complementarities in the search for innovation managing markets and relationships abstract extant research has characterized a firm s search for external knowledge in its innovation activities as either relational or transactional in nature the former implies that a firm chooses and develops collaborative relationships with knowledge sources like universities customers or suppliers while the latter suggests transactions governed by markets for technology we argue that prior literature has ignored that both search strategies are interrelated and complementary adopting one strategy has a higher marginal return on innovation performance if the other one is present moreover we suggest the benefits from complementarity to be higher when a firm is more distant to the technological frontier in the industry and when markets for technology in that industry are shallow we test our hypotheses on a sample of 3921 german firms from 2001 to 2009 and find support for our hypotheses

innovation outcomes in a distributed organization intrafirm mobility and access to resources prior research has established a relation between intrafirm mobility and innovation outcomes at distributed organizations the literature has also uniformly agreed on the mechanism underlying this relationship the sharing of tacit knowledge and recombination of ideas that occurs because of intrafirm mobility but a second mechanism may also be at work intrafirm mobility might help distant employees secure access to resources for their innovative projects using unique data on travel employment and patenting for 1 315 inventors at the indian research and development r d center of a fortune 50 multinational i find that intrafirm mobility in the form of short duration business trips from a distant r d location to headquarters is positively related to higher subsequent patenting at the individual level i also find mobility immediately prior to meetings at which r d funds are most likely to be disbursed to be related to higher subsequent patenting this study sheds new light on how intrafirm mobility a

overall review of the overcapacity situation of china s thermal power industry status quo policy analysis and suggestions abstract china s thermal power industry has gone through the phases of rapid development in the last decade but the excessive enthusiasm of thermal power investment is making this industry overcapacity the unbalanced demand supply relationship in electric power market greatly affects the economic benefit of most thermal power plants in this paper we give an overall review of the overcapacity situation of china s thermal power industry which is supported by latest data then policy orientation and its effect is discussed it can be found out that policies on the respect of construction scale control renewable power integration feed in tariff reduction and environmental protection were considered as the main solution to relieve the over capacity situation finally we propose three suggestions for the future development of china s thermal industry

is the tendency to variation a chief cause of progress this paper briefly reviews the sources of the diversity of innovative activity within industries and interprets the literature to suggest that there are three ways in which such diversity may stimulate technological progress including a selection effect a breadth effect and a complementarity effect using industry level data from the yale survey administered in the 1980s the paper presents preliminary empirical results on the relationship between the diversity of r d activities within industries and their rate of technical advance this exploratory exercise finds that controlling for industry r d intensity greater diversity in innovative activity is associated with a more rapid pace of technological change policy implications are considered copyright 2001 by oxford university press

real options logic revisited the performance effects of alternative resource allocation regimes we delineate three dimensions of resource allocation behavior that allow us to distinguish between real options logic and alternative resource allocation regimes sequencing low initial commitment and reallocation we then measure these in a product innovation context to test for the performance effect of real options logic vis a vis its alternatives sequencing which distinguishes dynamic allocation regimes more generally is associated with higher new product sales low initial commitment and reallocation do not show individual direct effects on new product sales however when assessed as a match we find that the fit between low initial commitment and reallocation yes yes no no increases performance significantly after controlling for such fit as well as sequencing we find no significant performance difference between real options logic and other regimes our findings imply that insufficient identification of real options logic picks up confounding effects which may provide an explanation for the inconclusive results in prior studies of real options and performance in addition to bounding the concept more precisely we contribute to theory by situating real options logic within the broader set of allocation regimes conducive to innovation performance in uncertain competitive markets

toward a general theory of wage and price rigidities and economic fluctuations this paper begins with the hypothesis that large economic fluctuations the marked changes in the unemployment that characterize market economies are a consequence of problems of adjustment to disturbances especially adjustments of wages and prices two strands of work have addressed these problems of adjustment one focuses on rigidities downward rigidities in wages are at the center of traditional keynesian models the other focuses on the consequences of rapid changes particularly in asset prices in the context of markets with incomplete contracting imperfect indexing and imperfect capital markets while the second tradition traces its origins at least back to irving fisher s debt deflation theories it has been revived in the newkeynesian work of bruce greenwald and stiglitz 1988 1989 1990b 1993 1995 and others the fact that wages and prices did fall dramatically in the great depression by more than a third in the united states provided some of the impetus to the latter theory the major economic downturn this year in east asia with unemployment in indonesia soaring from 4 7 percent to 14 3 percent and output falling by at least 16 percent was accompanied by huge changes in prices over the first year of the crisis the current best estimate is that indonesian real wages fell by 40 60 percent world bank 1998 p 105 this result i would argue is better interpreted through the second strand of thought

