects, Pooled OLS, WLS, Dynamic Panel. Results show that the level of Venture Capitalist Expenditure is positively associated to “Foreign Doctorate Students” and “Innovation Index” and negatively related to “Government Procurement of Advanced Technology Products”, “Innovators”, “Medium and High-Tech Products Exports”, “Public-Private Co-Publications”. In adjunct, cluster analysis is realized with the algorithm k-Means and the Silhouette coefficient, and we found the presence of four different clusters for the level of “Venture Capital Expenditures”. Finally, we propose a confrontation among 8 different algorithms of machine learning to predict the level of “Venture Capital Expenditures” and we find that the linear regression generates the best results in terms of minimization of MAE, MSE, RMSE.
    Keywords: Innovation and Invention: Processes and Incentives, Management of Technological Innovation and R&D, Technological Change: Choices and Consequences, Intellectual Property and Intellectual Capital, Open Innovation, Government Policy.
    JEL: O30 O31 O32 O33 O34 O38 O39
    Date: 2021–09–25
  3. By: Czarnitzki, Dirk; van Criekingen, Kristof
    Abstract: From a firm's perspective two competing forces are driving the decision to invest in innovation. On the one hand, innovative performance is an important driver of profitability and growth. On the other hand, investments in innovation suffer from negative externalities, i.e. spillovers to other firms, and hence imitation could be induced. To preempt imitation firms may protect their inventions by means of intellectual property rights, such as patents. By taking out a patent, however, a firm also conveys information about the functioning of the invention to competitors. In this empirical paper, we highlight the trade-off of patenting by setting up a recursive system of equations on knowledge leakage and imitation that, among other factors, may be partly determined by firms' patenting activity. Thereby we contribute to the debate on the functioning of the contemporary patent system. We find that patenting firms are being less confronted with imitation. The effect of patents on the dissemination of R&D findings is, however, insignificant. Therefore, we conclude that patent disclosures do not significantly harm the appropriability conditions for inventions, but help to protect, at least partly, against imitation, as it has been originally envisaged by policy.
    Keywords: Innovation,R&D,Imitation,Dissemination,Patents
    JEL: O31 O33 O34 O38
    Date: 2021
  4. By: Friedrich, Christoph; Feser, Daniel
    Abstract: A growing number of economic geography scholars have discussed the spatial dimensions of sustainability innovation in socio-technical systems to overcome societal, economic, and ecological problems. This research usually focuses on businesses in the knowledge economy and success factors. However, sustainability innovation involves the collaboration of upstreaming process stages and open innovation processes with a broad range of different actors. Innovation intermediaries, such as universities and research institutes, are needed to support and accelerate the transfer of knowledge. Nevertheless, little is known about the influence of the cognitive and institutional diversity of actors on the configuration of knowledge bases required for sustainability innovation. This article presents insights from 16 semi-structured expert interviews conducted in a regional innovation system (RIS) in East Germany. We investigate four innovation intermediaries in the region of Eberswalde in cooperation with the Eberswalde University for Sustainable Development. The analytical framework links the concept of differentiated knowledge bases to sustainability transitions and sustainability-oriented knowledge transfer. Our results show that, first, in the Eberswalde region, the relevant actors involved in regional knowledge transfer predominantly focus on synthetic knowledge bases, such as experience-based knowledge of local area settings. Second, symbolic knowledge bases are crucial and often prerequisites for intermediary organizations to recombine knowledge bases and support the capability to innovate in regional knowledge transfer. Symbolic knowledge contains, in particular, the ability to translate scientific findings to a language that can be understood by the various actors in knowledge transfer. Third, organizational innovation complements social innovation to support innovation on a systemic level and foster change processes.
