Bureau d'Economie Théorique et Appliquée

International audience

Abstract This book demonstrates the importance of the role of knowledge in firms and economies. The authors clarify the theoretical debates on the production and use of knowledge in organizations, and examine the challenges that face those managing knowledge at different levels of the organization. They develop the notion of ‘community’ within the context of the firm and explore the ways in which these communities learn and produce new knowledge, positing from this emphasis a challenging model of distributed governance of knowledge within and beyond firms. Using insights from academic disciplines including economics, science and technology studies, cognitive sciences, economic geography, and management science, the authors use analytical argument and empirical cases to develop a new theorization of knowledge formation and management, and in turn a new conception of the firm.

Abstract Extant literature, while often suggesting a positive link between green innovation and firm performance, is inconclusive. Moreover, the possibly moderating role of management has not been sufficiently considered. Using a unique dataset sampling 188 manufacturing firms in China, we examine how managerial concern (for green issues) moderates the relationship between green innovation and firm performance. We find that green process innovation and green product innovation both significantly (positively) predict firm performance, when not considering managerial concern for the environment. Once managerial concern is included, we observe that it compounds the positive effect of green process innovation on firm performance – but not product innovation, which no longer explains significant unique variance in firm performance. The findings hold various implications for future research and business policy. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

Sustainability performance management is a newly emerging term which addresses the social, environmental and economic (performance) aspects of corporate management in general and of corporate sustainability management in particular.The management of sustainability performance requires a sound management framework which firstly links environmental and social management with the business and competitive strategy and management and, secondly, that integrates environmental and social information with economic business information and sustainability reporting.This contribution addresses the link between the Sustainability Balanced Scorecard as a strategic information and management approach, sustainability accounting as a supporting measurement approach and sustainability reporting for communication and reporting.

The word Crowdsourcing –a compound contraction of Crowd and Outsourcing, was used by Howe in order to define outsourcing to the crowd. Beyond cost, benefits for the company can be substantial. It can externalize the risk of failure and it only pays for products or services that meet its expectations. The Crowdsourcing phenomenon covers heterogeneous situations and it has inspired a number of authors. However, we are still lacking a general and synthetic view of this concept. The aim of our work is to characterize Crowdsourcing in its various aspects. First we define of Crowdsourcing, and provide examples that illustrate the diversity of Crowdsourcing practices and we present similarities and differences between Crowdsourcing and established theories (Open Innovation, User Innovation and Open Source Software). Then, we propose and illustrate a typology of Crowdsourcing practices based on two criteria: the integrative or selective nature of the process and the type of tasks that are crowd sourced (simple, complex and creative tasks). In either case, the client firm seeks to mobilize external competencies. Relying upon the crowd can be an adequate method, because of its unique characteristics that are fostered by the Internet. Finally, we present some potential benefits and pitfalls of Crowdsourcing.JEL Codes: O32, L17, L24, L29, M19

In Architectures of Knowledge . Ash Amin and Patrick Cohendet argue that the time is right for research to explore the relationship between two other dimensions of knowledge in order to explain the innovative performance of firms: between knowledge that is 'possessed' and knowledge that is 'practised' generally within communities of like-minded employees in a firm. The impetus behind this argument is both conceptual and empirical. Conceptually, there is a need to explore the interaction of knowledge that firms possess in the form of established competences or stored memory, with the knowing that occurs in distributed communities through the conscious and unconscious acts of social interaction. Empirically, the impetus comes from the challenge faced by firms to the hierarchically defined architecture that bring together specialized units of (possessed) knowledge and the distributed and always unstable architecture of knowledge that draws on the continuously changing capacity of interpretation among actors. 
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\nIn this book, these questions of the dynamics of innovating/learning through practices of knowing, and the management of the interface between transactional and knowledge imperatives, are approached in a cross-disciplinary and empirically grounded manner. The book is the synthesis of an innovative encounter between a socio-spatial theorist and an economist. The book results from the delicate interplay between two very different epistemologies and consequent positions, but which progressively converged towards what is hoped to be a novel vision. 
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\nThe book begins by explaining why knowledge is becoming more of a core element of the value-generating process in the economy, then juxtaposes the economic and cognitive theorisations of knowledge in firms with pragmatic and socially grounded theorisations and a critical exploration of the neglected dimension of the spatiality of knowledge formation in firms. The book concludes by discussing the corporate governance implications of learning based on competences and communities, and a how national science and technology policies might respond to the idea of learning as a distributed, non-cognitive, practice-based phenomenon.
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Extreme climatic events are likely to become more frequent owing to global warming. This may put additional stress on critical infrastructures with typically long life spans. However, little is known about the risks of multiple climate extremes on critical infrastructures at regional to continental scales. Here we show how single- and multi-hazard damage to energy, transport, industrial, and social critical infrastructures in Europe are likely to develop until the year 2100 under the influence of climate change. We combine a set of high-resolution climate hazard projections, a detailed representation of physical assets in various sectors and their sensitivity to the hazards, and more than 1100 records of losses from climate extremes in a prognostic modelling framework. We find that damages could triple by the 2020s, multiply six-fold by mid-century, and amount to more than 10 times present damage of €3.4 billion per year by the end of the century due only to climate change. Damage from heatwaves, droughts in southern Europe, and coastal floods shows the most dramatic rise, but the risks of inland flooding, windstorms, and forest fires will also increase in Europe, with varying degrees of change across regions. Economic losses are highest for the industry, transport, and energy sectors. Future losses will not be incurred equally across Europe. Southern and south-eastern European countries will be most affected and, as a result, will probably require higher costs of adaptation. The findings of this study could aid in prioritizing regional investments to address the unequal burden of impacts and differences in adaptation capacities across Europe.

