0000000000290644
AUTHOR
Dolores Añón Higón
Multinationality, foreignness and institutional distance in the relation between R&D and productivity
Abstract This paper empirically examines to what extent being foreign and part of a multinational affects the endogenous relation between R&D and productivity. Our findings indicate that multinationals obtain in general higher R&D returns. Also, there is a negative foreignness effect in that domestic-owned multinationals outperform foreign subsidiaries. However, these effects are somehow moderated by the institutional distance between the home and host countries. These results, obtained for a panel of UK firms, are largely consistent with a set of hypotheses derived from the institutional and international business theories.
Multinationals, R&D and productivity: Evidence for UK Manufacturing firms
In this study, we analyze multinationality (domestic-based firms versus multinationals) and foreignness (foreign versus domestic firms) effects in the returns of R&D to productivity. We follow a two-step strategy. In the first step, we consistently estimate firm's productivity by GMM and numerically compute the sample distribution of the R&D returns. In the second step, we use stochastic dominance techniques to make inferences on the multinationality and foreignness effects. Results for a panel of UK manufacturing firms suggest that multinationality and foreignness effects operate in an opposite way: whilst the multinationality effect enhances R&D returns, the foreignness diminishes them. C…
The future of offshoring FDI in high-tech sectors
This paper examines what is still a relatively new phenomenon in the literature, the outsourcing/offshoring of high-technology manufacturing and services. This has become a concern for both policy makers and academics for two reasons. Firstly, policy makers have become concerned that the offshoring of high-technology sectors in the West will follow the more labour intensive sectors, and move to lower cost locations. Secondly, international business theory has tended to view low costs, and high levels of indigenous technological development as being the two main drivers of location advantage in the attraction of FDI. We show that this may not be the case for offshored high-technology manufac…
Trade in final goods and the impact of innovation
Abstract This paper analyses how innovations in imported final goods impact via terms of trade effects upon welfare growth in the domestic economy. It is shown that the impacts, although differing across countries, are quantitatively significant and worthy of further consideration.
Productivity, Ownership and National Chains: Evidence from the British Retail Sector
Abstract This paper investigates factors explaining firms' productivity differences in the British retail sector. In particular, using simultaneous quantile regressions, it aims to uncover performance gaps stemming from foreign ownership and multinationality, as well as national scale economies. The findings suggest that foreign ownership weakly explains differences in performance across retailers. Only when firms in the upper quantiles of the TFP distribution are compared, the role of foreign ownership gains statistical significance, although with exceptions. In addition, firms able to expand their infrastructure across Great Britain possess a productivity advantage over more local retaile…
In-house versus external basic research and first-to-market innovations
This paper explores to what extent conducting internal basic research, as opposed to external basic research (i.e. outsourcing and collaboration with universities) encourages firms to bring new products into the market ahead of competitors, and contributes to innovation performance. The analysis is based on a sample of Spanish manufacturing firms over the period 2006–2012. Our findings suggest that conducting in-house basic research affects firm's propensity to introduce product novelties. Furthermore, performing this activity continuously affects the probability of being product-pioneer in low and medium–low tech sectors. Collaboration with universities also helps in introducing new produc…
Old wine in new wineskins? Understanding the cooperative movement: Catalonia, 1860-1939
Different factors have been proposed to explain why in some regions there is a greater tendency to form cooperatives. The debate remains open. In this study, we look at the spread of cooperativism within Catalonia from 1860 to 1939. Catalonia was not just the leading industrial region in Spain but also where cooperatives first emerged and had a greater presence. In line with the existing evidence, we find that cooperativism spread from coastal municipalities to the hinterland. In particular, it seems that local conditions (literacy and social capital) facilitated this process, while accessibility to the transport network and neighbouring effects also played a significant role. This work was…
The impact of ICT on innovation activities: Evidence for UK SMEs
There is a continuous commitment of policymakers in the UK to support innovation in small and medium-sized firms. For these policy initiatives to be successful, an understanding of the factors driving innovation activities is required. In this study, the focus is upon the role that information and communication technologies (ICT) play in the innovation performance of UK small and medium-sized enterprises (SMEs). Using data drawn from the 2004 Annual Small Business Survey (ASBS) database, it is shown that ICT operate primarily as efficiency-enhancing technologies, although specific market-oriented applications (that is, website development) exhibit the potential to create competitive advant…
Venture capital syndication and its causal relationship with performance outcomes
Venture capital firms benefit from frequent and diverse syndication ties; these are causal of increased IPO generation.
