Objective
Research objectives and content
The question I want to address is: why do firms diversify in particular directions? This question involves a quite different approach from the ones in the literature. It assumes that firms do not diversify at random, but they diversify with larger probability in particular industries or product groups. I am interested in studying the idiosyncratic, firm-specific determinants, especially those connected to the technology used by the firms. The theoretical framework, which will justify the empirical analysis assumes that firms are heterogeneous. The firm can be interpreted as a set of competencies; together, they constitute its knowledge base, which represents the pool of resources available to the firm to perform its normal activities.
We can identify three main groups of competencies:
(1) technological capabilities,
(2) internal capabilities, and
(3) external capabilities.
I want to concentrate on the technological components of the knowledge base and on their relevance in determining the directions of diversification. If the basic intuition were correct, we would expect to find that the knowledge bases of the firms entering the same industry are closely related. Therefore an econometric analysis could give us an insight on the technological knowledge that the firms in a specific industry must posses in a specific period (because they better conform to that specific industry characteristics in that specific period) and how they change. This requires two levels of analysis: one related to the firm technological base and one related to its production activity. I will need data for both, but for the first I also need a characterisation. This requires the identification of the areas of research in which the firm is engaged. Since it is not possible to do it directly, one possible solution is to use patent data. Patents are classified in technological classes, which are by no means alternative to the SIC classes (this is not a technology based classification system). More precisely, the technological base of the firm could be represented through its distribution of patents over the technological classes.
Training content (objective, benefit and expected impact)
The contact with the host institution will surely be very stimulating for the theoretical and empirical development of the research, since important work on related fields has been carried out here. The possibility to work in an institution like STICERD will be very important for me and will also give me the opportunity to acquire the theoretical and technical skills necessary to carry out this project. This will especially be true thanks to the presence of Prof. John Sutton, which assures a large and valuable experience in the analysis of industries and firms' strategies, and that of an Econometrics group, to which I can refer for any problem regarding the empirical analysis.
Links with industry / industrial relevance (22)
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
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Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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.
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.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
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Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
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.
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.
Coordinator
WC2A 2AE LONDON
United Kingdom
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.