targeting jobs to local people the british urban policy experience the paper compares the effectiveness of a number of employment generating schemes in terms of the proportion of jobs created going to locally resident unemployed workers whilst the paper establishes that considerable leakages do occur a wide range of experience is identified which may in part be due to the differing methodologies used by the policy analysts concerned this is due to the often inadequate attention paid to the study of local labour market institutions and dynamics some categories of workers continue to be systematically discriminated against and policies which are currently being developed may help some of these workers overcome obstacles but without identifying and dismantling labour market barriers

an examination of the antecedents and implications of patent scope this paper focuses on the concept of patent scope and contributes to existing research in three ways first it offers a re examination of the construct and identifies two dimensions of patent scope 1 the number of variations of the core inventive idea identified in the patent reflected in the number of claims in the patent e g merges and nelson 1994 and 2 the positioning of those variations in the inventive space which is reflected in the number of technological classes in which patent examiners classify those claims second it investigates the implications of patent scope for the firm s subsequent inventive performance and finds that when the scope of a patents spans across a higher number of technological classes the extent to which the inventing firm itself succeeds in building on the knowledge underlying its own patent is lower third it investigates the antecedents of scope and suggests that prior investment in scientific knowledge and in related inventive experience are two factors that affect the scope of the patents that firms develop the theoretical predictions elaborated in this paper are supported by an empirical examination of a longitudinal sample of firms in the photonics industry

the innovative performance of german multinationals abroad evidence from the european community innovation survey this article analyzes cross country differences in innovation behavior of subsidiaries of german multinational enterprises the analysis is based on data from community innovation survey cis4 and covers 16 european countries we find considerable differences in innovation input intensity and innovation output intensity between german subsidiaries located in different european countries multivariate analysis reveals that these differences are largely related to firm characteristics a significant relationship between firm level innovation and host country characteristics can only be found for innovation output copyright 2011 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

what makes basic research economically useful abstract economic analysis has helped us understand the strong economic dimension in the explosive growth of science and more recently the reasons for continuing public subsidies however the growing domination of the market failure approach has led to the analytical neglect of two major questions for policy makers how does science contribute to technology are the technological benefits from science increasingly becoming international on the former too much attention has been devoted to the relatively narrow range of scientific fields producing knowledge with direct technological applications and too little to the much broader range of fields the skills of which contribute to most technologies on the latter national systems of science and of technology remain closely coupled in most major countries in spite of the technological activities of large multinational firms empirical research is needed on concentration scale and efficiency in the performance of basic research where techniques and insights from the applied economics of industrial r d are of considerable relevance there is no convincing evidence so far of unexploited economies of scale in basic research this evidence shows that many policies for greater selectivity and concentration in basic research have been misconceived economists and other social scientists could help by formulating more persuasive justifications for public subsidy for basic research and by making more realistic assumptions about the nature of science and technology

mergers acquisitions and innovation performance in the telecommunications equipment industry the worldwide telecommunications equipment industry has experienced an enormous number of mergers and acquisitions m a this article examines the innovation determinants of m a activity a

the local income and employment impact of lancaster university the paper presents the results of an analysis using keynesian local open economy multipliers of the impact of lancaster university upon income and employment in the local city and surrounding hin

dreams of urbanization quantitative case studies on the local impacts of nuclear power facilities using the synthetic control method this paper uses the synthetic control sc method to examine how the establishment of nuclear power facilities npfs in japan in the 1970s and 1980s has affected local per capita income levels in the municipalities in which they were localted npf municipalities eight quantitative case studies using the sc method clarify that the effects of npf establishment on per capita taxable income levels are highly heterogeneous the estimated effects are often economically meaningful and in some cases huge the income level was 11 higher on average and 62 higher in one municipality in 2002 when compared with counterfactual units on the other hand a few of the npf municipalities have received only weak or negligible effects from npf establishment the post estimation comparisons of employment between the npf municipalities and the sc units suggest that the size of the direct labor demand shocks and subsequent indirect employment effects on nontradable service sectors have contributed to the increase in per capita income levels

a local income and employment multiplier analysis of a proposed nuclear power station development at hinkley point in somerset nuclear power stations have a range of local economic implications for their host localities some direct through local employment on the development others more indirect resulting from the filtering through into the local community of income and expenditure this paper focusses on the indirect effects using a disaggregated dynamic multiplier approach the case study used is that of the proposed pressurized water reactor pwr nuclear power station development at hinkley point in somerset england the analysis highlights the significance of the indirect effects and the importance of disaggregation by expenditure category and over time a particularly important distinction is that between the indirect effects associated with the construction stage of the development and with the operational stage

the dynamics of technological innovation the sector of antibacterial medicines abstract this is an empirical and historical study of the dynamics of technological innovation in antibacterial medicines a key sector of the pharmaceutical industry it is based on an analysis of all the innovations that were introduced over the period 1935 1987 from prontosil the first sulphonamide through penicillin and the semisynthetic antibiotics to the monobactams and the quinolones of the mid 1980s in the historical section we describe the influence that antibacterial medicines have had on the structure and research intensity of the innovating companies and through them on the pharmaceutical industry and its geography we also describe the catalytic role played by government agencies and universities in the empirical section the innovations are evaluated in terms of originality and market performance and are classified into four technological trajectories their distribution over time and among technological trajectories companies and countries the relation between originality and market performance of individual innovations the interplay between social needs market demand and technological innovation the role of market successful radical innovations in the launching of technological trajectories the orientation of subsequent academic and industrial research and the establishment of corporate technology traditions provide insights in both innovation theory and the dynamics of technological innovation

demand pull technology push and government led incentives for non incremental technical change abstract rising expectations about future demand for new technologies increase the incentives for investments in innovation by enlarging payoffs to successful innovations how well does this notion of demand pull apply to non incremental technological change when demand is largely attributable to actions by governments in this case inventors of the most important inventions did not respond positively to strong demand pull policies filing of highly cited patents declined precipitously just as demand for wind power created a multi billion dollar market three explanations for this apparent inconsistency with the demand pull hypothesis played a role 1 the rapid convergence on a single dominant design limited the market opportunity for non incremental technical improvements 2 even though the policies implemented were stringent enough to stimulate demand uncertainty in their longevity dampened the incentives for inventions that were likely to take several years to pay off and 3 alternative explanations such as declining r d funding and weakening presidential engagement on energy appear to have been important

