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

complementarity and external linkages the strategies of the large firms in biotechnology in biotechnology large firms enter into different kinds of linkages with universities and small medium sized research intensive firms we test the hypothesis that the strategies of external linkage of the large firms with other parties are complementary to one another we show that if any two strategies are complementary i e undertaking more of one strategy raises the marginal value of the other then they are positively correlated using data for a sample large us european and japanese chemical and pharmaceutical producers we find that the strategies above are positively correlated even after controlling for firm specific characteristics

agreements between firms and the technological life cycle model evidence from information technologies abstract contrarily to most previous contributions which have addressed the issue of cooperative agreements essentially in a perspective of comparative statics in this paper a model is proposed that relies on the technological trajectory notion suggested by evolutionary theories and emphasizes the relevance of the technological and market dynamics in explaining why and to what extent firms have recourse to agreements in particular it is claimed that the propensity of firms towards collaborative ventures and the characteristics of the cooperation depend upon the phase of the technological life cycle of the industry branch in which the cooperation takes place based on a cross sectional analysis of 45 industry branches in the information technology industrial system the paper also provides empirical evidence supporting the argument that the propensity towards agreements and the nature of the agreements concluded do change during the technological life cycle to this end it takes advantage of the arpa database developed at the polytechnic of milan and containing detailed information on over 2 000 agreements concluded in the 1980 1986 period all over the world in the semiconductor data processing and telecommunications industries

can the new forms of investment substitute for the old forms a transaction costs perspective this paper uses transaction costs theory is used to explain the features of the new contractual alternatives to foreign direct investment the new forms to assess their efficiency and to forecast their future development

an integrated production distribution model for a multi national company operating under varying exchange rates research modeling the production planning and logistics decisions for multi national companies mnc s operating under varying inflation and exchange rates is scanty decisions regarding the products to be made in different facilities and the markets which these facilities would serve are critical to the mnc s success also decisions regarding when to open retain and close facilities are equally important these decisions are sensitive to both inflation and exchange rates accordingly we incorporate these parameters in the development of an integrated production planning and distribution model for an mnc we elicit the performance of the model through examples our results indicate profit reduces by as much as 45 77 depending on the exchange rates initial capacities and restrictions imposed on the more profitable facility

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

the impact of culture on the strategy of multinational enterprises does national origin affect ownership decisions this paper tests the proposition that national origin affects the strategies of multinational enterprises by looking at the determinants of the choice they make between entering the united states through partially versus wholly owned subsidiaries we pool entries into the united states made by firms based in two countries japan and finland which differ both in their cultural characteristics and in their cultural distance to the united states after carefully controlling for the known firm and industry level determinants of subsidiary ownership strategies we find that cultural distance between the home base of the investor and the target country or perhaps political risk exerts a powerful influence on ownership of subsidiaries but cultural characteristics of the home base do not

from bond yield to macroeconomic instability a parsimonious affine model abstract we present a hybrid heston model with a common stochastic volatility to describe government bond yield dynamics the model is analytically tractable and therefore can be efficiently estimated using the maximum likelihood approach and a specific expansion in order to cope with the curse of dimensionality twofold is the model contribution first it captures changes in the yield volatility and predict future yield values of germany french italy and spain the result is an early warning indicator which anticipates phases of instability characterizing the time series investigated then the model describes convergence divergence phenomena among european government bond yields and explores the countries reactions to a common monetary policy described through the eonia interbank rate we also investigate the potential of this indicator on u s data treasury bills

reappraising the eclectic paradigm in an age of alliance capitalism this article discusses the implications of the advent of alliance capitalism for our theorizing about the determinants of mne activity in particular it argues that due to the increasing porosity of the boundaries of firms countries and markets the eclectic or oli paradigm of international production needs to consider more explicitly the competitive advantages arising from the way firms organize their inter firm transactions the growing interdependencies of many intermediate product markets and the widening of the portfolio of the assets of districts regions and countries to embrace the external economies of interdependent activities

