institutionalizing the triple helix research funding and norms in the academic system abstract what are the institutional mechanisms that enable or hinder the development of new forms of knowledge production this issue has been slightly neglected in the discussion of the triple helix to redress this shortcoming the authors suggest an institutionalist complement to the triple helix model the article analyzes the institutional regulation of academic research with a special emphasis on how norms in the academic system are constituted via research funding it is argued that funding is a key mechanism of change in the norm system since its reward structure influences the performance and evaluation of research the empirical analysis is based on the public financing of technical research in sweden with comparisons made with other countries the structure of research funding has been reformed in all the countries studied in addition to continuing recognition for scientific merit the reforms have had the effect of emphasizing the commercial potential and the societal relevance of the research supported the two dominant models of research funding an intra academic model and a top down interventionist model seem to be replaced partly with a catalytic one however there are counteracting tendencies some agencies still reproduce a model of reputational control and a collegial orientation among researchers it is concluded therefore that the forces of change and continuity are engaged in a process of negotiation about the normative regulation of academic research

academic research underlying industrial innovations there has been no systematic study of the characteristics of the universities and academic researchers that seem to have contributed most to industrial innovation nor do we know how such academic research has been funded this paper based on data obtained from sixty six firms in seven major manufacturing industries and from over two hundred academic researchers sheds new light on the sources characteristics and financing of academic research underlying industrial innovation the findings should be of interest to economists concerned with technological change and to policymakers attempting to increase the economic payoff from the nation s academic research copyright 1995 by mit press

impacts of grants and contracts on academic researchers interactions with industry abstract based on a representative national sample of 1564 academic researchers we investigate the impacts of research grants and contracts on the nature and extent of faculty research and technology activities with industry a particular focus is on understanding the independent contributions of industry and government grant sources on levels of industrial involvement in addition to examining the source of grants the study controls for a number of independent factors including scientific field research center affiliation tenure status and gender results suggest independent effects of grants and contracts on industrial activities grants and contracts from industry have a significant effect on academic researchers propensity to work with industry as measured by an industrial involvement scale federally sponsored grants also have an impact in increasing work with industry but a more moderate one further those with more grants and contracts of each type have a greater propensity for industrial involvement than those who have such contracts but fewer this holds even when proxies for productivity and career stage are introduced in regression equations the analysis also considers whether provision of grants and contracts is best viewed as a predictor of industrial involvement or just another type of industrial involvement using factor analysis and nested multivariate modeling to compare effects

cyclical dynamics in idiosyncratic labor market risk is individual labor income more risky in recessions this is a difficult question to answer because existing panel data sets are so short to address this problem we develop a generalized method of moments estimator that conditions on the macroeconomic history that each member of the panel has experienced variation in the cross sectional variance between households with differing macroeconomic histories allows us to incorporate business cycle information dating back to 1930 even though our data do not begin until 1968 we implement this estimator using household level labor earnings data from the panel study of income dynamics we estimate that idiosyncratic risk is i highly persistent with an annual autocorrelation coefficient of 0 95 and ii strongly countercyclical with a conditional standard deviation that increases by 75 percent from 0 12 to 0 21 as the macroeconomy moves from peak to trough

market frictions and consumption based asset pricing a fundamental equilibrium condition underlying most utility based asset pricing models is the equilibration of intertemporal marginal rates of substitution imrs previous empirical research however has found that the comovements of consumption and asset return data fail to satisfy the restrictions imposed by this equilibrium condition in this paper we examine whether market frictions can explain previous findings our results suggest that a combination of short sale borrowing solvency and trading cost frictions can drive a large enough wedge between imrs so that the apparent violations may not be inconsistent with market equilibrium

the evolving state of the art in technology transfer research revisiting the contingent effectiveness model the purpose of our study is to review and synthesize the rapidly evolving literature on technology transfer effectiveness our paper provides a lens into relatively recent work focusing particularly on empirical studies of us technology transfer conducted within the last 15 years in doing so we update and extend the contingent effectiveness model of technology transfer developed by bozeman 2000 specifically we include the growing interest in social and public value oriented technology transfer and thus the contingent effectiveness model is expanded to consider this literature we categorize studies according their approaches to measuring effectiveness draw conclusions regarding the current state of technology transfer evaluation and offer recommendations for future studies

