Work in Progress

Technological hierarchies and learning: Spillovers, complexity, relatedness and the moderating role of absorptive capacity

Authors: Chatzistamoulou, N., Kounetas, K. and Tsekouras, K.

Abstract: By adopting a non parametric meta-metafrontier framework to handle technological heterogeneity, we investigate whether the decomposition of the overall technology supports the existence of multiple hierarchical technologies to shed light on the mechanisms of learning of production entities. We collect data on  european industries of manufacturing and transportation sectors for an 8 year period, and by employing the bootstrap version of the Data Envelopment Analysis, we calculate bias corrected productive performance scores and technology gap values on an annual basis. Results indicate that path dependence, spillover effects and absorptive capacity affect performance levels while technological complexity seems to inhibit knowledge of low absorptive capacity indudtries. Findings are of particular importance for appropriate industrial policy design to achieve performance improvement.

Knowledge flows and Learning. Are there any role models?

Authors: Chatzistamoulou, N., Kounetas, K. & Tsekouras, K.

Abstract: We adopt the non-parametric metafrontier framework to account for technological heterogeneity and study spillover effects conveying knowledge. We collect data on science and technology indicators at a european regional level over a three-year period from Eurostat and by adopting the Data Envelopment Analysis under variable returns to scale, we develop a heuristic algorithm to identify production entities facilitating learning. As different clusters emerge, we examine their influence on learning process of the rest. Then we focus on specific segments to identify the ultimate source knowledge flows. Findings indicate that knowledge flows benefit all production entities, however to a different extent. We also find that heterogeneous segments are not equally capable of producing knowledge while in some cases the latter inhibit diffusion. This study produces significant policy suggestions regarding how to direct knowledge flows so as to promote learming at a european level.

Convergence and Divergence Patterns in the Services Sector. Does consolidation lead to market polarisation?

Authors: Chatzistamoulou, N. & K. Tsekouras, K.

Abstract: In this paper we explore whether growth patterns of the general practices industry in England are affected by horizontal consolidation. This is materialized through devising a unique dataset from 2013 through 2016 covering eighty percent of the general practice universe. Since data on market status are not readily available, we conduct a thorough search to collect data to record consolidation activity. Thus this is the first time such data is employed. Evidence indicates that general practice industry is shrinking within the period while consolidation activity is rising. General practices growth exhibits path dependence characteristics leading to divergence. We document that consolidation appears to be a means of resistance and a significant determinant of growth along with funding, market size and returns to scale.

Non-continuous inputs-outputs variables in DEA for the estimation of knowledge generation and innovation efficiency: the case of CIS

Authors: Koutsouradis, G. and Tsekouras, K.

Abstract: Estimation of the efficiency of knowledge generation process, in the context of knowledge production functions (Griliches, 1979) is often hindered by the non-continuity of the input and output variables which are considered in frontiers parametric and non-parametric approaches. Especially, using Community Innovation Survey (CIS) microdata, crucial information, such as patents, other forms of Intellectual Property Rights and the introduction of several types of innovation is of binary type and therefore does not allow for the estimation of knowledge generation and innovation efficiency.  In the paper at hand, we develop an analytical methodological context which facilitates the inclusion of knowledge and innovation discrete input and output variables in a Data Envelopment Analysis (DEA) framework which is used to evaluate the efficiency of resources devoted to knowledge and innovation processes (KIP). We take advantage and further develop the analytical approach of Banker and Morey (1986) and Nakamura (1992). In this vein, we introduce the necessary handling of information provided by the CIS microdata in non-parametric knowledge and innovation frontiers estimation. More specifically, we first portrait the problems which arise by the mishandling of discrete knowledge and innovation inputs and outputs variables in the efficiency estimation of KIP. We employ an input oriented Variable Returns to Scale non-parametric frontier of DEA type. The main methodological idea is developed on the imposition of legitimate and reasonable hierarchical structures on the non-continuous knowledge and innovation inputs and outputs. The introduced methodological approach is tested employing the 2012-2014 wave of CIS microdata for three Southern European Countries, namely Greece, Portugal, and Spain.

Innovation, productive performance and undesirable outputs across European regions: Are there any missing links?

Authors: Stergiou, E., Kounetas, K. & Tsekouras, K.

Abstract: Technological innovation has become a main driver of regional economic growth and plays an important role in regional development. However, the prolonged economic growth intensified the environmental concerns about the harmful by-products and made the link that connects them even more solid. In this sense, the purpose of our study is to examine the efficiency of European regions by additionally incorporating undesirable outputs exerted on the environment. We assume an “open” black box of production structure and we examine the links between various stages of production where the outputs of one stage become inputs to another stage. The performance of regional economies is evaluated using a non-parametric analysis while we investigate if technology heterogeneity and differences in the infrastructure could influence the efficiency scores of each stage and the entire system in general.

Eco innovation and RD collaboration

Authors:  Chatzistamoulou, N., Dimakopoulou, A., Kounetas, K. and Tsekouras, K.

