strategizing by firms in the presence of markets for resources strategizing by firms from the resource based view is concerned with the process through which firms acquire a distinctive bundle of resources that is costly and time consuming for competitors to duplicate or imitate a central question facing any firm therefore is its strategy for accumulating the resources that underpin its production activities in this article the process of resource accumulation is discussed as one involving potentially both internal resource development and external resource acquisition from the perspective of the strategic issues involved in making a choice between these options emerging markets for technologies and know how through licensing and other forms of resource exchange have opened up new avenues through which firms may jostle for advantage the article is concerned with three major aspects of this process illustrating the discussion with cases from biotechnology and pharmaceuticals first the strategizing by firms around the internal development vs external sourcing issue is discussed as informed by the practices of leading firms and how these lend greater variety of strategic options for firms second the potential competitive advantages as well as disadvantages to be secured by firms through the process of external sourcing as compared with the well known potential advantages accruing to incumbents through internal development such as time compression diseconomies and causal ambiguity and third the criteria to be used by firms to strategically evaluate resources individually as contrasted with the strategic evaluation of the resource bundle or totality these criteria it is argued turn on the issues of marginal value contribution resource complementarities and synergies resource variety and transferability involving intellectual property issues successful firms it is argued expand their options through blending internal resource accumulation with external resource leverage thereby deepening their distinctive dynamic capabilities this approach extends the framework of the rbv enabling it to encompass resource driven schumpeterian competition and such aspects of industrial dynamics as specialization modularization and imitative challenge copyright 2003 oxford university press

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

welfare regimes family supportive policies and women s employment along the life course this article examines women s employment patterns during thechild rearing period and the consequences of those patterns for earnings later in life in 12 industralized countries this study proposes an analytic framework that combines welfare regime and gender specific policies to explain country differences the findings presented here suggest that institutional arrangements mediate the costs to women s part time and intermittent employment within welfare regimes employment continuity is highest among countries in which the state provides support for working mothers furthermore this study finds that lower support for mothers employment is associated with higher wage penalties to employment discontinuity

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

market stimulating technology policies in developing countries a framework with examples from east asia abstract this paper proposes an analytical framework for technology development based upon evolutionary approaches and drawing upon asian development strategies the analysis rests on the concept of market stimulating technology policies comprising a broad array of policies to promote industrial and technological development some market and others government determined these policies may be functional horizontal or vertical and can be analyzed at three levels national strategic and specific the paper suggests that strategic choices are involved at all stages that cannot be resolved entirely by recourse to free markets

managerial incentive problems a dynamic perspective the paper studies how a person s concern for a future career may influence his or her incentives to put in effort or make decisions on the job in the model the person s productive abilities are revealed over time through observations of performance there are no explicit output contingent contracts but since the wage in each period is based on expected output and expected output depends on assessed ability an implicit contract links today s performance to future wages an incentive problem arises from the person s ability and desire to influence the learning process and therefore the wage process by taking unobserved actions that affect today s performance the fundamental incongruity in preferences is between the individual s concern for human capital returns and the firm s concern for financial returns the two need be only weakly related it is shown that career motives can be beneficial as well as detrimental depending on how well the two kinds of capital returns are aligned it is well understood by now that informational externalities may place special demands on the organization of economic exchange simple price mediated markets will frequently fail in the presence of asymmetric information in that case more elaborate contractual arrangements have to be used as substitutes for the price system lately considerable effort has been devoted to the analysis of contracting under incomplete information with the objective to understand the range of economic institutions that emerge in response to the failure of the price system the analysis of moral hazard has played a prominent role in this development moral hazard problems arise when for some reason or another transacting parties cannot contract contingent on the delivery of the good for instance in buying labour services it may be that the amount of labour supplied is not directly observable precluding a simple exchange of wage for labour as a partial remedy to this problem an imperfect mutually observed signal about the supply of labour can be used as a proxy in the contract frequently output is taken as such a proxy the drawback is that output is often influenced by other factors than labour input which induce undesirable risk into the contract one is therefore faced with a tradeoff between allocating risk associated with incomplete observability and providing incentives for a proper supply of labour gaining insight into this tradeoff is important not only for understanding contracting in the small e g managerial incentive schemes but also because it is closely related to the fundamental tension between equity and efficiency in the society as a whole while our understanding of moral hazard has advanced a lot in past years it is clear that much work remains an important question that has received little attention until