coal power overcapacity and investment bubble in china during 2015 2020 abstract electricity consumption growth in china has experienced radical adjustment from high speed to medium speed with the advent of new economy normal however the investment enthusiasm on coal power remains unabated and leads to continuous operation efficiency deterioration in recent years in this paper we quantify the rational capacity and potential investment of coal power in china during the 13th fyp period 2016 2020 by employing power planning model and fully considering the power sector s contribution in the 15 non fossil primary energy supply target by 2020 we estimate that the reasonable capacity addition space of coal power ranges between 50 gw and 100 gw depending on the expected range of demand growth we find that if all the coal power projects submitted for environmental impact assessment eia approval were put into operation in 2020 capacity excess would reach 200 gw such huge overcapacity will bring forth disastrous consequences including enormous investment waste poor economic performance of generators and more importantly delay of low carbon energy transition finally policy recommendations are proposed to address this issue

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

third market broker dealers cost competitors or cream skimmers this article compares the bid ask spread for new york stock exchange nyse listed securities before and after a major third market broker dealer bernard l madoff investment securities madoff begins to selectively purchase and execute orders in those securities tests reveal the quoted bid ask spread tightens when madoff enters the market furthermore trading costs as measured by the difference between the transaction price and the midpoint of the contemporaneous bid ask spread do not increase together these results suggest that the adverse selection problem associated with allowing agents to selectively execute orders in exchange listed securities may be economically insignificant

economic impacts of debottlenecking congestion in the chinese coal supply chain abstract the fast pace of development in china s coal industry created bottlenecks in its transportation infrastructure these bottlenecks likely affected not only china s domestic coal market but also global coal markets in this paper we estimate the costs and consequences of these bottlenecks using a production and multimodal transportation model we find that coal transportation inefficiencies increased the price of chinese domestic coal at coastal locations and thereby influenced global seaborne coal prices according to our model results the resulting extra costs of coal supplied to the chinese economy totaled 228 billion renminbi rmb in 2011 and 105 in 2013 the subsequent debottlenecking on the other hand has reduced the price of chinese domestic coal delivered to coastal regions and contributed to the reduction in global seaborne coal prices since 2011 our analysis also suggests that current tariffs for coal transport with their embedded taxes to cover investments in rail capacity result in economic efficiencies similar to charging marginal transportation costs and that planners have not introduced distortions that impose significant additional costs on the chinese economy many projects that expanded transport capacity delivered strongly positive rates of return however some have poor or negative rates of return which can reflect either overinvestment or preinvestment in future needs

intertemporal optimization of the coal production capacity in china in terms of uncertain demand economy environment and energy security abstract as coal is the main energy source in china coal overcapacity and undercapacity have negative impacts on the economy environment and energy security to reveal the optimal production capacity opc an intertemporal optimization model under uncertainty is established by a combined dynamic programming influence factor scenario analysis monte carlo method dp if sa mc the opcs in 1990 2025 are solved to minimize the expected cost to the economy and environment driven by the production capacity pc under energy security in addition we define and calculate the pc deviation pcd or the deviation of the actual pc apc from the opc the results show that compared with the apc the opc has advantages of more stable development more timely adjustment and lower cost and it provides cost savings of 302 857 billion yuan in 1990 2017 according to pcd china s coal industry existed under the risk of overcapacity in 1990 1999 and 2009 2017 and undercapacity in 2000 2008 and it can experience overcapacity for most of the time without capacity reduction policies in future the optimal management of the pc should be based on the opc and pcd over the next 5 10 years rather than the current capacity utilization rate and focus on overcapacity management in the long run

