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on Economics of Strategic Management |
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Issue of 2024‒08‒12
eleven papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Aleksandra Parteka (Gdansk University of Technology, Gdansk, Poland); Piotr PÅ‚atkowski (Gdansk University of Technology, Gdansk, Poland); Sabina Szymczak (Gdansk University of Technology, Gdansk, Poland); Joanna Wolszczak-Derlacz (Gdansk University of Technology, Gdansk, Poland) |
| Abstract: | This paper describes the construction of a microlevel database on knowledge creation by higher education institutions (KC-HEI), accompanying the Global Knowledge Input-Output database (KIO, Davies et al., 2023). The database was created as part of Project Rethink GCS. KC-HEI links PATSTAT information on the patenting activity of 866 universities (HEIs) in 31 European countries over four decades (1980-2019), using citation records and patent quality indicators from OECD/STI Micro-data. KC-HEI makes possible analysis of the Institutions' innovation performance across 128 internationally comparable technological sectors and, separately, with respect to Artificial Intelligence (AI). We also develop a unique crosswalk between PATSTAT and ETER that combines KC-HEI with other institution-level datasets (such as ETER and RISIS) and allows us to build a parallel dataset covering 785 patenting and 2101 non-patenting universities in Europe between 2011 and 2019. We illustrate the potential of the KC-HEI database, providing key stylised facts on the role of universities in knowledge creation, while documenting extreme core-periphery patterns of university patenting in Europe and detecting several key university-level factors that reinforce this disparity. |
| Keywords: | Patents, Innovation, Knowledge, Higher Education Institutions, University |
| JEL: | O31 O33 I23 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:gdk:wpaper:73&r= |
| By: | Pinelopi K. Goldberg; Réka Juhász; Nathan J. Lane; Giulia Lo Forte; Jeff Thurk |
| Abstract: | The resurgence of subsidies and industrial policies has raised concerns about their potential inefficiency and alignment with multilateral principles. Critics warn that such policies may divert resources to less efficient firms and provoke retaliatory measures from other countries, leading to a wasteful "subsidy race." However, subsidies for sectors with inherent cross-border externalities can have positive global effects. This paper examines these issues within the semiconductor industry: a key driver of economic growth and innovation with potentially significant learning-by-doing and strategic importance due to its dual-use applications. Our study aims to: (1) document and quantify recent industrial policies in the global semiconductor sector, (2) explore the rationale behind these policies, and (3) evaluate their economic impacts, particularly their cross-border effects, and compatibility with multilateral principles. We employ historical analysis, natural language processing, and a model-based approach to measure government support and its impacts. Our findings indicate that government support has been vital for the industry's growth, with subsidies being the primary form of support. They also highlight the importance of cross-border technology transfers through FDI, business and research collaborations, and technology licensing. China, despite significant subsidies, does not stand out as an outlier compared to other countries, given its market size. Preliminary model estimates indicate that while learning-by-doing exists, it is smaller than commonly believed, with significant international spillovers. These spillovers likely reflect cross-country technology transfers and the role of fabless clients in disseminating knowledge globally through their interactions with foundries. Such cross-border spillovers are not merely accidental but result from deliberate actions by market participants that cannot be taken for granted. Firms may choose to share knowledge across borders or restrict access to frontier technology, thereby excluding certain countries. Future research will use model estimates to simulate the quantitative implications of subsidies and to explore the dynamics of a ``subsidy race'' in the semiconductor industry. |
| JEL: | F13 F61 L63 N60 O38 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32651&r= |
| By: | Maria del Sorbo (European Innovation Council, Bruxelles, Belgium); Carina Faber (European Innovation Council, Bruxelles, Belgium); Marco Grazzi (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy); Francesco Matteucci (European Innovation Council, Bruxelles, Belgium); Miriam Ruß (Wuppertal Institut für Klima, Umwelt, Energie gGmbH, Wuppertal, Germany) |
| Abstract: | A novel analysis of the European Innovation Council (EIC) Accelerator pilot is presented, marking the first extensive examination of its selection process and the impact of its funding on deep tech ventures, in comparison to its predecessor, the SME Instrument. Utilizing applicant data from both programs, the study assesses the EIC’s effectiveness in targeting firms that align with its objectives of driving breakthrough innovation. The research reveals that the EIC Accelerator pilot attracts younger and smaller firms, in comparison to its predecessor. A significantly higher proportion of applicants are high tech and medium high-tech, indicating a strategic shift towards supporting cutting-edge technologies. Despite this shift, the analysis of funding determinants demonstrates a consistent pattern across both programs, emphasizing the influence of firm size, age, and patent portfolio. Further, a regression discontinuity design analysis is used to estimate the impact of funding during the EIC accelerator pilot on firm-level outcomes, such as patenting, revenue, or employment growth. However, the very recent launch of the program shrinks both the observations and the ex-post window, and due to large standard errors the point estimates are not significant at conventional levels. |
