exhaustible resources a theory of exploration the paper presents a theory of exploration for exhaustible resources exploration serves both to find new reserves and obtain information about potential reserves although any realized time path of the resource price fails to obey the hotelling rule the expected resource price does increase exponentially through time at the rate of discount we obtain sharper results when the resource is assumed to be distributed randomly throughout the exploration region and follows a poisson process with parameter a consumption and exploration decisions are investigated for both the case where a is known and the case where a is unknown

testing for non jointness in oil and gas exploration a variable profit function approach although the assumption of non joint production is made in a number of areas of economics its empirical validity is seldom examined in this paper we investigate the hypothesis of non jointness in the context of a multiple output production process which utilizes both fixed and variable inputs specifically we test the hypothesis of almost non jointness in the input quantities and prices as well as the hypothesis that inputs and outputs are separable using data on oil and natural gas exploration in alberta canada to facilitate global tests of these hypotheses we estimate a generalized linear generalized leontief variable profit function both with and without the restrictions implied by nonjointness and by separability on the basis of likelihood ratio tests we reject the hypothesis of separability but are unable to reject the non jointness hypothesis based on the maximum likelihood estimates obtained in the non joint case we examine some empirical issues concerning oil and gas exploration activity

exploration economics in a regulated petroleum province the case of the norwegian continental shelf reserve replacement remains a key challenge for the international oil and gas companies as market oriented oil and gas provinces are maturing exploration activity is shifted towards the resource rich regulated regimes outside the oecd regulated oil and gas provinces remain under explored also in econometric terms in this paper we specify and estimate an econometric model of exploration and appraisal drilling for the highly regulated norwegian continental shelf ncs over the period 1965 to 2004 explanatory variables include the oil price cumulative discoveries and open exploration acreage estimated error correction models account explicitly for sluggishness and short term adjustments in exploration drilling we find robust long term oil price effects on exploration activity whereas the short term response is muted on the other hand the temporary influence on exploration drilling from licensing rounds for new exploration acreage is significant and so are the feedback effects from historical exploration success at the same time the longer term impact of these variables is more moderate

competition cooperation and innovation organizational arrangements for regimes of rapid technological progress abstract discussions of the link between firm size and innovation are outmoded because the boundaries of the firm have become fuzzy in recent decades strategic alliances constellations of bilateral agreements among firms are increasingly necessary to support innovative activities such alliances can facilitate complex coordination beyond what the price system can accomplish while avoiding the dysfunctional properties sometimes associated with hierarchy antitrust law and competition policy need to recognize that these new organizational forms are often the functional antithesis of cartels though they may have certain structural similarities a more complete understanding of bilateral contracts and agreements ought to reveal when and how cooperation can support rather than impede innovation and competition

an econometric analysis of exploration and extraction of oil in the u k continental shelf this paper develops an econometric model for the analysis of exploration and production policies of price taking suppliers and derives theoretically consistent exploration and output equations for oil which explicitly take account of the oil discovery process and the intertemporal nature of exploration and production decision the model is then applied to an empirical analysis of oil exploration and extraction on the united kingdom continental shelf ukcs over the period 1978 1 1986 4 the analysis explicitly takes account of the available engineering information concerning the pressure dynamics of the petroleum reserves and the geological knowledge pertinent to the discovery process and presents formal statistical tests of the significance of these factors for the explanation of output and exploration in the north sea copyright 1990 by royal economic society

a symmetric safety valve abstract how to set policy in the presence of uncertainty has been central in debates over climate policy concern about costs has motivated the proposal for a cap and trade program for carbon dioxide with a safety valve that would mitigate against spikes in the cost of emission reductions by introducing additional emission allowances into the market when marginal costs rise above the specified allowance price level we find two significant problems both stemming from the asymmetry of an instrument that mitigates only against a price increase one is that most important examples of price volatility in cap and trade programs have occurred not when prices spiked but instead when allowance prices collapsed second a single sided safety valve may have unintended consequences for investment we illustrate that a symmetric safety valve provides environmental and welfare improvements relative to the conventional one sided approach

original innovation learnt innovation and cities evidence from uk smes one of the key benefits of cities is that they allow the exchange of knowledge and information between economic actors this may have two effects it may create the conditions for entirely new innovations to emerge and it may allow firms to learn innovations from those nearby yet few studies have considered the impact of an urban location on whether innovations are original or learnt this paper tests these hypotheses using survey evidence for over 1600 uk smes it is shown that while urban firms tend to be both product and process innovators urban firms are disproportionately likely to introduce process innovations which are only new to the firm rather than entirely original instead the urban advantage in product innovation appears to come from a combination of the effects the results highlight a need for a nuanced view of the link between cities and innovation

openness to international markets and the diffusion of standards compliance in latin america a multi level analysis abstract this study contributes to the debate on the role of openness to international markets for the diffusion of compliance with international standards in developing countries relying upon aggregated data for 1995 2005 as well as upon firm level and secondary data from the chilean salmon farming industry the determinants of iso 9000 and iso 14001 diffusion at country industry and firm level in latin american are analysed our evidence suggests that openness to international markets acts at different levels at both the country and industry level it creates awareness and access to new knowledge therefore providing economic incentives or penalisations for evaluating certification this effect competes and complements the deliberated efforts and policies in explaining diffusion of certification at firm level however openness to international markets alone does not provide sufficient opportunities to acquire the knowledge required to comply with these standards in this case standards compliance depends on firm s capability to use relational and search assets as well as on national and industrial efforts and policies to spread standards usage