ABSTRACT Previous research has shown that family firms differ from non‐family firms with regard to aggregate measures of corporate social responsibility (CSR). We argue that CSR is a multidimensional concept that comprises several aspects, which range from employee relations to ecological concerns and product issues. Based on an organizational and family identity perspective, we argue that the effect of family ownership can differ across various CSR dimensions. Family firms can be responsible and irresponsible regarding CSR at the same time. We use a dataset of large US firms to test our hypotheses. Our Bayesian regressions show that family ownership is negatively associated with community‐related CSR performance and positively associated with diversity‐, employee‐, environment‐ and product‐related aspects of CSR. The largest positive effect of family ownership on CSR performance exists with regard to product‐related aspects of CSR. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

The paper provides summary statistics from the KEINS database on academic patenting in France, Italy, and Sweden. It shows that academic scientists in those countries have signed many more patents than previously estimated. This re-evaluation of academic patenting comes by considering all patents signed by academic scientists active in 2004, both those assigned to universities and the many more held by business companies, governmental organizations, and public laboratories. Specific institutional features of the university and research systems in the three countries contribute to explain these ownership patterns, which are remarkably different from those observed in the US. In the light of these new data, European universities' contribution to domestic patenting appears not to be much less intense than that of their US counterparts.

In this paper we address two problems related to what can be claimed about the powers of decentralised business networks. The first concerns the role of tacit knowledge and proximity in securing competitive advantage. Recently, in a strand of the literature concerned with the differences between tacit and codified knowledge, it has begun to be claimed that the superiority of relational and geographic proximity (for example, intense face-to-face contact, local industrial clusters, and districts) over formally constituted and distantiated networks of knowledge and learning. In the first part of the paper we dissent from this interpretation by questioning the separability of the two forms of knowledge and by suggesting that business networks largely dependent on local tacit knowledge and incremental learning may prove to be inadaptable in the face of radical shifts in markets and technologies. The second problem regards the relationship between knowledge and the organisational structure of firms and business networks. In the second half of the paper we focus on the challenge facing competence-based large firms which draw on localised sources of knowledge to argue that competitive advantage is crucially influenced by the ability of firms to mobilise and integrate diversified forms of knowledge (tacit and codified), rather than to specialise in one form. We also argue that the imperative to sustain continuous learning is adding a new architecture of organisation and governance to that traditionally associated with the reduction of transaction costs, rather than replacing it, as is implied in the new literature which privileges the firm as a nexus of competencies. Thus, a dual structure seems to be emerging, which is composed of a decentralised network of reflexive and interactive centres to advance core competencies and learning and overlaid upon a more traditional hierarchical structure for the regulation of noncore activities.

