Harald Strotmann

Absorptive Capacity and Innovation in the Knowledge Intensive Business Service Sector

Innovative activity is performed to a considerable extent in the service sector, namely within the so-called knowledge intensive business services (KIBS). Particularly emphasizing the role of absorptive capacity, we analyze possible determinants of incremental and radical firm innovation using firm micro data from the KIBS Foundation Survey. The results show that access to knowledge through networking and cooperation is of utmost importance for innovative activity in the KIBS sector. Access to knowledge from universities and research institutions is particularly important for radical innovation, notwithstanding the degree of formality of cooperation. In contrast, access to knowledge from clients or suppliers only has a significant impact on the probability to innovate if the cooperation with these partners is based on formal cooperation via joint projects or formal cooperation contracts. Furthermore, we find empirical evidence for a positive correlation between KIBS firms and clients from the manufacturing sector: these stimulate in particular incremental, but also radical innovation.

The Impact of Functional Integration and Spatial Proximity on the Post-entry Performance of Knowledge Intensive Business Service Firms

Knowledge intensive business service firms (KIBS) are an important element of modern economies and thus attracting increasing interest in scientific research. In the existing literature it is argued that due to the important role of knowledge, innovation and userproducer interaction in the KIBS sector, functional integration and spatial proximity are particularly decisive for a firm’s development. Nevertheless, due to the absence of suitable micro data there is a lack of studies empirically analysing the impact of functional integration and regional proximity using micro firm data. Based upon newlyconducted firm micro data in three German metropolitan regions, this paper supplements the literature by giving a multivariate empirical analysis of the determinants of post-entry performance of KIBS. The results of the estimation of firm growth equations show that functional linkages to knowledge providers, customers and co-operation partners indeed matter for the performance of young KIBS. Regarding spatial proximity, however, especially a high diversification of geographical reach is proved to be crucial.

Does Export Openness Increase Firm-level Output Volatility?

There is a widespread concern that increased trade may lead to increased instability and thus risk at the firm level. Greater export openness can indeed affect firm-level volatility by changing the exposure and the reaction of firms to macroeconomic developments. The net effect is ambiguous from a theoretical point of view. This paper provides firm-level evidence on the link between openness and volatility. Using comprehensive data on more than 21,000 German manufacturing firms for the period 1980–2001, we analyse the evolution of firm-level output volatility and the link between volatility and export openness. Our paper has three main findings. First, firm-level output volatility is significantly higher than the level of aggregate volatility, but it displays similar patterns. Second, increased export openness lowers firm-level output volatility. This effect is primarily driven by variations along the extensive margin, i.e. by the distinction between exporters and non-exporters. Variations along the intensive margin, i.e. the volume of exports, tend to have a dampening impact on volatility as well. Third, small firms are more volatile than large firms.

Determinants of Innovative Activity in Newly Founded Knowledge Intensive Business Service Firms

Innovative activity is performed to a considerable extent in the service sector, namely within the socalled knowledge intensive business services (KIBS). Nevertheless, little is known about the determinants of innovative activity in these firms. In the present paper, some of these determinants are examined on the basis of a recently created dataset of 547 newly founded German firms (KIBS Foundation Survey 2003). The results show that the access to knowledge through cooperation and networking is an important factor determining innovative activity in the KIBS sector, whereas, surprisingly, neither managerial characteristics nor spatial proximity have general influence.

Beschäftigungswirkungen der Zeitarbeit aus gesamtwirtschaftlicher Perspektive

Der Beitrag verfolgt das Ziel, mogliche positive und negative Wirkungen der Zeitarbeit aus gesamtwirtschaftlicher Sicht sowohl anhand theoretischer Argumente als auch anhand empirischer Analysen fur Deutschland zu beleuchten. Ausgehend von einer Darstellung wichtiger Bestimmungsgrunde des Angebots und der Nachfrage nach Zeitarbeit sowie einer Diskussion der Bedeutung von Zeitarbeit als Instrument zur Erhohung der Anpassungsflexibilitat auf dem Arbeitsmarkt wird untersucht, welche Grunde fur oder gegen das Auftreten positiver gesamtwirtschaftlicher Beschaftigungswirkungen sprechen und wie diese vor dem Hintergrund der bisherigen empirischen Forschungsergebnisse zu bewerten sind. In wirtschaftspolitischer Hinsicht gelangt der Beitrag dabei zu dem Ergebnis, dass eine Re-Regulierung der Leiharbeit fur die Anpassungsflexibilitat des Arbeitsmarktes und fur die Entwicklung der Gesamtbeschaftigung kontraproduktiv ware.