exploration during turbulent times an analysis of the relation between cooperation in innovation activities and radical innovation performance during the economic crisis this article investigates the relation between cooperation in innovation activities and innovation before and during the last economic recession we find that cooperation in innovation activities has a stronger relation with radical innovation performance during the economic recession than before this being true irrespectively of whether the partners are national or international this benefit from cooperation during the economic turmoil is higher in the case of firms having different types of partners simultaneously we also find that past cooperation in innovation activities is positively associated to innovation performance during the crisis

concubinage or marriage informal and formal cooperations for innovation based on a sample of german inno innovating firms that contains information on formal and informal innovation cooperation between customers and suppliers we state that firms perceive informal cooperation as being more important than formal cooperation modes we then investigate the determinants of firms decisions to engage into the respective cooperation modes in line with previous empirical work we do not find much empirical evidence for the relevance of incoming spillovers in addition our results suggest that this finding holds as well for informal cooperations a firms ability to protect its proprietary innovations however seems to be a key determinant of formal as well as informal cooperations furthermore absorptive capacity and the organizational structure of in house r d play an important role another relevant driver of vertical cooperations are the innovation dynamics at the he industry level firms who operate an r d department and firms who are involved in costly r d projects tend to cooperate formally rather than informally

power in firm networks what it means for regional innovation systems christopherson s clark j 2007 power in firm networks what it means for regional innovation systems regional studies 41 1223 1236 the role of power within regional firm networks is noted in empirical studies but insufficiently theorized it is suggested that network functioning is conflictual and that more powerful network members particularly transnational corporations tncs leverage regional resources to advance their sustainable competitive advantage the agendas and power exercised by tncs within regionalized firm networks have significant implications for regional policy and the uneven allocation of resources and capacities within and among regions the findings indicate that transnational firm access to resources that are critical to innovation including university research and skilled labour negatively affects the potential for innovation by small and medium size firms christopherson s et clark j 2007 le pouvoir au sein des reseaux d entreprise son importance pour les systemes d

pioneers and followers competitive tactics environment and firm growth abstract market pioneering where a firm is first to offer a distinctively new product to the market is a commonly recognized form of corporate entrepreneurship as with other forms of corporate entrepreneurship the linkage between market pioneering and firm performance has received limited empirical attention much of which has yielded inconsistent results nonetheless two conclusions regarding when and how pioneering relates to firm performance are revealed in the literature first theory and past research suggest that pioneering is an environment specific phenomenon that is certain types of environments may be most likely to encourage or reward the actions of pioneers while these same actions may meet with limited success in other environments second theory and past research suggest that firm performance is affected by the fit between a firm s pioneer follower status and its competitive tactics in other words market entry order moderates the effectiveness of a firm s competitive tactics such that certain tactics will be most effective when employed by market pioneers while other tactics will be most effective when employed by market followers considered jointly the preceding observations suggest that insights might be gained regarding the effective management of market pioneering and market following by seeking to understand a how these phenomena are manifested in different industry environments and b what pioneers and followers do differently in these environments to promote their performance the research described in this paper addresses these issues in particular this paper develops theory that describes how particular competitive tactics are thought to relate to firm sales growth rate among market pioneers and market followers in two distinct environmental settings hypotheses are developed based on the following research propositions p1 in hostile environments pioneers and followers will differentially benefit in achieving high sales growth rates from their reliance on relatively high prices relatively broad product lines relatively broad served geographical markets relatively advanced process technologies and relatively advantageous purchasing arrangements p2 in benign environments pioneers and followers will differentially benefit in achieving high sales growth rates from their reliance on relatively high quality products relatively strong product warranties relatively high advertising and promotion expenditures relatively strong control over distribution channels employed and relatively large numbers of distribution channels employed to test the hypothesized relationships data were collected from the senior managers of 103 independent nondiversified manufacturing firms operating in 75 industries cluster analysis anova and correlational analysis were employed as the principal analytical techniques the results suggest that market pioneers grow neither more nor less rapidly than market followers however in hostile environments pioneering may enable firms to break out of the dominant price based mode of competition and grow in spite of charging high prices this ability of pioneers to excel in hostile environments seems to be further facilitated by limiting product line breath to a small number of product offerings that provide a tight fit with market needs pioneers in hostile environments also appear to be relatively better served than followers from gaining a wide geographical distribution for their products followers in hostile environments on the other hand should seek to reduce their cost structures in order to effectively sustain low price strategies the employment of advanced process technologies and the pursuit of purchasing advantages were actions which proved to be more advantageous for followers than for pioneers in hostile environments the managerial implications of this research applicable to benign environment firms are quite different other things being equal relatively high prices may not be as detrimental to growth among followers in benign environments as they are among followers in more hostile environments benign environment followers may in fact be better off when they charge relatively high prices and compete on non price bases the results also suggest that in benign environments offering products with warranties superior to those of competitors may have a significantly more positive effect on sales growth among pioneers than followers moreover employing a large number of distribution channels appears to benefit pioneers more than followers however among the sampled firms benign environment pioneers that realized the greatest growth did not have extensive control over distribution channel members therefore benign environment pioneers may grow more quickly if they target their distribution related resources toward expanding their channels rather than toward controlling some smaller number these channels this study contributes to the pioneering literature by having corroborated several findings of the pims based studies regarding tactical differences between pioneers and followers and by having further documented the relevance of market entry order or pioneer follower status as a moderator of the performance associated with particular competitive tactics moreover by having examined the tactics performance relationships of pioneers and followers in two distinct environmental settings this study adds specificity and empirical support to the emerging theoretical paradigm that depicts pioneering as an environment specific phenomenon finally this study contributes to the literature on coping with hostility by having theorized about and empirically identified common and effective bases for competition under varying levels of environmental hostility

