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on Economics of Strategic Management |
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Issue of 2024‒04‒08
five papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Runst, Petrik; Thomä, Jörg |
| Abstract: | The literature has established that young firms engaged in R&D exhibit a pronounced asymmetry in their economic performance, with high premia at the upper end of the conditional growth distribution. We argue that this binary view - i.e., R&D-oriented firms versus all others - is somewhat limited. In particular, non-R&D innovation activity should be treated as an important category in its own right, and that its sui generis mode of learning is reflected in a distinct growth pattern. We examine data from the German IAB/ZEW Start-up Panel. Our evidence suggests that young non-R&D innovators also exhibit asymmetric and improved economic performance relative to non-innovators, although less so than R&D firms. Our results also suggest that firms engaged in non-R&D innovation grow in a less risky and costly way than R&D innovators, and that a young firm's decision whether to engage in R&D for the purpose of innovation and growth can therefore usefully be understood as being driven by a specific risk-return trade-off. |
| Keywords: | Firm growth, R&D, non-R&D innovation, Modes of innovation |
| JEL: | D21 L11 L25 L26 O31 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:285360&r=cse |
| By: | Deborah Amorim Paixão (FACE/UFMG); Márcia Siqueira Rapini (CEDEPLAR/UFMG); Nathália Domingues Oliveira Barbosa (CTIT/UFMG e PPGTI/UFMG) |
| Abstract: | This paper aims to analyze the difficulties faced by academic spin-offs (SOAs) in their creation and development. To this end, a case study was carried out with SOAs from UFMG that have ceased their activities. The interviews conducted indicated that the main obstacles faced in setting up and consolidating the companies are similar to those reported in the literature, such as the need for funding, the importance of managerial knowledge (and not just technical knowledge), adapting to regulatory issues, and the founding professor's difficulty in reconciling his activities in the company with his academic obligations. University skills - such as support from the TTO Office in intellectual property and technology transfer activities, courses and business incubation - were highlighted as relevant to the entrepreneurial process. However, for all three companies, discontinuity or a reduction in demand for technology were determining factors for the closure or non-growth of the companies, showing that the growth and sustainability of SOAs go beyond institutional university initiatives or policies to promote ST&I. |
| Keywords: | academic spin-offs; technology transfer; innovation, UFMG. |
| JEL: | O31 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td668&r=cse |
| By: | Stan Metcalfe (Manchester Institute of Innovation Research, The University of Manchester) |
| Abstract: | This lecture explores the evolution of economics as a discipline during 1870-1920, focusing on the critical question of wealth creation from knowledge. It highlights the tension between understanding economic structures and their transformative growth, with special attention to Alfred Marshall and Joseph Schumpeter's insights on the evolving nature of capitalism and innovation's role in economic development. By contrasting their views — Schumpeter's emphasis on disruptive innovation and Marshall's on gradual change — the lecture underscores the significance of innovation and knowledge in driving economic transformation. This discussion aims to illuminate the complex relationship between knowledge, innovation, and economic dynamics, essential for understanding the workings of modern economies. |
| Keywords: | Economic Evolution, Innovation and Growth, Schumpeter and Marshall, Wealth from Knowledge, Historical Economics |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdj:smioir:2024-02&r=cse |
| By: | Rodepeter, Elisa; Gschnaidtner, Christoph; Hottenrott, Hanna |
| Abstract: | Big Data (BD) is becoming widely available and manageable. This raises the question of whether Big Data Analytics (BDA) in companies leads to better decision-making andhence performance. Based on a large, representative set of start-ups in Germany, we study the adoption of BDA among small and young ventures and analyze its economic effects using various short- and longer-term performance measures. We investigate the effect of adopting BDA on the new ventures' cost structure, sales, profits, survival rate, growth, and their probability of receiving Venture Capital (VC) financing while taking into account fac tors that drive BDA adoption. Our findings, however, show that using BDA does not lead to an immediate competitive advantage in terms of the classical short-term performance measures. BDA adoption is rather associated with greater sales/profit uncertainty, higher (personnel) costs, and a higher probability of failure. Yet, the increased risk of adopting BDA is compensated by a prospect of higher long-term performance conditional on survival. BDA-adopting start-ups perform better than comparable ones when considering longer-term performance measures such as their growth and their ability to secure VC. |
| Keywords: | Big data, Innovation, Productivity, Start-ups, Survival, Venture capital |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283582&r=cse |
| By: | Rachid Achbah (UL2 UFR SEG - Université Lumière - Lyon 2 - UFR de Sciences économiques et de gestion - UL2 - Université Lumière - Lyon 2, COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne); Marc Fréchet (UJM - Université Jean Monnet - Saint-Étienne, COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne) |
| Abstract: | This study examines the interaction between insolvency proceedings and strategic variables and their relationship with firm survival. Unlike previous research, this study considers the firm's legal status, including insolvency proceedings, and fills a gap in the literature by considering legal considerations in business studies. Adopting a legitimacy perspective, we employ a Cox proportional hazards model to construct a survival model based on a theoretical framework encompassing insolvency proceedings retrenchment, firm age, and causes of financial distress. Our sample consists of French SMEs facing financial difficulties. The findings reveal that initiating insolvency proceedings is negatively associated with firm survival. However, retrenchment of employees or assets during insolvency proceedings is associated with a higher likelihood of survival. Contrary to expectations, firm age showed a negative association with firm survival during the insolvency proceedings. Moreover, the study revealed a positive association between insolvency proceedings and firm survival in cases of firm-specific financial distress. This research provides new insights into the relationship between insolvency proceedings and firm survival. |
| Keywords: | SMEs, Insolvency proceedings, Legitimacy, Retrenchment, Firm survival, SMEs Insolvency proceedings Legitimacy Retrenchment Firm Survival, Firm Survival |
| Date: | 2024–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04480487&r=cse |