| Keywords: | Innovation Policy, Industrial policy, deep-tech, start-up, regression discontinuity, patent, firm growth |
| JEL: | O3 O31 O32 O38 L25 L26 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ctc:serie5:dipe0037&r= |
| By: | OECD |
| Abstract: | This paper reviews how competition authorities have incorporated innovation as part of their assessment in enforcement cases. It explores scenarios that have considered innovation from a static perspective, mostly analysing current and potential competition in well-identified product markets (incentives-based approach), as well as scenarios that have considered innovation from a dynamic perspective, often defining innovation markets (impact-based approach). It also looks at cases that have considered increases in innovation as potential justifications for decreases in competition. This note reviews how these different approaches have shaped market definition, the theories of harm considered, and even the design of remedies and commitments. |
| Date: | 2023–10–24 |
| URL: | https://d.repec.org/n?u=RePEc:oec:dafaac:301-en&r= |
| By: | Lee, Seungshin (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Choi, Wonseok (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Moon, Jiyoung (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Na, Suyeob (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Oh, Jonghyuk (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 중국정부가 제조업 기반 강화 및 핵심 부품소재의 국산화율을 제고하기 위해 강소기업 육성전략을 추진하고 있다. 한중 경제관계가 구조적인 변화를 겪고 있는 과정에서 중국 강소기업의 성장에 따른 중국 산업의 경쟁력 변화에 대한 이해와 대응책 마련이 필요하다. 본 보고서는 중국 강소기업 육성전략의 배경, 지원 분야 및 정책, 주요 기업 사례 및 강소기업 경쟁력을 분석하고 정책적 시사점을 제안하였다. China’s policy of nurturing hidden champions is being promoted on the basis of a systematic development system, which has been established by consolidating the economic development policies scattered in each province by linking them to the national strategy. It nurtures hidden champions in the manufacturing industry to strengthen the foundation of the manufacturing industry and improve the localization rate of key basic parts and materials by 2025, which is the goal set by the “manufacturing powerhouse” strategy at the national level. After classifying small and medium-sized enterprises by growth stage, China is nurturing companies that can supplement the technological gap in the supply chain by focusing technology and capital. It is also expanding the establishment of a national-level manufacturing innovation center necessary for promoting national strategies. The main areas of establishment are high-tech areas such as optoelectronics, display, robotics, lightweight materials, semiconductors, and batteries. The national-level manufacturing innovation center will receive financial support from the government when it is established. In addition, it is operated in a structure in which everyone enjoys the intellectual property rights developed here with the participation of research institutes, universities, and private companies for strategic technology research. In particular, in the semiconductor industry, which has recently increased its strategic importance, three innovation centers are in operation, and core process technologies are being developed by concentrating resources under the leadership of leading companies. In addition, SMEs that participated in this are also building an open system so that they can use the infrastructure and databases of innovation centers. As of 2023, there are 12, 950 hidden champions in China, exceeding the 2025 target of 10, 000. In particular, the share of companies in the new materials, next-generation information technology, and advanced mechinery industries increased significantly from about 17% in 2019 to 25.7% in 2023. This seems to be due to the Chinese government’s expansion of support to sectors that are more exposed to U.S. sanctions. Financial support strategies for hidden champions are divided into initial government subsidies and tax incentives, and sustainable financial support using private capital. Various methods of financial support are of great importance in that they provide financial resources to SMEs that have a long management period and are difficult to obtain additional support to enhance the competitiveness of the company and prepare new growth engines(the rest omitted). |
| Keywords: | nurturing hidden champions; China; manufacturing powerhouse strategy |
| Date: | 2023–12–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieppa:2023_032&r= |
| By: | Elodie Carpentier; Jennifer Brant; Utsav Bahl; Aikaterini Kanellia |