choosing organizational modes of strategic technology partnering international and sectoral differences this paper focuses on international strategic technology partnerships and the choice that companies have in terms of the organizational mode either through complex inter organizational modes involving equity sharing or contractual non equity alliances the empirical results show that the choice of particular mode of cooperation varies with the technological characteristics of sectors of industry joint ventures are disproportionately represented in relatively mature industries contractual alliances dominate strategic technology partnering in so called high tech industries

seller concentration the technological explanation and demand uncertainty the level of seller concentration in an industry depends on two characteristics of the size distribution of the firms concerned their number and the inequality of their sizes acknowledging these two dimensions the aim of this paper is to construct a unified theoretical framework capable of shedding some light on the economic forces which determine the degree of concentration it builds on the analysis of two schools of thought within the existing literature the first of these we shall label the technological explanation of concentration since it emphasises the role of the cost curve in particular the minimum efficient scale of production and barriers to the entry of new firms implicitly this attaches most importance to the firm number component of concentration the second school includes the various stochastic models of firm growth these models have demonstrated the influence on concentration of what is sometimes called luck or more deterministically those factors which might influence the spread of growth rates of firms within an industry to that extent these models emphasise the other component of concentration size inequalities we see our present contribution as an attempt to build a bridge between these two approaches we develop the well known simon and bonini i958 stochastic growth model in such a way as to provide a formal statement of the technological explanation and then discuss various ways of deepening the economic content of their original contribution section i provides a brief resume of the technological explanation and section ii describes the salient features of the simon and bonini model it goes on to show how this model can be used to disentangle a mathematical relationship between the concentration ratio and i minimum efficient scale ii the share of sub optimal firms and iii the degree of firm size inequalities this relationship is tested with some success using i968 uk census data an important conclusion of the simon and bonini model is that firm size inequalities depend crucially on the probability of entry by new firms section iii considers how this proposition may be invested with more economic content the discussion is couched at a fairly general level but in the appendix we suggest a specific model which explains entry as a consequence of the fact that incumbent firms typically operate in a world of demand uncertainty where entry deterrence may be too costly it provides specific economic predictions

the silicon valley hsinchu connection technical communities and industrial upgrading silicon valley in california and the hsinchu taipei region of taiwan are among the most frequently cited miracles of industrialization in the information technology era since the region s transformation from an agricultural valley into the birthplace of the semiconductor industry in the 1950s silicon valley firms have pioneered a wide range of technology related industries the regional economy has adapted flexibly to fast changing markets and local producers continue to define the state of the art in successive generations of technology from semiconductor equipment personal and handheld computers and networking hardware and software to biotechnology multimedia software and internet related infrastructure and services taiwan s technology achievements are more recent but no less impressive the taipei area which served as a source of low cost labor for consumer electronics production as late as the 1970s is known today for the speed and flexibility of its personal computer manufacturers these firms dominate the markets for a large and growing range of computer rela ted products from motherboards and monitors to optical scanners and power supplies meanwhile the hsinchu science based industrial park established in 1980 is now a state of the art manufacturer of semiconductor s on par with the world market leaders in the us and japan taiwan s total information technology output is now greater than that of larger nations like korea in fact it is larger than the output of germany and france combined anderson 1998