    Keywords: Knowledge bases,system innovation,knowledge transfer,innovation intermediation,sustainability transition
    JEL: D02 D80 O12 P48 Q56 R11
    Date: 2021
  5. By: Krieger, Bastian; Zipperer, Vera
    Abstract: Green public procurement has gained high political priority and is argued to be an effective demand-side policy to trigger environmental innovations. Its implementation usually takes the form of environmental award selection criteria in public procurement tenders. However, there is no direct or broad empirical evidence on its innovation impact. There are even doubts about its effectiveness as an innovation policy tool, as it does not require innovations as part of its contracts and might only influence the selection of awardees in public procurement tenders. We construct a novel firm-level dataset to investigate the effect of winning green public procurement awards on firms' introduction of environmental innovations. Employing cross-sectional difference-in-differences methods, we find that winning green public procurement awards increases a firm's probability of introducing more environmentally friendly products on average by 20 percentage points. We show that this effect is driven by small and medium-sized firms and is not significant for larger firms. There is no significant effect on the introduction of more environmentally friendly processes.
    Keywords: Green Public Procurement,Environmental Innovation,Demand Pull
    JEL: H57 O38 Q55 Q58
    Date: 2021
  6. By: Hugo Castro-Silva (Universidade de Lisboa); Francisco Lima (Universidade de Lisboa)
    Abstract: In the knowledge economy, skilled workers play an important role in innovation and economic growth. However, small firms may not be able to keep these workers. We study how the knowledge-skill complementarity relates to job duration in small and large firms, using a Portuguese linked employer-employee data set. We select workers displaced by firm closure and estimate a discrete-time hazard model with unobserved heterogeneity on the subsequent job relationship. To account for the initial sorting of displaced workers to firms, we introduce weights in the model according to the individual propensity of employment in a small firm. Our results show a lower premium on skills in terms of job duration for small firms. Furthermore, we find evidence of a strong knowledge-skill complementarity in large firms, where the accumulation of firm-specific human capital also plays a more important role in determining the hazard of job separation. For small firms, the complementarity does not translate into longer job duration, even for those with pay policies above the market. Overall, small knowledge-intensive firms struggle to retain high skill workers and find it harder to leverage the knowledge-skill complementarity.
    Keywords: knowledge intensity, technology, firm size, small firms, job duration, skills
    JEL: A1
    Date: 2021
  7. By: Gonçalo Nuno Rodrigues Brás (Universidade de Lisboa , IN+, LARSyS, Instituto Superior Técnico; Univ Coimbra, Center for Business and Economics Research, CeBER, Faculty of Economics); Miguel Torres Preto (Universidade de Lisboa , IN+, LARSyS, Instituto Superior Técnico)
    Abstract: A number of recent scientific articles have studied the relationship between entrepreneurial orientation (EO) and firm’s performance, though not all came in the scope of international entrepreneurship (IE). Researchers often test mediating or moderating variables that help explain this relationship. The extensive academic findings lead us to a wide range of mediating/moderating variables and to a lack of consensus in this domain. This study is in scope of IE literature, and it aims to provide new and robust insights supported by consistent empirical findings and to adopt this structural-model approach as a reference in the absence of academic consensus. Specifically, the paper examines the contribution of intrapreneurship to both the firm’s international orientation (IO) and performance in light of the IE guidelines. To this end, we examine how the EO of Portuguese exporters influences corporate performance taking into account the meditating effect of their IO on the EO – performance association through structural equation modelling. Results confirm that IO positively and significantly mediates the relationship between EO and corporate performance. EO and IO were also found to have a direct and positive effect on corporate performance. These findings confirm the relevance of intrapreneurship and international commitment to a better organisational performance and gives us empirical support to conclude that effort taken in these domains could enhance the exporters’ performance. Moreover, this study makes an empirical and theoretical contribution to the IE topic and therefore aims to be a reference to the literature in this domain.
    Keywords: Intrapreneurship, Entrepreneurial orientation, International orientation, Performance, Exporting firms.
    JEL: L26 L25
    Date: 2021–06
  8. By: Koray Aktas; Valeria Gattai
    Abstract: In recent years, India has emerged as a leading foreign direct investment (FDI) player, featuring prominently as both an origin and a destination of FDI. This study takes a firm-level perspective to empirically address the relationship between inward FDI, outward FDI, and firm-level performance in India. Using the Orbis database, our estimates reveal that Indian firms that have at least one foreign shareholder and/or one foreign subsidiary outperform those that do not. Controlling for endogeneity through propensity score matching and difference-in-difference techniques, we show that the deeper the FDI involvement, the larger the performance differentials. Moreover, compared with investing abroad, receiving foreign capital can contribute more toward enhancing the performance of Indian firms.
