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CORDIS

Firms and Their Networks

Objective

There is mounting evidence that firms are becoming more fragmented; production is less often made “in-house”. Firms buy inputs from abroad. Tasks are often split in parts. Some are offshored, others are subcontracted. Hence, firms buy services from other, local or international, firms. But they also supply inputs to other firms. Technical change, the internet, and globalization, all facilitate this transformation.

In order to better understand how firms thrive in the new global environment, the proposed research aims to construct a networks view of the firm. Fragmentation offers new opportunities: firms may specialize in what they make best, hence creating a business network of customers and suppliers. Networks are also useful to secure provision of fragmented tasks. The firms’ suppliers of goods and services – accountants, logisticians, consultants… -- may well be related to the firm through its workers’ social networks: family ties, boardroom relations… These social networks should be useful when times are tough -- board members could help find financing in banks where their schoolmates have a job – or when times are unusually good -- employees could help in spotting the right hires among their former co-workers.

The proposed research will focus on how firms social and business networks help firms to be resilient in the face of shocks. Resilience will be measured using the firms’ and workers’ outcomes – value-added, wages, employment, or occupations. The research will have a theoretical component using general equilibrium models with heterogeneous firms, an empirical component with unique data sources from at least two countries (France, Sweden), and an “econometric theory” component which will seek to develop techniques for the study of many-to-one matches in the presence of networks. The research will speak to the labor economics community but also to the international trade community, the management community, as well as the econometrics community.

Fields of science (EuroSciVoc)

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Keywords

Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)

Programme(s)

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Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-ADG - Advanced Grant

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2016-ADG

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Host institution

CENTRE NATIONAL DE LA RECHERCHE SCIENTIFIQUE CNRS
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 960 330,00
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 410 330,00

Beneficiaries (3)

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