Corporate Contributions to Developing Health Capabilities

Abstract Despite the importance of the private sector for global development, few researchers have analyzed corporate impacts on capabilities and sustainable human development (SHD).1 Our article aims to contribute to an improved understanding of corporate potentials, impacts and risks for SHD. More specifically, we concentrate on health and health capabilities and exemplify our arguments based on our evaluation of health initiatives in the Bayer CropSciences Model Village Project (MVP). Based on representative primary quantitative survey data for two model and two control villages, as well as qualitative studies, we explain and analyze the corporate health-related activities in the model villages. We discuss how these corporate initiatives might fit into a business case, examine how they have changed the well-being of the populace as reported by the villagers, and provide results on stakeholder trust. Furthermore, we reconsider the risks of corporate neglect or even violation of important health issues. We conclude with lessons learned from the MVP and with consequences for subsequent capability approach research.

Post-Randomization Under Test: Estimation of the Probit Model

Summary The paper analyzes effects of randomized response with respect to some binary dependent variable on the estimation of the probit model. This approach is used in interviews when asking sensitive questions or if a respondent erroneously chooses the wrong category in an interview leading to ‘misdassification’. Alternatively, randomization can be used for statistical disclosure control and then is called ‘post randomization method’ (PRAM). We consider two variants which are termed ‘ordinary’ and ‘invariant’ PRAM the latter being of importance mainly in descriptive analysis. Maximum likelihood estimation of the corrected likelihood results in consistent estimates although variances increase considerably for ‘strong’ randomization. Moreover a finite sample bias has been observed in the simulation study, but it is much less pronounced than the bias implied from use of the ‘naive’ probit estimator when the binary dependent variable has been randomized. Effects of randomization on the probit estimates are also illustrated by an empirical study using cross-section data from the German ‘ΑΒ establishment panel’ (IAB Betriebspanel). The decision of firms to accept a collective bargaining agreement (‘Tarifvertrag’) is analyzed in a binary probit model using both original data and data masked by ordinary and invariant PRAM. Here, too, a remarkable bias is observed in case of ‘strong’ randomization.

Structuring Tchebycheff-Type Inequalities – A Systematical Approach / Systematisierung tschebyscheffartiger Ungleichungen – Ein Überblick

Summary Though there is a huge variety of different Tchebycheff-type inequalities in the literature a systematised structuring is missing. The few existing surveys remain rather enumerative. Therefore in this paper a structuring of Tchebycheff-type inequalities is suggested which is based on three complementary criteria, with the type of the available information serving as the main criterion. This structuring is used as a basis for a review on important Tchebycheff-type inequalities, some of which are almost forgotten in the literature. A special emphasis is met on the various relationships between different Tchebycheff-type inequalities, with some figures illustrating the results. Zusammenfassung Obwohl es in der Literatur eine Vielzahl unterschiedlichster Ungleichungen vom Typ Tschebyscheff gibt, fehlt bisher der Versuch einer zusammenhängenden Systematisierung. Die wenigen vorhandenen Übersichtsartikel bleiben in ihrer Darstellung weitgehend enumerativ. Im vorliegenden Beitrag wird daher eine Systematik tschebyscheffartiger Ungleichungen vorgeschlagen, die auf drei sich ergänzenden Kriterien basiert und dabei die Art der zur Wahrscheinlichkeitsabschätzung herangezogenen Information besonders betont. Diese Systematik dient dann als Grundlage für einen Überblick über wichtige (und teilweise in Vergessenheit geratene) Ungleichungen vom Typ Tschebyscheff. Besonderes Augenmerk wird dabei auch auf die vielfältigen Zusammenhänge gelegt, die zwischen alternativen Ungleichungen bestehen.