| Abstract: | Innovation is a driver of competitive advantage and economic growth, with patent rights playing a critical supporting role. However, differential access to patent rights and relatively less participation in innovation can affect women and people from other historically underrepresented groups, thereby hindering progress and limiting the potential economic benefits generated by innovation. This paper reviews the global literature on these “diversity gaps†, identifies their key drivers, and documents international policies and initiatives that show promise in addressing them. Building upon Shapanka and Fechner (2018), it expands the geographic scope and reinforces the scientific basis of their analysis. The paper also provides recommendations for a wide range of stakeholders and offers insights for fostering more inclusive and equitable innovation ecosystems. |
| Keywords: | Innovation, Diversity Gaps, Intellectual Property |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:wip:wpaper:86&r= |
| By: | Chen, Kevin; Hu, Shuang; Ji, Chen |
| Keywords: | Agribusiness, Environmental Economics And Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:344015&r= |
| By: | Emmanuel Dhyne (Economics and Research Department, National Bank of Belgium); Pablo Muylle (Ghent University) |
| Abstract: | While past decades were characterized by economic liberalization and deregulation, there re-mains an enduring presence of political influence over the private economy. Such influence can either benefit (e.g. government support addressed at survival and growth prospects) or harm (e.g. reduced efficiency and innovation) firms. This study investigates the impact of government ownership among suppliers on the behavior and performance of privately-held firms. We argue that this channel of government influence on the private economy plays a prominent role, in addition to that of political connections (i.e. the direct presence of politicians on the boards of firms), a more established channel of political influence. Leveraging Belgian firm-level trans-action data, the research reveals that purchasing inputs from state suppliers is associated with lower firm profitability and productivity, along with higher leverage and employment. Notably, the relationship between state suppliers and performance persists even when controlling for the direct presence of politicians on the boards of firms. These findings underscore the influence of government support on firms’ behavior and financial performance and highlight the importance of considering both state suppliers and political connections when assessing the comprehensive impact of government influence on private enterprises |
| Keywords: | Governmental Influence, SOE Suppliers, Political Connections, Economic Liberalization, Firm Performance. |
| JEL: | D22 D72 G38 H11 H32 L33 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202407-451&r= |
| By: | OECD |
| Abstract: | This background note reviews the relationship between competition and innovation in both directions. This is, how competition can help boosting innovation and how innovation can shape competition. It focuses on the theoretical perspective to try to understand whether competition is indeed a driver of innovation and how it interacts with other drivers. It was prepared as a background note for discussions on “The Relationship between Competition and Innovation” taking place at the June 2023 session of the OECD Competition Committee. |
| Date: | 2023–05–05 |
| URL: | https://d.repec.org/n?u=RePEc:oec:dafaac:294-en&r= |
| By: | Miklós Koren; Álmos Telegdy |
| Abstract: | Using a novel Hungarian dataset on firms and their Chief Executive Officers (CEOs), we estimate the impact of hiring expatriate CEOs. By examining foreign acquisitions where the new owner replaces the incumbent CEO with an expatriate or a local CEO, we address the selection into both acquisition and CEO hiring. Firms led by expatriate CEOs show 13 percent total factor productivity growth, 95 percent sales growth, and increase both exports and domestic sales. Hiring expatriate CEOs enhances firm performance in both international and domestic markets. Our findings suggest that expatriates have superior general management skills. |
| Keywords: | expatriate CEO, foreign acquisition, firm performance, Hungary |
| JEL: | F23 F61 L25 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11164&r= |
| By: | Zanfrillo, Alicia Inés; Morettini, Mariano |
| Abstract: | Purpose: Describe the development of digital business models of fishing companies in the city of Mar del Plata and their relationship with the sustainability of production processes. Methodology: The research is based on a descriptive-correlational quantitative methodology, with the application of a multivariate analysis technique, cluster analysis, to identify groupings of companies based on secondary sources of information. Results: Mar del Plata fishing companies offer different asymmetries in the development of their business model through digital marketing channels, with few representations of current technological advances in the final stretch of the value chain. Research limitations: The limitation of the work lies in the lack of longitudinal data that prevents evaluating long-term changes in the integration of digitalization and sustainability. Originality: The study on business models and environmental commitment in the fishing industry in the southeast of the province of Buenos Aires reveals a predominant emphasis on commercial innovation, often to the detriment of comprehensive approaches. This approach decouples digitalization from sustainability, particularly among the sector's pioneers. |
| Keywords: | Transformación Digital; Empresas Pesqueras; Cadena de Valor; Mar del Plata; |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4126&r= |