    Keywords: India, Foreign Direct Investment (FDI), inward, outward, firm-level performance
    JEL: F23 L25 O53
    Date: 2021–09
  9. By: Enrique Bátiz-Zuk Enrique; Abdulkadir Mohamed; Fátima Sánchez-Cajal
    Abstract: This paper investigates whether three microeconomic loan characteristics are sources of loan default clustering in the Mexican banking sector by employing survival analysis with frailty. Using a large sample of bank loan level data granted to micro, small and medium sized firms from January 2010 to 2018, we test whether classifying loans by the bank's systemic importance, industry or at individual firm level enhances the predictions of loans defaults. Our results show that loans granted by Domestic Systemically Important Banks contribute to the default clustering in micro and small firm loans. This is due to aggregate default rate levels and clusters that are large for these firms loans compared with loans provided to medium-sized firms. These findings have important implications for bank's expected loss management related to the correlated loan default risk.
    JEL: C53 C41 C25 G38
    Date: 2021–09
  10. By: Körner, Konstantin; Moritz, Michael (Institute for Employment Research (IAB), Nuremberg, Germany); Schäffler, Johannes
    Abstract: "In this paper, we revisit questions about the onshore employment effects of firms that conduct foreign direct investment (FDI) in countries with substantially lower average wages. Our results derive from the use of rich administrative records on the universe of employees in German multinational enterprises (MNEs) that were active in the Czech Republic in 2010. Compared with former studies, the unique dataset in this study includes a much higher fraction of small and medium-sized firms and leads to strikingly different results for service MNEs. Applying coarsened exact matching for firms and an event-study design, we show that the domestic employment growth of MNEs decreases relative to that of non-MNEs and that the affected workers are those with low or medium educational attainment in the manufacturing sector and with medium or high educational attainment in the service sector. Regarding workers’ tasks, our results do not show that FDI affects routine jobs beyond a worker’s skill level." (Author's abstract, IAB-Doku) ((en))
    Keywords: Bundesrepublik Deutschland ; Tschechische Republik ; Ausland ; Auslandsinvestitionen ; Auswirkungen ; Beschäftigungseffekte ; Dienstleistungsbereich ; Inländer ; multinationale Unternehmen ; Niedriglohnland ; outsourcing ; qualifikationsspezifische Faktoren ; Arbeitskräftenachfrage ; verarbeitendes Gewerbe ; 1990-2009
    JEL: F23 J23 F66
    Date: 2021–05–10
  11. By: Koski, Heli
    Abstract: Abstract The report’s main objective is to assess the role that competition has played in the weak development of R&D investments in the Finnish corporate sector in the 2010s. The data suggest that the degree of competition relates to differences in Finland’s industry-level R&D-intensity developments in the 2010s. Industries with declining R&D intensity were mainly concentrated, and the degree of competition in their markets weakened. In competitive industries, R&D intensity did not decrease, or it even increased. In these industries, profitability decreased mainly due to the decline in the profitability of continuing companies, but the impact of the structural change on profitability was positive. These findings reflect that competition was getting fiercer. Thus, the intensified competition in the 2010s increased companies’ R&D investments or, at least, prevented them from shrinking in relation to the value-added produced. We further assessed the relationship between firms’ returns to R&D and found that a decline in the R&D intensity of the Finnish business sector in the 2010s was not directly related to the returns to R&D investments.
    Keywords: R&D investments, Competition, Innovation policy
    JEL: D22 L0 O3 O31
    Date: 2021–09–29
  12. By: Carlos Bianchi (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Pablo Galaso (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Sergio Palomeque (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: Brokers play a critical role in the evolution of innovation systems. However, accessing and diffusing knowledge into the system imply costs and requires capacities. Using patent data to analyze inter-city networks in Latin America, we revisit the debate on the benefits and costs of knowledge networks. We identify broker cities, differentiating between intra-regional and extra-regional connections, and we estimate the effects of brokerage on patenting outcomes between 2006 and 2017. Our findings reveal that cities holding a central position in the network show higher patenting activity; however, being broker, particularly bridging Latin America with extra-regional cities, negatively influences patenting outcomes.