does cooperation enhance competitiveness assessing the impacts of inter firm collaboration abstract collaboration among small and medium sized enterprises smes is an emerging approach to industrial competitiveness since first noted in western europe governments agencies and private foundations have experimented with policies to stimulate and accelerate forms of inter firm collaboration commonly called manufacturing networks the assumption behind such policies is that cooperative behavior will help smes firms compete and therefore the goal is to alter the behavior of enterprises and to facilitate co operation these strategies are part of an emerging national effort to stimulate industrial modernization through a variety of interventions state legislatures and government agencies being asked to invest in network initiatives want to know whether they are meeting their goals and what impacts they are having on their state regional and national economies while investments small in scale expectations are high this article draws on two evaluations of network initiatives one sponsored by a state and one by a private foundation to discuss issues methodologies evidence of impacts and challenges the first evaluation requested by for the oregon economic development department occurred at an early stage in the process and therefore was limited to the process and early industry responses the second requested by the northwest area foundation was over the 3 year grant period and also included some measures of change among participating smes both however illustrate the difficulties in trying to attribute bottom line changes in a business and economic changes in an economy to relatively small and indirect interventions and the need for additional research on measures and methodologies

the early warnings of banking crises interaction of broad liquidity and demand deposits this paper explores the fundamentals in the run up to systemic banking crises it applies a visualisation approach that combines elements of an event study analysis and a fan chart technique the approach helps identify potential leading indicators a multivariate analysis follows this paper presents a new early warning system for banking crises built upon these indicators the interaction of liquidity ratio and loss of demand deposits is incorporated into the model and substantially improves the results the selected factors are highly statistically significant and robust the out of sample forecasts demonstrate the strong predictive power of the model

the globalisation of technology what remains of the product cycle model this paper reexamines two hypotheses associated with earlier versions of the product cycle model the first hypothesis that innovations are almost always located in the home country of the parent company is rejected on the basis of evidence drawn from one hundred years of u s patent office data the second hypothesis that the international dispersion of activity is led by technology leaders is historically valid however over the last twenty years technology leaders have been ahead instead in the globalization of technology that is in developing internal international networks to exploit the locationally differentiated potential of foreign centers of excellence c 1995 academic press inc copyright 1995 by oxford university press

the experience factor in foreign market entry behavior of service firms the paper examines the effect of international experience on service firms selection of foreign markets and entry modes the investigation utilizes survey date from 151 united states based service firms results on market selection suggest that as their experience increases and becomes geographically more diversified service firms tend to choose markets that are culturally less similar to their home country on entry mode choice the paper departs from traditional linear conceptualizations and hypothesizes a u shaped relationship between experience and propensity for integrated entry modes results generally support the hypothesis the paper explains these findings and describes how service firms resemble and differ from manufacturing firms in their foreign market entry behavior

how multinational subsidiary mandates are gained and lost a subsidiary mandate is a business or element of a business in which the subsidiary participates and for which it has responsibilities beyond its national market this research studied thirty one mandates in six canadian subsidiaries of u s owned multinational corporations a life cycle framework was proposed and used to explore the factors associated with the gain development and loss of mandates by subsidiaries two key findings emerged first it was shown that there is a risk in having a full scope world product mandate because it is possible to become marginal to the corporate strategy second it was observed that the engine of subsidiary growth is its distinctive capabilities and that for a mandate to be effective it must be built on those capabilities implications for mandate sustainability are proposed on the basis of these two insights

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

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

the effect of national culture on the choice of entry mode characteristics of national cultures have frequently been claimed to influence the selection of entry modes this article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry two hypotheses are derived which relate culture to entry mode choice one focusing on the cultural distance between countries the other on attitudes towards uncertainty avoidance using a multinomial logit model and controlling for other effects the hypotheses are tested by analysing data on 228 entries into the united states market by acquisition wholly owned greenfield and joint venture empirical support for the effect of national culture on entry choice is found

