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on Economics of Strategic Management |
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Issue of 2024‒04‒01
five papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Tiago Cavalcanti; Kamiar Mohaddes; Hongyu Nian; Haitao Yin |
| Keywords: | Pollution, human capital, knowledge, innovation, China |
| JEL: | O15 O30 O44 Q51 Q56 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2301&r=cse |
| By: | Perez-Alaniz, Mauricio; Lenihan, Helena; Doran, Justin; Rammer, Christian |
| Abstract: | Public financial support for firm-level Research and Innovation (R&I) can generate important socio-economic returns. This is especially true if firms use this support to develop radical innovation, defined as new-to-market goods and services. However, radical innovation is risky, and prone to failure. Therefore, subsidising radical innovation can also generate sub-optimal socio-economic returns (i.e. policy failure). Understanding how public funding for R&I can be allocated in a way that encourages radical innovation, while avoiding policy failure, is crucial. Our paper investigates, for thefirst time, whether public fundingfor R&I generates more radical innovation in firms seeking to innovate by engaging in knowledge areas that are new to them, versus firms seeking to exploit their existing knowledge base. We make this distinction by using a novel approach, based on the knowledge challenges that firms face when innovating. By merging firm-level survey data with administrative data on public funding for R&I in Ireland, we find that subsidising firms seeking to engage in new knowledge areas, can result in more radical innovation and turnover from radical innovation, compared to firms seeking to exploit their existing knowledge base. These are critical insights from theoretical and policymaking perspectives, regarding the allocation of public funding for R&I. |
| Keywords: | radical innovation, public financial support, knowledge base, policy failure, additionality |
| JEL: | D83 O31 O32 O33 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283615&r=cse |
| By: | Füner, Lena; Berger, Marius; Bersch, Johannes; Hottenrott, Hanna |
| Abstract: | New business formation is a key driver of regional transformation and development. While we know that a region's attractiveness for new businesses depends on its resources, infrastructure, and human capital, we know little about the role of local business networks in promoting or impeding the birth of new firms. We construct local business networks connecting more than 350 million nodes consisting of managers, owners and firms using administrative data on all German businesses from 2002 to 2020. Differentiating between serial and de-novo entrepreneurs, we show a positive but decreasing relation between a region's connectedness and firm entry of serial entrepreneurs. Networks are, moreover, positively linked to firm survival. Relating our findings to a measure of ownership concentration, we show that networks provide additional explanations for regional variation in new business formations. These patterns are robust to synthetic instrumental variable estimations |
| Keywords: | New Firm Formation, Business Networks, Serial Entrepreneurship, RegionalDynamics, Ownership Concentration |
| JEL: | L14 L26 M13 O31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283589&r=cse |
| By: | Miguel Antón; Florian Ederer; Mireia Giné; Martin C. Schmalz |
| Abstract: | Firms have inefficiently low incentives to innovate when other firms benefit from their inventions and the innovating firm therefore does not capture the full surplus of its innovations. We show that common ownership of firms mitigates this impediment to corporate innovation. By contrast, without technological spillovers, innovation has the effect of stealing market share from rivals; in that case, more common ownership reduces innovation. Empirically, the association between common ownership and innovation inputs and outputs decreases with product market proximity and increases with technology proximity. The sign and magnitude of the overall relationship between common ownership and corporate innovation thus varies considerably across the universe of firms depending on their relative proximity in technology and product market space. These results persist if we use only variation from BlackRock's acquisition of BGI. Our results inform the debate about the welfare effects of increasing common ownership among U.S. corporations. |
| JEL: | G30 L20 L40 O31 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32192&r=cse |
| By: | Niclas Poitiers; Kamil Sekut |
| Abstract: | Our main message is that policies restricting knowledge flows should be limited to narrowly defined areas of strategic importance. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bre:wpaper:node_9781&r=cse |