towards a more historical approach to technological change an economic historian does not get far in trying to interpret the comparative performance of national economies without confronting issues surrounding the conceptualisation and measurement of technology thus i have found myself in recent years wrestling with the historical phenomenon known as american technological leadership and this research experience has generated some views on more general matters vernon ruttan s assessment of the current state of the field is relatively unfavourable in his view promising theoretical beginnings such as induced innovation and path dependence have not been successfully integrated with each other nor with a programme of empirical research approaches to endogenous growth have not yet confronted the research and development process in all its richness and micro level detail this critique has much validity with respect to the more abstract literature cited but i would point in contrast to a number of promising recent efforts to transmute theoretical concepts into operational research agendas and empirical projects as laid out most clearly by arrow i 962 investment in research for the purpose of generating new technology differs in two fundamental ways from conventional investment appropriability and uncertainty broadly speaking those economic sectors that exhibit high rates of technological progress over extended periods are those that have solved these two problems in one way or another in the united states just five industries have accounted for more than 7500 of all industrial r d spending in the postwar period aircraft electrical machinery non electrical machinery chemicals and allied products and motor vehicles rosenberg i992 pp 66 9 but the specific institutional structures that have mitigated problems of appropriability and risk have varied widely private market power government procurement programmes legal protection for intellectual property cooperative and non profit research arrangements and diversified risk portfolios have all been important in one or another instance but one would not expect to find many stable empirical regularities with respect to any subset of these variables one of the implications of this perspective is that it is difficult both in practice and in principle to maintain a clear distinction between innovations in pure technology on the one hand and adoptions or diffusion of alreadyexisting technologies on the other romer i996 argues that the most basic distinction among productive inputs is between ideas and things the first being non rival though sometimes imperfectly excludable in use the latter

using a metropolitan area econometric model to analyse economic development proposals this paper shows how an integrated input output and econometric model has been developed and used by a municipal government to evaluate economic development proposals the model simulates the impact of attracting or retaining various types of new businesses and calculates fiscal impacts for state and local governments it can be used to determine a government s bottom line tax concession or how much it is witting to give up to attract new businesses into the community we present examples of proposals evaluated using our louisville metropolitan area econometric model and suggest that the methodology is readily adaptable to other urban areas

technological regimes and schumpeterian patterns of innovation this paper proposes that the specific pattern of innovative activities in an industry can be explained as the outcome of different technological learning regimes a technological regime is defined by the particular combination of technological opportunities appropriability of innovations cumulativeness of technical advances and properties of the knowledge base building upon the distinction between schumpeter mark i and schumpeter mark ii industries this paper provides empirical estimates of the relationships between indicators of the schumpeterian patterns of innovation concentration of innovative activities stability in the hierarchy of innovators and importance of new innovators and indicators of the variables defining technological regimes

area policy impacts a multiplier analysis of gear this paper attempts to quantify the employment and income effects of the glasgow eastern area renewal gear programme on its target area this is done using an augmented keynesian multiplier approach the multiplier model is adjusted to take into account the particular characteristics of the injection and the fact that the target area is small and well integrated within a large conurbation the results are disaggregated so that the impact of each element of the programme is separately identified and the overall results are subject to sensitivity analysis although the estimated increases in employment and income are large in absolute terms they are small relative to the decline that immediately preceded the introduction of the gear programme

on measuring child costs with applications to poor countries the theoretical basis for measuring child costs is discussed and detailed consideration is given to two straightforward procedures for calculation engel s food share method and rothbarth s adult good method each of these methods embodies different definitions of child costs so that the same empirical evidence can generate quite different estimates depending on the method used it is shown that true costs are generally overstated by engel s method and understated by rothbarth s procedure although the latter unlike the former can provide a sensible starting point for cost measurement our estimates from sri lankan and indonesian data suggest that children cost their parents about 30 40 percent of what they spend on themselves

estimation and comparison of two simple models of equivalence scales for the cost of children in this paper two simple models of equivalence scales for the cost of children were presented estimated and their underlying assumptions were tested those attributed to engel and rothbarth the data are from the greek household expenditure survey undertaken in 1981 1982 and concern 1669 households it seems likely that the engel model probably overstates whilst the rothbarth model may understate the true cost of children excerpt

the employment effects of a regional capital subsidy swales j k 1981 the employment effects of a regional capital subsidy reg studies 15 263 273 in this paper neoclassical models are developed to analyse the impact of a proportionate capital subsidy on the level of employment in a perfectly competitive and monopolistic industry in these models the level of output factor inputs product price and factor prices are determined simultaneously in both models the sign on the change in employment depends solely on the elasticity of demand for the product when the models are used to analyse the introduction of a regional subsidy there is a strong presumption that the predicted change in employment will be positive

science dependence of technologies evidence from inventions and their inventors abstract articulating a compelling economic rationale to justify investments in research by definition furthest removed from direct immediate economic benefit is perhaps one of chief challenges of r d managers policy makers and science analysts in the years ahead although several innovation studies and surveys have provided some convincing empirical evidence of impacts and benefits of research to technical progress there is still an urgent need for comprehensive models reliable data and analytical tools to describe and monitor links between r d and industrial innovation in more detail as for the role of scientific and engineering research in the innovation process this paper reports on the findings of a novel methodology to increase our understanding of the contribution of research efforts to successful technical inventions the approach is based on a nation wide mail survey amongst inventors working in the corporate sector and the public research sector in the netherlands the inventors inside information regarding their patented inventions and related technological innovations on the market provided a range of quantitative data on the importance of the underpinning research activities statistical models attempting to explain the degree of science dependence of the inventions identify a range of relevant variables covering the inventor s own capabilities and previous r d achievements external information sources as well as the inventor s r d environment in general some 20 of the private sector innovations turned out to be partially based on public sector research furthermore citations in patents referring to basic research literature were found to be invalid indictors of a technology s science dependence

