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on Technology and Industrial Dynamics |
| By: | Grimpe, Christoph; Hussinger, Katrin |
| Abstract: | Firm acquisitions have been shown to serve as a way to gain access to international markets, technological assets, products or other valuable resources of the target firm. Given this heterogeneity of takeover motivations and the skewness of the distribution of the deal value we show whether and how the importance of different takeover motivations changes along the deal value distribution. Based on a comprehensive dataset of 652 European mergers and acquisitions in the period from 1997 to 2003, we use quantile regressions to decompose the deal value at different points of its distribution. Our results indicate that the importance of technological assets is indeed higher for smaller target firms. The findings support the view on small acquisition targets to complement the acquirer’s technology portfolio while larger acquisition targets tend to be used to gain access to international markets. |
| Keywords: | Firm acquisitions, technological assets, market access, quantile regression |
| JEL: | G34 L20 O34 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:7309&r=tid |
| By: | Alexander F. Tieman; Daniel C. L. Hardy |
| Abstract: | The volume of credit extended by a bank can be an informative signal of its abilities in loan selection and management. It is shown that, under asymmetric information, banks may therefore rationally lend more than they would otherwise in order to demonstrate their quality, thus negatively affecting financial system soundness. Small shifts in technology and uncertainty associated with new technology may lead to large jumps in equilibrium outcomes. Prudential measures and supervision are therefore warranted. |
| Date: | 2008–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:08/188&r=tid |
| By: | Anna Ilyina; Roberto Samaniego |
| Abstract: | The benefits from financial development are known to vary across industries. However, no systematic effort has been made to determine the technological characteristics that are shared by industries that tend to grow relatively faster in more financially developed countries. This paper explores a range of technological characteristics that might underpin differences across industries in the need or the ability to raise external funding. The main finding is that industries that grow faster in more financially developed countries tend to display greater R&D intensity or investment lumpiness, indicating that well-functioning financial markets direct resources towards industries that grow by performing R&D. |
| Keywords: | Technology transfer , External financing , Industrial investment , Investment policy , Development , Production growth , |
| Date: | 2008–07–22 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:08/182&r=tid |
| By: | TODO Yasuyuki |
| Abstract: | This study examines the effect of Japanese aid-funded technical assistance programs in the Indonesian foundry industry funded, applying difference-in-differences propensity score matching estimation to a unique firm-level dataset. The major finding is that the average effect of the aid programs on the change in the reject ratio is negative and significant, suggesting that these programs help local participant firms improve their technology. However, the effect of the programs is limited to their participants and does not spill over to non-participants. In addition, technical assistance programs provided by the local counterpart of aid after the completion of the aid programs do not seem to improve technology of participants on average. |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:08024&r=tid |
| By: | Hulsink, W.; Elfring, T.; Stam, W. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Social networks matter in the innovation processes of young and small firms, since ‘innovation does not exist in a vacuum (Van De Ven, 1986: 601).’ The contacts a firm has could both generate advantages for further innovation and growth, and disadvantages leading to inertia and stagnation. In the first case the existing social network or the new business contact provides opportunities furthering eventual success, in the second case, the existing network or the new business contacts turns out to have a constraining or even detrimental effect on performance. The search and use of social capital is driven by goal-specificity: it only includes those ties that help the actor in the attainment of particular goals. Most of the research so far has been deliberately or unwillingly one-sided, by for instance only looking at entrepreneurial firms in dynamic industries (or more specifically, start-ups in the high-tech industries). Or selective attention has been paid to either the internal sources or the external contacts to trigger innovation. And when a conclusive study has been conducted into investigating both the effect of internal and external ties on innovation, the sample often includes large and established companies and managers (instead of entrepreneurs and smaller firms, as what we are interested in). The main line of reasoning in this paper is as follows. In the first section we discuss the key network concepts, such as, social capital, relational embeddedness (strong and weak ties), structural embeddedness (i.e. structural holes). Section two deals with innovation and the central role of knowledge in the discovery and realisation of innovations. Social networks and its potential for knowledge brokering appear to be important and therefore the last section focuses on the relationship between particular network characteristics and innovation. |
| Keywords: | entrepreneurship;innovation;social capital;networking;small- and medium-sized firms;James Dyson |
| Date: | 2008–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765012873&r=tid |
| By: | Peter Thompson (Department of Economics, Florida International University) |
| Abstract: | This paper reviews the theoretical and empirical literature on learning by doing. Many of the distinctive theoretical implications of learning by doing have been derived under the assumption that the cost-quantity relationships observed in numerous empirical studies are largely the result of passive learning, and some further require that passive learning is unbounded. The empirical literature raises doubts about both assumptions. When observed cost-quantity relationships indicate sustained productivity growth, factors other than passive learning are generally at work. When passive learning is the dominant factor, productivity growth is invariably bounded. Thus, empirically-relevant theories incorporating learning by doing are hybrid models in which passive learning coexists with other sources of growth. But in such models, many of the distinctive implications of passive learning become unimportant. Moreover, passive learning is often an inessential component of long-run growth; to the contrary, too much learning can lead to stagnation. |
| Keywords: | Learning by doing, learning curves, passive learning, progress curves, cost-quantity relationship, knowledge spillovers, forgetting, endogenous growth, technological change. |
| JEL: | D24 D92 F12 L11 L16 O3 |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:0806&r=tid |
| By: | Peter Thompson (Department of Economics, Florida International University) |
| Abstract: | This article is a supporting document to my paper “Selection and Firm Survival. Evidence from the Shipbuilding Industry, 1825-1914”, Review of Economics and Statistics, 87(1):26-36, February 2005. The article provides a basic description of data sources, coverage and limitations, along with coding decisions made for the purposes of statistical analysis. The data are available at http://www.fiu.edu/~thompsop/data/shipbu ilding/shipbuilding.html. |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:0807&r=tid |