sources procedures and microeconomic effects of innovation fabio arcangeli paul david frank engelman christopher freeman massimo moggi richard nelson luigi orsenigo nathan rosenberg michele salvati g n von tunzelman two anonymous referees and the participants at the meeting of the committee on distribution growth and technical progress of the italian national research council cnr rome november 16 1985 have helped with various redraftings a particularly grateful acknowledgment is for the insightful and patient help of moses abramovitz this work has been undertaken at the science policy research unit spru university of sussex as part of the research program of the designated research centre sponsored by the economic and social research council esrc earlier support to the research that led to this paper by the italian national research council cnr is also gratefully acknowledged the statistical research has been undertaken with the assistance of stephano brioschi ilaria fornari and giovannu prennushi

innovation in europe a tale of networks knowledge and trade in five cities this paper identifies four groups of theory that seek to explain the relationships between innovation and space these are traditional agglomeration theory networking learning and new competitiveness theory evidence on the last three most recent theories is sought by analysing the results of comparable surveys of innovative firms in amsterdam london milan paris and stuttgart the empirical results show that differences occur in the external relationships between firms and the global economy with respect to specific innovation projects broadly speaking the main differences identified show that in regional cities such as stuttgart and milan innovative activities are more linked to their regional and national economies than they are in the international world cities such as paris and london this suggests that attempts to generalize the network paradigm on industrial production are premature at least as far as innovation is concerned conversely the data demonstrate the significance of trading syste

structure and strategy within heterogeneity multiple dimensions of regional networking steiner m and ploder m structure and strategy within heterogeneity multiple dimensions of regional networking regional studies clusters are highly differentiated across sectors regions and countries both theoretical and empirical approaches therefore have to avoid universalization based on recent approaches various forms of network relations and possible contents of interactions of firms connected with knowledge exchange are elaborated it is argued that these interactions are distinctively structured that the diffusion of knowledge is highly selective and strongly dependent on the position of firms within networks and on their absorptive capacity by applying network analysis to different dimensions of interactions between firms it is shown that physical linkages within the medium technology cluster under scrutiny are rather weak that interactions based on different forms of knowledge exchange are denser and that direct links to the science base seem to be more prominent than long term su

attack defence and contagion in networks sanjeev goyal acknowledges support from a keynes fellowship cambridge inet institute and european research area complexity net resilience and interaction of networks in ecology and economics adrien vigier acknowledges support from a gates cambridge fellowship as well as a core fellowship from universite catholique de louvain

an empirical investigation of success strategies for businesses along the product life cycle since the introduction of the concept of the product life cycle plc some decades ago a great deal has been written on the subject and several empirical studies have been conducted however empirical research to date is often limited in scope it is oriented towards the analysis of the growth and saturation stages and focused primarily on the study of consumer goods furthermore the application of the plc concept in strategic planning is largely disappointing the normative orientation of most of this literature being somewhat naive and misleading the aim of the present research is to study the efficiency of different strategies for achieving market share and cash flow objectives this study is performed on different types of businesses producing both consumer and industrial products situated at various stages on the product life cycle growth maturity and decline a sample of approximately 1 100 businesses 217 in the growth stage 315 in the maturity stage 569 in the decline stage is drawn from the pims data base a cluster analysis is run to identify natural groups of homogeneous businesses for each of the nine identified groups linear regression models are estimated to study the influence of strategic actions finance marketings production r d personnel on two criteria of performance market share and cash flow the research indicates that strategies not only depend on the life cycle stage but also are influenced by the goal orientation of the firm short term cash flow or long term market share and that success strategies appear to be contingent upon the business and the environmental characteristics

if you cannot block you better run small firms cooperative innovation and appropriation strategies abstract this empirical study examines small firms strategies for capturing returns to investments in innovation we find that small firms strategies are qualitatively different from those found in earlier studies of both small and large firms most of the small firms examined here find informal means of protection such as speed to market or secrecy more important than patenting only firms with university cooperation typically r d intensive and science based small firms were likely to identify patents as the most important method of appropriating innovation returns in their field thus the strategic choice for most small firms is between secrecy and speed to market firms that cooperate in innovation with horizontal partners or significantly depend on vertical partners tend to prefer speed whereas process innovators with modest r d investments or few cooperative r d activities display a preference for trade secrets indeed cooperation activities greatly influence the choice of intellectual property strategy for small firms earlier research has emphasized patents and trade secrets as key strategies of appropriation yet these strategies do not appear to be very beneficial for small firms engaged in cooperative innovation these results raise policy questions regarding the functionality of the existing system of intellectual property rights

networks of innovators a synthesis of research issues abstract this paper will first summarise some key findings of empirical research in the 1960s on the role of external sources of scientific technical and market information in successful innovation by business firms this work demonstrated unambiguously the vital importance of external information networks and of collaboration with users during the development of new products and processes moreover the dilemmas of cooperative research in competitive industries were recognised and studied long ago 35 62 76 what then is new about the present wave of interest in networks of innovators are there new forms of organisation or new technologies or new policies which justify renewed research efforts since they go beyond those developments already analysed in earlier empirical and theoretical work section 2 reviews the evidence of new developments in the 1980s in industrial networks regional networks and government sponsored innovative activities it shows that there has indeed been a major upsurge of formal and semi formal flexible networks in the 1980s including some new types of network it also shows that some older forms of research cooperation have been modified and transformed the papers at montreal largely concentrated on the role of regional supplier networks which are a good example of such new wine in old bottles this paper attempts to locate the regional network discussion within a wider context of new developments in networking section 3 discusses the causes of these new developments and whether they are likely to remain a characteristic of national and international innovation systems for a long time to come or prove to be a temporary upsurge to be overtaken later by a wave of take overs and vertical integration finally section 4 sums up some of the other key issues which require further research and debate and the implications for social science theory