Abstract: The current study explores the area of environmental innovation. Over the past years there has been a growing number of publications which investigate the impact of several factors on the adoption of green innovation. These factors include macro, meso and micro determinants concerning the political-administrative, group-unit or firm level respectively. One of the factors that affect the decision of a firm to develop a green innovation is collaboration. The aim of the study is to explore the impact of collaboration on environmental innovations utilizing data from the Community Innovation Survey which is conducted for the years of 2012-2014.

Capabilities building and Learning insights from young Greek HGFs

Authos: Daskalou, V., Dimakopoulou, A., Gkypali, A. and Tsekouras, K.

Abstract: This study aims at enlightening the relationship between the origin of knowledge and the origin of High Growth Firms (HGFs), through an empirical qualitative research in Greek “gazelles”. We examine the way that knowledge develops in successful newly-formed enterprises during their nascent and by their early beginnings, investigating not only the types of knowledge acquired by HGFs (‘what’ do they learn?), but also the origins of their knowledge (from ‘whom’ do they learn) and the patterns of their knowledge creation process (‘how’ do they learn). Special attention is given to the impact of digital technologies in the creation of organizational knowledge. Moreover, the role of HGFs as ‘learners’ will be analyzed in relation to their function as ‘educators’ within their business ecosystem. Knowledge development and diffusion in newly formed Greek HGF will be explored through an in‐depth qualitative investigation based on a comparative case study research methodology. Research methods are involving semi-structured interviews with founders and key employees of each HGF, supplemented by observations of corporate online information.

Achieving ambidexterity in innovation performance: what is the role of integration mechanisms?

Authos: Gkypali, A., Dimakopoulou, A. and Tsekouras K.

Abstract: The introduction of product and/or process innovations has been associated with organisational tensions due to coordination, adjustment and switching costs which are in turn reflected in firm performance. Achieving a balance between firms’ innovation strategies and other business activities is necessary for firms’ sustainability. We argue that integration mechanisms need to be in place for firms to enjoy increased innovation returns from their investments. We investigate the modus operandi of two such mechanisms; specifically, firms’ introduction of organisational innovation in parallel to introducing product and/or process, and  firms’ absorptive capacity which has been found to lie at the core of the ‘learning to learn’ capability. We provide empirical evidence on the role of such integration mechanisms on various aspects of firm performance.

A glimpse to the future: The role of learning through innovation in shaping firms’ strategic intentions

Authos: Gkypali, A., and Roper, S.

Abstract: In this research we focus on how firms’ experiential learning from previously pursued strategies shapes their corresponding future strategic intentions relating to product innovation, finance, training and export. Such strategic intention-decision dipole is built on a) complementarities between firms’ future strategic intentions that make up firms strategic planning for the future and b) common intention-broadening entrepreneurial activities associated with learning acquired from past experience in strategic decision-making processes. Especially learning gains from past strategic decisions to introduce a product innovation may be the core around which firms shape their strategic intentions. Using an unbalanced panel of micro, small and medium UK firms for the period 2015-2018 we provide empirical evidence that strong exist correlations between firms’ strategic intentions suggesting that common antecedents – including past innovation decision – result in a simultaneous consideration of multiple strategic intents. Second, we find that past product innovation is influencing horizontally – albeit to a different extent – firms’ future strategic choices related to training, external finance, and exporting. Third, we find that prior innovation is associated with broader and more complex sets of strategic intentions.

Export Status and SME Productivity: Learning-to-export versus learning-by-exporting and the role of Innovation

Authos: Gkypali, A., Love J. and Roper, S.

Abstract: We examine the strategic exporting choices of smaller firms and their links to productivity.  This involves considering not only exporters and non-exporters, but also an intermediate category of export-capable firms. This categorisation helps to identify the direct and indirect role of innovation, issues which tend to be obscured when simply comparing exporters with (all) non-exporters.  We find evidence of both learning-to-export and learning-by-exporting among SMEs. Innovation plays a key role..

The impact of innovation efficiency on the production of new knowledge: A manufacturing firm level perspective

Authos: Tsekouras, K., Kanellopoulos V.  and Koutsouradis, G.

Abstract: The present paper examines the effect of innovation efficiency on the production of new knowledge from a firm level perspective. It resorts to the Greek version of Community Innovation Survey (CIS 2012-2014 microdata) and employs 1274 firms of the manufacturing which constitutes the main sector of examination. It assumes a Knowledge Production Function (KPF) and finds that R&D spillovers have a positive and significant effect on the production of new knowledge when both OLS and logistic regression techniques are applied. However, innovation efficiency come from a Banker and Morey (1986) Data Envelopment Analysis (DEA) with categorical variables has a statistically insignificant impact on the production of new knowledge measured by both firm’s turnover and firm’s patent applications. This result seems to arise from a large amount of inefficiency originated from small and large firms.