Spurring growth and closing gaps through digitalisation in a post-COVID world: Policies to LIFT all boats

The full potential of digital technologies remains unrealised and their benefits unequally shared because of insufficient investment in enabling intangible assets and communication networks within and across countries. The COVID-19 shock poses new challenges and opportunities. Drawing on past and ongoing OECD work, the paper proposes a multipronged policy approach to durably accelerate the diffusion and uptake of digital technologies across all layers of society, and share their benefits more widely. The building blocks of the proposed LIFT approach include: Lifelong learning for all to ensure everybody has the opportunity to acquire and upgrade the skills needed to thrive in a digital world..

Economics of Strategic Management

Services trade in the United Kingdom and the global economy

Services play a more important role in trade and employment in the United Kingdom than in most other OECD countries. The UK services sector is supported by an open and transparent trade regime, policies that support competition and innovation, and regulatory transparency that facilitates the creation of new services businesses and start-ups. That said, certain barriers to services trade remain. This report sheds light on the role of services trade in the UK economy, describing recent trends and highlighting future challenges, and explores policy options to support a sustainable recovery from the COVID-19 crisis.

Economics of Strategic Management

Innovation pattern heterogeneity: A data-driven retrieval of the firms' approaches to innovation

Innovation is one of the usual suspects in defining differences in performance among firms, according to a strong and diverse theoretical framework. Understanding the diversity that exists within the population of innovative firms is essential to elaborate appropriate innovation policies. Our study explores the diversity of innovation patterns among Norwegian firms included in the 2018 Community innovation survey (CIS2018). By applying factor analysis on a wide array of survey variables and on a large sample of firms, we identify eleven typical approaches to innovation, which recurrently connect innovation inputs and outputs at firm level. A main outcome of our study is a renewed fine-graine..

Economics of Strategic Management

Labelling and Information Schemes for the Circular Economy

Circular Economy Labels and Information Schemes (CELIS) compose the group of labels, certifications, standards of information schemes that fully or partially address one or more resource efficiency or circular economy elements. CELIS can play an important role in fostering circular economy activities. They can empower market actors to distinguish and discriminate products based on environmental performance, which stimulates market development and innovation in resource efficient products and services. Information systems also enable better supply chain management and allow firms to identify environmental impacts and risks in their supply chains.This paper provides an overview of the current ..

Economics of Strategic Management

The Intellectual Assets in Europe

In this article we investigate the determinants of the Intellectual Assets in Europe. We use data from the European Innovation Scoreboard of the European Commission in the period 2000-2019 for 36 countries. Data are analyzed using Panel with Fixed Effects, Random Effects, WLS, Pooled OLS, Dynamic Panel at 1 Stage. Results show that the presence of Intellectual Assets in Europe is positively associated with “Enterprise Births”, “Top R&D Spending Enterprises per 10 mln Population”, “Employment Share Manufacturing”, “Share High and Medium high-tech Manufacturing”, “Attractive Research Systems”, “Finance and Support”, “Innovators”, “Sales Impact” and is negatively..

Economics of Strategic Management

The drivers of SME innovation in the regions of the EU

European Union (EU) innovation policies have for long remained mostly research driven. The fundamental goal has been to achieve a rate of R&D investment of 3% of GDP. Small and medium-sized enterprise (SME) innovation, however, relies on a variety of internal sources —both R&D and non-R&D based— and external drivers, such as collaboration with other firms and research centres, and is profoundly influence by location and context. Given this multiplicity of innovation activities, this study argues that innovation policies fundamentally based on a place-blind increase of R&D investment may not deliver the best outcomes in regions where the capacity of SMEs is to benefit from R&D is limited...

Economics of Strategic Management

The Heterogeneous Impacts of Higher Education Institutions on Regional Firm Location: Evidence from the Swiss Universities of Applied Sciences

The empirical literature on knowledge spillovers provides evidence that higher education institutions (HEIs) have positive effects on regional firm location, i.e., the number of start-ups or firms located in a region. However, less is known about how HEIs in different fields of study impact regional firm location in different industries. To estimate effects on firm location in different industries, we exploit the establishment of universities of applied sciences (UASs)-bachelor degree-granting three-year HEIs in Switzerland-in different fields of study. We find that effects are heterogeneous and UASs specializing in "chemistry and life sciences" and "business, management, and services" are t..