ticking away the moments timing regularity helps to better predict customer activity accurate predictions of a customer s activity status and future purchase propensities are crucial for managing customer relationships this article extends the recency frequency paradigm of customer base analysis by integrating regularity in interpurchase timing in a modeling framework by definition regularity implies less variation in timing patterns and thus better predictability whereas most stochastic customer behavior models assume a poisson process of random purchase occurrence allowing for regularity in the purchase timings is beneficial in noncontractual settings because it improves inferences about customers latent activity status this especially applies to those valuable customers who were previously very frequently active but have recently exhibited a longer purchase hiatus a newly developed generalization of the well known pareto nbd model accounts for varying degrees of regularity across customers by replacing the nbd component with a mixture of gamma distributions labeled pareto gg

testing competitive market structures an accurate understanding of the structure of competition is important in the formulation of many marketing strategies for example in new product launch product reformulation or positioning decisions the strategist wants to know which of his competitors will be most affected and hence most likely to respond many marketing science models have been proposed to identify market structure in this paper we examine the managerial problem and propose a criterion by which to judge an identified market structure basically our criterion is a quantification of the intuitive managerial criterion that a submarket is a useful conceptualization if it identifies which products are most likely to be affected by our marketing strategies we formalize this criterion within the structure of classical hypothesis testing so that a marketing scientist can use statistical statements to evaluate a market structure identified by 1 behavioral hypotheses 2 managerial intuition or 3 market structure identification algorithms mathematically our criterion is based on probabilities of switching to products in the situation where an individual s most preferred product is not available submarkets are said to exist when consumers are statistically more likely to buy again in that submarket than would be predicted based on an aggregate constant ratio model for example product attributes e g brand form size use situations e g coffee in the morning versus coffee at dinner and user characteristics e g heavy versus light users are specified as hypotheses for testing alternate competitive structures measurement and estimation procedures are described and a convergent approach is illustrated an application of the methodology to the coffee market is presented and managerial implications of six other applications are described briefly

investigating consumers purchase incidence and brand choice decisions across multiple product categories a theoretical and empirical analysis we propose a framework to investigate consumers brand choice and purchase incidence decisions across multiple categories where both decisions are modeled as an outcome of a consumer s basket utility maximization we build the model from first principles by theoretically explicating a general model of basket utility maximization and then examining the reasonable restrictions that can be placed to make the solution tractable without sacrificing its flexibility comparing with prior models we show why prior multicategory purchase incidence models overemphasize the role of the cross effects of a market mix of brands in other categories on the purchase incidence decision of a given category additionally we show that prior single category models are a special case of the proposed model when further restrictions are placed on the basket utility structure we estimate the model on household basket data for the laundry family of categories we show i why prior single category and multicategory models would systematically bias the estimates of the own and cross price promotional purchase incidence elasticities and ii how the market mix of each brand in each category affects the purchases across all categories which can help retailers make promotional decisions across a portfolio of products

small firms social capital and the enhancement of business performance through innovation programmes the paper explores the extent to which social capital is advantageous to small and medium enterprise sme growth social capital is a communal property involving civic engagement associational membership high trust reliability and reciprocity in social networks it is capable of being identified in social political and economic contexts often associated with strong communities however not all strong communities exert the effects of social capital in respect of business activities this paper assesses government programmes to promote collaboration amongst smes for improving innovation capacity by increasing social capital through networking it shows that for a sizeable proportion of programme funded firms in denmark ireland and wales u k social capital building was associated with enhanced business knowledge and innovation performance of particular importance was the opportunity afforded to firms for linkage with external innovation networks and the build up of embeddedness or the institutional basis for the enhancement of social capital as a consequence of discovering the advantages of social capital over a third of respondents planned to continue to develop it in future in many cases funding such activities privately rather than calling on the public purse

why are governmental r d and private r d complements it is well known that government r d and private r d have a complementary relationship however no previous study has provided an explanation for why that complementary relationship exists this paper argues that infratechnology is the critical link between governmental and private r d and that the observed complementarity is the result of technical complementarity at the production level between funding infratechnology and knowledge sharing a theoritical framework based on this argument is developed and examined empirically for supporting evidence evidence of technical complementary is found as well as evidence that governmental r d stimulates the sharing of knowledge

