the contingent effect of social capital on performance of professional athletes life cycle stages and changes in regulation as moderators motorboat racing is a sport organized as public gambling in japan as well as physical strength and driving technique skills to adjust equipment are critical for racers to win a race based on the contingency theory of social capital this study analysed comprehensive panel data of motorboat racers and revealed that bonding and bridging social capital had different impacts on performance according to life cycle stages of racers and changes in regulation first bonding social capital has a positive impact on performance when racers are less experienced and most need psychological aid stemming from strong ties second bridging social capital has a positive impact on performance when racers are more experienced and have accumulated absorptive capacity to learn efficiently from diverse sources of knowledge third both bonding and bridging social capital lose their explanatory power after the changes in regulation that shifted ownership of propellers from racers to the authority which could mitiga

cooperative and noncooperative r d in duopoly with spillovers contrary to the usual assumption made in most oligopoly models relations among firms are seldom of a wholly cooperative or noncooperative type in many situations they compete in some fields while they cooperate in others an important example is the case of cooperative research efforts bringing fierce competitors together two types of agreement are observed first r d cooperation can take place at the so called precompetitive stage companies share basic information and efforts in the r d stage but remain rivals in the market place 1 a second type of agreement involves an extended collusion between partners creating common policies at the product level the usual justifications of this extension are the difficulties of protecting intellectual property the idea is then to allow partners who have achieved inventions together to also control together the processes and products which embody the results of their collaboration in order to recuperate jointly their r d investments 2 what could be expected from these types of agreement is a reduction in r d expenditures because of less wasteful duplication and a reduction of total production because of more reprinted from the american economic review 78 5 1133 1137 1988 center for operations research econometrics 1348 louvain la neuve belgium we are grateful to jean

industry specific human capital occupation and firm size evidence from taiwan this paper investigates the importance of various types of human capital and highlights the role played by industry tenure in determining wages in taiwan it also aims to offer possible explanations as to why industry specific human capital is much less significant than it is in the united states empirically it is found that other things being equal accumulating industry tenure decreases earnings for both the least skilled workers and those employed in mid sized firms industry specific skills are not yet deeply implemented in most occupations and firms of all sizes this might also account for the remarkable level of labor reallocation among industries that is observed in taiwan furthermore the capital stock accumulated through education is found to be the most crucial in determining wages in all estimations and a factor considered the engine of growth during the miraculous development of taiwan s economy however the importance of other types of human capital on earnings namely general labor market experience and firm specific human capital varies substantially across groups

the direction of innovation abstract how do innovation policies affect the direction of research is market based innovation too radical or too incremental we construct a novel and tractable model of the direction of innovation firms pursue inefficient research directions because they race to discover easy yet less valuable projects and because they work on difficult inventions where they can appropriate a larger portion of the social value fixing these inefficiencies requires policy to condition on properties of inventions that could have been discovered but were not policies which do not do so like patents and prizes may fail to encourage firms to research in the efficient direction even if they obtain the optimal quantity of r d

publicly funded r d programs and survival of patents i apply a survival model to a detailed data set of swedish patents to estimate how different financing factors affect the likelihood of patent renewal since the owners know more about the patents than potential external financiers there is a problem of asymmetric information to overcome this sweden has for a long time relied on government support rather than private venture capital pvc in the empirical analysis two kinds of government loans are unbundled the empirical results show that patents which have received soft government loans in the r d phase have a higher probability of expiring than patents without such financing but patents that have received more market oriented government loans during the commercialization phase are renewed for as long as other commercialized patents this finding suggests that rather than bad choices of projects it is the nature of the contract terms that explains the low renewal of some patents with government financing

r d support programs in developing countries the turkish experience in this study the determinants of private r d investment are examined at the level of firms in the turkish manufacturing industry we focus our attention on the effect of public r d support programs our findings indicate that public r d support significantly and positively affects private r d investment there seems to be even an acceleration effect on firm financed r d expenditures smaller r d performers benefit more from r d support and perform more r d in addition technology transfer from abroad and domestic r d activity show up as complementary processes given the scarcity of studies on r d support in technologically weaker economies our hope is that the less developed countries can exploit these findings in constructing socially beneficial technology policies

estimating the innovator s dilemma structural analysis of creative destruction in the hard disk drive industry 1981 1998 this paper studies strategic industry dynamics of creative destruction in which firms and technologies experience turnover theories predict that cannibalization between existing and new products delays incumbents innovation whereas preemptive motives accelerate it incumbents cost dis advantage relative to that of entrants would further reinforce these tendencies to empirically assess these three forces i estimate a dynamic oligopoly model using a unique panel data set of hard disk drive manufacturers the results suggest that despite strong preemptive motives and a substantial cost advantage over entrants cannibalization makes incumbents reluctant to innovate which can explain at least 57 percent of the incumbent entrant innovation gap