Abstract This contribution illustrates how a videogame firm copes in managing creativity and expression of artistic values, while meeting the constraints of the economics of mass entertainment. The research is based on a case study in one of the largest video game studios in the world located in Montreal, Canada. The approach considers that the creative units of the firms are the communities of specialists (game developers, software programmers, etc.). Each of these communities, which have found a fertile soil in Montreal that nurtures their creative potential, is focused on both exploration and exploitation of a given domain of knowledge. In order to benefit from these sources of creativity, the integration forces implemented by the managers of the firm to bind the creative units together for achieving commercial successes reveal a hybrid form of project management which combines decentralized platforms with strict constraints on time, and a specific management of space that favors informal interactions. However, we suggest that the integration forces put forward by the firm are not just for harnessing creative units: they also generate creative slacks for further expansion of creativity. Copyright © 2007 John Wiley & Sons, Ltd.

way in which any rule-making system is strategically exploited by those who populate it. Note1.The term 'analytic' refers to studies that seek to explain why and how laws are adopted, and their effects on the behavior of national governments.This work stands apart from the much older prescriptive literature on international law.

Compared to long-chain triglycerides (LCT), medium-chain triglycerides (MCT) display some specific physico-chemical, and biological characteristics. Thus, MCT are currently used in clinical nutrition as energy-yielding substrates, and have been advocated for three decades as a useful mean for body weight reduction. This review encompasses most aspects of MCT metabolism arguing this slimming hypothesis pro and con. Findings in support of the opinion (lower energy density, control of satiety, rapid intrahepatic delivery and oxidation rates, poor adipose tissue incorporation) may be invalidated by counteracting data (stimulation of insulin secretion and of anabolic-related processes, increased de novo fatty acid synthesis, induced hypertriglyceridemia). The balance between these two opposing influences depends on the composition (energy intake, nature of ingredients, MCT/LCT ratio, octanoate/decanoate ratio) and duration of the regimen. Due to the high energy level (around 50%) of MCT necessary to achieve body weight loss, long-term compliance to such slimming regimens is unlikely in human nutrition.

This study explores the nexus between digital and green transformations-the so-called "twin" transition-in European regions in an effort to identify the impact of digital and environmental technologies on the greenhouse gas (GHG) emissions originating from industrial production. We conduct an empirical analysis based on an original dataset that combines information on environmental and digital patent applications with information on GHG emissions from highly polluting plants for the period 2007-2016 at the metropolitan region level in the European Union and the UK. Results show that the local development of environmental technologies reduces GHG emissions, while the local development of digital technologies increases them, albeit in the latter case different technologies seem to have different impacts on the environment, with big data and computing infrastructures being the most detrimental. We also find differential impacts across regions depending on local endowment levels of the respective technologies: the beneficial effect of environmental technologies is stronger in regions with large digital technology endowments and, conversely, the detrimental effect of digital technologies is weaker in regions with large green technology endowments. Policy actions promoting the "twin" transition should take this evidence into account, in light of the potential downside of the digital transformation when not combined with the green transformation.

This survey covers the recent literature on inter-firm networks as far as they have implications for innovation and technological change. The studies are classified according to the direction of causality in network studies. In the literature, some studies focus on the effect of networks, while others on the origins and formation of networks. These are represented as a circular flow diagram of network research. Circular diagram includes three themes of analysis as: (1) origins of networks, (2) firm performance, (3) network structure, and shows the relationship between these themes as observed in network research. The aim of this survey is to guide researchers working on inter-firm networks about the theoretical and empirical results obtained up to now in the field and to highlight those areas which need further work.

This paper offers insights into the diffusion and impact of artificial intelligence in science. More specifically, we show that neural network-based technology meets the essential properties of emerging technologies in the scientific realm. It is novel, because it shows discontinuous innovations in the originating domain and is put to new uses in many application domains; it is quick growing, its dimensions being subject to rapid change; it is coherent, because it detaches from its technological parents, and integrates and is accepted in different scientific communities; and it has a prominent impact on scientific discovery, but a high degree of uncertainty and ambiguity associated with this impact. Our findings suggest that intelligent machines diffuse in the sciences, reshape the nature of the discovery process and affect the organization of science. We propose a new conceptual framework that considers artificial intelligence as an emerging general method of invention and, on this basis, derive its policy implications.

This paper focuses on the spatial dimension of learning in firms. It works with important new insights in economic geography that stress the role of spatial proximity and territorial embeddedness in the process of knowledge formation, but it also seeks to go beyond them by recognizing learning based on relations at a distance. The paper defines space as a network of both contiguous and non‐contiguous relations of varying length, shape and duration, where knowing can involve all manner of spatial mobilizations, including placements of task teams in neutral spaces, face‐to‐face encounters, global networks held together by travel and virtual communications, flows of ideas and information through the supply chain, and trans‐corporate thought experiments and symbolic rituals.

