entry mode organizational learning and r d in foreign affiliates evidence from japanese firms this paper develops hypotheses concerning the role of entry mode and experience based organizational learning as determinants of the r d intensity of foreign affiliates and tests these hypotheses on a sample of 420 japanese manufacturing affiliates abroad entry mode has a major impact on r d activities the r d intensities of acquired affiliates substantially exceed those in wholly owned greenfield affiliates while the r d intensities of minority owned ventures are higher if japanese parent firms lack strong r d capabilities at home for greenfield operations support is found for an incremental growth pattern of foreign r d as a function of organizational learning and affiliate capability building the results are consistent with the view that part of the explanation for japanese firms relative lack of involvement in overseas r d must be sought in their status as latecomers in the establishment of overseas manufacturing networks at the same time a number of japanese firms have actively used foreign acquisitions and joint ventures to gain access to overseas technology and to establish overseas r d capabilities at a faster pace copyright 2002 john wiley sons ltd

the impact of changes in household vacation expenditures on the travel and hospitality industries two large tourism industries travel and hospitality are strongly affected by changes in household demand for vacations in recent years rising income and declining prices per unit of quality have led to changes in patterns of household vacation consumption to understand the impact of these changes on the travel and hospitality industries we develop a theoretical model distinguishing between travel and on site expenditures and apply it to israeli data we find that under certain circumstances the changes in income and prices are responsible for a shift toward multiple short vacations this trend can be a boon to the travel industry but a disadvantage for the hospitality industry both industries are expected to face a rise in the demand for high quality products

development and the elimination of poverty this essay argues that the drive toward a middle class style of life in developing countries has resulted over the past 30 odd years of conscious development effort in a series of negative consequences in diverse spheres persistence of inequality expansion of government neglect of agriculture and urban bias of education and research the class context of development the role of the middle class the characteristics and components of the middle class life style and the american contribution to its development are assessed after which the methodology and results of measuring the poor and the middle class in the us and elsewhere are considered measurement of the middle class can be attempted through ownership of articles such as automobiles through energy consumption or through income one estimate is that the global middle class increased from 200 million in 1950 to 800 million by 1980 through the addition of japan europe and some increase in the 3rd world the nature of middle class work and the consequences of the preference for middle class work on the part of national elites for local development efforts is described along with the related theme of the conflict between alleviation of poverty and development of an indigenous middle class in 3rd world countries china and brazil are viewed as the 2 extremes in this trade off the incentives to massive urban migration that occur in conjunction with development policies favoring the middle class are outlined finally it is argued that reaching for middle class status is an explanatory rather than a policy variable the social mechanisms that cause the spread of the middle class to take precedence over the alleviation of poverty need to be more closely examined

safe nests in global nets internationalization and appropriability of r d in wireless telecom this paper documents the case of the wireless telecom industry to bring new empirical evidence to the debate on the internationalization of research and development r d activities us patent statistics on the four industry leaders ericsson motorola nokia and qualcomm illustrate the growing trend of the internationalization of r d over the 1990s yet we show that the most critical r d projects related to the development of wireless standards remain homebound the paper then leverages qualitative data collected through interviews with informed managers to provide a fresh interpretation for the homeboundedness of critical industrial r d the stickiness of core r d projects to domestic locations is related not only to organizational inertia and the unripe maturation of subsidiaries as suggested by prior literature but particularly to the headquarters centralization of intellectual property ip management which offers a high level of appropriability of r d results the unequal distribution of appropriability across corporate r d networks is at the base of the formation of safe nests domestic r d centers that are sheltered from the forces of globalization because they offer a desirable setting for the exploitation of technologies deriving from a stronger coordination of inventive activities with the management of ip

the paradox of technological capabilities a study of knowledge sourcing from host countries of overseas r d operations we investigate the factors that influence the extent to which a multinational corporation s headquarters mnc hq sources knowledge from the host countries of its r d labs we propose that the technological capabilities held by mnc hqs present a paradox on the one hand they enhance mnc hqs learning capabilities on the other hand they reduce mnc hqs motivations to outsource knowledge from host countries we also argue that it is important to consider both relative and absolute levels of technological capabilities because relative levels can influence mnc hqs motivations to source knowledge from host countries statistical findings generally support our arguments