modelling long term oil price and extraction with a hubbert approach the lopex model abstract the lopex l ong term o il p rice and ex traction model generates long term scenarios about future world oil supply and corresponding price paths up to the year 2100 in order to determine oil production in non opec countries the model uses hubbert curves hubbert curves reflect the logistic nature of the discovery process and the associated constraint on temporal availability of oil extraction paths and world oil price path are both derived endogenously from opec s intertemporally optimal cartel behaviour thereby opec is faced with both the price dependent production of the non opec competitive fringe and the price dependent world oil demand world oil demand is modelled with a constant price elasticity function and refers to a scenario from acropolis poles lopex results indicate a significant higher oil price from around 2020 onwards compared to the reference scenario and a stagnating market share of maximal 50 to be optimal for opec

inter firm network policies and firm performance evaluating the impact of initiatives in the united kingdom abstract this paper explores the strengths and weaknesses of inter firm networks as a public policy resource that has necessarily required experimentation and adaptation the focus of the paper is an evaluation of public policy network initiatives in the united kingdom from the point of view of the companies participating in these initiatives the study finds that inter firm network initiatives have faced a number of problems resulting in the level of inter firm interaction being generally fairly low and unintensive this has severely limited the number of firms that have benefited from participation as well as the overall impact on firm performance and growth more positively it is shown that the initiatives have resulted in substantial gains for albeit a small number of participating companies the small number of companies achieving substantial benefits were most often those involved in initiatives that were able to formalise sustainable networks the key policy problem is that this situation has occurred in only a very restricted number of circumstances with formal network initiatives being subject to extremely high drop out rates it is suggested that policies aimed at formal network initiatives should be abandoned as a mechanism for creating a critical mass of sustainable networks instead the progression of policy models based on informal initiatives appears to offer the most plausible means of catalysing inter company contact

is oil supply choked by financial market pressures abstract since the late 1990s financial analysts have focused strongly on short term profitability for benchmarking and valuation of international oil and gas companies the increasing pressure for strict capital discipline among oil and gas companies may have reduced their willingness to invest for future reserves and production growth the current high oil price is partly due to low exploration activity in the oil industry the last decade we present and discuss the background for this development based on previous academic research industry trends and current valuation practices an estimated econometric model of stock market valuation among oil and gas companies suggests that analysts and companies have put exaggerate weight on short term earnings and accounting profitability we therefore expect that the attention will shift back to long term reserve and production growth

an analysis of oil production by opec countries persistence breaks and outliers this study examines the time series behaviour of oil production for opec member countries within a fractional integration modelling framework recognizing the potential for structural breaks and outliers the analysis is undertaken using monthly data from january 1973 to october 2008 for 13 opec member countries the results indicate there is mean reverting persistence in oil production with breaks identified in 10 out of the 13 countries examined thus shocks affecting the structure of opec oil production will have persistent effects in the long run for all countries and in some cases the effects are expected to be permanent

the origins and dynamics of production networks in silicon valley abstract computer systems firms in silicon valley are responding to rising costs of product development shorter product cycles and rapid technological change by focusing and building partnerships with suppliers both within and outside of the region well known firms like hewlett packard and apple computers and lesser known ones like silicon graphics and pyramid technology are organized to combine the components and sub systems made by specialist suppliers into new computer systems as these firms collaborate to both define and manufacture new systems they are institutionalizing their capacity to learn from one another three cases a contract manufacturer a silicon foundry and the joint development of a microprocessor illustrate how inter firm networks help account for the sustained technological dynamism of the regional economy

unobservable effects and business performance while unobservable factors such as corporate culture access to scarce resources management skill and luck can be postulated to be principal determinants of business success their effects are all but ignored in studies of business performance this study making use of the pims data base reports empirical evidence indicating that failure to control for unobservable factors influencing profitability both biases and exaggerates the effect of strategic factors indeed the influence of unobservable factors is so pervasive as to invalidate many of the conclusions drawn from studies failing to control for their effects

the economics of spam we estimate that american firms and consumers experience costs of almost 20 billion annually due to spam our figure is more conservative than the 50 billion figure often cited by other authors and we also note that the figure would be much higher if it were not for private investment in anti spam technology by firms which we detail further on based on the work of crafty computer scientists who have infiltrated and monitored spammers activity we estimate that spammers and spam advertised merchants collect gross worldwide revenues on the order of 200 million per year thus the externality ratio of external costs to internal benefits for spam is around 100 1 in this paper we start by describing the history of the market for spam highlighting the strategic cat and mouse game between spammers and email providers we discuss how the market structure for spamming has evolved from a diffuse network of independent spammers running their own online stores to a highly specialized industry featuring a well organized network of merchants spam distributors botnets and spammers or advertisers we then put the spam market s externality ratio of 100 into context by comparing it to other activities with negative externalities lastly we evaluate various policy proposals designed to solve the spam problem cautioning that these proposals may err in assuming away the spammers ability to adapt

r d cooperation in smes the direct effect and the moderating role of human capital abstractwe analyse the determinants of r d cooperation for smes in italy we introduce in the literature human capital as one of the main determinants of r d cooperation concentrating on its moder