    Keywords: inter-city networks, patents, brokerage, innovation systems, Latin America.
    JEL: O31 O54 P48
    Date: 2021–09
  13. By: Tasker, Alex
    Abstract: This article characterises informal knowledge creation and co-creation between development and pastoralist actors, drawing on qualitative data gathered during an in-depth case study in Northern Kenya. Using thematic analysis, this article identifies three intersecting narratives: knowledge and exchange, barriers and drivers, and risk and uncertainty. These concepts are interpreted using wider literature on knowledge dynamics and co-creation to evaluate the suitability of existing analytical frameworks for further research on pastoralist development. The study results highlight the value of cross-cultural informal knowledge co-creation for pastoralist development, and the need for more robust future research.
    Date: 2021–09–18
  14. By: Berger, Marius; Gottschalk, Sandra
    Abstract: In recent years governments around the world have introduced policies to stimulate investments in early stage entrepreneurial companies, in particular investments by Angel investors. In this paper we study whether introducing subsidies to Angel investors has effects on startups' access to financial and managerial resources provided by Angel investors. Using data for a representative sample of entrepreneurial companies in Germany, we analyze the effect of the introduction of a major subsidy program for Angel investors in Germany. Having data before and after the introduction of the program allows us to use a difference-in-differences framework to examine the effect of the program on eligible companies. Our findings indicate that subsidies for Angel investors both increase the chances to receive financing from Angel investors (+36-67%), as well as the amount of financing received (+70-82%). In terms of managerial resources, we find no effects that are significantly different from zero. This result is in contrast to theoretical predictions suggesting negative effects of investment subsidies on the level of managerial support that companies receive. Exploring the mechanisms behind our results, we find that the policy stimulated entry by inexperienced investors, but also increased syndicate sizes of Angel investors in entrepreneurial companies.
    Keywords: Entrepreneurship Policy,Angel Investors,Venture Capital,Syndication
    JEL: G28 G24 M13 O38
    Date: 2021
  15. By: Ilham Sayarh (FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès); Karim Bennis (FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès)
    Abstract: The expression "social innovation" has entered through the door of technological innovation in order to correct its imperfections. It is an effective solution to social needs neglected by public authorities. This article seeks to shed light on this concept, which can be considered as a lever to promote sustainable economic and social development, through a brief theoretical overview.
    Abstract: L'expression de « l'innovation sociale » est entrée par la porte la l'innovation technologique à fin de corriger ses imperfections. C'est une solution efficace à des besoins sociaux délaissé par les pouvoirs publics. Cet article cherche à mettre la lumière sur ce concept qui peut être considérer comme un levier pour promouvoir le développement économique et sociale durable, par un bref aperçu théorique.
    Keywords: government,technological innovation,development,social entrepreneurship,développement,pourvoirs publics,Innovation technologique,Innovation sociale,entrepreneuriat social
    Date: 2020–08–04
  16. By: Gharad T. Bryan; Dean Karlan; Adam Osman
    Abstract: We experimentally study the impact of substantially larger enterprise loans, in collaboration with an Egyptian lender. Larger loans generate small average impacts, but machine learning using psychometric data reveals dramatic heterogeneity. Top-performers (i.e., those with the highest predicted treatment effects) substantially increase profits, whereas profits for poor-performers drop. The magnitude of this difference implies that an individual lender’s credit allocation choices matter for aggregate income. Evidence on two fronts suggests large loans would be misallocated: top-performers are predicted by loan officers to have higher default rates; and, top-performers grow less than others when given small loans, implying that allocating larger loans based on prior performance is not efficient. Our results have important implications for credit expansion policy and our understanding of entrepreneurial talent: on the former, the use of psychometric data to identify top-performers suggests a pathway towards better allocation that revolves around entrepreneurial type more than firm type; on the latter, the reversal of fortune for poor-performers, who do well with small loans but not large, indicates a type of entrepreneur that we call a “go-getter” who performs well when constrained but poorly when not.