bond and stock returns in a simple exchange model this paper studies asset pricing in a general equilibrium representative agent exchange model the assumptions of isoelastic period utility and lognormal endowment allow the derivation of closed form solutions for asset returns without restricting the serial correlation of the log endowment risk premiums on stocks and real bonds are found to be simple functions of relative risk aversion the variance of the log endowment innovation and the weights in the moving average representation of the log endowment the paper analyzes the sign of term premiums the size of the equity premium and the effect of taste shocks on asset prices

relative wage movements and the distribution of consumption we analyze how relative wage movements among birth cohorts and education groups affected the distribution of household consumption and economic welfare our empirical work draws on the best available cross sectional data sets to construct synthetic panel data on u s consumption labor supply and wages during the 1980s we find that low frequency movements in the cohort education structure of pretax hourly wages among men drove large changes in the distribution of household consumption the results constitute a spectacular failure of between group consumption insurance a failure not explained by existing theories of informationally constrained optimal consumption behavior a welfare analysis indicates that the cost of between group consumption variability is larger than the cost of aggregate consumption variability by two orders of magnitude

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

asset pricing puzzles and incomplete markets the representative agent theory of asset pricing is modified to incorporate heterogeneous agents and incomplete markets the model features two types of agents who differ up to a nontradable idiosyncratic component in their endowment processes numerical solutions indicate that individuals are able to diversify a substantial portion of their idiosyncratic income risk through riskless borrowing and lending alone restrictions on the variability of intertemporal marginal rates of substitution hansen and jagannathan 1991 are used to argue that incomplete markets as modeled here cannot account for the properties of asset returns that are anomalous from the perspective of representative agent theory a large literature in financial economics has investigated the extent to which variants of the lucas 1978 general equilibrium theory of asset pricing can account for the joint behavior of aggregate u s consumption and asset returns by and large this literature has concluded that a theory based upon frictionless arrow debreu markets and or a representative agent makes strongly counterfactual predictions regarding even the simple unconditional properties of this relationship mehra and prescott 1985 for instance show that the theory drastically underpredicts the average excess rate of return on u s stocks the so called equity premium puzzle weil 1989 points out as did mehra and prescott that the magnitude of the average risk free rate is far below that predicted by the theory this has been dubbed the risk free rate puzzle numerous authors including grossman melino and shiller 1987 and backus gregory and zin 1989 show that the theory cannot account for term premia inherent in the yield curve hodrick 1987 surveys a large literature which documents the theory s shortcomings in accounting for excess expected returns in foreign exchange markets the notion that the representative agent model cannot account for excess returns across a wide array of asset markets can be made more precise by using tools developed by hansen and jagannathan 1991 and shiller 1982

two or three things i know about her europe in the global crisis and heterodox economics europe is in the middle of an economic and social storm although the turmoil since the mid 2008 originated elsewhere the european dynamics may turn the great recession into a full blown great depression within this dynamics the faulty design of the single currency is a key element together with the neomercantilist fracture dividing the core of northern europe and the periphery mostly composed of southern european countries the paper gives a quick reminder of what the true nature of the global crisis is section 2 the neoliberal great moderation was a paradoxical kind of financial and privatised keynesianism the heart of the anglo saxon model has been the overcoming of the stagnationist tendencies emerging from traumatised workers thanks to the transformation of manic savers into indebted consumers i will then section 3 dissect the peculiarities of the neomercantilist export led posture the eventual establishment of the euro as the single currency was in stark discontinuity with the maastricht treaty originating from the delors commission section 4 the real puzzle is to understand how the euro actually came into being from such fragile foundations and also why for many years it seemed a happy experiment the institutional setting of the eurozone and the german self defeating obsession for fiscal austerity decisively drove the area into a double dip recession a way out of the crisis section 5 requires not only monetary reforms and expansionary coordinated fiscal measures but also a wholesale change of economic model this latter must be built upon a new engine of demand and growth a monetary finance of good deficits is called for realising a radicalised socialisation of the investment a class and keynesian new deal