science policies as principal agent games institutionalization and path dependency in the relation between government and science national science policies seem to converge in policing the double edged problem of how to get policy and industry interested in the conduct of science and how to get science interested in the problems of policy and industry however similarity in the labels of institutes and instruments for science policy conceals traditional differences in the institutionalization of the relation between the state and science this article conceptualizes the relation between government and science as an ongoing principal agent game with different possibilities for stabilization each of these differ to the extent the principal or the agents can pursue their strategy institutionalization of the endless frontier ideology of consensus making and of competition between agents is elaborated path dependency emerges as costs for institutional changes are often higher than the accommodation of new instruments and policies to existing structures the argument is mainly and deliberately analytical but empirically illustrated by the development of foresight in the uk germany and the netherlands

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

technology policy for industrialization an integrative framework and korea s experience abstract first this article reviews three policy perspectives 1 the market mechanism perspective includes the demand for and supply of technology and the linkage between the two 2 the technology flow perspective consists of technology transfer diffusion and r d 3 the dynamic perspective refers to technological trajectory it then integrates these three perspectives to develop a new three dimensional framework that may be useful to analyze technology policy for industrialization second this article applies the framework to analyze korea s technology policy as a case in point conclusions are 1 technology policies on foreign technology transfer technology diffusion and r d should change over time in response to changing external environment 2 technology policies become effective only when three major components policies to promote the demand side of technology policies to promote the supply side of technology and policies to provide effective links between demand and supply sides are well balanced finally it discusses implications for other developing countries

the role of diversification profiles and dyadic characteristics in the formation of technological alliances differences between exploitation and exploration in a low tech industry this paper posits that corporate and technological diversification of firms and their relatedness in terms of products and technologies will impact their propensity to form technological alliances it argues that both higher levels of diversification and greater relatedness signal superior capabilities and available resources to prospective partners that will facilitate exploration and exploitation of technological assets in an alliance these theoretical conjectures are tested using a dataset of all tire producers worldwide between 1985 and 1996 that combines detailed firm data on establishment patenting and alliance activities the results indicate that complementarity in terms of corporate and technological diversification strategies as well as partner characteristics e g size age and technological capabilities drive exploitation alliances moreover firms with similar product portfolios are more likely to engage in exploitative interactions in contrast exploration alliances exhibit strong partner similarity across all firm characteristics both corporate and technological diversification have positive effects on firms propensity to engage in exploration while technological distance has a negative nonlinear one

note extending the rotterdam model to test hierarchical market structures two issues that have implications across a firm s marketing activities are the estimation of the market response functions and the determination of the structure of the market in which its products compete in a recent paper clements and selvanathan clements k w e a selvanathan 1988 the rotterdam demand model and its application to marketing marketing sci 7winter 60 75 describe how the rotterdam demand system can be used to study these two issues in a joint framework in this note we extend their model to test hierarchical market structures using data at the brand form level we also incorporate idiosyncratic response coefficients that capture the effects of advertising and or other nonprice marketing mix variables separate from the effects of a price change these extensions provide additional insights into the nature and extent of competition among brands within a product class

firm size small business presence and sales of innovative products a micro econometric analysis in our generalized tobit analysis we identify a number of variables which have an impact on a firm s innovation output among others we find that larger firms generally have a higher probability of selling some innovative products although this probability increases less than proportionately with firm size given that a firm has some sales of innovative products the share of such products in a firm s total sales tends to be higher in smaller firms moreover a strong small business presence in a sector seems to enhance imitative innovation but has no influence on true innovations whereas market concentration has no influence on innovation output in whatever definition we also find evidence of regional knowledge spill overs furthermore our results are consistent with schmookler s hypothesis that the growth of demand enhances innovation the outcomes about the impact of r d collaboration and technology transfer on innovation remain ambiguous

