nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2007‒10‒13
six papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Mergers & Acquisitions and Innovation Performance in the Telecommunications Equipment Industry By Tseveen Gantumur; Andreas Stephan
  2. GM Cotton in China: Innovation integration and seed market disintegration By Michel Fok; Naiyin Xu
  3. Vertical integration and product innovation By Arijit Mukherjee2; Piercarlo Zanchettin
  4. Founding Conditions and the Survival of New Firms By P.A. Geroski (deceased); José Mata; Pedro Portugal
  5. Nascent Entrepreneurs, Innovation and Financing Constraints By David B. Audretsch; Werner Bönte; Prashanth Mahagaonkar
  6. Innovation, Ownership and Profitability By James H. Love; Stephen Roper; Jun Du

  1. By: Tseveen Gantumur; Andreas Stephan
    Abstract: The telecommunications in the 1990s witnessed an enormous worldwide round of Mergers & Acquisitions (M&A). This paper examines the innovation determinants of M&A activity and the consequences of M&A transactions on the technological potential and the innovation performance. We examine the telecommunications equipment industry over the period 1988-2002 using a newly constructed data set with firm-level data describing M&A and innovation activity as well as financial characteristics. Based on a matching propensity score procedure, the study provides evidence that M&A realize significantly positive changes to the firm's post-merger innovation performance.
    Keywords: Mergers & Acquisitions, Innovation Performance, Telecommunications Equipment Industry
    JEL: L63 O30 L10
    Date: 2007
  2. By: Michel Fok (UPR10 - Systèmes cotonniers en petits paysannats - [CIRAD]); Naiyin Xu (RIIC - Research Institute of Industrial Crops - [Jiangsu Academy of Agricultural Sciences])
    Abstract: L'idée prévaut que ce sont les avantages spécifiques du coton-Bt qui ont permis la diffusion réussie du coton génétiquement modifié en Chine. L'efficience du coton-Bt varie cependant entre les régions de production. Dans la Province du Jiangsu, le long de la Vallée du Yangse, il n'y a pas vraiment gain de rendement, la réduction du contrôle chimique des ravageurs est limitée et globalement, il n'y a d'amélioration de la rentabilité liée spécifiquement à l'utilisation du coton-Bt.<br />L'utilisation du coton-Bt est pourtant quasi généralisée en Chine. Une approche plus globale, au-delà de la focalisation exclusive sur les effets spécifiques du coton-Bt, permet de comprendre ce paradoxe apparent. Dans la Province du Jiangsu, la diffusion du coton-Bt a bénéficié de son intégration dans les variétés hybrides qui sont parfaitement adaptées à la technique de production par transplantation. Le cas chinois indique que l'évaluation de l'utilisation du coton-By dans d'autres pays devrait considérer la mesure dans laquelle cette utilisation est compatible (ou non) avec les techniques existantes de production.<br />En Chine, la commercialisation du coton-Bt a entraîné la désintégration du marché des semences jusqu'alors dirigé par l'Etat. Les paysans ont d'abord bénéficié de la modernisation du marché des semences mais ils souffrent maintenant de la désintégration excessive par le secteur privé. Un ajustement de la régulation par l'Etat est nécessaire pour assurer la réussite de la restructuration du marché des semences.
    Keywords: coton; biotechnologies; Chine; industrie semencière; concurrence; stratégies; marketing
    Date: 2007–07–22
  3. By: Arijit Mukherjee2; Piercarlo Zanchettin
    Abstract: We study vertical integration and product innovation (in the form of horizontal product differentiation) as interdependent strategic choices of vertically related firms. We consider product innovation in the downstream market as a strategic decision of innovative firms facing a threat of vertical integration and market foreclosure by an upstream monopolist. Our main finding is that, although product differentiation allows to soften product market competition and to avoid market foreclosure, the downstream market may prefer less product differentiation to deter vertical integration. Therefore, less product innovation can be a possible social cost of a lenient antitrust policy.
    Keywords: Vertical Integration; product innovation; market foreclosure; duopoly
    JEL: D43 L13
    Date: 2007–10
  4. By: P.A. Geroski (deceased); José Mata; Pedro Portugal
    Abstract: We analyze the effects of founding conditions on the survival of new firms. We allow the effects of founding conditions to be transitory and estimate how long such effects last. Our findings indicate that founding effects are important determinants of exit rates. Moreover, in most cases, their effect on survival seems to persist without much of an attenuation for several years after the founding of the firm.
    Keywords: Survival of firms; founding effects
    JEL: L25
    Date: 2007
  5. By: David B. Audretsch; Werner Bönte; Prashanth Mahagaonkar
    Abstract: Innovative nascent entrepreneurs face the problem of obtaining finance, mainly due to information problems. We use new data on capital seeking start-ups allowing distinction between planning stage and early stage. Being innovative does not affect the probability of having external finance in the planning stage but has a positive effect in the early stage. Early start-ups with patents have a significantly higher probability of having equity whereas debt is not affected. Patents, coupled with prototypes have a higher probability for external finance which may be due to reduced uncertainties and learning. The most important determinant of debt is house ownership.
    Keywords: Innovation; Entrepreneurship; Finance; Information Asymmetries
    JEL: M13 G32 O32 O47
    Date: 2007
  6. By: James H. Love; Stephen Roper; Jun Du
    Abstract: This paper considers the relationship between innovation, ownership and profitability for a panel of manufacturing plants in Ireland and Northern Ireland. Previous literature suggests that innovators are persistently more profitable than non-innovators, but little is known about how this link is moderated by external versus domestic ownership. We consider the link between innovation and profits separately for innovators and non-innovators, and for indigenous innovators and non-innovators and externally-owned plants. We also consider the determinants of innovation over the distribution of plant-level profitability, and find that the determinants of profitability – including innovation and external ownership – vary over the distribution from low to high profitability plants. We find support for the view that innovators and non-innovators have different profitability determinants, and that the profitability of externally-owned plants depends on very different factors to that of indigenously-owned enterprises.
    Keywords: Innovation; Ownership; Profitability; Ireland; Northern Ireland
    JEL: O32 F14 L60
    Date: 2007

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