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

innovation networks and vertical integration abstract a central debate in industrial policy today is that between proponents of large vertically integrated firms on the one hand and those of networks of small specialized producers on the other this paper argues that neither institutional structure is the panacea its supporters claim the menu of institutional alternatives is in fact quite large and both firms and networks of which there are several kinds can be successful growth promoting adaptations to the competitive environment industrial structures vary in their ability to coordinate information flows necessary for innovation and to overcome power relationships adverse to innovation the relative desirability of the various structures then depends on the nature and scope of technological change in the industry and on the effects of various product life cycle patterns the principal policy conclusion of this analysis is that the government s role ought to be facilitating rather than narrow and prescriptive allowing scope for firms to develop organizational forms that are best adapted to their particular environments

does oilrig activity react to oil price changes an empirical investigation in this paper we analyze how oilrig activity in different non opec regions is affected by the crude oil price we estimate relationships between oilrig activity and crude oil prices using dynamic regression models augmented with latent components capturing trend and seasonality the results generally show a positive relationship between oilrig activity and the crude oil price but the strength of the relationship differs across regions overall there seems to be a clear relationship between the oil industry structure in the region and the oilrig activity s reaction to price changes on average the long run price elasticity for oilrig activity in non opec countries is around unity

how do oil producers respond to giant oil field discoveries abstract the classical hotelling model predicts that the optimal extraction level rises immediately after an unexpected resource discovery whereas in reality there are substantial adjustment costs in petroleum production and an average lag of several years between a discovery and the start of production using a large panel of country level production data and a difference in differences identification approach i show that domestic production levels respond before a newly found oil field comes on line and that this increase is driven by non opec producers consistent with different responses of opec and non opec drilling activity offshore fields and exceptionally large super or mega giant fields are also more likely to raise country level production given that domestic petroleum consumption rises by less in response to a discovery at least part of the increase in production seems to go into net oil exports

the relationship between oil prices and rig counts the importance of lags abstract this study deals with a timely and relevant issue in the oil market in the wake of the recent drastic drop in oil prices which is the relationship between changes in oil prices and changes in rig counts while accounting for other determinants of this relationship this relationship is of strong interest to analysts investors and policymakers in the united states and other countries we empirically verify the impact of changes in oil prices on rig counts which has lags up to one quarter this evidence is stable across time and over different linear and non linear models the analysis also suggests that the relationship is non linear which is verified by both the quantile regression and quantile on quantile models we find evidence of non linearity that has softened in the most recent years where the relationship between the variables has stabilized

financial fraud a literature review financial fraud a literature review this paper describes the empirical universe of financial fraud as it has been documented in the academic literature specifically it describes the different forms of fraudulent behaviour in the context of financial market activities the prevalence and consequences of such behaviour as identified by previous research and the economic and market structures that scholars believe facilitate it to structure the discussion a conceptual distinction is made between three types of financial fraud false financial disclosures financial scams and financial mis selling the findings of the literature review highlight a number of recent developments that scholars think have facilitated the occurrence of financial fraud including 1 the development of new fundamental conflicts of interest and perverse incentive structures in the financial industry 2 an influx of unsophisticated gullible participants in the financial marketplace 3 the increasing complexity involved in financial market transactions as a result of rapid technological legal and financial innovation and an ever widening menu of financial products 4 an increase in the use of justified secrecy in the form of a mystification of trading models adopted by fund managers

the acquisition and commercialization of invention in american manufacturing incidence and impact abstract recent accounts suggest the development and commercialization of invention has become more open greater division of labor between inventors and innovators can enhance social welfare through gains from trade and economies of specialization moreover this extensive reliance upon outside sources for invention also suggests that understanding the factors that condition the extramural supply of inventions to innovators is crucial to understanding the determinants of the rate and direction of innovative activity this paper reports on a recent survey of over 5000 american manufacturing sector firms on the extent to which innovators rely upon external sources of invention our results indicate that between 2007 and 2009 16 of manufacturing firms had innovated meaning had introduced a product that was new to the industry of these 49 report that their most important new product had originated from an outside source notably customers suppliers and technology specialists i e universities independent inventors and r d contractors we also compare the contribution of each source to innovation in the us economy although customers are the most common outside source inventions acquired from technology specialists tend to be the more economically significant in term of their gross commercial value as a group external sources of invention make a significant contribution to the overall rate of innovation in the economy innovation policies both public and private should pay careful attention to the external supply of invention and the efficiency of the mechanisms affecting the relationships between inventors and innovators

impact on firms of the use of knowledge external sources a systematic review of the literature this study summarizes the main conclusions from a systematic review of the empirical literature regarding the impact on firms of the use of knowledge external sources universities research institutes and knowledge intensive business services with the aim to organize the literature we classify the different works according to the research question addressed i which firms use knowledge external sources ii do firms using knowledge external sources achieve better results and iii which firms benefit the most from using knowledge external sources stylized facts are that larger more r d intensive and high tech firms are more likely to use knowledge external sources and that use of knowledge external sources is associated to firms higher technical results less attention has been paid to the third question and evidence is not conclusive several recommendations for future research emerge first to take in greater consideration methodological issues so that potential biases in the results caused by sample selection and endogeneity are handled properly second to pay more attention to heterogeneous outcomes third to use continuous indicators of depth and breadth of links allowing for non linear relationships and fourth to extend evidence for developing countries and service industries

individual security contagion and network design sanjeev goyal and diego cerdeiro were supported by european research area complexity net http www complexitynet eu through grant resilience and interaction of networks in ecology and economics resinee diego cerdeiro acknowledges financial support from queens college and the cambridge overseas trust marcin dziubinski was supported by the strategic resilience of networks project realized within the homing plus programme of the foundation for polish science co financed by the european union from the regional development fund within operational programme innovative economy grants for innovation sanjeev goyal acknowledges financial support from a keynes fellowship and the cambridge inet institute