r d scope economies and plant performance in this article i present an alternative specification of knowledge production and derive a structural econometric model with some desirable properties i provide a simple and less data intensive framework for empirical studies of the relationship between firm performance and r d the main empirical findings are as follows i r d has a positive effect on performance ii the appropriable part of knowledge capital depreciates at a rate of 2 iii there are significant spillover effects of r d across lines of business within a firm and iv there are significant spillovers in r d across firms that belong to the same interlocking group of firms

the implications of tourism specialisation in the long run an econometric analysis for 13 oecd economies abstract the paper aims to illumine the longrun impact of specialisation in tourism it is shown that specialisation in tourism may not be deleterious for economic welfare once the terms of trade are considered conditions for an improvement in welfare are laid out and their existence tested by econometric methods within an almost ideal demand system formulation of tourist expenditure for 13 oecd economies the analysis uses cointegration techniques and novel sequential break dating procedures evaluated where the time dimension is small the values of the estimated parameters suggest that long run growth may not be harmed by tourism specialisation

utilization of r d results in the home and foreign plants of multinationals this paper analyzes the utilization of r d results in the home and foreign plants of swedish multinational enterprises mnes the findings indicate that firms r d undertaken in the home country is used as an input in both the home and foreign plants of the mnes this suggests that technology is transferred to the foreign plants around four fifths of the gain in value added attributed to home r d was realized in the mnes home plants while the remaining fifth benefitted the foreign plants r d in foreign affiliates does not appear to be used as an input in home plants

income and the substitution pattern between domestic and international tourism demand this article analyses the role of income in the decision of participating in the tourism demand within 1 year the tourists who are participating can travel to domestic destinations only abroad destinations only or to both of them such a substitution pattern is modelled using a bivariate probit model the analysis is carried out to the regional level using a survey conducted in 15 european eu 15 countries in addition to the traditional socioeconomic variables the analysis adds new variables to the outbound tourism demand modelling such as the attributes of the place of residence the results show that tourism demand is income elastic however there are marked differences in the income elasticities of the probabilities of travelling domestically or abroad above certain income threshold the substitution pattern between destinations takes part the probability of travelling domestically only remains constant whereas the probability of travelling abroad keeps growing additionally the article prov

explaining organizational diseconomies of scale in r d agency problems and the allocation of engineering talent ideas and effort by firm size the comparative efficiency and success of small firms in r d remains largely unexplained this paper empirically examines scale diseconomies in offering employment contracts as an explanation for diseconomies of scale in r d the paper argues that small firms more efficiently resolve the severe agency problems of hidden information and hidden behavior in r d small firms more efficiently offer contracts that reward performance than large firms and consequently small firms attract and retain engineers with higher ability and skill further small firms through these more performance contingent contracts induce higher levels of effort than large firms the study tests and generally confirms these hypotheses using data collected from 912 current and former engineering employees of two large high technology companies

holiday taking and income this paper is the first attempt to estimate the determinants of holiday taking across several countries to accomplish this a two stage estimation procedure is employed which enables incongruous income categories to be transformed into a single income variable it is found that in the mid 1980s there was a substantial similarity in the holiday taking behaviour of europeans the large national differences in holiday participation are explained by differences in income and demographic factors a remarkable regularity in the responsiveness of the probability of holiday taking to marginal changes in income is found

location decentralization and knowledge sources for innovation when firms seek to innovate they must decide where to locate their innovation activity this location choice requires firms to make a simultaneous choice about the organizational structure of innovation activity almost by definition multiple locations per firm imply some degree of decentralization we compare predictions of the knowledge based view with the predictions of organizational economics regarding the location and decentralization of r d using firm level data on r d locations in finland we examine the conditions under which firms with multiple r d locations also have greater innovation output our results indicate that multilocation of r d activity is positively associated with imitative innovation output and is strongly correlated with greater external knowledge sourcing we also find that the positive association between multiple r d locations and innovative output does not apply to new to the market innovations the results are consistent with the interpretation that multilocation of r d enables firms to access a broad set of external sources of knowledge in pursuit of imitative rather than new to the market innovation moreover these findings imply heterogeneity in r d strategies between firms pursuing new to the market innovation and firms pursuing imitative innovation it is thus important to distinguish between new to the market and imitative innovations because their determinants may differ