    JEL: D22 D24 L26 M21 O12 O16
    Date: 2021–09
  17. By: Fatime Barbara Hegyi (European Commission - JRC); Manran Zhu (Central European University); Milan Janosov (Datapolis)
    Abstract: Despite their significant impact on social and economic development, innovation districts are facing challenges due to inadequacy of policies in terms of horizontal and vertical coordination or due to the lack of integrative policy approach. Strategic and targeted policy support leads to the acceleration of the growth of innovation districts, impacting the development of cities in general. To reach the potential of innovation districts in benefiting their local communities and in enabling greater collaboration, in creating jobs, and in promoting regional competitiveness, it is important to facilitate the positive externalities created by innovation districts through targeted policies. Hence the publication proposes a generic and algorithmic methodology to identify and measure the success of innovation districts. To achieve this, different sets of large-scale geospatial data have been combined with well-established machine learning methods and in-depth statistical analysis. As a result, a quantitative methodology is presented that can support the policy-making process in the identification of urban areas with a high concentration of innovation activities and with high potential for growth. First, this methodology allows the identification of such areas. Second, an evaluation framework is proposed that captures the success of these areas based on their economic performance. Third, these results are combined with descriptive statistical features to understand the main differentiators between successful and unsuccessful areas. This exploratory research aims at providing a set of methods and findings that heavily build on recent advances on using large-scale datasets and data science to understand social problems, and in particular, the key driving indicators of deprivation and success of various entities, such as urban areas with high concentration of innovation activities.
    Keywords: innovation districts, cities, urban development, data science
    Date: 2021–09
  18. By: Hélia Costa; Giuseppe Nicoletti; Mauro Pisu; Christina von Rueden
    Abstract: Online platform use has grown remarkably in the last decade. Despite this, our understanding of its implications for economic outcomes is scarce and often limited to case studies and advanced countries. Using a newly built harmonised international dataset of online platforms and their use across 43 countries, covering the 2013-18 period and seven areas of activity, we contribute to filling this gap. Specifically, we investigate whether and under which market conditions platform uptake leads to changes in incumbent firms’ productivity. We find that platform use increases labour productivity growth in firms operating in the same sector, and that this takes place through increases in value added growth as opposed to decreases in employment. What is more, productivity gains are greater for small firms and firms in the middle of the productivity distribution, suggesting that online platforms can play an important role in levelling the playing field between SMEs and large companies and in narrowing productivity gaps among firms. Finally, productivity gains are stronger in more dynamic platform markets. Our findings offer insights on factors and policies that can be leveraged to encourage platform development in ways that are beneficial for the economy.
    Keywords: digitalisation, firm behaviour, online platforms, Productivity
    JEL: D22 D24 O33 O47
    Date: 2021–10–05
  19. By: Sea Matilda Bez (MRM - Montpellier Research in Management - UM - Université de Montpellier - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM1 - Université Montpellier 1 - UPVD - Université de Perpignan Via Domitia - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVM - Université Paul-Valéry - Montpellier 3, Labex Entreprendre - UM - Université de Montpellier); Sea Bez; Frédéric Le Roy; Johanna Gast; Thuy Seran; Sea Matilda Bez
    Abstract: This article examines the "multiunit back-end problem" of open innovation based on a case study of the Banque Populaire Caisse d'Epargne (BPCE) Group, a large French bank with two business units. The multiunit back-end problem occurs when internal business units who consider themselves rivals are asked to collaborate for the success of an open innovation initiative. BPCE failed several times to use external startups to accelerate its digital transformation due to rivalry between its internal business units. This article presents guidelines that firms with rival business units can use to align their front-end and back-end when working with startups to accelerate their digital transformation program.