the emergence and evolution of regional convergence clusters in china s energy markets employing the new regression tests for convergence club convergence and clustering proposed by phillips and sul 2007 this paper models and analyses the behaviour of china s energy sectors energy market convergence clusters are identified using new price data and their regional spatial distributions are mapped for four major fuel types coal gasoline diesel and electricity the findings are as follows i as yet there are no fully integrated national energy markets in china as more than one convergence cluster is identified for all four fuels ii some regional energy markets can be regarded as quite mature as evidenced by the existence of some highly concentrated convergence clusters connected geographically iii some regional markets remain in a state of transition as witnessed by convergence clusters that are scattered geographically and that are growing in membership iv it seems that there is more regional based integration for coal and electricity than for gasoline and diesel as more convergent clusters were identified for coal and electricity than for gasoline and diesel and v overall china still appears to be in the process of energy market integration as demonstrated by the number and evolution of convergence clusters over time

knowledge seeking and location choice of foreign direct investment in the united states to what extent do firms go abroad to access technology available in other locations this paper examines whether and when state technical capabilities attract foreign investment in manufacturing from 1987 1993 we find that on average state r d intensity does not attract foreign direct investment most investing firms are in lower tech industries and locate in low r d intensity states suggesting little interest in state technical capabilities in contrast we find that firms in research intensive industries are more likely to locate in states with high r d intensity foreign firms in the pharmaceutical industry value state r d intensity the most at a level twice that of firms in the semiconductor industry and four times that of electronics firms interestingly not only firms from technically lagging nations but also some firms from technically leading nations are attracted to r d intensive states this suggests that beyond catching up firms use knowledge seeking investments also to source technical diversity

is co invention expediting technological catch up a study of collaboration between emerging country firms and eu inventors firms from emerging countries are going global and europe is attracting around one third of their direct outward investments growing internationalization constitutes an opportunity for technological catch up in this paper we analyze brazilian indian and chinese cross border inventions with european union eu 27 inventors during the period 1990 2012 our results suggest that these inventions represent an opportunity for emerging country firms to accumulate technological capabilities access frontier knowledge and appropriate the property rights of co inventions this paper contributes to understanding catching up by emerging country firms c 2015 elsevier ltd all rights reserved

foreign direct investment in industrial research in the pharmaceutical and electronics industries results from a survey of multinational firms abstract this paper examines motives location characteristics inter temporal characteristics and modes of entry for foreign direct investment fdi in research and development r d the paper is based on a detailed empirical survey of laboratory sites established by 32 large multinational companies domiciled in 5 countries findings indicate that fdi in r d has risen considerably over the last 40 years and that firms invest in r d sites abroad in order to augment their knowledge base or in order to exploit it the former motive leads to establishment of facilities primarily close to universities while the latter type leads to establishment of facilities close to existing manufacturing facilities and markets the paper also finds that greenfield investments are the dominant mode of entry and that firms establish multiple r d sites in their home countries before investing in such sites abroad

accounting for innovation and measuring innovativeness an illustrative framework and an application the purpose of this paper is to propose and illustrate an accounting framework for innovation we characterize the intensity of innovation by a sales weighted measure of innovation the share of sales in innovative products but other output indicators of innovation could be considered as well comparing statistics on the share of innovative sales across countries industries or firms measures but does not explain the intercountry interindustry or interfirm differences in innovation intensity to have a more meaningful basis of comparison we need a model if an exact model of innovation in its various dimensions existed and if we knew it we would be able to understand fully why innovation differs among countries industries or firms of course such a model does not exist nevertheless it is worth trying to account for innovation differences if only very roughly in such an endeavor what remains to be explained is as important to consider as what can be explained because it reflects the extent of innovative ability or capacity or innovativeness to motivate our approach better and make it more explicit we find it appealing to draw a comparison with the standard framework for growth accounting and the underlying model of a production function production output is viewed as resulting from a process of transformation of inputs into output that can be represented and analyzed in terms of a production function based on the production function an accounting framework can be constructed in which changes in output between periods years decades or differences between spatial units firms industries countries are ascribed to changes or differences in the inputs and in a residual that is known as total factor or multifactor productivity tfp or mfp or simply productivity likewise innovation output can be viewed as resulting from innovation inputs such as r d efforts and other contextual determinants such as the pressure of competition this linkage can be represented in terms of an innovation function and an innovation accounting framework on the basis of which changes in innovation output between periods or differences between spatial units can be ascribed to changes or differences in the factors of innovation and in a residual that we call innovativeness or the unexplained ability to turn innovation inputs into innovation output innovativeness is thus to innovation what tfp is to production innovativeness is conditional on a model of an innovation function and a set of factors of innovation just as tfp is conditional on an assumed specification of the production function and measured factors of production both correspond to omitted factors of performance such as technological organizational cultural or environmental factors and to other sources of misspecification errors although tfp is commonly interpreted as being mainly an indicator of technology the produc