tourism trends and the business cycle tourism in recession abstract this paper outlines the nature of the current economic recession in the usa it discusses the impact of the recession on tourism volume travel generated employment and travel prices it presents data from the data center s monthly national travel survey on how individual types of travel and types of travellers are adjusting to the overall decline in economic activity finally conclusions are presented to help planners marketers and policymakers deal more effectively with future recessions this paper forms part of a more general study a similar discussion of travel in periods of economic recovery is planned for later publication

do expectations of future wealth increase outbound tourism evidence from korea abstract as international tourism is generally considered a luxury good models to date have shared an understanding that demand is dependent on discretionary income however consumption theories predict that a shift in demand can be induced without changes in actual earnings when expectations for future income are adjusted this presumes demand for international tourism can be influenced by wealth effects from real estate and financial assets this study tested for the wealth effect on korean outbound travelers during the 20 years between 1989 and 2009 korea is a unique place to examine in that korean households possess housing assets and financial assets that are traded actively in markets the results of this study favored the possibility of a significant wealth effect from housing on outbound travel demand but not from financial assets this may be explained by data sensitivity and the relative importance of financial assets in the korean people s wealth portfolios implications and suggestions for future research are provided along with the findings of the study

understanding tourists economizing strategies during the global economic crisis abstract this paper explores how tourists from 165 regions of eu 27 countries cut back their tourism expenditure during the global economic crisis in 2009 cutbacks in tourism expenditure are divided into two mutually related decisions firstly whether or not the tourists decided to cut back on tourism expenditure because of the crisis and second which of six options they employed as their cut back strategy fewer holidays reduced length of stay cheaper means of transport cheaper accommodation travel closer to home or change the period of travel the econometric model used to address these kinds of simultaneous decisions is an adaptation of the heckman model within a generalized structural equations modelling approach this methodology controls for sample selection bias and correlations between equations this paper highlights patterns in cutback decisions that are associated with the socioeconomic characteristics of the household and the climate in the country of origin

v goods and the role of the urban informal sector in development this paper analyzes the role of the urban informal sector in a developing country in relation to the performance of agriculture and other rural activities on the one hand and that of urban formal sector activities on the other it decomposes the sectors into traditional and modernizing components traceable to production and consumption linkages with the rest of the economy as well as the character of government interventions over time the paper contrasts success cases a la taiwan in which the overall size of the urban informal sector remains modest the modernizing sub sector grows in relative importance and the end of overall labor surplus is reached rather early with non success cases a la the philippines in which rapid rural urban migration enhances the overall size of the urban informal sector the traditional sub sector grows relatively and the end of the labor surplus condition is substantially delayed authors

inter firm reverse technology transfer the home country effect of r d internationalization one consequence of the internationalization of rd these results are robust to the exclusion of examiner citations we find that this technology transfer process is explained by the degree of home country embeddedness of the multinational firm the us subsidiaries engagement in asset augmenting activities and the presence of a technology gap between the united states and the home country these results point to an alternative understanding of foreign direct r d investment and its implications for the home country s technological activity and general competitive performance copyright 2009 the author 2009 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

tourism participation and expenditure by spanish households the effects of the economic crisis and unemployment abstract this paper examines household tourism participation decisions and tourism expenditure across the business cycle microdata is used from the spanish household budget survey for the years 2006 2010 facilitating an analysis of the consequences of the economic crisis and unemployment on tourism consumption decisions by households by estimating a heckman model the effects of households socioeconomic determinants on participation and expenditure decisions can be identified taking the year 2008 the beginning of the crisis as a reference the stability of the tourism expenditure model is tested identifying variables whose effects alter in times of crisis one important aspect of the study is how household unemployment affects tourism participation and expenditure decisions the effect of unemployment takes into account whether it is the main breadwinner his or her spouse or another member of the household who is unemployed concentrating on those households whose main breadwinner was employed at the time an analysis is also made of how job insecurity affects tourism consumption decisions from the results the unemployment variables can be seen to have a significant explanatory power suggesting that unemployment information does help to explain the evolution of tourism expenditure across the business cycle