transactions cost economics and the multinational enterprise an assessment abstract this paper applies transactions cost principles to the multinational enterprise in order to ascertain its distinctive properties as a mode of economic organization the analysis helps identify just when and where contractual alternatives to the multinational firm are likely to be viable this turns out to depend upon the nature of the technology the regime of appropriability within which the firm operates and the characteristics of the markets in question transactions cost analysis is also extended to the multinational enterprise host country relationship implications for management and public policy are derived

new ventures or acquisitions the choice of swedish multinational enterprises this study examines the factors influencing the multinational enterprises choice between the takeover of already existing firms and investments in new ventures as a means of entering a foreign market the results suggest that the degree of industrial diversification of the parent company and the host country s per capita income seems to have a positive influience on the propensity for takeovers this propensity appears to be negatively related to the rate of growth of industrial production in the industry entered further we found that the more recent the entry into a foreign market the greater the probability for choosing acquisition

the two faces of learning by cooperating the evolution and stability of inter firm agreements in the european electronics industry abstract using evidence from case studies we try to emphasize that the decision to continue or discontinue an agreement will depend on the balance between the allocation use and generation of re deployable information that guarantees flexibility and the allocation use and creation of specific assets that will favour inertia of collaborative ventures thereafter considering the stability of collaborations the break up of an agreement can either be caused by a failure of the venture or by the attainment of satisfactory results from it given the irreversible and reversible investments sustained conversely while continuity of cooperation in time may signal a successful and selfsustaining interaction it can also reflect lock in phenomena

a semiparametric bayesian approach to the analysis of financial time series with applications to value at risk estimation abstract garch models are commonly used for describing estimating and predicting the dynamics of financial returns here we relax the usual parametric distributional assumptions of garch models and develop a bayesian semiparametric approach based on modeling the innovations using the class of scale mixtures of gaussian distributions with a dirichlet process prior on the mixing distribution the proposed specification allows for greater flexibility in capturing the usual patterns observed in financial returns it is also shown how to undertake bayesian prediction of the value at risk var the performance of the proposed semiparametric method is illustrated using simulated and real data from the hang seng index hsi and bombay stock exchange index bse30

influences on human resource management practices in multinational corporations a study of human resource management practices in 249 u s affiliates of foreign based multinational corporations mncs shows that in general affiliate hrm practices closely follow local practices with differences among specific practices the degree of similarity of local practices is significantly influenced by the method of founding dependence on local inputs the presence of expatriates and the extent of communication with the parent in addition sharp differences are revealed among affiliates of canadian japanese and european mncs suggesting strong country effects together these findings support the view of mncs as composed of differentiated practices which in turn are shaped by forces for local isomorphism and for internal consistency

nonlinear manifold learning for early warnings in financial markets abstract a financial market is a complex dynamic system with an underlying governing manifold this study introduces an early warning method for financial markets based on manifold learning first we restructure the phase space of a financial system using financial time series data then we propose an information metric based manifold learning imml algorithm to extract the intrinsic manifold of a dynamic financial system early warning ranges for critical transitions of financial markets can be detected from the underlying manifold we deduce the intrinsic geometric properties of the manifold to detect impending crises experimental results show that our imml algorithm accurately describes the attractor manifold of the financial dynamic system and contributes to inform investors about the state of financial markets

patterns of collaborative innovation in the us telecommunications industry after divestiture abstract this paper examines the implications of institutional change on collaborative innovation in the us telephone service industry the analysis relies on a database covering cooperative ventures in which two groups of firms were involved in the 1984 1990 period i e the regional holding companies and the independent holding companies in the post divestiture phase first it is shown that restrictions imposed on diversification may represent a strong mechanism inducing firms to collaborate with equipment suppliers and other service carriers through international cooperation companies attempt to exploit technological and market opportunities they cannot gain access to on the national arena moreover they take part in a number of agreements as a means to aggressively modernize their network equipment and to increase their own innovative capabilities on the markets they are allowed to enter second the paper discusses the consequences of the breaking up of r d manufacturer user integration on equipment procurement strategies on the one hand firms which were constrained in their vertical integration appear to have increased the number of sources as a protection against suppliers opportunistic behaviour on the other hand they tend to get involved into a larger and growing number of supply contracts which also have some collaborative implications in order to capture the value of their internally produced software it is further suggested that these areas of institutional intervention should be closely examined when discussing actual and potential patterns of collaborative ventures and innovation in other industrial contexts as well