investigating household purchase timing decisions a conditional hazard function approach the purchase timing decision is an important component of the dynamics of a household s purchase behavior this decision is influenced by marketing and other variables and the modeling of this dependence has recently received attention in the literature in this paper we build on previous studies and develop a comprehensive stochastic model that incorporates the major factors influencing interpurchase times specifically we use a generalized version of cox s proportional hazard model to test among competing probability distributions for the interpurchase times while incorporating effects due to marketing variables observed household characteristics and unobserved heterogeneity across households the empirical finding from analyzing the iri coffee data suggests that the interpurchase times cannot be adequately described by probability distributions such as exponential erlang 2 or weibull the effects of unobserved heterogeneity are significant and they impact the estimates of the effects of the covariates we also find that a nonparametric procedure for estimating the effects of unobserved heterogeneity provides the best overall fit to the data and yields covariate estimates that are more consistent with prior expectations our model is validated by replicating the substantive empirical findings on an additional product category

agency problem institutions and technology policy explaining taiwan s semiconductor industry development abstract taiwan has made significant progress in the semiconductor industry with government agencies and bureaucrats as the driving forces over the past 30 years taiwan s impressive achievement in the semiconductor industry clearly indicates that the government failures and agency problem usually associated with deep government involvement did not occur in taiwan why is that the case this paper proposes a principal agent framework for technology policy and applies the framework to discuss the institutional arrangements through which bureaucrats were controlled effectively in executing the semiconductor industry policies in taiwan by analyzing the institutional and organizational arrangements taiwanese leaders made to mitigate the agency problem this paper brings bureaucrats into the popular developmental state theory and emphasizes that the success of state intervention should not be taken for granted and it also brings politics into technology policy analysis and stresses the importance and complexity of agency problem in technology policy

modeling purchases as repeated events we put forward a statistical model for interpurchase times that incorporates all current and past information available for all purchases as time runs along the calendar time scale it delivers forecasts for the number of purchases in the next period as well as for the timing of subsequent and consecutive purchases purchase occasions are viewed as a counting process that counts the recurrent purchases for each house hold as they evolve over time we illustrate our model for yogurt purchases and highlight its managerial implications

the co evolution of technology and institutions in the catch up process the case of the semiconductor industry in korea and taiwan abstractthis paper explores the industrial specialisation of latecomer countries particularly korea and taiwan which are often referred to as successful catch up cases the traditional wisdom is that the developmental state resource leverage and technological sophistication in an export oriented strategy have been the factors for success however firm strategies and a supportive government are not sufficient to explain the different features of catch up patterns in this paper we propose that differences in industrial specialisation of catch up countries are attributable to the interaction between technological characteristics and institutional settings including corporate organisation industrial structure and the role of the public sector

co operative r d why and with whom an integrated framework of analysis abstract firms use r d partnerships to access knowledge and build global r d networks this article develops an integrated framework to examine the determinants of the choice of partners with which firms co operate on r d this resource based perspective underscores the interactions between three major questions why co operate who does and with whom it argues in particular that the choice of partners is dictated by the complementary resources which the latter command the framework is then expanded to predict the relative efficiency of r d co operation with different partners including suppliers clients rivals academic institutions and foreign firms the empirical analysis which is based on responses to france s version of the second european community innovation survey cis 2 strongly supports the overall framework of analysis

bias in market r d portfolios abstract based on a simple contest model of product innovation we find that in accordance with conventional wisdom and contrary to much of the previous theoretical literature market competition implies an equilibrium level of risk which is too low from society s standpoint the intuition is that the divergence between private and social marginal benefits from rd and this probability is higher for lower risk projects

r d determinants accounting for the differences between research and development the determinants of r d are an important topic of innovation studies the classical schumpeterian hypotheses about the influence of size and market power have been complemented with the role played by industry determinants such as demand pull technological opportunity and appropriability in determining r d investments however r d has always been considered as a whole even though research and development activities differ in many aspects we take advantage of a new panel database of innovative spanish firms pitec to distinguish between research and development efforts of firms we analyze the differentiated role played by traditional r d determinants in driving research and development results show that demand pull and appropriability have a higher effect on development while technological opportunity is more influential for research differences are statistically significant important in magnitude and robust to the use of different indicators for demand pull technological opportunity and appropriability and to several robustness checks