Economics of Strategic Management

Exploring the Concept of Geographies of Innovation

In the last decades, so-called geographies of innovation have emerged worldwide as vehicles to drive economic development. These urban areas are planned and actively managed spatial clustering of a wide range of innovative organisations and intermediaries to undertake collaborative innovation activities. However, the concept of geography of innovation (or innovation geography) remains ambiguous. In addition, there are no commonly accepted definitions or classifications of different models of geographies of innovation. Terms such as park, hub, district, cluster, and ecosystem are used interchangeably, and their definitions can be far-reaching and adaptable. The key question addressed in this ..

Economics of Strategic Management

Contributions to firm innovation at UFMG : an analysis of the professional master in technological innovation and intellectual property

The present work intends to evaluate the impacts of the Professional Master in Technological Innovation and Intellectual Property of the UFMG in the contribution of the university to the firm’s technological innovation and by reducing the so-called learning divide . Besides, the role of the universities in the National Innovation Systems is addressed in a historical perspective, but also in a contemporary way, by means of the discussion on the three current main approaches about the University-Firm relationship. The Latin American approach, proposed by Arocena and Sutz (2003, 2005), is highlighted in this monograph for making opposition to models based on developed economies, presenting di..

Economics of Strategic Management

How innovative EU firms faced the COVID-19 downturn

The Covid-19 pandemic has triggered many challenges, but also opportunities, for businesses across Europe. We examine how the innovation and growth of firms in the EU have been affected by the Covid-19 pandemic, and how as “European Innovation Champions”, SMEs reacted to the resultant shock. We find that compared to non-innovative firms, the economic performance of innovative firms in the EU has been considerably less affected by the pandemic. We also identify five different paradoxical behaviours of ‘European Innovation Champions” during the peak of the Covid-19 pandemic. Industrial policies targeting SMEs should be flexible and allow companies to adapt their investment plans in lin..

Economics of Strategic Management

EU in the global Artificial Intelligence landscape

The brief presents the results of the AI worldwide ecosystem analysis for the period 2009-2020, by applying the Techno-Economic ecoSystem (TES) analytical approach. The TES approach allows to map the AI worldwide ecosystem by considering the main AI-related industrial, innovation and research activities, and all the economic players that are involved in them (i.e. firms, research institutes, governmental institutions). The brief analyses the position of the EU in the international context, via-à-vis the United States, China, and other main players in the landscape, in terms of size of the AI ecosystem, specialisation in AI areas, AI firms and AI R&D capacities. It follows with an in-depth a..

Economics of Strategic Management

Algumas respostas da Universidade Federal de Minas Gerais à Covid -19

This article systematizes some of the contributions of the Federal University of Minas Gerais in facing Covid-19, aiming to highlight the important role of universities for our country. The non-exhaustive survey aimed to make explicit that some answers were only possible by building previous capacities and knowledge within the various activities that are carried out at the university. The importance of public funding in enabling laboratory infrastructure, as well as the targeted funding that allowed the development of solutions to the pandemic and the intellectual capital accumulated by the university over the years was also evidenced. Furthermore, the cases presented illustrate that the sol..

Economics of Strategic Management

The Determinants of Competitiveness of the Portuguese Defense Industry

This paper exploits a panel data ranging from 2010 to 2019 to investigate firm-level determinants of export intensity in the Portuguese defense industry, using a fixed effects model. As in any study exploiting corporate finance panel data, it is likely that some variables are endogenous due to reverse causality. Although we address this issue, the interpretation of our results cannot be fully causal. We find evidence that learning economies, proxied by export persistence, are the largest determinants associated with export intensity at firm level. Worker productivity and firm size also play a positive and significant role. Financial indicators such as financial pressure and leverage ratio ne..

Economics of Strategic Management

Mobilizing innovation for sustainability transitions: a comment on transformative innovation policy

The topics addressed in this paper concern the (much-needed) transition to sustainability and what role (innovation) policy can play in speeding up such changes. In their Discussion Paper Schot and Steinmueller (this issue) argue that the existing theorizing and knowledge bases within the field of innovation studies are “unfit” for this task and that a totally new approach is required. This paper takes issue with this claim. Policy advice, it is argued, needs to be anchored in the accumulated research on the issue at hand, in this case, innovation. The paper therefore starts by distilling some important insights on innovation from the accumulated research on this topic and, with this in ..

Economics of Strategic Management

Technology Transfer and Early Industrial Development: Evidence from the Sino-Soviet Alliance

This paper studies the causal effect of technology and knowledge transfers on early industrial development. Between 1950 and 1957, the Soviet Union supported the “156 Projects” in China for the construction of technologically advanced, large-scale, capital-intensive industrial facilities. We exploit idiosyncratic delays in project completion and the unexpected end of the Sino-Soviet Alliance, due to which some projects received Soviet technology embedded in capital goods and know-how, while others were eventually realized by China alone using domestic technology. We find that receiving both Soviet technology and know-how had large, persistent effects on plant performance, while the effec..