enterprise investment local government intervention and coal overcapacity the case of china abstract long term management of china s coal overcapacity depends on the targeted policy guidance on industry production capacity expansion in the overcapacity formation process in this study coal enterprise and local government are treated as game participants and a three stage dynamic game model has been developed to depict the boosting effect of the game behavior of coal enterprise s and local government s capacity investments in different markets of supply and demand the results are shown in the following 1 local government has been the behind the scenes operator of over investment and redundant construction and its excessive interventions in coal industry investment have been the primary cause of overcapacity formation 2 when the market is in short supply coal enterprise s optimal behavior is to continuously increase the rate of investment growth until it reaches the threshold to obtain the maximum excess profits ultimately leading to overinvestment in the industry and 3 the key factors affecting the game abilities of coal enterprise and local government are the market s self regulation and the central government s supervision intensity although the chinese government a highly vertically oriented bureaucratic structure is implementing a mandatory de capacity policy to alleviate the intensity of excessive coal capacity it is not a long term regularization on the supply side reform

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

economic growth regional disparities and energy demand in china abstract using the panel data of 27 provinces between 1978 and 2008 we employed a instrumental regression technique to examine the relationship between economic growth energy demand production and the related policies in china the empirical results show that forming a cross province integrated energy market will in general reduce the response of equilibrium user costs of energy products to their local demand and production through cross regional energy transfer including both energy trade and cross regional reallocation in particular reducing transportation costs and improving marketization level are identified as two important policy instruments to enhance the role of energy market integration the findings support the argument for a more competitive cross province energy transfer policies and calls for more developed energy connectivity and associate institutional arrangements within china these policy implications may also be extended to the east asia summit region where energy market integration is being actively promoted

capitalism as an engine of progress economists from marx to schumpeter have touted capitalism as an engine of technical progress but what kind of an engine is it what are its key components how does it work

allocation of coal de capacity quota among provinces in china a bi level multi objective combinatorial optimization approach abstract coal de capacity or capacity cut is an important part of china s energy transition formulating a quota allocation scheme for coal de capacity is the key to realizing smooth exit of coal overcapacity this study proposes a novel method of allocation of coal de capacity quota among provinces based on bi level multi objective combinatorial optimization in this bi level optimal allocation scheme boas the upper level is the central government and the lower level is the provincial governments the results indicate that because of the different costs of coal de capacity in each province the execution rate of each province for tasks assigned by the central government is quite different compared with the government allocation scheme gas and the single level optimal allocation scheme soas the growth rate of total factor productivity of the boas increases by 2 14 and 0 60 respectively the total de capacity cost of boas has reduced 64 billion yuan and 19 billion yuan respectively and the environmental benefits of boas has increased 73 billion yuan and 71 billion yuan respectively the gini coefficient of boas calculated by various indexes is less than 0 3 placing the scheme within the category of considerable or absolute fairness in addition the proposed allocation model truly reflects the complex dynamics of the game process of china s coal overcapacity governance system and can provide a more effective decision making reference for the chinese government in formulating the allocation scheme of coal de capacity

unintended consequences of china s coal capacity cut policy in early 2016 china introduced additional capacity cut policies to rebalance supply in the coal market to match demand that had been reduced by slow economic growth and strict environmental regulation ensuing disruptions to the coal market caused these policies to be revised and subsequently discarded as decision makers tried to find a balance between efficient supply economic and social stability and environmental sustainability this paper explores the causes of these unintended consequences using an extended version of the kem china model the results reveal that full and partial compliance with the capacity cut policies results in a significant gap between supply and demand this suggests that implementation of the policy was technically infeasible even allowing for a significant increase in coal prices and economic costs besides significant differences in coal prices and output profiles are registered across the country we argue that the heterogeneous nature of the chinese coal market and policy compliance was a major factor leading to the unintended consequences rendering a single national price benchmark inappropriate as a policy gauge we propose that the capacity cut policy should be differentiated across regions and even types of coalmines market approaches would be preferable to the command and control instruments and policy distortions that cause excess capacity should be removed