a structural model on the impact of prediscovery licensing and research joint ventures on innovation and product market efficiency abstract using a novel database on prediscovery licensing agreements one type of r d cooperation as well as detailed firm level and semiconductor market specific information we estimate the impact of prediscovery licensing agreements pdlas on innovation and product market efficiency our results show that pdlas reduce innovative activity in the semiconductor industry by 10 percent or 4089 patents throughout the 1989 1999 period on the contrary research joint ventures a different type of r d cooperation increase innovative activity based on a structural model we provide evidence that pdlas increase production costs and semiconductor prices by 1 percent which results in customers paying an additional 1 1 billion for semiconductors per year beyond the common concern that r d cooperations facilitate coordination activities in product markets via price fixing our study highlights that pdlas can be used as an instrument to coordinate r d activities which can reduce innovation activity and increase costs and prices

is public r d a complement or substitute for private r d a review of the econometric evidence is public r d spending complementary and thus additional to private r d spending or does it substitute for and tend to crowd out private r d conflicting answers are given to this question we survey the body of available econometric evidence accumulated over the past 35 years a framework for analysis of the problem is developed to help organize and summarize the findings of econometric studies based on time series and cross section data from various levels of aggregation laboratory firm industry country the findings overall are ambivalent and the existing literature as a whole is subject to the criticism that the nature of the experiment s that the investigators envisage is not adequately specified we conclude by offering suggestions for improving future empirical research on this issue

cooperative and noncooperative r d in an oligopoly with spillovers this paper examines the positive and normative effects of cooperative r d whereby member firms commit themselves to the joint profit maximizing level of r d in a precompetitive stage but remain fierce competitors in the product market vis a vis noncooperative r d socially first best r d and socially second best r d in the presence of sufficiently large r d spillovers neither noncooperative nor cooperative equilibria achieve even second best r d levels in the absence of spillover effects however while the cooperative r d level remains socially insufficient the noncooperative level may overshoot first and second best levels of r d copyright 1992 by american economic association

long run effects of public private research joint ventures the case of the danish innovation consortia support scheme subsidized research joint ventures rjvs between public research institutions and industry have become increasingly popular in europe and the us we study the long run effects of such a support scheme that has been maintained by the danish government since 1995 to cope with identification problems we apply nearest neighbor matching and conditional difference in difference estimation methods our main findings are that i program participation effects are instant for annual patent applications and last for three years ii employment effects materialize first after one year and iii there are no statistically significant effects on value added or labor productivity we further show that these overall results are primarily driven by firms that were patent active prior to joining the rjv and that there are no statistically significant effects for large firms the insignificant results we document for large firms coupled with the fact that these type of firms are over represented in many support programs including the one considered here leads us to suggest a rethinking of support policies that often aim at large firms

subsidizing research programs with if and when uncertainty in the face of severe informational constraints we study government optimal subsidy policies for research programs in the face of servere information asymmetry when firms have private information about the likelihood of project viability but the government cannot form a unique prior belief about this likelihood the paper makes two contributions first we show that the way in which rd under r d competition the first best outcome can also be achieved through a simple combination of a matching subsidy and an unrestricted subsidy if the shadow cost of public funds is positive an ex post equilibrium in general does not exist either under monopoly or competition we then consider two alternative policy decision criteria that are appropriate for belief free games rationalizability and max min criteria we argue that the max min criteria is preferable in our context and by way of doing so establish that the set of max min subsidy policies under either monopoly or competitive r d consists entirely of simple pure matching subsidies we further establish that allowing firms to form an r d consortium reduces the matching rate for the highest max min subsidy suggesting that cooperative r d has the potential to economize on the shadow costs of public funding of subsidies

impact of flexibility in public r d funding how real options could avoid the crowding out effect abstract this paper explores new mechanisms to ensure grants are additional to private research and development investment with no displacing or crowding out effect our results indicate that by studying the flexibility embedded in these type of projects using the real options framework it is possible to reduce the size of grants given by financing bodies while remaining equally attractive to companies this result is reached due to the higher flexibility provided in potential new grant schemes in addition to the obvious consequence of less expensive public r d funding there are other side benefits to this new scheme such as avoiding the crowding out effect while also allowing more honest and sincere research and development investment by companies because they are sharing the risk with the funding body this paper presents a case study an r d project carried out in the concentrated solar power sector in which we propose and calculate the effect of providing the grant 2 years earlier with a sensitivity analysis performed over the discount rate volatility and first commercial revenue this paper may encourage funding bodies to consider implementing alternative grant schemes valuing the flexibility embedded in r d projects

the demand for imports in korea a production analysis approach abstract balance of trade problems in the united states and other highly industrialized countries have resulted in cries for korea to liberalize its import policies this paper uses a translog cost function to investigate korea s demand for imports and the effects of trade liberalization on the demand for the country s domestic inputs this study suggest that the domestic inputs and imports are substitutes and that as the proportion of investment goods in korea s gdp increases the demand for imports will also increase thus further liberalization of korea s import policies could present short run problems in the domestic input markets