Economics of Strategic Management

The Broadband Penetration in Europe

In this article we estimate the determinants of broadband penetration in Europe. We use data from the European Innovation Scoreboard of the European Commission for 37 countries in the period 2010-2019. We apply Panel Data with Fixed Effects, Panel Data with Random Effects, WLS, OLS and Dynamic Panel. We found that the level of “Broadband Penetration” in Europe is positively associated to “Enterprises Providing ICT Training”, “Innovative Sales Share”, “Intellectual Assets”, “Knowledge-Intensive Service Exports”, “Turnover Share SMEs”, “Innovation Friendly Environment” and negatively associated with “Government procurement of advanced technology products”, “Sa..

Economics of Strategic Management

Information Leakage, Imitation, and the Patent System

From a firm’s perspective two competing forces are driving the decision to invest in innovation. On the one hand, innovative performance is an important driver of profitability and growth. On the other hand, investments in innovation suffer from negative externalities, i.e. spillovers to other firms, and hence imitation could be induced. To preempt imitation firms may protect their inventions by means of intellectual property rights, such as patents. By taking out a patent, however, a firm also conveys information about the functioning of the invention to competitors. In this empirical paper, we highlight the trade-off of patenting by setting up a recursive system of equations on knowledge..

Economics of Strategic Management

Two-stage multilevel latent class analysis with covariates in the presence of direct effects

In this article, we present a two-stage estimation approach applied to multilevel latent class analysis (LCA) with covariates. We separate the estimation of the measurement and structural model. This makes the extension of the structural model computationally efficient. We investigate the robustness against misspecifications of the proposed two-stage and the classical one-stage approach for models where a direct effect exists between indicators of the LC model and covariate, and the direct effect is ignored.

Economics of Strategic Management

Marketing performance of service firms: Recognizing market sensing capability and customer interaction orientation

Purpose: This study examines the effect of market sensing and interaction orientation capabilities on the marketing performance of service based firms in Ghana. The study particularly explored the moderation effect of interaction orientation capability on the relationship between market sensing and firm performance of the service firms. Methods: This study adopted the survey approach focusing on a convenient sample of 200 employees of service firms. The hierarchical multiple regression analysis was used to establish the relationship between the variables of interest. Results: The study revealed that market sensing capability and interaction orientation significantly account for variations in..

Economics of Strategic Management

The Interaction of Schumpeterian Institutional Entrepreneurship and Hayekian Institutional Change in Innovative Industries

Innovation often takes place in entrepreneurial ecosystems. We use the history of the Silicon Valley venture capital model and the Hollywood motion picture industry to illustrate how specialized institutions that regulate these entrepreneurial ecosystems emerged through actions by business entrepreneurs, rather than being designed by policymakers. Schumpeterian entrepreneurs not only create new companies; they also create new institutions as an integral part of the restructuring process. At times, efforts of identifiable entrepreneurs are crucial, while in other instances institutional change results from a Hayekian process of emergence fueled by business entrepreneurs’ efforts. Some insti..

Economics of Strategic Management

Technological Diffusion and Productivity Convergence across European Regions: A Spatial Approach over the Period 2000-2015

What are the drivers of growth and convergence in productivity at regional level? Differences in the stock of human capital across regions are hypothesized to be the major cause of differences in the speed by which following regions converge and catch-up with the most advanced ones. In addition, we test the role played by R&D expenditures and institutions exploiting a database covering European regions from 1995 to 2015, which includes regional total factor productivity (TFP) computed by the conventional residual approach. We find robust empirical evidence for these hypotheses in terms of both model specifications and sectoral disaggregation.

Economics of Strategic Management

Revisiter l’innovation : la vulnérabilité organisationnelle des PME innovantes dans le secteur des sports outdoor

While innovating is likely to procure competitive advantage within the industry of sports goods, it is also a risky activity which may lead to damaging consequences for companies. It therefore seems relevant to take an interest in the potential detrimental effects of innovation processes within small, particularly creative, companies in the sports sector. In this paper, we seek to know if, and how, engaging in an innovation process leads to singular forms of organizational vulnerability. Case studies were carried out in five small or medium-sized French companies specializing in the outdoors. We conducted a total of 48 interviews with different actors in the innovation processes, accompanied..

