Evolution, Organization and Economic Behavior BUENSTORF PRINT (M2901).indd i 29/05/2012 15:26 BUENSTORF PRINT (M2901).indd ii 29/05/2012 15:26 Evolution, Organization and Economic Behavior Edited by Guido Buenstorf University of Kassel, Germany Edward Elgar Cheltenham, UK • Northampton, MA, USA BUENSTORF PRINT (M2901).indd iii 29/05/2012 15:26 © Guido Buenstorf 2012 All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc William Pratt House Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2012930578 ISBN 978 84980 628 02 Typeset by Servis Filmsetting Ltd, Stockport, Cheshire Printed and bound by MPG Books Group, UK BUENSTORF PRINT (M2901).indd iv 29/05/2012 15:26 Contents List of figures List of tables List of contributors Introduction Guido Buenstorf PART I vii viii ix ECONOMIC BEHAVIOR: INDIVIDUALS AND INTERACTIONS To weigh or not to weigh, that is the question: advice on weighing goods in a boundedly rational way Werner Güth and Hartmut Kliemt 23 Emergent cultural phenomena and their cognitive foundations Christian Cordes Consumer learning through interaction: effects on aggregate outcomes Zakaria Babutsidze 58 Scientists’ valuation of open science and commercialization: the influence of peers and organizational context Stefan Krabel 75 PART II 39 THE EVOLUTION OF FIRMS Capturing firm behavior in agent-based models of industry evolution and macroeconomic dynamics Herbert Dawid and Philipp Harting 103 The emergence of clan control in a science-based firm: the case of Carl Zeiss Markus C Becker 131 Creativity, human resources and organizational learning Thierry Burger-Helmchen and Patrick Llerena 155 v BUENSTORF PRINT (M2901).indd v 29/05/2012 15:26 vi Evolution, organization and economic behavior PART III EVOLVING FIRMS AS DRIVERS OF ECONOMIC DEVELOPMENT Economic development as a branching process Koen Frenken and Ron A Boschma 185 10 Spin-off growth and job creation: evidence on Denmark Pernille Gjerløv-Juel and Michael S Dahl 197 11 Innovationes Jenenses: some insights into the making of a hidden star Uwe Cantner Index BUENSTORF PRINT (M2901).indd vi 222 245 29/05/2012 15:26 Figures 2.1 Aspiration profiles in a simple portfolio decision 3.1 Spreading of a novel trait in a population via processes of biased cultural transmission for different values of a (denoted by ‘a’ in the figure) and b 4.1 Dependence of returns to advertising on user friendliness and communication intensity 4.2 Cross-sectional cuts into Figure 4.1 5.1 Distribution of open science identity 5.2 Distribution of perceived reputational reward from commercialization 6.1 Dynamics of per capita output averaged over 10 runs for different values of the stock-out probability 6.2 Dynamics of per capita output averaged over 10 runs for different values of the markup 6.3 Dynamics of the markup charged by firms in a single simulation run 6.4 Dynamics of per capita output averaged over 10 runs 8.1 Categories of knowledge assets, value creation and value capture 8.2 Value creation linchpin from a management perspective 8.3 Division of labor and division of knowledge balance 10.1 Median and 75th percentile of number of full-time equivalents of spin-offs and other entrants, classified by age 10.2 Job creation and job destruction of spin-offs and other entrants, classified by age 10.3 Boxplox of employment growth, classified as spin-offs and others 10.4 Kaplan-Meier survival rates for spin-offs and other entrants 11.1 Regional patent output 11.2 Cooperation potentials 11.3 Realized cooperations 31 52 68 70 87 87 113 114 116 117 158 174 176 208 209 210 212 225 227 229 vii BUENSTORF PRINT (M2901).indd vii 29/05/2012 15:26 Tables 2.1 3.1 Room for advice in different decision contexts Probability of an agent acquiring Trait or Trait given a particular model and the cultural variant held by the agent 5.1 Correlation matrix 5.2 Ordered probit and probit analysis of scientists’ open science identity 5.3 Ordered probit and probit analysis of scientists’ perceived reputational reward from commercializing research 6A.1 Parameter settings 8.1 Learning forms and creativity development factors 8.2 Management modes of division of labor and knowledge 9.1 Possible events resulting from a product innovation 10.1 Average firm size for spin-offs and other entrants, classified by age 10.2 Share of firms with positive, negative and zero growth, respectively, of spin-offs and other entrants, classified by age 10.3 Job creation and job destruction of spin-offs and other entrants, classified by age 10.4 Share of job creation and job destrucion of spin-offs and other entrants, classified by age 10.5 Yearly average of total employment for spin-offs and other entrants, classified by age 10.6 Total employment per 100 start-ups 11.1 Descriptive statistics of the networks of technological overlap 11.2 Descriptive statistics of the interpersonal networks 11.3 Network regression 11.4 Cooperation: mean degree 11.5 Scientist mobility: mean degree 11.6 Internal and external relations in the network 11.7 Cooperation network and a firm’s innovative capacity 37 50 86 89 93 122 172 177 188 207 210 211 214 215 216 227 229 232 235 236 237 238 viii BUENSTORF PRINT (M2901).indd viii 29/05/2012 15:26 Contributors Zakaria Babutsidze is Assistant Professor at the Department of Economics, SKEMA Business School, and Economist at the Department of Innovation and Competition, Observatoire Franỗais des Conjonctures ẫconomiques, Sciences-Po Paris, France Markus C Becker is Professor at the Strategic Organization Design Unit, Department of Marketing and Management, University of Southern Denmark Ron A Boschma is Professor of Regional Economics and Director of the Urban and Regional Research Centre Utrecht, Utrecht University, the Netherlands He is also affiliated with the Spatial Economics Research Centre of the London School of Economics, United Kingdom Guido Buenstorf is Professor of Economics at the University of Kassel, Germany Thierry Burger-Helmchen is Professor of Management Science at EM Strasbourg, University of Strasbourg, and member of the Bureau d’Économie Théorique et Appliquée research centre, University of Strasbourg, France Uwe Cantner is Professor of Economics at the Friedrich Schiller University of Jena, Germany, and the University of Southern Denmark, Odense, Denmark Christian Cordes is Professor of Economics at the University of Bremen, Germany Michael S Dahl is Professor of the Economics of Entrepreneurship and Organizations at the Department of Business and Management, Aalborg University, Denmark Herbert Dawid is Professor at the Department of Business Administration and Economics and the Institute of Mathematical Economics, University of Bielefeld, Germany Koen Frenken is Professor in Economics of Innovation and Technological Change, Eindhoven Centre for Innovation Studies, Eindhoven University ix BUENSTORF PRINT (M2901).indd ix 29/05/2012 15:26 ... EVOLUTIONARY ECONOMICS AS BEHAVIORAL ECONOMICS OF INDIVIDUALS AND ORGANIZATIONS Evolutionary economics is behavioral economics – it studies the behavior of individuals and organizations in economic. . .Evolution, Organization and Economic Behavior BUENSTORF PRINT (M2901).indd i 29/05/2012 15:26 BUENSTORF PRINT (M2901).indd ii 29/05/2012 15:26 Evolution, Organization and Economic Behavior. .. 15:26 x Evolution, organization and economic behavior of Technology, and a Fellow in Economic Geography at the Urban and Regional Research Centre Utrecht, Utrecht University, the Netherlands Pernille