the distribution of school leaver unemployment within scottish cities this paper examines the phenomenon of intra urban unemployment in the context of school leaver unemployment in scottish cities unlike much of the previous work in this area the paper avoids the ecological fallacy by utilising data on individual school leavers from the 1981 scottish school leavers survey in conjunction with detailed small area statistics from the 1981 decennial census probit analysis is employed to avoid certain statistical problems the results indicate that in terms of employment probabilities there is little evidence of any area effects within scottish cities in this sense there is one urban labour market in which personal characteristics matter but where area of residence is of little import these findings were found to hold in aberdeen dundee edinburgh and glasgow within each of these cities the effects of inter city variations in unemployment rates was found to fail disproportionately on the less qualified and less advantaged young job seekers

estimating the benefits of job creation from local investment subsidies this paper reviews the application of project appraisal techniques to analysing the cost effectiveness of local investment subsidies advance factory building cost per job measures are shown to be dependent upon the method of assessing the number of jobs created and the assumptions used in evaluating exchequer as well as social costs and benefits if realistic probabilities are adopted about the likelihood of previously unemployed persons obtaining a job other than in the advance factories then such local investment subsidies are not economically viable in exchequer terms local investment subsidies may be justified on cost benefit grounds but even by this criterion the number of subsidy created relative to subsidy diverted jobs is crucial to the decision

towards a dynamic schumpeterian welfare economics knowledge plays an increasingly important role in shaping the dynamics of an economy a static paretian welfare economics is therefore inadequate and needs to be supplemented by a dynamic schumpeterian welfare theory a dynamic welfare economics acknowledges the role of knowledge and communication as knowledge develops cumulatively in a social environment knowledge may not be readily diffused or exchanged different costs of communication need to be considered each affecting the creation of new knowledge recent developments in intellectual property right ipr law are evaluated to determine the extent to which they affect communication costs and thus future economic welfare

policy review section in this policy review section gerry stoker of the institute of local government studies presents a critical review of the role of urban development corporations udcs in comparing the experience of the udcs consideration is given to the varying nature of the land and property market in each udc area to the relationship with local authorities and other local bodies and the regeneration strategies pursued by the udcs this is followed by an assessment of the impact of the udcs in economic social and political terms in the second article john britton of the university of toronto examines the theoretical case for interventionist public policies to assist the innovation process in small and medium sized enterprises these arguments are supported by a review of the experience of various national support programmes introduced in the uk in particular the manufacturing advisory service introduced in 1978 and the design advisory service launched in 1982

r d cooperation and failures in innovation projects empirical evidence from french cis data the second french community innovation survey cis indicates that 14 of rd collaborating firms had to abandon or delay their innovation projects due to difficulties in their partnerships an outcome which we term cooperation failures controlling for sample selection on the cooperation decision our estimates show that firms collaborating with competitors and public research organizations pros especially when they are foreign are more likely to delay or stop an innovation project because of difficulties encountered in their rd partnerships more surprisingly firms collaborating with their suppliers also face a higher risk of cooperation failures at least for pros firms can reduce the risk of cooperation failures through previous experiences in partnerships larger firms and group subsidiaries are less likely to face cooperation failures and so do firms in industries with a strong appropriability regime

linear household technologies this paper discusses estimates and formally compares the best known procedures for incorporating demographic variables into complete demand systems in particular a class of general procedures belonging to gorman s family of general linear household technologies is introduced estimation and comparison of different procedures make use of italian household budget data for the years 1973 1992 incorporating a single demographic variable family size into a generalized quadratic almost ideal demand system in our empirical example however even the most general household technologies are unable to fully capture the behavioural heterogeneity shown by the data copyright 2000 john wiley sons ltd

knowledge sources patent protection and commercialization of pharmaceutical innovations abstract this paper investigates different types of innovations from radical to incremental in the pharmaceutical industry by studying bibliometric data of drugs approved by the united states food and drug administration fda looking at time to market aspects knowledge sources of these innovations and protection strategies scientific knowledge stemming from the public sector is found to be important for all innovations nevertheless radical innovations build on a higher degree on basic research and they build on a significantly higher share of own prior scientific research than do incremental innovations furthermore each drug is shown to be accompanied by on average about 19 journal publications and 23 additional patents additional patent filings peak when the commercialization of the drug is in reach firms do not differ among the various types of innovations regarding the amount of additional patent filings but rather with the speed of filing these patents finally this work contributes to the improvement of future econometric analyses that aim to link bibliometric indicators such as patent or publication counts to firm success

uncertain intellectual property conditions and knowledge appropriation strategies evidence from the genomics industry innovating science and technology based firms often endure a sustained period of uncertain intellectual property rights ipr protection before patents could be granted to their valuable knowledge assets this problem is exacerbated as firms increasingly develop their innovations or operate in countries with weak ipr institutional environments but how does ipr uncertainty affect firms strategy toward knowledge appropriation capturing of economic value from their knowledge assets and toward providing access to these knowledge assets drawing on research from the economics of science and intellectual property strategy we examine this question using a novel panel data covering 362 firms and organizations in the knowledge intensive genomics industry based on all genomics patents and matching papers from 1988 to 2005 we find that under uncertain ipr conditions firms reveal and accumulate more knowledge through open science follow on publishing but shift to knowledge appropriation through commercial science follow on patenting when ipr uncertainty is narrowed this effect is most salient when firms develop their knowledge assets or operate under strong ipr institutional regime for highly science based knowledge assets firms continue tapping into open science for access and reciprocity in knowledge acquisition from the scientific community these findings highlight the role of patent grant as a potential lever to shape firms knowledge processes and long term innovative capacity and the emergence of a concerted science strategy employed by firms