strategizing niceness in co opetition the case of knowledge exchange in supply chain innovation projects abstract in this paper we take a novel approach to address the dilemma of innovation sharing versus protection among supply chain partners the paper conducts an exploratory study that introduces factors affecting a firm s optimum supply chain innovation strategy we go beyond the conventional prisoners dilemma with its limiting assumptions of players preferences and symmetry to explore a larger pool of 2 2 games that may effectively model the problem after classifying firm types according to collaboration motive and relative power we use simulation to explore the effects of firm type opponent type and payoff structure on repeated innovation interactions or equivalently long term relations and optimality of niceness surprisingly we find that opponent type is essentially irrelevant in long term innovation interactions and focal firm type is only conditionally relevant the paper contributes further by introducing reciprocation of strategy type nice versus mean showing that reciprocation is recommended while identifying and explaining the exceptions to this conclusion

the open eco innovation mode an empirical investigation of eleven european countries this paper deals with the open innovation mode in the environmental realm and investigates the effects that knowledge sourcing has on the environmental innovations eis of firms using the community innovation survey cis 2006 2008 we refer to the firm s probability of both introducing an ei and extending the number of ei typologies adopted we estimate the impact of the depth and breadth of knowledge sourcing in addition we test for the moderating role of the firm s absorptive capacity knowledge sourcing has a positive impact on both types of ei performance however a broad sourcing strategy reveals a threshold above which the propensity to introduce an ei diminishes cognitive constraints in processing knowledge inputs that are too diverse may explain this result absorptive capacity generally helps firms to turn broadly sourced external knowledge into ei however internal innovation capabilities and knowledge socialization mechanisms seem to diminish the ei impact of knowledge sourced through deep external interactions the possibility of mismatches between the management of internal and external knowledge and of problems in distributing the decision makers attention between the two may explain this result

scope and patterns of innovation cooperation in spanish service enterprises abstract examining 2148 innovating service firms from the spanish technological innovation panel 2004 this paper utilizes latent class analysis to appraise the scope of innovation cooperation in services in the spanish economy in accordance with the growing weight of external information flows throughout innovation processes the empirical evidence indicates that the nature of the service activity affects both the partner chosen and the cooperation intensity the results lead to the creation of a typology of cooperation composed of three broad profiles service firms intensive in techno scientific cooperation intensive in interactions with clients and a profile with low intensity in cooperation called lonely innovators the probability that a firm belongs to the latter profile is 59 which makes it reasonable to affirm that innovation cooperation is not a common practice in spanish innovating service enterprises innovation output variables have been included in order to examine the relationship between patterns of cooperation and innovation performance the findings also underline the co existence of different cooperation patterns within the same industry

co ownership of intellectual property exploring the value appropriation and value creation implications of co patenting with different partners combining both interview data and empirical analyses at the patent and firm levels we explore the value appropriation and value creation implications of r d collaboration resulting in the co ownership of intellectual property i e co patents we make an explicit distinction between three different types of co patenting partners intra industry partners inter industry partners and universities our findings indicate that the value appropriation challenges of ip sharing are clearly evident with intra industry co patenting where partners are more likely to encounter overlapping exploitation domains co patenting with universities is associated with higher market value since appropriation challenges are unlikely to play a role and collaboration may signal novel technological opportunities although we find some evidence that co patenting corresponds to higher patent value patents co owned with firms are significantly less likely to receive self citations indicating constraints on the future exploitation and development of co owned technologies

the timing and incidence of exploratory drilling on offshore wildcat tracts this paper is an empirical study of learning and strategic delay in exploratory drilling the specific context is drilling on federal land off the coast of texas and louisiana between 1954 and 1990 the us federal government held a number of sales in which it sold the oil and gas rights to thousands of parcels of its offshore land these parcels known as tracts each cover an area of five thousand acres on average the typical sale involves more than a hundred tracts most sales are wildcat sales which consist of tracts located in areas where there has not been prior exploratory drilling and on site drilling is not permitted prior to the sale firms have access only to seismic information and as a consequence face considerable uncertainty the rights to the tracts are sold individually using a first price sealed bid auction and ownership of tracts in an area is typically distributed among several firms tracts within an area often share common geological features and a subset may be located over a common pool in either case the ex post value of nearby leases will be correlated and as result there is an information externality associated with exploratory drilling 20 refs 1more fig 5 tabs less

cooperative ties and the impact of external factors upon innovation in an industrial district some insights from the north staffordshire table and giftware sector tomlinson p r and jackson i cooperative ties and the impact of external factors upon innovation in an industrial district some insights from the north staffordshire table and giftware sector regional studies drawing upon a sample of 118 firms this paper explores the impact of cooperative ties and the role of institutions upon innovation in the uk ceramic table and giftware sector it is found that locational economies are important for aiding innovation with firms in the north staffordshire industrial district holding an inherent advantage vis a vis non district firms however while close vertical ties enhance innovation recent concerns have arisen that horizontal collaboration between district and asian firms is having a detrimental impact upon innovative capacity within the district finally institutions also appear to play an important role in facilitating the innovation process tomlinson p r and jackson i 118