institutions and growth in korea and taiwan the bureaucracy how do competent bureaucracies emerge in developing countries we examine bureaucratic reform in korea and taiwan and argue that in both cases political leaders had an interest in reforming the civil service to carry out their programmatic initiatives in addition both governments undertook organisational reforms that made certain parts of the bureaucracy more meritocratic while utilising centralised and insulated pilot agencies in overall policy coordination however we reject the approach to bureaucratic reform that focuses primarily on its efficiency enhancing effects if delegation bureaucratic and policy reform provided an easily available solution to the authoritarian s dilemma dictators would have more uniformly positive economic records rather we analyse the political and institutional constraints under which governing elites operate in doing so we underscore several important variations in the design of bureaucratic organisation which in turn mirror larger policy differences between th

cost reduction competition and industry performance in many markets firms compete over time by expending resources with the purpose of reducing their costs sometimes the cost reducing investments operate directly on costs in many instances they take the form of developing new products that deliver what customers need more cheaply therefore product development can have the same ultimate effect as direct cost reduction in fact if one thinks of the product as the services it delivers to the customer in the way that lancaster pioneered then product development often is just cost reduction

cooperative and noncooperative r d in duopoly with spillovers contrary to the usual assumption made in most oligopoly models relations among firms are seldom of a wholly cooperative or noncooperative type in many situations they compete in some fields while they cooperate in others an important example is the case of cooperative research efforts bringing fierce competitors together two types of agreement are observed first r d cooperation can take place at the so called precompetitive stage companies share basic information and efforts in the r d stage but remain rivals in the market place 1 a second type of agreement involves an extended collusion between partners creating common policies at the product level the usual justifications of this extension are the difficulties of protecting intellectual property the idea is then to allow partners who have achieved inventions together to also control together the processes and products which embody the results of their collaboration in order to recuperate jointly their r d investments 2 what could be expected from these types of agreement is a reduction in r d expenditures because of less wasteful duplication and a reduction of total production because of more reprinted from the american economic review 78 5 1133 1137 1988 center for operations research econometrics 1348 louvain la neuve belgium we are grateful to jean

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

r d and technology policy in nics as learning processes abstract this paper presents a dynamic learning perspective to research and development activity and to policies promoting these activities and technological development more generally the basic idea is that successful penetration of research and development rd multidisciplinary learning both technoeconomic and managerial organizational and learning which is cumulative through time this is especially so at an early infant phase of diffusion of this process through the economy a dynamic view of externalities and market failures is presented one that provides the basis for a catalytic perspective of technological policy this perspective is based on the distinction between an infant and a mature phase of policy where massive flexible search oriented support in the early phase sets the base for endogenization routinization of r d in the economy and for the possibility of drastic reductions in government support for traditional forms of r d in the later phase

modeling purchasing behavior with sudden death a flexible customer lifetime model this study proposes a new customer lifetime model the gamma gompertz distribution g g the advantage of this model relative to the well known pareto distribution is twofold i its probability density function can exhibit a mode at zero or an interior mode and ii it can be skewed to the right or to the left we combine the g g with a negative binomial distribution nbd and obtain the moments of the distribution of the number of transactions over 0 t and t t t out of six data sets the g g nbd model provides a notable improvement in the log likelihood over the pareto nbd model in four data sets it can indicate substantial differences in expected residual lifetimes compared to the pareto nbd and induce a retention rather than acquisition policy on the average the g g nbd exhibits slightly better forecasts of the mean number of transactions than the pareto nbd this paper was accepted by pradeep chintagunta marketing

both institutions and policies matter but differently for different income groups of countries determinants of long run economic growth revisited summary this paper revisits the recent debate on the determinants of long run economic growth with the simple idea that different factors matter at different country groups classified by income levels this paper improves on the methodology by conducting not only cross section estimations but also fixed effects panel and system gmm estimations the results suggest that new policy variables such as technology and tertiary education as well as institutions matter as the determinants of long run economic growth in addition this paper finds that while secondary education and institution turn out to be important for lower income countries an emphasis on technology and higher education appears to be effective in generating growth for the upper middle and high income countries but not for the lower middle and low income countries