collaborative pre competitive r d and the firm abstract governments in many countries have supported programmes of collaborative pre competitive r d in enabling or generic technologies the paper is based on 6 years of research into theuk alvey advanced information technology it programme augmented by research on the swedish it4 programme our focus is the relationship between pre competitive collaborative r d and wider firm strategies and processes the underlying premises of the paper are that the benefits of pre competitive r d are long term rather than short term systemic rather than discrete and accessible only through analysis of processes rather than by counting outputs or calculating return on investment the research provides insights into the strategies and mechanisms of firms participation modes of collaboration and the process of technology transfer knowledge assimilation and application within a firm

the internationalisation of r d by multinationals a trade off between external and internal proximity overseas production is frequently seen as a force inducing the decentralization of rd it should on the contrary be completed by the implementation of relations of proximity internal to the firm which they refer to as internal proximity from this perspective the multinational firm that manages dispersed r d units is seen as facing a tension an organizational trade off between external proximity and internal proximity copyright 1999 by oxford university press

ideas for rent an overview of markets for technology this article surveys some of the recent literature on technology markets and summarizes its main issues and insights we structure our analysis in three parts the supply and demand of technology the factors that condition the formation and growth of technology markets industry structure and dynamic issues in addition we summarize some of the studies that have tried to document the size and growth of these markets we find that the literature has focused mainly on the supply of technology but several other aspects of these markets remain under studied including the demand for external technology the role of uncertainty in technology markets and the dynamic interaction between industry structure and the market for technology understanding these will illuminate whether markets for technology will continue to grow or remained confined to pockets of the economy copyright 2010 the author 2010 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

job additionality and deadweight spending in perfectly competitive industries the case for optimal employment subsidies abstract this paper links the old literature on employment subsidies with the current theories of contract and regulation one important source of inefficiency of employment subsidies is non additional employment and deadweight spending which occur when private firms receive a subsidy for jobs that would have been created without the subsidy we identify the asymmetry of information between the government and the private firm as the source of these problems when the government proposes optimal incentive contracts to promote employment we show that all employment creations are additional and that the deadweight spending is equal to the information rent which may be null when firms types are discrete

industry or academia basic or applied career choices and earnings trajectories of scientists we extend life cycle models of human capital investments by incorporating matching theory to examine the sorting pattern of heterogeneous scientists into different career trajectories we link differences in physical capital investments and complementarities between basic and applied scientists across industry and academic settings to individual differences in scientist ability and preferences to predict an equilibrium matching of scientists to careers and to their earnings evolution our empirical analysis using the national science foundation s scientists and engineers statistical data system database is consistent with theoretical predictions of i sorting by ability into basic versus applied science among academic scientists but not among industry scientists and ii sorting by higher taste for nonmonetary returns into academia over industry the evolution of an earnings profile is consistent with these sorting patterns the earnings trajectories of basic and applied scientists are distinct from each other in academia but are similar in industry this paper was accepted by lee fleming entrepreneurship and innovation

evaluation of deadweight spending in regional enterprise financing tokila a and haapanen m evaluation of deadweight spending in regional enterprise financing regional studies the problem of deadweight spending has been previously studied using diverse methods however regional variations in deadweight spending have not yet been considered an evaluation of regional business subsidies in finland during 2000 2003 is conducted the analysis reveals regional differences in deadweight spending in proportional and particularly in monetary terms deadweight spending is dependent on many firm project and regional level factors which also largely account for regional differences however there seems to be some regional variation in deadweight spending that originates from differences in the subsidy processes among regions tokila a et haapanen m evaluer les investissements non productifs dans l aide regionale a la creation d entreprise regional studies dans le passe la question des investissements non productifs a ete etudiee a partir de diverses methodes cepend

in house versus external basic research and first to market innovations this paper explores to what extent conducting internal basic research as opposed to external basic research i e outsourcing and collaboration with universities encourages firms to bring new products into the market ahead of competitors and contributes to innovation performance the analysis is based on a sample of spanish manufacturing firms over the period 2006 2012 our findings suggest that conducting in house basic research affects firm s propensity to introduce product novelties furthermore performing this activity continuously affects the probability of being product pioneer in low and medium low tech sectors collaboration with universities also helps in introducing new products ahead of competitors but contracting scientific research from universities does not lead to a pioneer strategy results also reveal the absence of complementarities

what makes companies pursue an open science strategy whereas recent scholarly research has provided many insights about universities engaging in commercial activities there is still little empirical evidence regarding the opposite phenomenon of companies disseminating scientific knowledge our paper aims to fill this gap and explores the motivations of firms that disclose research outcomes in a scientific format besides considering a dimension internal to the firm we focus particularly on knowledge sourcing from academic institutions and the appropriability regime we conduct an econometric analysis with firm level data from the fourth edition of the french innovation survey cis and matched scientific publications for a sample of 2512 rd performing firms from all manufacturing sectors this analysis provides evidence that firms are more likely to adopt academic principles if they need to access scientific knowledge that is considered important for their innovation development whereas the mere existence of collaborative links with academic institutions is not a strong determinant furthermore the results suggest that the inclination of firms to publish is sensitive to the level of knowledge spillovers in a sector and the effectiveness of legal appropriation instruments c 2013 elsevier b v all rights reserved

factors underlying the employment effects of financial assistance policies this paper examines the employment creation effects of financial assistance to industry the assistance schemes covered are the regional policy instruments of regional development grant and regional selective assistance and the assistance policies of local authorities and a number of other agencies using survey data and regression techniques it is shown that there are significant variations in cost effectiveness between assistance schemes and between projects of different purpose a policy implication of this is that agencies could increase the employment creation effects of their policies by focusing assistance on particular types of project

managing r d in technology followers the r d effort even of the largest most technologically advanced developing countries and their most sophisticated firms cannot match that of the major industrial nations or the largest corporations our objective in this paper is to analyse innovation technical change and r d management in technology leaders to build a framework for r d in technology followers outside of those major nations this framework emphasises the importance of specific learning mechanisms and puts forward an argument that in house r d is indeed required in technology followers but a profoundly different type of r d r d units based in the firm can become the location for organised learning the problem solver of last resort in production the in house knowledge store and gatekeeper and the focus for independent design and product development capacity