why are companies offshoring innovation the emerging global race for talent this paper empirically studies determinants of decision by companies to offshore innovation activities it uses survey data from the international offshoring research network project to estimate the impact of managerial intentionality past experience and environmental factors on the probability of offshoring innovation projects the results show that the emerging shortage of highly skilled science and engineering talent in the us and more generally the need to access qualified personnel are important explanatory factors for offshoring innovation decisions moreover contrary to drivers of many other functions labor arbitrage is less important than other forms of cost savings the paper concludes with a discussion of the changing dynamics underlying offshoring of innovation activities suggesting that companies are entering a global race for talent

the impact of crisis events and macroeconomic activity on taiwan s international inbound tourism demand abstract the number of inbound tourism arrivals directly impacts the tourism industry and the government agency investments therein therefore policymakers need to improve their understanding of how crisis events affect the demand for inbound tourism from the first quarter of 1996 to the second quarter of 2006 taiwan experienced four major disasters at approximately two year intervals these disasters included the asian financial crisis in 1997 the 21st september 1999 earthquake the 11th september 2001 attacks in the united states and the outbreak of sars in 2003 this paper examines the impact of crisis events on the demand for tourism in order to establish a better understanding of changes and trends in the demand for international tourism this paper uses the auto regression distributed lag model by pesaran shin and smith pesaran m h shin y smith r j 2001 bounds testing approaches to the analysis of long run relationship journal of applied econometrics 16 289 326 to examine the negative impact of these disasters on the demand for inbound tourism this paper also explores the influence of variables such as foreign exchange rates incomes relative prices and transportation costs on the dynamics of the demand for inbound tourism this paper finds that a long term equilibrium exists among all variables indicating that macroeconomic variables may be used to determine the rise or fall of the number of inbound tourism arrivals income and foreign exchange rates are both significant explanatory variables in terms of incurred losses the number of inbound tourism arrivals suffered the greatest decline during the outbreak of severe acute respiratory syndrome sars followed by the 21st september 1999 earthquake and the 11th september 2001 attacks the impact of the asian financial crisis was relatively mild this paper finds that any impact on safety whether domestic or international negatively affects tourism demand the impact of financial crises on tourism demand is less significant ensuring the safety and health of tourists is the key to maintain demand for inbound tourism

linking fdi motivation and host economy productivity effects conceptual and empirical analysis we develop a taxonomy that relates foreign direct investment fdi motivation technology and cost based to its anticipated effects on host countries domestic productivity we then empirically examine the effects of fdi into the united kingdom on domestic productivity and find that different types of fdi have markedly different productivity spillover effects which are consistent with the conceptual analysis the uk gains substantially only from inward fdi motivated by a strong technology based ownership advantage as theory predicts inward fdi motivated by technology sourcing considerations leads to no productivity spillovers

the globalization of r d results of a survey of foreign affiliated r d laboratories in the usa abstract this paper examines the globalization of innovation and the phenomenon of foreign direct investment fdi in research and development to do so it draws from a survey of foreign affiliated r d laboratories in the united states while the literature on foreign direct investment has emphasized the role of markets in driving off shore investments the main conclusion of this research is that the globalization of innovation is driven in large measure by technology factors of particular importance is the objective of firms to secure access to scientific and technical human capital

the returns to foreign r d extant research on research and development r d internationalization has not examined how effective foreign r d investments are in generating positive returns for the investing firms in particular in comparison and conjunction with the effects of domestic r d investments we examine the effectiveness of international knowledge sourcing through foreign r d in an empirical analysis of the productivity effects of foreign and domestic r d investments in a large panel of firms based in the netherlands we argue that foreign and domestic r d will exhibit complementarity in their effects on productivity but that the roles of domestic and foreign r d depend on the relative position of the home country with respect to the global technology frontier and the related relative opportunities for knowledge sourcing abroad we estimate a dynamic panel data model derived from a knowledge stock augmented production function framework allowing for productivity convergence and declining returns to r d we confirm that for firms active in industries in which the home country is behind the global technology frontier foreign r d provides positive returns and has a complementary relationship with domestic r d for industries at the global technology frontier in contrast domestic r d is the primary source of productivity growth