The Determinants of Retail Productivity: A Critical Review of the Evidence
This paper discusses the literature on the established determinants of productivity in the retail sector. It also draws attention to some neglected strands of research which provide useful insights into strategies that could allow productivity enhancements in this area of the economy. To date, very few attempts have been made to integrate different specialisms in order to explain what drives productivity in retail. Here this paper rectifies this omission by putting together studies from economics, geography, knowledge management and employment studies. It is the authors’ view that quantitative studies of retail productivity should focus on total factor productivity in retailing as the resul…
Productivity, Ownership & National Chains: Evidence from the British Retail Sector
This paper investigates whether foreign-owned retailers operating in the British retail sector perform differently than domestic-owned firms with diverse national presence. Using simultaneous quantile regression techniques we test for any sign of performance gaps. The findings suggest that foreign ownership turns out to be a weak explanatory factor of differences in performance across retailers. Only when firms in the upper quantiles of TFP are compared, the role of foreign ownership gains statistical significance, although with exceptions. On the other hand, firms able to expand their infrastructure across Great Britain possess a productivity advantage over more local retailers. This impli…
Do Foreign Direct Investment (FDI) and Trade Openness Explain the Disparity in ICT Diffusion between Asia-Pacific and the Islamic Middle Eastern Countries?
This study investigates the impact of FDI and trade openness on ICT diffusion in the Asia-Pacific and Middle East regions from 1996-2005. The results indicate that while dissimilarities exist between the economies included in this study in terms of their level of socio-economic and political development, education and the growth of GDP have had a positive impact on ICT diffusion in both regions. However, while FDI has generally had a positive and significant impact on ICT diffusion in Asia-Pacific economies, its impact on Middle Eastern economies has been detrimental. The results of this study also show that trade-openness has had, in general, a positive and significant impact on ICT diffus…
The impact of the Great Recession on TFP convergence among EU countries
ABSTRACTThis article provides evidence on the effect of the Great Recession on productivity convergence among European Union (EU) economies. We use firm data, aggregated at the country-year level, to analyse the evolution of beta-convergence on total factor productivity (TFP) for 2003–2014. We obtain a positive impact of the recession on TFP (unconditional and conditional) beta-convergence across EU economies. These results support the existence of a catching-up process within the EU during the recent financial crisis. Other macroeconomic and institutional characteristics are important in fostering TFP growth, namely R&D intensity and quality of governance.
Do universities matter for the location of foreign R&D?
This article explores the extent to which the regional higher education system (HES) influences the location of foreign research and development (R&D). To do so, we use a dataset with information on the location choices of new foreign R&D establishments within Spain from 2005 to 2013. Similarly, we use a multiple measure of the three university missions, distinguishing between research capacity training, scientific research, and technology transfer. We find that the probability of a foreign R&D establishment being located in a region is positively affected by the strength of the region’s HES missions, and more specifically by the quality of its scientific research, while its re…
Exporting and innovation performance: analysis of the Annual Small Business Survey in the UK
This paper analyses the determinants of the export propensity of UK small and medium-sized enterprises (SMEs) based on the 2004 Annual Small Business Survey. Particular emphasis is placed upon the relationship between innovation activities (distinguishing product from process innovation) and export performance. In general the data suggest that some 17 per cent of firms within this group sell outside the UK. Businesses that export are also characterized by high levels of innovation activity (43 per cent of exporters innovate in products, 27 per cent innovate in process and 21 per cent innovate in both). When considering product and process innovation independently we find that both impact p…
ICT Diffusion and Foreign Direct Investment
This chapter investigates the impact of inward and outward FDI on ICT diffusion in the Asia-Pacific and Middle East regions for the period 1996-2008. The results indicate that while inward FDI has generally had a positive and significant impact on ICT diffusion in Asia-Pacific economies, its impact on the Middle Eastern countries has been detrimental. In contrast, the results of this study also show that outward FDI has had, in general, the inverse effect, it has been in general positive and significant for the Middle East countries but insignificant for Asia-Pacific economies.