political parties and district council economic policies 1978 90 strong political party effects have previously been found in local government economic policies in london this paper assesses whether the same holds true for the 333 non metropolitan district coun

demographic variables in demand analysis in this paper the authors discuss five procedures for incorporating demographic variables into theoretically plausible demand systems translating scaling and the gorman reverse gorman and implicit prais houthakker procedures these five procedures are used to incorporate a single demographic variable the number of children in a household into the generalized ces demand system using household budget data for the united kingdom for the period 1966 1972 excerpt

multinational experience and the creation of linkages with local firms evidence from the electronics industry the paper focuses on the nature and determinants of multinational firms creation of linkages with local firms with specific reference to the electronics industry the study of the recent evolution of international operations in this sector seems to highlight a relevant and somewhat generalisable pattern of industrial organisation and dynamics it is argued that the nature and intensity of multinational companies involvement into linkages with local counterparts are strongly influenced by a combination of factors that are partially inter dependent but still rely on different decision making centres on the one hand host countries long term investment policies in the field of human capital training and accumulation and on the other hand firms decisions to take roots in local contexts through the creation of foreign subsidiaries it is further suggested that human capital and subsidiaries will particularly favour the development of collaborative linkages with local firms compared to previous work of the authors on this subject this paper utilises an expanded and updated data set covering international operations of the top european and us electronics companies over the 1984 1995 period and attempts a more detailed and in depth analysis concerning the nature determinants and evolution in time of international growth strategies

evaluating irish industrial policy in terms of deadweight and displacement a quantitative methodological approach evaluation should consider what would have happened in the absence of assistance to produce an assessment of this counter factual scenario involves considering the twin concepts of deadweight and displacement an evaluative framework is developed for measuring the impact of grant assistance to individual firms logit regression analysis is used to estimate predictive models for deadweight and displacement the data were gathered during face to face interviews with the managing directors of firms that received grants from shannon development in the shannon region of ireland self assessment approach the objective was to establish whether certain characteristics of grant assisted firms can predict probable deadweight and displacement effects in the case of deadweight it was found that grant type size of firm whether investment appraisal carried out by firm included grant received and whether firm was a first time or repeat grant recipient all impact on the level of deadweight regarding displacement

why do firms do basic research with their own money abstractthe question to be addressed is why do private firms perform basic research with their own money interest in this question derives from both analytical and utilitarian considerations there is empirical evidence in the united states which provides the main context for this paper supporting the view that basic research makes a significant contribution to the productivity growth of the economy 4 7 it is widely held that social returns from basic research are significant and higher than private returns and it is for this reason that most such activities continue to be financed by the taxpayer this also implies that measures aimed at increasing basic research by the private sector will be welfare improving in the united states the federal government in the years since the second world war has provided the vast majority of all funds devoted to basic research although the federal share has been declining in recent years and although that share is at its lowest level in about 20 years it still constitutes about two thirds of the total 10 this abstract was borrowed from another version of this item

can local incentives alter a metropolitan city s economic development cities in the us and europe have chosen increasingly to offer incentives designed to attract and retain local economic development the increased use of local incentives has occurred with little or

japan s national innovation system current status and problems this paper examines japan s national innovation system that was so successful in the 1980s and seems to have lost its competitiveness in the 1990s in recent years the competitiveness of industry relies not only on industry itself but more and more on the national innovation system as a whole the first section of the paper points out that japan s potential economic growth rate is likely to decline in the twenty first century primarily because of the rapidly ageing population and therefore it is important to increase productivity through technological progress then in the following sections each sector of japan s national innovation system namely industry universities and government is examined and directions of reform are suggested copyright 2000 by oxford university press

is energy intensity important for the productivity growth of eet adopters abstract energy efficient technologies eet have attracted strong interest because of their role in reducing environmental damage their adoption however remains rather low while their impact on productivity is substantial and differentiating with respect to technological characteristics energy intensity being such an obvious characteristic could be employed to classify eet adopters thus giving rise to two heterogeneous technologies i e those corresponding to firms of low and high energy consumption hence this paper examines the impact of energy intensity on the productivity growth of firms adopting eet in varying time intervals through a metafrontier based framework while also decomposing that impact in terms of technical efficiency and scale efficiency changes the analysis is complemented by examining the role of firm specific characteristics on the productivity growth through linear regression

toward an aspiration level theory of open innovation although open innovation has become increasingly established in the management literature comprehensive theoretical explanations of what drives firms to be open are sparse taking the perspective of the behavioral theory of the firm we conceive of open innovation as a form of nonlocal search arguing that firms will turn to open innovation when substantially under or over performing relative to their aspirations we further enquire how this relationship is moderated by firm specific innovation related resources human capital research and development investment and patents employing a representative survey of uk firms we find some evidence of moderation allowing us to present explanations of search through open innovation and contribute to the behavioral theory of the firm itself

science and the diffusion of knowledge abstract scientists social scientists and politicians frequently credit basic science with stimulating technological innovation and with it economic growth despite a substantial body of research investigating this general relationship relatively little empirical attention has been given to understanding the mechanisms that might generate this linkage this paper considers whether more rapid diffusion of knowledge brought about by the norm of publication might account for part of this effect we identify the importance of publication by comparing the patterns of citations from future patents to three groups of focal patents i those that reference scientific peer reviewed publications ii those that reference commercial non scientific publications and iii those that reference neither our analyses strongly implicate publication as an important mechanism for accelerating the rate of technological innovation patents that reference published material whether peer reviewed or not receive more citations primarily because their influence diffuses faster in time and space

information and intellectual property the global challenges the paper analyses the contribution of golden papers seminal works whose ideas remain as fresh and relevant today as when they were first published decades ago and which continue to dominate academic discourse among successive generations of scholars the authors analyse why two works written within an industrial development context the simple economics of basic scientific research by richard nelson 1959 and kenneth arrows economic welfare and the allocation of resources for invention 1962 are so relevant in today s knowledge driven economic paradigm focusing on the papers application to current global policy debates on information knowledge and intellectual property they argue that while the context has changed the essential nature of innovation driven by widespread access to the ability to replicate and improve remains the same hence a focus on endogenous innovation policy is as relevant today as it was 50 years ago