post the washington consensus economic governance and industrial strategies for the twenty first century recent events in the global economy have led to a growing dissatisfaction with the neo liberal economic paradigm that has dominated economic policy over the last 30 years and the increasing concentration of and abuse of economic power within the corporate sector that has ensued however amidst calls for a new approach to economic management there is a danger that a new policy framework may overlook underlying economic governance structures that exist and may evolve within the economy such oversight has implications for development this paper seeks to demonstrate that the long run efficacy of industrial strategy depends upon designing appropriate economic governance structures that serve the wider public interest it does so by exploring past experiences of industrial strategy drawing lessons from the usa the uk japan the third italy and the emerging and transition economies we also offer some suggestions for ways forward

the economics of online crime this paper will focus on online crime which has taken off as a serious industry since about 2004 until then much of the online nuisance came from amateur hackers who defaced websites and wrote malicious software in pursuit of bragging rights but now criminal networks have emerged online black markets in which the bad guys trade with each other with criminals taking on specialized roles just as in adam smith s pin factory specialization has led to impressive productivity gains even though the subject is now bank card pins rather than metal ones someone who can collect bank card and pin data electronic banking passwords and the information needed to apply for credit in someone else s name can sell these data online to anonymous brokers the brokers in turn sell the credentials to specialist cashiers who steal and then launder the money we will examine the data on online crime discuss the collective action aspects of the problem demonstrate how agile attackers shift across national borders as earlier targets wise up to their tactics describe ways to improve law enforcement coordination and we explore how defenders incentives affect the outcomes

the benefits of r d and breadth in innovation strategies a comparison of finnish service and manufacturing firms this empirical study compares the determinants of innovation in manufacturing and services through descriptive and regression analyses of sales from innovative products and services a particular focus is on the effects of r d investments and breadth in knowledge sourcing and innovation objectives the results suggest that contrary to earlier research r d investments play a statistically and economically significant role in service innovation we suggest that this results from the growing engagement of service firms in regular r d activity both service and manufacturing firms also benefit from breadth in external knowledge sourcing strategies in contrast breadth in terms of pursuing parallel innovation objectives appears to have detrimental effects on innovation in service industries we interpret the latter results through reference to service firms r d management capabilities managing multiple innovation projects is challenging and some service firms may not have accumulated the requisite managerial processes and capabilities to benefit from these strategies the available data provide support for this conjecture the detrimental effects of breadth in innovation objectives are significantly mitigated by regular r d activities copyright 2012 the author 2012 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

unkind roll of the dice drivers of lottery crimes in the united states using data on u s states this paper studies the factors driving lottery related crimes focusing on spillovers from other gambling and corruption although state sponsored lotteries have become q

innovation and inter firm linkages new implications for policy abstract this article discusses the implications for competition innovation and learning of different forms of inter firm linkage ways to govern them different generic systems of innovation and government policy it employs a transformed theory of transactions that can deal with innovation and learning and brings in trust next to opportunism nooteboom b 1996a trust opportunism and governance a process and control model organization studies 17 6 985 1010 nooteboom b 1996b towards a learning based model of transactions in groenewegen j ed tce and beyond kluwer deventer pp 327 349 nooteboom b 1999a inter firm alliances analysis and design routledge london while trust has its limits and should not be blind it can lower transaction costs for learning and innovation it takes the resource competence perspective supported by a theory of knowledge developed in earlier publications according to this theory people perceive interpret and evaluate the world according to cognitive categories that have developed in interaction with the physical and social environment as a result people will perceive understand and evaluate differently to the extent that they have developed in different environments without interaction nooteboom b 1992 towards a dynamic theory of transactions journal of evolutionary economics 2 281 299 nooteboom 1999a this theory yields the notion of external economy of cognitive scope people and firms need outside sources of cognition and competence to complement their own that is the fundamental reason why inter firm linkages are important especially for innovation in order to produce high added value and novelty by utilizing the opportunities of complementary competencies firms need to make relation specific investments which creates risks of hold up and spill over building on earlier work the article identifies different instruments for the control of those risks nooteboom 1996a nooteboom 1996b nooteboom et al 1997 effects of trust and governance on relational risk academy of management journal 40 2 308 338 nooteboom 1999a it identifies two generic kinds of innovation systems in terms of the mix of instruments for relational governance and discusses their merits and flaws with respect to quality of products diffusion incremental and radical innovation one is close to practices in continental europe and japan another is close to anglo american practice there is a certain tendency for the first to gravitate to the second the article warns about the dangers involved and explores a possible third way

who co operates for innovation and why an empirical analysis abstract in recent years there has been growing interest in co operative arrangements for innovation with some commentators arguing innovation is no longer the province of individual firms but depends increasingly on collective action this paper examines the response to the uk s version of the second european community innovation survey cis 2 to investigate the patterns of co operation between innovating firms and external partners the analysis shows the relationship between innovation and co operation is not straightforward from a subjective i e firm based perspective it is clear that most firms still develop their new products processes and services without forming formal co operative arrangements for innovation with other organisations however firms that engage in r d and that are attempting to introduce higher level innovations i e new to the market rather than new to the firm innovations are much more likely to engage in co operative arrangements for innovation consequently if an objective i e innovation based perspective is taken which weighs innovations by their significance then it is likely that a significant proportion of high level innovations are developed through co operative arrangements although unfortunately the cis 2 does not indicate the direct significance of these arrangements to the development of the innovations in summary the extent of co operative arrangements for innovation appears to depend on the type of firms being considered and on what is meant by innovation