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

parametric and semi parametric modelling of vacation expenditures we analyse several limited dependent variable models explaining the budget share that dutch families spend on vacations to take account of the substantial number of zero shares two types of models are used the first is the single equation censored regression model we estimate and test several parametric and semi parametric extensions of the tobit model second we consider two equation models in which the participation decision and the decision on the amount to spend are treated separately the first decision is modelled as a binary choice model the second as a conditional regression we estimate and test parametric and semi parametric specifications

defining and estimating underground and informal economies the new institutional economics approach abstract a taxonomy of underground economies is elaborated based on the new institutional approach to economic development members of formal sectors confront different sets of transformation and transaction costs than do members of informal sectors and these differences are regarded as crucial to the development process the paper distinguishes illegal unreported unrecorded and informal economies and examines the conceptual and empirical linkages among them alternative micro and macro methodologies for measuring underground activities are reviewed and evaluated including census and survey procedures discrepancy and monetary methods when you cannot measure your knowledge is meager and unsatisfactory lord kelvin inscription at harper library university of chicago

real options and foreign affiliate divestments a portfolio perspective this paper develops a real options portfolio perspective on foreign affiliate divestments affiliates are less likely to be divested in response to adverse environmental change if they represent growth or switch option value to the multinational firm under conditions of macroeconomic uncertainty however the affiliate is partially redundant to the option value of the multinational firm s affiliate portfolio if the affiliate shares the manufacturing platform role in the host country with other affiliates or if macroeconomic conditions of the host country are highly correlated with those of other countries in which the multinational firm operates affiliates we find strong support for these arguments in tests on a comprehensive sample of 1078 asian manufacturing affiliates of japanese electronics multinationals

climate in the region of origin and destination choice in outbound tourism demand abstract this paper describes the relationship between regional climate in the home area and the choice of taking holidays in the region of origin or abroad this decision is simultaneously estimated with a bivariate probit model the study combines the socioeconomic characteristics of european households with information on the region of residence such as climate which is defined according to a new annualized climate index the estimated probabilities are analysed using gis and nonparametric techniques the results of modelling support the hypothesis that the climate in the region of residence is a strong determinant of holiday destination choice they show that residents in regions with better climate indices have a higher probability of travelling domestically and a lower probability of travelling abroad

the drivers of foreign direct investment into research and development an empirical investigation this paper examines the determinants of foreign direct investment fdi in research and development laboratories by 32 multinational enterprises in the pharmaceutical and electronics industries the paper applies a dichotomous set of motives for fdi results from an econometric analysis of 136 laboratory investments show that relative market size and relative strength of a country s science base determine whether fdi in research and development is carried out in order to exploit existing firm specific advantages or in order to build up new firm specific advantages this holds true in similar form for japanese european and u s firms and across the two industries

how firms innovate through r d internationalization an s curve hypothesis abstract this article examines the effects of r d internationalization and organizational slack on innovation performance we suggest that there is an s shaped relationship between r d internationalization and innovation performance innovation performance increases in the decentralization stage decreases in the transition stage and increases again in the recentralization stage in addition organizational slack is hypothesized to have a negative moderating effect on the s shaped relationship longitudinal data on 210 taiwanese firms in the information technology sector during a 10 year period is collected to test the hypotheses the findings support our prediction managerial implications and future research directions are discussed

vacationers and the economic double dip in europe the subject of this study concerns individual vacationers reactions to the global economic crisis this crisis is lasting longer than expected resulting in europe in a double dip vacationers can use different strategies to cope with this crisis from pruning giving up the vacation via cheese slicing economizing on vacation attributes to non economizing based on a theoretical framework it was predicted that over time the pruning segment would become larger than the cheese slicing segment a longitudinal study in the netherlands covering 4 years shows economic developments having a relatively minor effect on vacationers holiday plans and intentions with no increase in the size of the pruning segment six vacationer segments were found three of which can be considered to be crisis resistant each segment pursues different economizing strategies with each requiring a customized marketing strategy five explanations are proposed for the relatively limited influence of the economic double dip on dutch vacationers future research can be directed to comparing vacations with other consumer products in order to explain the crisis resistance of vacation planning during this economic crisis

the multinational enterprise as a source of international knowledge flows direct evidence from italy this paper examines the determinants of technology transfer between parent firms and their international affiliates and of knowledge spillovers from those affiliates to host country firms using a unique data set of foreign multinational enterprise mne affiliates based in italy we find that affiliate investment in r d and investment in capital embodied technology plays a significant role in determining the nature of intra firm technology flows however the basis for any spillovers arising from mne affiliates does not originate from codified knowledge associated with r d but rather from the productivity of the affiliate