assessing the employment effectiveness of small business financing schemes some evidence from israel this paper presents an empirical assessment of the employment effects of two assistance schemes aimed at improving the accessibility of small businesses to capital the first scheme is a revolving loan fund operating in two small towns the second is a capital grant scheme aimed at promoting industrial activity in rural areas empirical data relating to the period 1986 89 is analysed for both schemes

in search of complementarity in innovation strategy internal r d and external knowledge acquisition empirical research on complementarity between organizational design decisions has traditionally focused on the question of existence of complementarity in this paper we take a broader approach to the issue combining a productivity and an adoption approach while including a search for contextual variables in the firms strategy that affects complementarity analysis of contextual variables is not only interesting per se but also improves the productivity test for the existence of complementarity we use our empirical methodology to analyze complementarity between innovation activities internal research and development r d and external knowledge acquisition our results suggest that internal r d and external knowledge acquisition are complementary innovation activities but that the degree of complementarity is sensitive to other elements of the firms strategic environment we identify reliance on basic r dthe importance of universities and research centers as an information source for the innovation processas an important contextual variable affecting complementarity between internal and external innovation activities

developing countries imports of technology in house technological capabilities and efforts an analysis of the indian experience abstract this paper examines whether enterprises decisions to import technology are influenced by their in house technological capabilities and whether the imports subsequently lead to an increase in the r d intensities it is argued that in a competitive market situation these decisions could be linked in a sequential relationship but protectionist regulatory policies may make such a relationship quite unlikely empirical tests with data of indian enterprises in the electrical and electronic industries circa 1990 found results consistent with the predictions for the protected regulatory situation

towards a framework for justifying public agricultural r d the example of uk agricultural research policy abstract changes to the uk agricultural research service ars have questioned the role and purpose of publicly funded agricultural research and development r d however traditional methods of assessment seem inadequate when analysing the diversity of agricultural r d this paper criticises the traditional arguments for the public support of an agricultural research system and forwards a more dynamic means to assessing agricultural research in the public sector overall areas of public good enhancing r d carry strong support whereas more traditional areas of productivity enhancing r d are questioned in terms of continued expenditure finally these findings are contrasted against uk government support for agricultural r d and reveals a divergence between theory and policy that should be recorrected in light of recent reductions in research budgets

the second engel law is it a paradox abstract the second engel law says that the engel curve for food moves out as family size increases thus showing a decrease in welfare what is puzzling though is that this regularity does not hold for equivalent income functions expressed in per capita terms deaton and paxon 1998 economies of scale household size and the demand for food journal of political economy 106 5 897 930 show that holding per capita total household expenditure constant per capita expenditure on food falls with the number of heads deaton and paxson s empirical evidence from developed and less developed countries seems to invalidate the claim of the second engel s law the main objective of this paper is to understand such paradoxical relationship between food consumption and household size our nonparametric empirical evidence drawn from the colombian 1985 urban survey shows that the food share is negatively related to total household per capita expenditure in line with deaton and paxson s claim but equivalent incomes shift to the right as theory predicts the regularity of our nonparametric results is an indication of a problem in the parametric specification of the engel curve modified by family size in fact using also the surveys of italy nepal djibouti and bangladesh we show that a theoretically plausible modified engel curve is coherent with the claim of the second engel law and explains deaton and paxson s paradox

the social shaping of the national science base abstract innovation studies confirm de tocqueville s prediction that continuous technical change in business firms in modern society would require the development in close proximity of publicly funded basic research and associated training the rate and direction of the development of a country s science base is strongly influenced by its level of economic development and the composition of its economic and social activities in other words it is socially shaped

children and household economic behavior this paper looks at some of the methodological issues that arise in modeling the effects of children on household behavior and presents some estimates for selected areas for our purposes household behavior will be taken to refer to household decisions on labor supply the allocation of expenditure to different periods and the decision as to what to do with the difference between income and expenditure i shall be concerned mainly with the effects of dependent children and i restrict attention largely to western societies excerpt

policy implications of considering pre commitments in u s aggregate energy demand system abstract linear approximations of the generalized almost ideal demand system and almost ideal demand system for u s energy are compared to contrast the explicit inclusion and exclusion of pre committed consumption levels results indicate that pre commitment levels the quantity of a good that is consumed in the short run with little regard for price helps to better explain energy demand in the u s compared to the system that does not explicitly consider pre commitments policy implications are if pre commitments are a legitimate assumption larger price changes are necessary to achieve a given policy objective than if there are no pre commitments

basic research inside the firm lessons from an in depth case study abstract the economic analysis of basic research in firms has been a growing concern but only a few attempts have been made to understand the realities which characterize the implementation of this activity in an in depth case study this paper considers the organisational specificities of basic research inside the firm and emphasizes the strategic role of human resources it shows that the process of innovation which was seen in the 1970s as a stock of information to be managed became during the 1980s a sequential learning process which covers a variety of different but complementary organizational designs in the basic research unit on this basis some analytical implications for technology and innovation processes are suggested as the production process is a sequential learning process an innovative firm strategy is defined as one which is able to balance short and long terms requirements with regard to profitability this appears as an out of equilibrium problem where the crucial determinant is the organizational design chosen by the firm in order to generate and implement new learning and skills

the social opportunity cost of rural labour hodge i 1982 the social opportunity cost of rural labour reg studies 16 000 000 when new employment is generated in times of involuntary unemployment the social opportunity cost of labour will be less than the market wage in assessing the social value of projects it is therefore necessary to identify the extent of this differential in this paper an approach to the evaluation of the social opportunity cost of labour is described which models the process of labour adjustment subsequent to the creation of new vacancies a markov chain approach is adopted in order to quantify the impact on the labour force as the consequent changes work through the system and the opportunity cost of labour at various stages is measured on the basis of assumed productivities of employees in their alternative occupations finally the impediments to this adjustment process in rural areas are discussed