    Keywords: multiunit back-end problem,rivalry between units,competitive advantage,backend and front-end of open innovation,digital innovation,open innovation,start-up program,multiunit organization,internal coopetition
    Date: 2021–02
  20. By: Yuhan Bao (School of Public Policy and Management, Tsinghua University. China); Adrian Ely (Science Policy Research Unit, University of Sussex Business School, Falmer, Brighton, UK); Michael M. Hopkins (Science Policy Research Unit, University of Sussex Business School, Falmer, Brighton, UK); Xianzhe Li (School of Public Health, Peking University, China); Yangmu Huang (School of Public Health, Peking University, China)
    Abstract: One possible response to the growing problem of Antimicrobial Resistance (AMR) in pathogenic infections is the development of new types of antibiotics. However, the pharmaceutical companies that have traditionally led such innovation face a lack of incentives at the present time due to high levels of market uncertainty and low expected returns. Mission oriented innovation with coordinated investment and market-shaping policies may offer an approach to accelerating antibiotic innovation. This paper aims to evaluate whether preCovid-19 Chinese policies concerning AMR can be seen as constituting a mission-oriented approach and whether these policies have influenced antibiotics innovation in China. It adopts a mixed method approach to deliver several insights. By using historical event analysis based on data collected from interviews, public and commercial databases as well as policy documents, the paper finds that China’s recent actions concerning AMR since 2008 comprise many elements of mission-oriented innovation policy. The National Action Plan to Contain AMR has provided a clear mission since 2016 to tackle the problem of AMR and provides the opportunity to coordinate and integrate these policies into a more coherent and evolving mission-oriented innovation approach. Analysis of relevant research grants and publications suggest that these policies (including the 2016 National Action Plan) have drawn the scientific community towards antibiotics research and provided more support to this area. Case studies following the development of new antibiotics are used to illustrate how the established elements of mission oriented innovation policy have or have not contributed to antibiotics innovation in China. Further research is required to more comprehensively analyse R&D investments, and to understand the effects of recent policies, especially after 2016.
    Keywords: Antimicrobial Resistance, mission-oriented innovation, National S&T major research project, market shaping policy
    Date: 2021–08
  21. By: Simon Baumgartinger-Seiringer
    Abstract: This article seeks to advance perspectives on powerful incumbent firms in (new) regional industrial path development. Drawing on recent insights from Transition Studies, it is argued that this – hitherto often neglected – actor group plays a crucial role in shaping the pace and direction of regional path development through agency oriented towards both change and maintenance. Building on systemic perspectives at the intersection of evolutionary economic geography and innovation studies, particular emphasis is placed on incumbent firms’ interventions to reconfigure or stabilize their surrounding regional innovation system to support their intentions. To this end, this article examines how incumbents exert their influence through various forms of power as means by which they promote or hinder regional industrial change. Empirically, the role of incumbent firms in a traditional automotive industry in Austria is investigated. It is shown how they leverage their power to propel the industry’s digitalization and suppress its decarbonization.
    Keywords: regional restructuring, path development, incumbents, agency, automotive industry, power
    JEL: O33 R11 R58
    Date: 2021
  22. By: Berggren, Niclas (Research Institute of Industrial Economics (IFN)); Bjørnskov, Christian (Aarhus University, Denmark)
    Abstract: The issue of what explains differences in the wealth of nations is one of the most classic in economics. We propose de facto academic freedom as an explanatory variable. The main idea is that such freedom allows for the development of new useful knowledge through research unconstrained by powerholders in business and politics. Using a new global panel-data set, encompassing up to 127 countries over the period 1960–2015, we show that there is indeed a positive relationship between de facto academic freedom and both labor and total-factor productivity growth. However, this effect only appears as long as the quality of the legal system is sufficiently high. We suggest that this is because such institutional quality offers protection that stimulates entrepreneurs to make use of the new knowledge produced in academia in innovative activities, which in turn benefits productivity growth.
    Keywords: Institutions; Academic freedom; Freedom of speech; Productivity; Growth
    JEL: F13 H25 O31 O38 O43
    Date: 2021–09–21
  23. By: Nicolo Barbieri; Davide Consoli; Lorenzo Napolitano; Francois Perruchas; Emanuele Pugliese; Angelica Sbardella
    Abstract: The goal of the paper is to elaborate an empirical overview of green technological development in European regions. This is a timely pursuit considering the ambitious commitments stipulated in the recent European Green Deal to achieve climate neutrality by 2050. Our analysis is organised in three steps. First, we map the geographical distribution of innovative activities in Europe and profile regions in terms of technological capabilities. Second, we elaborate a metric to identify regions' green innovation potential. Third, we check whether possessing comparative advantage in specific technological domains is associated with a region's capacity to develop green technologies.
    Keywords: Green Technology; European regions; Economic Fitness and Complexity.
    Date: 2021–09–22

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