the risk premium and long run global imbalances this study proposes that heterogeneous household portfolio choices within a country and across countries offer an explanation for global imbalances we construct a stochastic growth multi country model in which heterogeneous agents face the following restrictions on asset trade first the degree of us equity market participation is higher than that of the rest of the world second a fraction of households in each country maintains a fixed share of equity in its portfolios in our calibrated model which matches the us net foreign asset position and the equity premium the average us household loads up more aggregate risk than the average foreign household by investing in risky assets abroad and issuing risk free assets as a result the us is compensated by a high risk premium and runs trade deficits even as a debtor country the long run average trade deficit in our model accounts for 50 of the observed us trade deficit

does government funding complement or substitute private research funding to universities abstract there is growing political pressure on universities to intensify their interaction with industry and to enlarge their own research funding options in a context characterised by increasing constraints on public spending however whether the successful achievement of such a political desired outcome is consistent with a restriction of government funding is not clear and requires further investigation as a matter of fact there is scant empirical evidence on whether and to what extent government funding affects the external funding options available to universities in particular those related to research and consulting activities by using a set of probit and tobit panel data models estimated on financial data for the whole population of italian university departments engaged in research in the engineering and physical sciences this paper provides evidence that government funding to universities complements funding from research contracts and consulting contributing to increasing universities collaboration with industry and activating knowledge transfer processes

full insurance in the presence of aggregate uncertainty this paper tests implications of full consumption insurance the object is to determine how much mileage can be obtained from a model with complete markets with such features as private information or liquidity constraints omitted the implication exploited is that individual consumption responds to aggregate risk but not to idiosyncratic risk the test involves regressing the change in household consumption onto the change in aggregate consumption and other right hand side variables such as the change in household income and change in employment status all variables other than the change in aggregate consumption are predicted to be insignificant in explaining the change in household consumption with observations on consumption and income for 10 695 households from the consumer expenditure survey the results are mixed the results for one specification exponential utility are mostly consistent with full consumption insurance the results for the other specification power utility are not

equilibrium asset prices with undiversifiable labor income risk abstract in a two period lucas tree economy in which ex ante identical but ex post dissimilar agents face undiversifiable labor income risk calibrating a wrong representative agent model results in overstating the equilibrium riskfree rate and in understating the equilibrium equity premium if the utility function exhibits decreasing absolute risk aversion and decreasing absolute prudence these behavioral assumptions provide as a consequence a theoretical rationale for the often advanced conjecture that nontraded risk contributes to the solution of the riskfree rate and equity premium puzzles

a simple test of consumption insurance are consumers effectively insured against idiosyncratic shocks to income or wealth either by formal institutions such as charities private insurance and government programs or by informal mechanisms such as gifts and loans from relatives friends and neighbors under full insurance consumption growth should be cross sectionally independent of idiosyncratic variables that are exogenous to consumers this proposition is tested by cross sectional regressions of consumption growth on a variety of exogenous variables full insurance is rejected for long illness and involuntary job loss but not for spells of unemployment loss of work due to strike and an involuntary move

endogenous borrowing constraints with incomplete markets this article develops ways to endogenize the borrowing constraints used in a class of computable incomplete markets models we allow the constraints to depend on an investor s characteristics such as time preference risk aversion and income streams the proposed constraint can be interpreted as a borrowing limit within which an investor has no incentive to default using a numerical algorithm we find that for an array of structural parameters the endogenous borrowing constraints can be much less stringent than the ad hoc borrowing constraints adopted by the existing studies