gaids a generalised version of the almost ideal demand system abstract aids is a popular model in empirical demand literature in this paper a generalised version of aids gaids is presented estimated and statistically tested evidence from italian household data suggests rejection of aids also when demographic effects are considered

investment choice and asset allocation of italian households the discrete continuous approach financial and monetary policies are considered to be effective depending on the reaction of financial markets which are increasingly populated by households in this article from intertemporal settings i derive a financial almost ideal fai demand system and i estimate it by highlighting the determinants of both limited participation to financial markets and asset substitutability complementarity in the allocating stage finally the wealth elasticities provide some further insights on the low diffusion of the newer and more complex financial instruments across italian households

a unified approach to incorporating demographic or other effects into demand systems a general method of introducing demographic effects into any demand system using modifying functions is described which permits complicated interactions of demographic variables with prices and expeditures theorems give properties the modifying functions must have to ensure integrability of the resulting system demand equations of the new system are given explicitly as functions of the original demand equations and the modifying functions the procedure is interpreted as altering a households technology and is shown to encompass adult equivalent scales and related methods examples of modifying functions are derived and applications of the technique to uses other than demographic variation are considered excerpt

different missions and commitment power in r d organizations theory and evidence on industry university alliances this paper proposes a theory for why firms conduct some research activities in house but outsource other projects to independent partners and for why firms retain different degrees of control over collaborative research projects the focus is on the determinants of a company s choice to outsource research projects to academic organizations because of the different institutional missions of academic organizations outsourcing a project to a university allows a firm to commit not to terminate or alter a scientifically valuable project before it is complete this commitment is potentially valuable for the firm in an environment where scientific value and economic value may not coincide and scientific workers are responsive to the incentives defined by their community of peers an economic model that formalizes these arguments is developed empirical hypotheses are then formulated about the kind of research activities firms will outsource to universities and activities on which they will exert stronger control evidence from a sample of industry university research agreements as well as from other large sample and case studies shows patterns consistent with the predictions of the model

network structure and the diffusion of knowledge this paper models knowledge diffusion as a barter process in which agents exchange different types of knowledge this is intended to capture the observed practice of informal knowledge trading agents are located on a network and are directly connected with a small number of other agents agents repeatedly meet those with whom direct connections exist and trade if mutually profitable trades exist in this way knowledge diffuses throughout the economy we examine the relationship between network architecture and diffusion performance we consider the space of structures that fall between at one extreme a network in which every agent is connected to n nearest neighbours and at the other extreme a network with each agent being connected to on average n randomly chosen agents we find that the performance of the system exhibits clear small world properties in that the steady state level of average knowledge is maximal when the structure is a small world that is when most connections are local but roughly 10 percent of them are long distance the variance of knowledge levels among agents is maximal in the small world region whereas the coefficient of variation is minimal we explain these results as reflecting the dynamics of knowledge transmission as affected by the architecture of connections among agents

the two faces of market support how deployment policies affect technological exploration and exploitation in the solar photovoltaic industry the recent years have seen a strong rise in policies aiming to increase the diffusion of clean energy technologies while there is general agreement that such deployment policies have been very effective in bringing technologies to the market it is less understood how these policies affect technological innovation to shed more light on this important question we conducted comparative case studies with a global sample of 9 firms producing solar photovoltaic pv modules complemented by in depth interviews with 16 leading pv industry experts we propose that on the one hand policy induced market growth serves as an important catalyst for innovative activity as it raises the absolute level of firm investments in technological exploration on the other hand however deployment policies create an incentive for firms pursuing more mature technologies to shift their balance between exploitation and exploration toward exploitation firms focusing on less mature technologies cannot tap the potentials of exploitative learning to the same extent as those with more mature technologies therefore stimulating strong market growth may raise the barrier to market entry for less mature technologies we conclude that when designing deployment policies great care should be taken to avoid adverse effects on technological diversity and a premature lock in into more established technologies

universities and industrially relevant science towards measurement models and indicators of entrepreneurial orientation abstract which university departments engaged in industrially relevant science are likely candidates to become entrepreneurial at present there are neither measurement models nor leading indicators that can answer such questions at an international comparative level this paper introduces concepts theory and a measurement model for identifying the early stages of a university s enterpreneurial orientation within a quantitative analytical framework this approach focuses specifically on university industry interactions in which the connectivity between academic science and industrial research is captured and measured empirically in terms of 1 public private co authored research articles and 2 references citations within corporate research articles to university research articles the paper examines a range of country level and institutional determinants of industrially relevant science across 18 research areas of significant industrial interest and at two different levels of analysis research systems of oecd countries and large sets of research universities within those countries the results of these large scale analyses along with those of a case study dealing with european universities active in the field of immunology research suggest that many structural factors determine university industry interactions and the potential for entrepreneurial orientation the two connectivity indicators appear to be of minor significance compared to a university s country of location and the magnitude of its research activities in industrially relevant fields of science

the displacement and multiplier effects of regional selective assistance a computable general equilibrium analysis this paper uses a hybrid approach to simulate the effects of regional selective assistance rsa for scotland this combines industrial survey estimation of the direct impacts and computable general equilibrium cge modelling of the system wide effects the results are compared to those derived using the method currently adopted in official evaluation studies of rsa and other regional regeneration policy instruments the cge approach captures capacity labour market displacement and migration effects ignored in existing studies simulation identifies the conditions under which these effects are likely to be quantitatively important a partir d une facon hybride cet article cherche a simuler pour l ecosse l impact des primes regionales une estimation des effets directs a partir d une enquete aupres de l industrie se voit allier a la modelisation des effets generalises par une analyse d equilibre general sur ordinateur on compare les resultats a ceux qui proviennent des methodes employees actuellement