technological joint venture formation under the real options approach abstract technological joint ventures as powerful mechanisms to attain innovation have become commonplace firms form tjvs in an effort to access future technological opportunities without losing flexibility in uncertain contexts the real options approach allows the essence of such managerial thinking to be captured although research in this line remains scarce drawing on the real options approach and using an eight year panel of 4050 spanish manufacturing firms we examine under which conditions firms form technological joint ventures we find that a firm s propensity to form technological joint ventures is positively related to its absorptive capacity and to the degree of environmental technological uncertainty and negatively related to the risk of pre emption by rivals and the existence of opportunity costs our study contributes to bridging the gap between finance theory and strategic analysis in addition it shows practitioners the applicability of the real options approach for decision making results suggest that public policies should particularly although not exclusively foster participation of young and small firms in technological joint ventures we also suggest using managerial perceptions as a guide for channeling public grants

competitive dynamics and economic learning an extended resource based view in this paper a conceptual framework for the analysis of economic learning is developed economic learning by analogy with organizational learning results in the development of economic competences or capabilities shared between firms which rest on a foundation of economic resources from which value is generated and economic routines through which resources are utilized it is the mobility of resources and their exchange and production dynamics along evolutionary pathways which underpins the plausibility of a notion of economic learning the paper elaborates this framework as a resource based view rbv of the economy as a whole as an extension of the rbv of the firm such a framework captures the dynamics of exchange and circulation of technologies know how and intangible assets as well as of tangible assets and capital goods it is concerned with investment behavior by entrepreneurs rather than with the behavior of producers and consumers in goods and services markets within this resource economy framework it is possible to generate an account of the resource dynamics that underpin production of goods and services including resource propagation diffusion imitation replication and recombination these processes encompass evolutionary pressures experienced through resource variation selection and retention entrepreneurial initiatives take the form of resource recombinations while resource innovation captures the creation of new economic resources such as technological standards such a perspective brings into focus the resource specialization and configurations that drive real economies within firms and between firms that translates into enhanced or diminished performance of the economy as a whole copyright 2003 oxford university press

an empirical analysis of process and product patenting a simultaneous equation framework the results of this study support the hypothesis that research activity is not a homogeneous activity and that important differences exist between the determinants of process patenting and product patenting further the effects on concentration and advertising of research depend on the type of research carried on by firms concentration and process patenting are positively related and concentration and product patenting are not there is some weak evidence linking advertising and product patenting further process patenting tends to generate greater industrial concentration

res diffusion and r d investments in the flexibilisation of the european electricity networks abstract the present analysis adds up to the discussion carried around the flexibilisation of the electricity networks as means of higher diffusion of renewable energy sources res inspiring from innovation studies the paper proposes an economic rationale for considering res technology manufacturers as investors in electricity networks moreover the present analysis scrutinize the extent to which the various economic operators within specific segments of the power supply chain invest in a portfolio of research and development activities among which the electricity grids and storage technologies the intensity of these research investments was mapped across the european countries for the year of 2011 their geographic distribution confirms the rationale of an analysis based on canonical correlation testing the associations between res market diffusion and power network indicators the analysis provides useful insights for specific technology such as the one revealing pv market sensitivity to research investments in storage technologies confirming a potential business model coupling the two technologies accommodating this pattern and enabling further diversification of research portfolios the public incentives could be redesigned in order to address the flexibilisation of power networks