crossing the rubicon exploring the factors that shape academics perceptions of the barriers to working with industry although academics are under increasing pressure to engage industry in their research they often find it difficult to do so conflicts with industry over the timing of disclosure and the choice of topics are common moreover collaborations with industry may require academics to negotiate formal contracts about the ownership of intellectual property to help understand the factors that might mitigate these conflicts this paper examines how the professional and collaborative experiences of academics shape their perceptions of the barriers to industry collaboration using a rich dataset of uk academics we find that perceived barriers to collaboration are lower for academics with industrial and collaborative experience and for those who trust their industry partners however for the transactional costs of industry engagement we find entrepreneurial experience and the diversity of methods used to collaborate with industry increases the perceived barriers to collaboration

pathways to impact and the strategic role of universities new evidence on the breadth and depth of university knowledge exchange in the uk and the factors constraining its development there has been an increasing focus on the strategic role of universities in stimulating innovation and economic growth primarily though the transfer of technology this paper interrogates some of the key aspects of much of the conventional wisdom concerning the transfer of technology and the knowledge exchange process in general it analyses the results from two unique surveys a survey of the uk academic community that generated more than 22 000 responses and a stratified survey of businesses that generated more than 2 500 responses the results suggest that much of the conventional wisdom concerning knowledge exchange involving academia is too narrowly confined or is misinformed first there is an excessive focus in much of the academic and policy discourse on commercialisation and technology transfer there are many knowledge exchange mechanisms used by academics these include commercialisation processes but also many other hidden connections second the focus on the science base ignores that knowledge exchange involves academics from all disciplines third the preoccupation with improving innovation and business performance tends to ignore that knowledge exchange involves partners from the public and third not for profit sectors as well as private sector businesses fourth the main constraints that hinder or limit the knowledge exchange process include a lack of time insufficient internal capability to manage relationships and insufficient information to identify partners problems concerning cultural differences between academics and business and disputes concerning intellectual property are not prominent overall the paper suggests that the notion of an academic ivory tower seems to be a myth as far as the uk is concerned it also suggests that a strategic focus on strengthening connections between academia and the rest of society may generate long term benefits but it will also face challenges and should not distort or divert from the wider foundations of scholarship on which the success of universities are built

quantitative asset pricing implications of endogenous solvency constraints we study the asset pricing implications of an economy where solvency constraints are endogenously determined to deter agents from defaulting while allowing as much risk sharing as possible we solve analytically for efficient allocations and for the corresponding asset prices portfolio holdings and solvency constraints for a simple example then we calibrate a more general model to u s aggregate as well as idiosyncratic income processes we find equity premia risk premia for long term bonds and sharpe ratios of magnitudes similar to the u s data for low risk aversion and a low time discount factor article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

examining the bond premium puzzle with a dsge model the basic inability of standard theoretical models to generate a sufficiently large and variable nominal bond risk premium has been termed the bond premium puzzle we show that the term premium on long term bonds in the canonical dynamic stochastic general equilibrium dsge model used in macroeconomics is far too small and stable relative to the data we find that introducing long memory habits in consumption as well as labor market frictions can help fit the term premium but only by seriously distorting the dsge model s ability to fit other macroeconomic variables such as the real wage therefore the bond premium puzzle remains

technology transfer and public policy a review of research and theory abstract my purpose is to review synthesize and criticize the voluminous multidisciplinary literature on technology transfer to reduce the literature to manageable proportions i focus chiefly not exclusively on recent literature on domestic technology transfer from universities and government laboratories i begin by examining a set of fundamental conceptual issues especially the ways in which the analytical ambiguities surrounding technology transfer concepts affect research and theory my literature review follows and i emphasize technology transfer s impact and effectiveness i employ a contingent effectiveness model of technology transfer to organize the literature as the model s name implies it assumes that technology effectiveness can take a variety of forms in addition to examining the more traditional effectiveness criteria those rooted in market impacts the model considers a number of alternative effectiveness criteria including political effectiveness capacity building

optimal taxation in a limited commitment economy this paper studies optimal ramsey taxation when risk sharing in private insurance markets is imperfect due to limited enforcement in a limited commitment economy there are externalities associated with capital and labor because individuals do not take into account that their labor and saving decisions aect aggregate supply wages