Globalization has set new paradigms, especially in the business world. Breakthroughs in technology (telecommunications, logistics, the internet) and ideology (most notably economic and political trends in China and India) are creating exciting opportunities as well as crucial challenges. This...

We implement an endogeneous switching-regression model for labour productivity and firms' decision to use business-to-business (B2B) e-commerce. Our approach allows B2B usage to affect any parameter of the labour productivity equation and to properly take account of strategic complementarities...

This article documents a new value creation function of private equity investors who carry out buy- and-build strategies. Buy-and-build strategies constitute an initial acquisition of a firm, serving as a “platform”, by a private equity investor and follow-on private equity-backed...

In diesem Artikel diskutieren wir die Notwendigkeit von Industriepolitik und die Rolle der Entwicklungsbanken für wirtschaftliche Entwicklung. Der Aufholprozess der Länder des globalen Südens auf das Produktivitätsniveau und den Lebensstandard des globalen Nordens ist die Ausnahme. Dafür...

Information about the success of a new technology is usually held asymmetrically between the research and development (R&D)-performing firm and potential lenders and investors. This raises the cost of capital for financing R&D externally, resulting in financing constraints on R&D especially for...

Buyer power is widely considered to decrease innovation incentives of suppliers. However, there is little empirical evidence for this statement. Our paper analyses how buyer power influences innovation incentives of upstream firms while taking into account the type of competition in the...

This paper explores the effect of bargaining in vertical relationships on the profitability of suppliers' R&D investments. Studies on the relationship between R&D and firm profitability mostly concentrate on the impact of horizontal market structure and neglect vertical interactions. Building on...

We analyze the effects of downstream firms’ acquisition of pure cash flow rights in an efficient upstream supplier when all firms compete in prices. With an acquisition, downstream firms internalize the effects of their actions on their rivals’ sales. Double marginalization is enhanced....