evolutionary economics and technology policy in this brief paper i propose to explore the economics of technology policy from an evolutionary perspective as with any evolutionary argument the central concern is with the mechanisms of economic change in this case in relation to the development of new technologies and patterns of organisation and their spread into the wider economic system in this sense we build upon one of the major stylized facts of modern growth structural change at all levels from the microeconomic to the macroeconomic to any observer of the policy making process let alone a practitioner the contrast between the theory which underpins policy and the implementation of policy will seem acute as nelson and winter i982 have rightly insisted research into policy is shaped by policy questions not by an agenda relating to how economic theory can be developed to deal with innovation setting priorities designing instruments and evaluating outcomes do not link easily with the general ideas dealt with below among the general points we will stress two will be of critical importance first that the innovation activities of firms involve a wider range of other institutions supplying the knowledge and skills which underpin the efforts of individual firms we term this the systems perspective on innovation nelson i993 secondly it is not helpful to treat innovation and the diffusion of innovation as separate categories in fact they are inseparable with feedback from diffusion being one of the critical elements shaping how a technology is developed we begin with a brief review of the familiar market failure perspective on policy and build from this into a brief overview of the evolutionary approach the paper concludes with an outline of the systems perspective on technology policy it is taken as read that virtually any economic policy can have implications in principle for the process of innovation however we treat technology policy in a narrow sense even though it spills over into questions of education policy science policy and competition policy

estimation of complete demand systems from household budget data the linear and quadratic expenditure systems in this paper we explore two issues in empirical demand analysis the estimation of complete systems of demand equations using household budget data section i and the incorporation of demographic characteristics into such systems section ii although there are numerous studies which use time series data to estimate complete demand systems and many which estimate engel curves from household budget data there are virtually none which combine budget data from different periods to estimate complete systems since each budget study corresponds to a single price situation one might conjecture that estimation of complete systems would not be possible unless budget studies were available from a large number of periods this is incorrect in section i we argue that interesting complete demand systems can be estimated from a small number of budget studies despite the limited price variability represented in such data to demonstrate this we use budget study data for two periods to estimate a pair of related demand systems the familiar linear expenditure system les and a quadratic expenditure system qes a generalization of les in which the demand equations are quadratic in total expenditure the inclusion of demographic variables in the analysis of household consumption patterns is desirable because there are likely to be systematic differences in the consumption behavior of households with different demographic characteristics but the effects of demographic characteristics have seldom been studied within the framework of complete demand systems in section ii we propose translating as a general method for incorporating demographic variables into complete systems of demand equations this method has not previously been discussed as a general technique for bringing demographic variables into demand systems although it has been employed in several studies to improve the estimates of the les and the qes presented in section i we reestimate these two systems using translating to incorporate family size

quadratic engel curves and consumer demand this paper presents a model of consumer demand that is consistent with the observed expenditure patterns of individual consumers in a long time series of expenditure surveys and is also able to provide a detailed welfare analysis of shifts in relative prices a nonparametric analysis of consumer expenditure patterns suggests that engel curves require quadratic terms in the logarithm of expenditure while popular models of demand such as the translog or the almost ideal demand systems do allow flexible price responses within a theoretically coherent structure they have expenditure share engel curves that are linear in the logarithm of total expenditure we derive the complete class of integrable quadratic logarithmic expenditure share systems a specification from this class is estimated on a large pooled data set of u k households models that fail to account for engel curvature are found ro generate important distortions in the patterns of welfare losses associated with a tax increase

crossing the innovation threshold through mergers and acquisitions firms are resorting more and more to mergers and acquisitions m a to bridge the gap between where they are and where they would like to be in relation to innovation and performance this paper investigates whether involvement in m a triggers distinct patterns of innovative behaviour across firms and whether this effect is conditional on firm size the analysis combines data from four waves of the community innovation survey cis and the business register of dutch manufacturing firms we observe that m as influence the probability that firms will begin innovation activities or persist with them and these effects vary at different points in the firm size distribution in particular by using m a firms are able to persist with the innovation efforts and output over time and this effect is especially strong for large firms for small firms m a help them to cross the innovation threshold increasing the probability of the transition from a non innovator to an active innovator however the m a effect does not mitigate the tendency of small firms to be occasional innovators

getting competition down to a science the effects of technological competition on firms scientific publications prior research about the interaction between private firms and the scientific community has largely viewed firms articles in scientific publications as a means to improve research and development productivity by encouraging their researchers to publish scientific papers firms can maintain linkages with the scientific community attract talent and access external knowledge on which they can build to create innovations this paper in contrast emphasizes the role of scientific publications in firms battles for market dominance and examines how competitive conditions shape firms propensities to publish scientific articles about their innovations focusing on the context of pharmaceutical drugs we develop propositions about how the competition that one drug faces from similar drugs and potential substitutes influences the innovating firm s inclination to publish articles in the top medical journals about that drug to facilitate its assessment by the u s food and drug administration and the medical community we also propose that scientific articles about competing drugs compel a firm to highlight its own drug in scientific papers to assert the drug s uniqueness and mitigate the threat of substitution whereas prior research has elucidated how science contributes to enhancing firms competence at creating innovations which is critical to their ability to compete in technology intensive environments this paper draws attention to how competition in turn permeates into the scientific arena creating inducements for firms to use scientific publications to position their innovations in the marketplace

investigating the interaction and mutual dependence between science and technology abstract literature on the economics of science and technology s t suggests not only that technological innovation demands the expansion of the institutional borders between universities research institutes industrial companies and the financial system but also that science leads as well as follows technology medical innovation in particular is very dependent on scientific research which represents a source of information that impels the productive sector the latter introduces a series of questions that motivate the researchers in their attempt to understand how the human body reacts to certain products and therapies this paper analyses the pattern of s t interaction for both the national system of innovation nsi and the health innovation system the panel data and simultaneous equations models analyze the interaction between s t the theory about the existence of a mutual dependence between them has been confirmed which means that science moves technology and technology also influences scientific development the estimated models which use data from scientific papers and patents as proxies of science and technology represent just the tip of the iceberg called nsi known as a multifaceted and complex institutional arrangement