Research summary: Combining the concept of resource relatedness with the economic notion of sunk costs, we assess how the potential for resource redeployment affects market entry and exit by multi‐business firms. If the performance of a new business falls below expectations, a diversified firm may be able to redeploy its resources back into related businesses. In effect, relatedness reduces the sunk costs associated with a new business, which facilitates exit. This, in turn, has implications for entry: By decreasing the cost of failure, the potential for redeployment justifies the undertaking of riskier entries and greater experimentation. These dynamic benefits of relatedness are distinct from standard notions of “synergy.” To show support for this idea, we provide a mathematical model, descriptive data, and company examples . Managerial summary: The ability to redeploy resources inside the firm reduces the cost of entry “mistakes.” If a new business turns out to have poor profitability, the ability to redeploy more of its resources back into the firm's other businesses allows recycling of investment and can speed up the retreat. This reduces not only the cost of exit, but also the cost of entry. Managers should therefore be more willing to experiment and take risks in developing businesses that are more related to the firm's existing businesses, whereas if redeployment is likely to be difficult, managers should be cautious about entering. New businesses should be chosen in ways that facilitate redeployment, and managers should consider the implications of redeployment when setting the performance thresholds that justify entry and exit . Copyright © 2016 John Wiley & Sons, Ltd.

This paper presents the largest globally comparable panel database of education quality. The database includes 163 countries and regions over 1965-2015. The globally comparable achievement outcomes were constructed by linking standardized, psychometrically-robust international and regional achievement tests. The paper contributes to the literature in the following ways: (1) it is the largest and most current globally comparable data set, covering more than 90 percent of the global population; (2) the data set includes 100 developing areas and the most developing countries included in such a data set to date -- the countries that have the most to gain from the potential benefits of a high-quality education; (3) the data set contains credible measures of globally comparable achievement distributions as well as mean scores; (4) the data set uses multiple methods to link assessments, including mean and percentile linking methods, thus enhancing the robustness of the data set; (5) the data set includes the standard errors for the estimates, enabling explicit quantification of the degree of reliability of each estimate; and (6) the data set can be disaggregated across gender, socioeconomic status, rural/urban, language, and immigration status, thus enabling greater precision and equity analysis. A first analysis of the data set reveals a few important trends: learning outcomes in developing countries are often clustered at the bottom of the global scale; although variation in performance is high in developing countries, the top performers still often perform worse than the bottom performers in developed countries; gender gaps are relatively small, with high variation in the direction of the gap; and distributions reveal meaningfully different trends than mean scores, with less than 50 percent of students reaching the global minimum threshold of proficiency in developing countries relative to 86 percent in developed countries. The paper also finds a positive and significant association between educational achievement and economic growth. The data set can be used to benchmark global progress on education quality, as well as to uncover potential drivers of education quality, growth, and development.

Why should a firm outsource certain activities in countries where labor is inexpensive, when by using the Internet, firms are a mouse click away from an eclectic, university educated, population ready to invest in intellectually stimulating projects for little or no remuneration ? The word Crowdsourcing –a compound contraction of Crowd and Outsourcing, was used by Howe in order to define outsourcing to the crowd. Beyond cost, benefits for the company can be substantial. It can externalize the risk of failure and it only pays for products or services that meet its expectations. The aim of this paper is to characterize Crowdsourcing from a management science perspective. Our approach is mainly theoretical, although we rely on extensive illustrations. First we discuss the definition of Crowdsourcing, and provide examples that illustrate the diversity of Crowdsourcing practices. Then, we present similarities and differences between Crowdsourcing and established theories (Open Innovation, User Innovation) and a phenomenon that has inspired many studies in Economics and Management, Open Source Software. Our goal is to avoid future misunderstandings and to show that Crowdsourcing is a concept per se. Finally, we propose and illustrate a typology of Crowdsourcing practices based on two criteria: the integrative or selective nature of the process and the type of tasks that are crowdsourced (routine, complex and creative tasks). In either case, the client firm seeks to mobilize external competencies. Relying upon the crowd can be an adequate method, because of its unique characteristics that are fostered by the Internet.