Economics of Strategic Management

Geographies of Knowledge Sourcing and the Value of Knowledge in Multilocational Firms

A growing body of research in economic geography, international business management and related fields focuses on geographies of knowledge sourcing. This work examines the organizational structure of innovation activities within the firm, the mechanisms by which knowledge is extracted from various external sources and the geography of these different activities. We augment this literature by exploring knowledge sourcing within multilocational firms operating in the US using a unique dataset matching patent records to firm-level ownership and geographical data. The results add value to existing research in three ways. First, the establishments of multilocational corporations are shown to prod..

Economics of Strategic Management

Technological capacity and firms' recovery from Covid-19

Can higher technological capacity help firms to recover quicker from recessions? Analyzing the effects of the Covid-19 pandemic on firm revenues in several countries, we find that firms headquartered in jurisdictions with better digital infrastructure generated relatively higher revenue during the shock period. Improving a country's technological capability by one standard deviation is associated with a relative increase in revenues of the average firm by around 4%. The positive effect of technology is more pronounced among smaller firms, suggesting that it could have helped the recovery of SMEs.

Economics of Strategic Management

CORPORATE SOCIAL RESPONSIBILITY, GIFT EXCHANGE, RELATIONAL SKILLS AND CORPORATE PERFORMANCE

Based on results of the different fields of the game theoretic literature on strategic interactions and social dilemmas, gift exchange and procedural utility, we argue that corporate social responsibility and relational skills i) with other firms; ii) between employers and workers iii) among workers and iv) with stakeholders are associated to positive effects on productivity. We test our research hypothesis on a large representative sample of Italian firms including the universe of medium and large companies and accounting for 91.3 percent of domestic employees. We find that companies with higher relational skills report significantly higher value added per worker after controlling for relev..

Economics of Strategic Management

Regional and national results on entrepreneurship using GEM data

In this paper, we use different sources of data from the GEM to show a descriptive and comparative analysis of the different dimensions of the entrepreneurial activity, in the Spanish regions, and at international level. We also study the individual determinants of the entrepreneurial activity in Spain, and Europe, using bootstrapping techniques to avoid overfitted results. The results indicate that entrepreneurial levels in Spain are below the average of European countries, and also below the levels of United States, Canada, and Australia. However, the determinants of entrepreneurship appear to be similar in all the regions studied.

Economics of Strategic Management

A project-level approach to green open innovation

Innovation is a crucial dimension for the transition to a greener Europe, a process that has accelerated notably in the latest years. An open mode has been applied to those innovation that mitigate the impact of economic activities on the natural environment, which is green open innovation (GOI). This is approach is mainly driven by the importance of stakeholders and the specificity of environmental fields, which call for a greater role of the external collaboration in green innovation. Although the interest of management scholars and practitioners in GOI has increased enormously, the empirical GOI literature has overlooked a project-level approach. Firms may have heterogenous openness acros..

Economics of Strategic Management

As long as you talk about me: The importance of family firm brands and the contingent role of family-firm identity

This study explores the role of external audiences in determining the importance of family firm brands and the relationship with firm performance. Drawing on text mining and social network analysis techniques, and considering the brand prevalence, diversity, and connectivity dimensions, we use the semantic brand score to measure the importance the media give to family firm brands. The analysis of a sample of 52,555 news articles published in 2017 about 63 Italian entrepreneurial families reveals that brand importance is positively associated with family firm revenues, and this relationship is stronger when there is identity match between the family and the firm. This study advances current l..

Economics of Strategic Management

Challenges for University - Industry Collaboration - a Stakeholder View

Purpose - The innovation strategies of the European Union and its member states have been well established over time and their implementation is being supported through government funding and legislative policies. This includes the promotion of strategic University-Industry Collaboration (UIC) involving its heterogeneous stakeholder groups. The purpose of this paper is to provide a shareholder analysis in form of defining the UIC activities, UIC shareholders and their interests and power in such collaboration while addressing the major challenges.Methodology ? A comprehensive thematic literature review of scientific research, as well as institutionally conducted research (primarily by Europe..

Economics of Strategic Management

Invoice Currency Choice under Financial Constraints and Bargaining: Evidence from Japanese SMEs

Recent empirical studies explore factors behind the currency invoicing pattern in exports of listed firms by using questionnaire surveys; however, there is insufficient evidence regarding small and medium-sized enterprises (SMEs). We conducted a questionnaire survey for 2,100 unlisted manufacturers engaged in exports during the 2010s and received responses from 300 firms. By constructing a database with invoice currency choice and trade partner by export destination, we empirically examine the determinants of invoice currency choice in export using the probit model estimation. We confirm that the major determinants of currency invoicing in existing research effectively work as determinants o..

Economics of Strategic Management