modelling the innovation value chain innovation events the introduction of new products or processes represent the end of a process of knowledge sourcing and transformation they also represent the beginning of a process of exploitation which may result in an improvement in the performance of the innovating business this recursive process of knowledge sourcing transformation and exploitation comprises the innovation value chain modelling the innovation value chain for a large group of manufacturing firms in ireland and northern ireland highlights the drivers of innovation productivity and firm growth in terms of knowledge sourcing we find strong complementarity between horizontal forwards backwards public and internal knowledge sourcing activities each of these forms of knowledge sourcing also makes a positive contribution to innovation in both products and processes although public knowledge sources have only an indirect effect on innovation outputs in the exploitation phase innovation in both products and processes contribute positively tocompany growth with product innovation having a short term disruption effect on labour productivity modelling the complete innovation value chain highlights the structure and complexity of the process of translating knowledge into business value and emphasises the role of skills capital investment and firms other resources in the value creation process

angel financing and public policy an overview abstract within the past few years public efforts have sought to encourage individual or angel investors this article provides an overview of the motivations for these efforts it assesses the underlying challenges that the financing of young growth firms pose the ways that specialized financial intermediaries address them and the rationales for public efforts to encourage angel investors the final section raises a set of questions about the practical implementation of these efforts

the impact of research grant funding on scientific productivity in this paper we estimate the impact of receiving an nih grant on subsequent publications and citations our sample consists of all applications unsuccessful as well as successful to the nih from 1980 to 2000 for standard research grants r01s both ols and iv estimates show that receipt of an nih research grant worth roughly 1 7 million leads to only one additional publication over the next five years which corresponds to a 7 percent increase the limited impact of nih grants is consistent with a model in which the market for research funding is competitive so that the loss of an nih grant simply causes researchers to shift to another source of funding

the impact of r d cooperations and mergers in pharmaceuticals on research activities and drugs offered on the market in the last 10 years the pharmaceutical industry has experienced steep unprecedented price increases which are frequently attributed to increasing drug development costs to cope with rocketing development costs companies engage in research and development r d cooperations we study the impact of r d cooperations on firms research activities and drugs offered on the market using a comprehensive dataset we find that r d cooperations formed at the early stage of the drug development process increase the number of r d projects and the number of drugs offered on the market late stage r d cooperations formed among larger firms in technology and product markets increase firms research activities but reduce the number of drugs launched on the product market results suggest that large firms cooperating in the late research stage re optimize their r d pipelines and eliminate similarly aligned research projects

assessing the effect of public subsidies on firm r d investment a survey this survey examines the empirical literature on the relationship between public r d subsidies and private r d investment over the past five decades the survey reveals a considerable heterogeneity of empirical results that cannot be explained fully by methodological issues we aim to provide further explanations of the possible causes of that heterogeneity in particular we emphasise a set of issues that in our view are critical to understanding the potential effect of public r d subsidies on private r d spending special attention is paid to the dynamic aspects and composition of firm r d the constraints faced by the firm such as financial constraints and the amount and source of public subsidies none of these issues have been investigated in depth we formulate a set of research assumptions to guide future empirical research in this field

when can government subsidize research joint ventures politics economics and limits to research joint ventures rjv s between private firms and government bureaus play a central position in the clinton administration s r d strategy to promote productivity and competitiveness of american firms the government s role in the programs varies from subsidizing private projects to providing the expertise and facilities of the federal research laboratories a substantial literature now exists that investigates the economic efficiency of private rjv s the purpose of this paper is to expand the debate to consider the conditions under which the government will choose to subsidize rjv s and whether these conditions are likely to yield desirable economic results it is useful to characterize the government as a consortium member who differs from the private venturers in several critical ways first these programs are based on the presumption that private firms are far better than government at choosing projects with commercial merit even in those programs where the government contributes scientists and facilities industry partners usually have primary responsibility for initiating projects second the objective function of the government differs from industry members indeed it is in part because government actors have goals other than competitiveness that these programs are intended to keep government bureaucrats at arm s length from technical choices finally the financial contribution of the government is usually a set share of the total bill introducing this form of subsidy changes the research investment strategies employed by a joint venture and the incentives facing firms either to participate in a consortium or to oppose its establishment the basic premise of this analysis is that a subsidized joint venture will persist only when all members including the government are satisfied a viable policy depends on economic consequences to member firms and to the extent that they have access to policy making to nonmember firms and consumers furthermore some of the relevant consequences follow predictably from market and technology characteristics

high tech r d subsidies estimating the effects of sematech abstract sparked by concerns about their shrinking market share 14 leading u s semiconductor producers with the financial assistance of the u s government in the form of 100 million in annual subsidies formed a joint r d consortium sematech in 1987 using compustat data on all u s semiconductor firms we estimate the effects of sematech on members r d spending profitability investment and productivity in so doing we examine two hypotheses the commitment hypothesis that sematech obligates member firms to spend more on high spillover r d and the sharing hypothesis that sematech reduces duplication of member r d spending whereas the commitment hypothesis provides a rationale for the government subsidies the sharing hypothesis does not we find that sematech induced members to cut their overall r d spending on the order of 300 million per year providing support for the sharing hypothesis