The futures of offshoring FDI in high-tech sectors
This paper examines what is still a relatively new phenomenon in the literature, the outsourcing/offshoring of high-technology manufacturing and services. This has become a concern for both policy makers and academics for two reasons. Firstly, policy makers have become concerned that the offshoring of high-technology sectors in the West will follow the more labour intensive sectors, and move to lower cost locations. Secondly, international business theory has tended to view low costs, and high levels of indigenous technological development as being the two main drivers of location advantage in the attraction of FDI. We show that this may not be the case for offshored high-technology manufac…
Offshoring:a multi-country study of FDI in high-technology sectors
This paper examines what is still a relatively new phenomenon in the literature, the outsourcing / offshoring of high technology manufacturing and services. This has become a concern for both policy makers and academics for two reasons. Firstly, policy makers have become concerned that the offshoring of high technology sectors in the West will follow the more labour intensive sectors, and move to lower cost locations. Secondly, international business theory has tended to view low costs, and high levels of indigenous technological development as being the two main drivers of location advantage in the attraction of FDI. We show that this may not be the case for offshored high technology manuf…
Complementarities in innovation strategy: do intangibles play a role in enhancing firm performance?
This article assesses the role of investments in intangible capital and their potential complementarities as a way to improve firm productivity. We focus on the three intangible resources that, according to the literature, have the greatest strategic importance: research and development (R & D), advertising, and human capital. To test our hypotheses, we use a large sample of Spanish manufacturing firms and consider estimates of total factor productivity through a generalized method of moments approach. Our results show evidence of complementarities between R & D and advertising investments and between advertising and human capital. However, they are not conclusive in the case of R & D and h…
Hospital performance: Efficiency or quality? Can we have both with IT?
This paper explores influence of IT investment on hospital efficiency and quality.There is a direct effect of IT investment on service quality in hospitals.There is a moderating effect of quality on operational efficiency in hospitals.There is a U-shaped relationship between IT investments and operational efficiency.IT investments have diminishing returns beyond a certain point. The influence of IT investment on hospital efficiency and quality are of great interest to healthcare executives as well as insurers. Few studies have examined how IT investments influence both efficiency and quality or whether there is an optimal IT investment level that influences both in the desired direction. De…
Productivity, R&D Spillovers and Educational Attainment*
Economists have long agreed that the local availability of a more qualified workforce generates significant spillovers. This study suggests that these externalities may arise because plants by having access to a more qualified workforce at a regional level, can benefit more from R&D spillovers than those located in areas with less qualified workforce. This hypothesis is tested on a sample of British establishments drawn from the Annual Business Inquiry over the period 1997–2002. The main results are consistent with our expectations that the regional differences in the industry-level educational attainment of the workforce available to a plant will condition its capability of absorbing R&D s…
Sustainable Farming Practices, Awareness, and Behavior in Small Farms in Brazil
This paper investigates the relationship between the use of digital and non-digital sources of information on sustainable farming practices, institutional pressure and adoption of such practices by farmers in Brazilian semi-arid lands. The research uses a model based on the theory of reasoned action (TRA) and the institutional theory. Our results for a sample of 100 Brazilian farmers show that non-digital sources of information and ‘Coercive’ and ‘Normative’ pressures have a positive impact on farmers’ attitude towards and actual adoption of sustainable farming practices. However, digital sources of information such as TV and Radio do not play a significant role. In addition, pro-environmen…
Which innovation strategy do internationalised firms follow?: evidence from Spain
This paper compares the innovation strategy of internationalised firms, foreign-owned subsidiaries and domestic exporters, relative to firms that serve the domestic market only. The analysis is performed on a sample of manufacturing Spanish firms over the period 2006-2011. We not only focus on different forms of innovation, distinguishing between imitation and pioneer innovation, but also on the heterogeneity of exporters and foreign-owned firms. We find that foreign-owned firms and domestic exporters (excluding those serving only the EU market) are more likely to introduce market novelties ahead of competitors in low-tech sectors and, to a lesser extent, imitate more than local firms. Howe…
Is ICT the Key to Development?
Using panel data for 52 developed and developing countries over the period 1998-2006, this article examines the links between information and communication technology diffusion and human development. We conducted a panel regression analysis of the investments per capita in healthcare, education and information and communication technology against human development index scores. Using a quantile regression approach, our findings suggest that changes in healthcare, education and information and communication technology provision have a stronger impact on human development index scores for less developed than for highly developed countries. Furthermore, at lower levels of development education…