Endogenous spillovers, increased competition and re-organization waves

We consider an entrepreneur that is the sole producer of a cost reducing skill, but the entrepreneur that hires a team to use the skill cannot prevent collusive trade for the innovation related knowledge between employees and competitors. We show that there are two types of diffusion avoiding strategies for the entrepreneur to preempt collusive communication i) setting up a large productive capacity (the traditional firm) and ii) keeping a small team (the lean firm). The traditional firm is characterized by its many "marginal" employees that work short days, receive flat wages and are incompletely informed about the innovation. The lean firm is small in number of employees, engages in complete information sharing among members, that are paid with stock option schemes. We find that the lean firm is superior to the traditional firm when technological entry costs are low and when the sector is immature.Information sharing, endogenous spillovers, physical assets, corporate transformation, stock-options, collussion, trade secrets

Coopetition and innovation. Lessons from worker cooperatives in the Spanish machine tool industry

This is an electronic version of the accepted paper in Journal of Business & Industrial Marketing[EN] Purpose – This paper aims to investigate how the implementation of the inter-cooperation principle among Spanish machine-tool cooperatives helps them to coopete–collaborate with competitors, in their innovation and internationalization processes and achieve collaborative advantages. Design/methodology/approach – The paper uses a multi-case approach based on interviews with 15 CEOs and research and development (R&D) managers, representing 14 Spanish machine tool firms and institutions. Eight of these organizations are worker-cooperatives.. Findings – Worker -cooperatives achieve advantages on innovation and internationalization via inter-cooperation (shared R&D units, joint sales offices, joint after-sale services, knowledge exchange and relocation of key R&D technicians and managers). Several mutual bonds and ties among cooperatives help to overcome the risk of opportunistic behaviour and knowledge leakage associated to coopetition. The obtained results give some clues explaining to what extent and under which conditions coopetitive strategies of cooperatives are transferable to other types of ownership arrangements across sectors. Practical implications – Firms seeking cooperation with competitors in their R&D and internationalization processes can learn from the coopetitive arrangements analyzed in the paper. Social implications – Findings can be valuable for sectoral associations and public bodies trying to promote coopetition and alliances between competitors as a means to benefit from collaborative advantages. Originality/value – Focusing on an “ideal type” of co-operation -cooperative organisationsand having access to primary sources, the paper shows to what extent (and how) strong coopetitive structures and processes foster innovation and internationalization

Antitrust, Innovation, and Uncertain Property Rights: Some Practical Considerations

The intersection of antitrust and intellectual property circumscribes two century-long debates. The first pertains to questions about how antitrust law and intellectual property law interact, and the second pertains to questions about how parties can exploit property rights, including intellectual property rights, to exclude competitors. This iBrief finesses these questions and turns to practical considerations about how innovation and intellectual property can impinge antitrust enforcement. This iBrief develops two propositions. First, although collaborative research and development has often been and remains unwittingly misunderstood, what is understood about it is consistent with the long- standing observation that antitrust has rarely interfered with collaborative ventures. Second, shifting focus from “intellectual property rights” to “uncertain property rights” makes it easier to understand what innovation and intellectual property imply for enforcement processes. Both intellectual property and tangible assets imply the same processes, but the boundaries of intellectual properties may be uncertain and may, in turn, allow parties to game enforcement processes in ways that would not be feasible in antitrust matters that principally feature tangible assets. Even so, uncertain property rights might not frustrate enforcement processes as the antitrust authorities may yet be able to factor parties’ strategic behaviors into the design of antitrust remedies

The Taking Economy: Uber, Information, and Power

Sharing economy firms such as Uber and Airbnb facilitate trusted transactions between strangers on digital platforms. This creates economic and other value and raises a set of concerns around racial bias, safety, and fairness to competitors and workers that legal scholarship has begun to address. Missing from the literature, however, is a fundamental critique of the sharing economy grounded in asymmetries of information and power. This Article, coauthored by a law professor and a technology ethnographer who studies the ride-hailing community, furnishes such a critique and indicates a path toward a meaningful response. Commercial firms have long used what they know about consumers to shape their behavior and maximize profits. By virtue of sitting between consumers and providers of services, however, sharing economy firms have a unique capacity to monitor and nudge all participants — including people whose livelihood may depend on the platform. Much activity is hidden away from view, but preliminary evidence suggests that sharing economy firms may already be leveraging their access to information about users and their control over the user experience to mislead, coerce, or otherwise disadvantage sharing economy participants. This Article argues that consumer protection law, with its longtime emphasis of asymmetries of information and power, is relatively well positioned to address this under-examined aspect of the sharing economy. But the regulatory response to date seems outdated and superficial. To be effective, legal interventions must (1) reflect a deeper understanding of the acts and practices of digital platforms and (2) interrupt the incentives of sharing economy firms to abuse their position

Absorptive capacity and relationship learning mechanisms as complementary drivers of green innovation performance