in search of complementary assets the determinants of alliance formation of high tech start ups abstract why do new technology based firms ntbfs cooperate starting from teece s teece d j 1986 profiting from technological innovation implications for integration collaboration licensing and public policy research policy 15 285 305 conceptual framework and taking advantage of subsequent literature on alliance formation in the resource and competence based tradition and in the social structure perspective we derive an empirical model that aims at highlighting the inducements and obstacles that these firms face in alliance formation according to firm specific characteristics and the nature of the alliance in particular a distinction is made between exploitative commercial alliances and explorative technological alliances the econometric estimates based on a large sample of italian young high tech firms that are observed from 1994 to 2003 provide strong evidence supporting two key intuitions of teece s work first the combination of specialized complementary assets appears to be a key driver of the formation of exploitative commercial alliances by ntbfs more specifically patent holding affects positively the likelihood to establish commercial alliances but this propensity is found to rapidly decrease with firm size suggesting that as long as ntbfs become larger and possess specialized commercial assets their urge for commercial alliances diminishes second following the parallelism set forth by teece between search for alliance partners and access to external financing the analysis indicates that potentially beneficial alliances may not take place because of the high transaction costs faced by smaller ntbfs in this respect our results clearly support the view that sponsor institutions as public research organizations venture and corporate venture capitalists may sensibly reduce these costs and that their role crucially depends on both the identity of the sponsor and the type of alliance

inter firm collaboration and technology development partnerships within us manufacturing industries the paper examines the conditions under which firms enter into technology development partnerships with customers suppliers and other firms three conceptual approaches to inter firm collaboration are examined namely transactions costs theory resource strategy theories of the firm and network theory drawing upon data collected in a mailed questionnaire survey of us manufacturing establishments in the chemical electronics and instruments industries i assess empirically various determinants of inter firm collaboration in technology development the empirical work suggests that large firms and firms located in major urban centres are more likely to enter into technology development partnerships firms located in a specialized industrial agglomeration do not demonstrate a greater propensity toward entering into technology development partnerships with customers suppliers or other firms cet article cherche a examiner les conditions sous lesquelles les entreprises concluent des partenariats technolo

firm organization industrial structure and technological innovation abstract the formal and informal structures of firms and their external linkages have an important bearing on the rate and direction of innovation this paper explores the properties of different types of firms with respect to the generation of new technology various archetypes are recognized and an effort is made to match organization structure to the type of innovation the framework is relevant to technology and competition policy as it broadens the framework economists use to identify environments that assist innovation

asymmetry and uncertainty in capital formation an application to oil investment theories of irreversible investment suggest a negative relation between investment and uncertainty and nonlinear adjustment costs open for asymmetries in the adjustment of fixed capital we propose an econometric modelling approach to estimate and test the key predictions of modern investment theory including asymmetric dynamics and various uncertainty indicators our application on a data set from the oil industry offers empirical support for both asymmetric dynamics and uncertainty in oil and gas investment

what drives the choice of the type of partner in r d cooperation evidence for spanish manufactures and services abstractwe analyse the heterogeneity in firms decisions to engage in r d cooperation taking into account the type of partner competitors suppliers or customers and research institutions and the sector to which the firm belongs manufactures or services we use information from the technological innovation panel pitec for spanish firms and estimate multivariate probit models corrected for endogeneity which explicitly consider the interrelations between the different r d cooperation strategies we find that placing a higher importance to publicly available information incoming spillovers receiving public funding and firm size increase the probability of cooperation with all kind of partners but the role is much stronger in the case of cooperative agreements with research institutions and universities our results also suggest that r d intensity and the importance attributed to the lack of qualified personnel as a factor hampering innovation are key factors influencing positively r d cooperation

the dynamics of innovation from national systems and mode 2 to a triple helix of university industry government relations abstract the triple helix of university industry government relations is compared with alternative models for explaining the current research system in its social contexts communications and negotiations between institutional partners generate an overlay that increasingly reorganizes the underlying arrangements the institutional layer can be considered as the retention mechanism of a developing system for example the national organization of the system of innovation has historically been important in determining competition reorganizations across industrial sectors and nation states however are induced by new technologies biotechnology ict the consequent transformations can be analyzed in terms of neo evolutionary mechanisms university research may function increasingly as a locus in the laboratory of such knowledge intensive network transitions

innovation and cooperation in the small firm sector evidence from northern britain freel m s and harrison r t 2006 innovation and cooperation in the small firm sector evidence from northern britain regional studies 40 289 305 over the last 20 years network based models of innovation led economic development have grown increasingly popular to both the polity and the academy in contrast to earlier linear conceptions innovation is viewed as a systemic phenomenon in which interactive learning and cooperative entrepreneurship are fundamental the way that systems and in turn networks are usually defined is by the volume and characteristics of the linkages that bind them together accordingly drawing upon a recent survey of small firms in scotland and northern england 1347 responses the paper is concerned with mapping the extent of small firm innovation related networking and understanding the unique contribution such networks make to the successful introduction of new products and processes importantly it investigated the impact of networking on innovation in both manu

innovation learning and industrial organisation innovation learning and organisation are analysed from a perspective which seeks to integrate evolutionary economics the resource competence view of the firm an extended theory of transaction costs and insights derived from cognitive science firms are subject to selection by competitive forces but they also adapt by organisational learning uncertainty is crucial in this and to deal with it we need a logic of abduction a heuristic to move from present competence to novel competence while surviving in the process such a heuristic is specified and some features are clarified by means of the notion of a script taken from cognitive science the heuristic is applied in an analysis of changes of industrial structure the complementarity of large and small firms the roles of multinational enterprises and industrial districts

innovation in services the purpose of this article is to lay the foundations of a theory that can be used to interpret innovation processes in the service sector the hypothesis underpinning this article is based on lancaster s definition of the product in both manufacturing and services as a set of service characteristics the article follows the example of those who have sought to apply lancaster s work to technological phenomena various modes of innovation in the service sectors are highlighted and illustrated