did established early warning signals predict the 2008 crises abstract over the past 60 years a voluminous literature has painstakingly developed crises theories and their associated early warning signals the hallmark of this literature is the consistency with which selected early warning signals such as the level of reserves and exchange rate appreciations are presumed to predict different types of crises across countries and time the diversity of crises theories that motivate early warning signals presents however a challenge to empirical implementations given that the true model of early warning signals is unknown omitted variable bias contaminates estimates and confidence levels when the uncertainty surrounding a particular theory has been ignored after addressing model uncertainty in early warning signal regressions using an extended version of frankel and saravelos 2012 j int econ 87 216 231 dataset we do not find a single early warning signal that alerts to all dimensions of the 2008 crisis instead distinct sets of early warning signals identify different dimensions of the crisis banking balance of payments exchange rate pressure and recession

developing an early warning system to predict currency crises abstract the purpose of this paper is to develop an early warning system to predict currency crises in this study a data set covering the period of january 1992 december 2011 of turkish economy is used and an early warning system is developed with artificial neural networks ann decision trees and logistic regression models financial pressure index fpi is an aggregated value composed of the percentage changes in dollar exchange rate gross foreign exchange reserves of the central bank and overnight interest rate in this study fpi is the dependent variable and thirty two macroeconomic indicators are the independent variables three models which are tested in turkish crisis cases have given clear signals that predicted the 1994 and 2001 crises 12 months earlier considering all three prediction model results turkey s economy is not expected to have a currency crisis ceteris paribus until the end of 2012 this study presents uniqueness in that decision support model developed in this study uses basic macroeconomic indicators to predict crises up to a year before they actually happened with an accuracy rate of approximately 95 it also ranks the leading factors of currency crisis with regard to their importance in predicting the crisis

the entry mode choice of mnes an evolutionary approach abstract the literature on foreign direct investment fdi has recently analysed the nature of the firm s entry mode choice in a foreign market particularly the choice between a joint venture and a wholly owned subsidiary the paper aims at providing further empirical evidence on the influence of some key variables in explaining it the theoretical framework relates to the resource based view of the firm and to the more recent competence based theory it focuses on the concept of the firm as a collection of productive resources and assets built through internal learning processes in the form of evolutionary experimentation the inability of the firm to build internally all the needed knowledge and competencies forces it to acquire them outside influencing the growth strategy of the firm as resources and complementary assets are spread out the firm has to deal with constraints which become more crucial when the firm enters into unfamiliar markets and areas of activity in particular when deciding about the entry mode on foreign markets the firm has to face transaction costs concerning actors and potential partners and their opportunism and costs related to the need for acquiring information about new institutional environments and their working according to this view the resort to co operative solutions and joint ventures allows firms to reduce costs and uncertainty related to foreign markets and rises if technological opportunities tacit skills and competencies constitute an important source of competitive advantage for the firm an empirical analysis with reference to a representative sample of fdi undertaken by italian firms in mining and manufacturing industries over the period 1986 1993 has been developed in order to test the hypotheses

mildly explosive dynamics in u s fixed income markets abstract we use a recently developed right tail variation of the augmented dickey fuller unit root test to identify and date stamp periods of mildly explosive behavior in the weekly time series of eight u s fixed income yield spreads between september 2002 and april 2018 we find statistically significant evidence of mildly explosive dynamics in six of these spreads two of which are short medium term mortgage related spreads we show that the time intervals characterized by instability that we estimate from these yield spreads capture known episodes of financial and economic distress in the u s economy mild explosiveness migrates from short term funding markets to medium and long term markets during the great financial crisis of 2007 09 furthermore we statistically validate the conjecture that the initial panic of 2007 migrated from segments of the abx market to other u s fixed income markets in the early phases of the financial crisis