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on Technology and Industrial Dynamics |
| By: | Roberto Fontana (Department of Economics, University of Pavia and CESPRI - Bocconi University, Milan, Italy.); Lionel Nesta (Observatoire Fran»cais des Conjonctures Economiques, D¶epartement de Recherche sur l'Innovation et la Concurrence, Valbonne, France.) |
| Abstract: | We investigate the relationship between product innovation and firm survival for a sample of 121 firms in a high-tech industry. We find that location near the technological frontier is an important determinant of fim survival. Firms located near the frontier are also more likely to be acquired than to exit by failure if they cannot survive. This suggests that product location in the technology space acts as a signal of firm quality. Possessing a substantial stock of intangible capital, on the other hand, determines neither exit via failure nor exit via acquisition, although it increases the probability of surviving. |
| Keywords: | Product innovation, survival, high-tech industry |
| JEL: | L25 L63 O32 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:wp208&r=tid |
| By: | Rajneesh Narula (Department of Economics, University of Reading Business School); Grazia D. Santangelo (Facoltà di Scienze Politiche, Università degli Studi di Catania) |
| Abstract: | This paper shows empirically that in an intra-industry oligopolistic scenario the location of a firm’s innovative activities plays an important role in determining its partner selection in R&D alliances. Such a role is mainly attributed to a strategic use of R&D alliances as a means to limit knowledge flows and protect competences, rather than to promote knowledge flows. By drawing on a novel dataset matching alliances and patent data for the European ICT industry, the econometric analysis shows that partners’ prior co-location (at both national and sub-national regional level), previous ties and technological overlap matter in the choice of partner, while common nationality has a negative impact on alliance formation. |
| Keywords: | Alliances, R&D location, strategy, co-location, knowledge flows |
| JEL: | D23 F23 O18 O32 R3 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2007-43&r=tid |
| By: | Czarnitzki, Dirk; Kraft, Kornelius |
| Abstract: | Knowledge spillovers to competitors are regarded as an important aspect of the innovation process. While a company possibly benefits from incoming information on successful R&D conducted by other companies, a generally high probability of leakage of knowledge in an industry will negatively affect profitability. This paper presents the results of an empirical study on the effects of outgoing and incoming spillovers on firms’ profitability. It turns out that the expected asymmetry is actually at work. In contrast to spillovers from competitors, spillovers from suppliers, customers and research institutions exert no effect. |
| Keywords: | Innovation, Spillover, Profitability |
| JEL: | L12 O31 O32 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:6893&r=tid |
| By: | Hussinger, Katrin |
| Abstract: | Mergers and acquisitions (M&As) constitute a disruption to the working environment of the inventive labor force of the acquired company. If inventors would respond with a decline of their patent productivity or departure from the firm this can be detrimental to the innovative process within the merged entity and can be contradictory to the aims of the firm acquisition. This paper provides empirical evidence on post-merger mobility and productivity of 673 inventors employed by European acquisition targets in the years 2000 and 2001. The empirical results show that 1.) the most productive and experienced individuals stay with the merged entity; 2.) inventors that left the acquired firm are less productive in post-merger years than those that stayed with the merged entity; 3.) M&As trigger inventor mobility, but do not lead to a decline in patent productivity if compared to a control group of inventors that have not been involved in a firm acquisition. |
| Keywords: | M&As, inventor mobility and productivity |
| JEL: | C24 G34 O32 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:6898&r=tid |
| By: | Joao Macieira |
| Abstract: | This paper proposes and estimates a dynamic structural model of innovation in the super- computer industry to evaluate the dependence of technological innovation on market structure. The model has two key features. First, it allows for technological leapfrogging while controlling for multiproduct ?rm pro?ts. Second, it uses the inclusive value of Nevo and Rossi (2007) to de- ?ne quality adjustment, which controls for ?rm entry, exit, product introduction and scrappage without modeling these decisions explicitly. Model estimates facilitate counterfactual compar- isons of how the maximal computing speed evolution di?ers under di?erent market structures. Consistent with the importance of a "selection e?ect" (Aghion et al, 2001, 2005), increased levels of competition are associated with a higher rates of innovation and increased welfare. However, the marginal increase in welfare is decreasing in the number of competitors. |
| Keywords: | Dynamic oligopoly, innovation, technological frontier, product quality, simulation estimation, supercomputers. |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:vpi:wpaper:e07-10&r=tid |
| By: | Lucia Cusmano (Insubria University, Varese and CESPRI - Bocconi University, Milan, Italy.); Maria Luisa Mancusi (CESPRI - Bocconi University, Milan, Italy.); Andrea Morrison (URU - Utrecht University, Utrecht, The Netherlands and CESPRI - Bocconi University, Milan, Italy) |
| Abstract: | The paper investigates the diversified patterns of outsourcing in the Lombardy region and relates them to the probability of introducing product and process innovation. Based on a large firm-level survey, we show that outsourcing processes are strongly regionally embedded and that offshoring is still a limited phenomenon. Outsourcing strategies are shown to have a positive impact on firms’ innovation. In particular, the outsourcing of service activities contributes the most to innovation, thus suggesting that firms successfully pursue core strengthening strategies. Our econometric estimates show that both geographical and organizational proximity matter. Indeed, the positive association of services with innovation is strongly related to their regional dimension, which points toward the importance of local user-producer relationships. When outsourcing crosses national borders, keeping the outsourced activities at least loosely connected to the firm appears critical, as offshoring to non affiliated firms has a clear negative impact on innovation. |
| Keywords: | Product Innovation, Process Innovation, Outsourcing, Offshoring. |
| JEL: | D21 F23 L22 L23 O31 O32 O33 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:wp210&r=tid |