This paper aims to explore in depth how internal and external knowledge-based drivers actually affect the firms\u2019 green innovation performance. Subsequently, this study analyzes the relationships between absorptive capacity (internal knowledge-based driver), relationship learning (external knowledge-based driver) and green innovation performance. This study relies on a sample of 112 firms belonging to the Spanish automotive components manufacturing sector (ACMS) and uses partial least squares path modeling to test the hypotheses proposed. The empirical results show that both absorptive capacity and relationship learning exert a significant positive effect on the dependent variable and that relationship learning moderates the link between absorptive capacity and green innovation performance. This paper presents some limitations with respect to the particular sector (i.e. the ACMS) and geographical context (Spain). For this reason, researchers must be thoughtful while generalizing these results to distinct scenarios. Managers should devote more time and resources to reinforce their absorptive capacity as an important strategic tool to generate new knowledge and hence foster green innovation performance in manufacturing industries. The paper shows the importance of encouraging decision-makers to cultivate and rely on relationship learning mechanisms with their main stakeholders and to acquire the necessary information and knowledge that might be valuable in the maturity of green innovations. This study proposes that relationship learning plays a moderating role in the relationship between absorptive capacity and green innovation performance

A Resource-Based View Of International Human Resources: Toward A Framework of Integrative and Creative Capabilities

Drawing on organizational learning and MNC perspectives, we extend the resource-based view to address how international human resource management provides sustainable competitive advantage. We develop a framework that emphasizes and extends traditional assumptions of the resource-based view by identifying the learning capabilities necessary for a complex and changing global environment. These capabilities address how MNCs might both create new HR practices in response to local environments and integrate existing HR practices from other parts of the firm (affiliates, regional headquarters, and global headquarters). In an effort to understand the nature of such capabilities, we discuss aspects of human capital, social capital, and organizational capital that might be linked to their development. Page

The print and packaging forum: a report on the print industry’s review of its own performance

This report is presented to the Print and Packaging Forum in fulfilment of the activities envisaged under Research Agreement signed between the Leadership, Innovation and Knowledge Research Centre DCU and the Irish Printing and Packaging Forum dated 15 July 2010. The remainder of this report sets out our research findings and response to the requirements set out in the Research Agreement. Section 3 sets out our approach and research methodology including limitations on this study and subsequent findings. Section 4 details the research findings. A survey was conducted of the industry to provide information on various aspects of its performance. Unfortunately no firms operating in the newspaper or paper sectors responded thus impacting on the representativeness of the survey. The main findings are summarised below. The vast majority of companies surveyed continue to be private Irish-owned firms. Sales performance of surveyed companies is in decline. The Industry faces competition internationally; the overwhelming majority of companies surveyed do not export. The respondents considered themselves relatively capable against Irish competitors however less competitive across nearly all areas against International competition. Particular factors in their lack of competitiveness are seen as raw material costs and access and overall relative cost position. Average employment is 20 persons, inferring a significant decline when compared to the 2005 Report. This confirmed supporting data from Forfas. On average over 55% of employees of respondent companies are operatives or crafts people. Less than 20% of respondent companies had vacancies compared to over half reported in 2005. Both overcapacity and low capacity usage remain features of the industry however expected lead times and time lost due to breakdowns has improved when compared to the 2005 Report. Average capacity utilisation for companies in the survey was 69% with over a third operating at below 60%. Over 80% of companies surveyed indicated that they undertake benchmarking; this is a significant increase on the level reported in the 2005 Report

R&D cooperation and spillovers: Some empirical evidence

This paper provides some first empirical evidence on the relationship between R&D spillovers and R&D cooperation. The results suggest disentangling different aspects of know-how flows. Firms which rate incoming spillovers more importantly and who can limit outgoing spillovers by a more effective protection of know-how, are more likely to cooperate in R&D. Our analysis also finds that cooperating firms have higher incoming spillovers and higher protection of know- how, indicating that cooperation may serve as a vehicle to manage information flows. Our results thus suggest that on the one hand the information sharing and coordination aspects of incoming spillovers are crucial in understanding cooperation, while on the other hand, protection against outgoing spillovers is important for firms to engage in stable cooperative agreements by reducing free-rider problems. Distinguishing different types of cooperative partners reveals that while managing outgoing spillovers is less critical in alliances with non-commercial research partners than between vertically related partners, the incoming spillovers seem to be more critical in understanding the former type of R&D cooperation.Research and development, cooperation, spillovers

Incentive Regulation, Investments and Technological Change

Based on an idiosyncratic reading of the literature I propose intermediate (rather than tight or soft) regulation for balancing investment incentives with allocative efficiency and competition objectives. Intermediate regulation is compatible with incentive regulation and helps lengthening the regulatory commitment period necessary for incentives. However, such commitment for the whole time horizon of infrastructure or innovation investments is impossible. The compatibility of incentive regulation and efficient investment is thus in doubt. Incentive regulation for regular infrastructure investments therefore needs periodic updating based on rate-of-return regulation criteria. Innovative infrastructure investments may warrant regulatory holidays, which should be conditioned on strict criteria.