Innovation Globalization And Firm Dynamics

This book is about the relationship between firm dynamics, innovation and globalization, the processes that are essential for long term economic growth and welfare creation. This volume deals with these three issues in three sections titled respectively: entrepreneurship, new firm formation and growth; productivity-innovation-growthnexus; globalization, multinational firms and producers’ dynamics. The book presents new studies written by distinguished researchers in the field, who use state-of-the-art methodologies and extensive sources of firm- and plant-level longitudinal data to analyze and understand these major economic issues facing modern economies. In the first section, the book proposes two comprehensive introductory surveys which explore in detail the underpinnings of entrepreneurship, new firm formation and growth in advanced and developing countries. The second fundamental issue, productivity-innovation and firm dynamics, is approached by examining key drivers of selection mechanisms such as size, scale elasticity, innovative efforts, financial fragility of the firms, barriers to entry and exit, capital and financial market distortions, institutional inefficiencies and other market imperfections which affect the ability of firms to expand or enter. The third section examines differences, linkages and intertwined evolution of foreign and domestic firms in their dynamics of survival and growth in different institutional contexts and periods. Each chapter includes a detailed discussion of the implications of the respective analyses for enterprise policy. In a concluding chapter the overall implications for enterprise policy of the analyses presented in the different chapters are drawn by the Editors. This approach ensures that the book is integrated around a coherent central theme in comprehensive framework. The book responds to a growing concern among scholars, professionals, and policy makers over the recent decades about firm ability to survive and compete in a context of increasing globalization and international competition. The approach adopted is both theoretical and empirical with consideration of paradigmatic case studies in Europe, Africa and Asia, providing new evidence on developed, developing and transition economies in a comparative perspective. The cases selected represent different levels of development, different firms strategies and paths, with distinct outcomes. The book is an essential reading for scholars and students concerned with industry development, public policy and globalization, as well as to all those involved professionally in such issues.

In this book Rajneesh Narula examines the interdependence ofglobalization and technological innovation at two levels: first,between locations, by examining the role of cross-borderinitiatives in the innovation process; second, between corporateentities, by studying the dynamics of inter-firm R&Dcollaboration. Examines the international aspect of the interdependence ofglobalization and technology. Explores the role of cross-border interdependence in theinnovation process, as well as interdependence between firms. Reveals an interesting paradox: locations and firms areincreasingly interdependent through supranational organisations andthe flow of investments, technologies, ideas, and people; butknowledge creation suffers from ‘inertia’ and remainsconcentrated in a few locations. Draws on a wide variety of data at the firm and national levelin the sphere of R&D and technological innovation. Spells out important lessons for both policy makers andmanagers on industrial policy as well as the organisation ofresearch and development by firms.

Cross-border flows of goods, services, capital, knowledge, and ideas have substantially increased. This book focuses on how the interface between firm-specific advantages, liability of foreignness, and location-specific advantages are spelled out in the more global world.

Abstract: In this paper, we analyze the transition dynamics associated with an economy's response to trade liberalization. We start by reviewing the recent literature that incorporates firm dynamics into models of international trade. We then build upon that literature to characterize the role of firm dynamics, export-market selection, firm-level innovation, and firms' expectations regarding the time path of liberalization in generating those transition dynamics following trade liberalization. These modeling ingredients generate substantial aggregate transition dynamics as they shift and shape the endogenous distribution of firms over time. Our results show how the responses of trade volumes, innovation, and aggregate output can vary greatly over time depending on those modeling ingredients. This has important consequences for many issues in international economics that rely on predictions for the effects of globalization over time on those key aggregate outcomes

Abstract: In this paper, we analyze the transition dynamics associated with an economy's response to trade liberalization. We start by reviewing the recent literature that incorporates firm dynamics into models of international trade. We then build upon that literature to characterize the role of firm dynamics, export-market selection, firm-level innovation, and firms' expectations regarding the time path of liberalization in generating those transition dynamics following trade liberalization. These modeling ingredients generate substantial aggregate transition dynamics as they shift and shape the endogenous distribution of firms over time. Our results show how the responses of trade volumes, innovation, and aggregate output can vary greatly over time depending on those modeling ingredients. This has important consequences for many issues in international economics that rely on predictions for the effects of globalization over time on those key aggregate outcomes

This volume uses the study of firm dynamics to investigate the factors preventing faster productivity growth in Latin America and the Caribbean, pushing past the limits of traditional macroeconomic analyses. Each chapter is dedicated to an examination of a different factor affecting firm productivity - innovation, ICT usage, on-the-job-training, firm age, access to credit, and international linkages - highlighting the differences in firm characteristics, behaviors, and strategies. By showcasing this remarkable heterogeneity, this collection challenges regional policymakers to look beyond one-size-fits-all solutions and create balanced policy mixes tailored to distinct firm needs. This book is open access under a CC BY-NC-ND 3.0 IGO license.

Innovation, which in essence is the generation of knowledge and its subsequent application in the marketplace in the form of novel products and processes, has become the key concept in inquiries concerning the contemporary knowledge based economy. Geography plays a decisive role in the underlying processes that enable and support knowledge formation and diffusion activities. Place specific characteristics are considered especially important in this context, however, more recently investigation into innovative capacity of places has also turned its attention to external knowledge inputs through innovation networks, and increasingly recognize the evolutionary character of the processes that lead to knowledge creation and subsequent application in the marketplace. The chapters that comprise this book are embedded at the intersection of the dynamic processes of knowledge production and creative destruction. The first three contributions all discuss the role of global innovation networks, in the context of territorial and/or sectoral dynamics, while the following two chapters investigate the evolution of regional or metropolitan knowledge economies. The final three contributions adopt a knowledge base approach in order to provide insight into the organisation of innovation networks and spatiality of knowledge flows. This book was published in a special issue of European Planning Studies.

In this book Rajneesh Narula examines the interdependence of globalization and technological innovation at two levels: first, between locations, by examining the role of cross-border initiatives in the innovation process; second, between corporate entities, by studying the dynamics of inter-firm R&D collaboration. Examines the international aspect of the interdependence of globalization and technology. Explores the role of cross-border interdependence in the innovation process, as well as interdependence between firms. Reveals an interesting paradox: locations and firms are increasingly interdependent through supranational organisations and the flow of investments, technologies, ideas, and people; but knowledge creation suffers from ‘inertia’ and remains concentrated in a few locations. Draws on a wide variety of data at the firm and national level in the sphere of R&D and technological innovation. Spells out important lessons for both policy makers and managers on industrial policy as well as the organisation of research and development by firms.

The twin impact of globalization and digitization is deeply affecting how technology and innovation are managed in firms. This contributed volume analyzes the changing dynamics in the interplay of technology, business and society and the resultant implications for innovation management at firm and policy levels. Leading experts connect global megatrends with open & user innovation, globalization of R&D, frugal innovation, sustainability and innovation ecosystems. The contributed volume is a Festschrift for Prof. Dr. Cornelius Herstatt to mark his 60th birthday.