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on Technology and Industrial Dynamics |
| By: | Nicholas Bloom; Raffaella Sadun; Renata Lemos; Daniela Scur; John Van Reenen |
| Abstract: | Over the last decade the World Management Survey (WMS) has collected firm-level management practices data across multiple sectors and countries. We developed the survey to try to explain the large and persistent TFP differences across firms and countries. This review paper discusses what has been learned empirically and theoretically from the WMS and other recent work on management practices. Our preliminary results suggest that about a quarter of cross-country and within-country TFP gaps can be accounted for by management practices. Management seems to matter both qualitatively and quantitatively. Competition, governance, human capital and informational frictions help account for the variation in management. We make some suggestions for both policy and future research. |
| Keywords: | management; organization; productivity |
| JEL: | J1 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:58009&r=tid |
| By: | Philippe Aghion; John Van Reenen; Nicholas Bloom |
| Abstract: | We survey the theoretical and empirical literature on decentralization within firms. We first discuss how the concept of incomplete contracts shapes our views about the organization of decision-making within firms. We then overview the empirical evidence on the determinants of decentralization and on the effects of decentralization on firm performance. A number of factors highlighted in the theory are shown to be important in accounting for delegation, such as heterogeneity and congruence of preferences as proxied by trust. Empirically, competition, human capital and IT also appear to foster decentralization. There are substantial gaps between theoretical and empirical work and we suggest avenues for future research in bridging this gap. |
| Keywords: | uncertainty |
| JEL: | J1 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:57987&r=tid |
| By: | Mery Patricia Tamayo; Elena Huergo |
| Abstract: | This paper analyzes the determinants of R&D offshoring of Spanish firms using information from the Panel of Technological Innovation. We find that being an exporter, continuous R&D engagement, applying for patents, being a subsidiary, and firm size are factors that positively affect the decision to offshore R&D. In addition, we obtain that the factors that influence this decision for firms that belong to a business group differ depending on whether the firm purchases R&D services within the group or through the market: the lack of information is an obstacle relatively less important for internal R&D offshoring than for external R&D offshoring, while a higher degree of importance assigned to institutional and market sources of information for innovation as compared to internal sources increases the probability of R&D offshoring through the market. |
| Keywords: | R&D offshoring; firms’ strategies; obstacles to innovation; independent firms; sub?sidiaries |
| JEL: | L24 O32 |
| Date: | 2014–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:col:000122:012452&r=tid |
| By: | Nick Bloom; Mark Schankerman; John Van Reenen |
| Abstract: | The impact of R&D on growth through spillovers has been a major topic of economic research over the last thirty years. A central problem in the literature is that firm performance is affected by two countervailing "spillovers" : a positive effect from technology (knowledge) spillovers and a negative business stealing effects from product market rivals. We develop a general framework incorporating these two types of spillovers and implement this model using measures of a firm's position in technology space and productmarket space. Using panel data on U.S. firms, we show that technology spillovers quantitatively dominate, so that the gross social returns to R&D are at least twice as high as the private returns. We identify the causal effect of R&D spillovers by using changes in federal and state tax incentives for R&D. We also find that smaller firms generate lower social returns to R&D because they operate more in technological niches. Finally, we detail the desirable properties of an ideal spillover measure and how existing approaches, including our new Mahalanobis measure, compare to these criteria. |
| Keywords: | market value; patents; productivity; R&D; spillovers |
| JEL: | O31 O33 O32 L1 F23 |
| Date: | 2013–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:46852&r=tid |
| By: | Brown, James R. (Department of Finance, Iowa State University); Martinsson, Gustav (Institute for Financial Research (SIFR), Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology); Petersen, Bruce C. (Department of Economics, Washington University in St. Louis) |
| Abstract: | We study a broad sample of firms across 32 countries and find that strong shareholder protections and better access to stock market financing lead to substantially higher long-run rates of R&D investment, particularly in small firms, but are unimportant for fixed capital investment. Credit market development has a modest impact on fixed investment but no impact on R&D. These findings connect law and stock markets with innovative activities key to economic growth, and show that legal rules and financial developments affecting the availability of external equity financing are particularly important for risky, intangible investments not easily financed with debt. |
| Keywords: | Financial development; Investor protection; Stock markets; R&D; Innovation; Economic growth |
| JEL: | G32 K20 O16 O30 |
| Date: | 2015–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0393&r=tid |