the impact of heterogeneity in purchase timing and price responsiveness on estimates of sticker shock effects the notion that individuals have an internal reference price against which they compare observed prices is well supported by several psychological theories empirically several papers in the marketing literature employing scanner panel data have modeled the impact of reference prices on brand choice via the sticker shock formulation in which consumers evaluate choice alternatives using differences between shelf prices and reference prices most of the studies reported thus far have not accounted for heterogeneity in price response among consumers and have typically imputed reference prices from the shelf prices of brands that a consumer is supposed to have observed on previous purchases in the category since category marketing activity can differentially affect the purchase timing of households we argue that this measure of reference price may follow certain systematic patterns across consumers and when combined with unaccounted for price response heterogeneity may result in a spurious sticker shock effect specifically we show that estimates of sticker shock are biased upward if households that are price sensitive in the brand choice decision are also more responsive to category promotion activity in their purchase timing decision we discuss some general conditions under which the bias occurs and conduct a simulation experiment to confirm our specific hypotheses our simulation results show that changes in purchase timing are a critical determinant of the bias in the sticker shock effect we also show that unaccounted for price response heterogeneity can in itself result in a biased sticker shock parameter however this requires very large differences in price sensitivities across consumers far greater than what is normally observed we develop a hierarchical bayes version of the nested logit model which models heterogeneity via individual level parameters in a continuous random effects framework we estimate the model on scanner panel data from the yogurt and ketchup categories we find in both categories that the 95 probability interval of the posterior distribution of the mean sticker shock coefficient contains the value zero therefore at least for the data used in this study there is no evidence for the sticker shock effect at the aggregate level in contrast the corresponding coefficient from a standard model which ignores this heterogeneity is highly significant and supports the existence of a possibly spurious sticker shock effect consistent with our explanation of the underlying cause of the bias households that are more price sensitive in the choice decision are also found to be more responsive to category promotion activity in their decision to purchase in the category the results highlight the measurement problems associated with imputing reference prices from past prices since the frequency duration and price level of a retailer s promotional program depend on its size and prevalence accurate estimates of the sticker shock effect are essential for formulating optimal promotion strategies an adequate accounting of consumer heterogeneity is critical to this effort

is public r d a complement or substitute for private r d a review of the econometric evidence is public r d spending complementary and thus additional to private r d spending or does it substitute for and tend to crowd out private r d conflicting answers are given to this question we survey the body of available econometric evidence accumulated over the past 35 years a framework for analysis of the problem is developed to help organize and summarize the findings of econometric studies based on time series and cross section data from various levels of aggregation laboratory firm industry country the findings overall are ambivalent and the existing literature as a whole is subject to the criticism that the nature of the experiment s that the investigators envisage is not adequately specified we conclude by offering suggestions for improving future empirical research on this issue

innovation expenditures and the role of government in belgium abstract unlike suggestions from earlier research on the schumpeterian hypothesis it is argued and shown that sales and employment are not simply substitute size measures to test the r d behaviour of foreign and domestic companies operating in belgium further suggests that government sponsored r d has not substituted for privately funded r d foreign companies are found to behave differently and to do less r d the more they pay for externally supplied technology

south korean and taiwanese development and the new institutional economics the publication of books by both alice amsden and robert wade provide an opportune moment to reflect on the study of east asian development after an initial surge of interest beginning in the 1970s the field has reached a plateau and scholars recently have cast a wide net in searching for ways to extend the field in assessing the state of the art regarding the economic development of the east asian newly industrialized countries nics this review will treat three themes first i will argue that the focus on states versus markets is becoming stale and that much of the scholarly interest lies in the politics behind the economics second i argue that political scientists have underexplored the historical origins of korean and taiwanese capitalism and that such attention promises to strengthen both theories and explanations of development third i argue that the international system has been more important in promoting development in east asia than accounts in the first wave have recognized the purpose of this review is to assess the field reveal

the knowledge production of r and d many studies investigate the relationship between r d expenditures as an input and patents as an intermediate product or output of a knowledge production function we suggest that the productivity of research in patent production functions has been underestimated in the literature as scholars typically use information about r d i e the sum of research expenditure and development expenditure due to data availability however in most industries only applied research will lead to patentable knowledge and development happens after the initial research phase that may have led to a patent instead of using data on r d we separate the knowledge creating process into r and d this data stems from r d surveys of belgian firms it turns out that only the r part of r d expenditure has a significant effect on patents and that development expenditure are insignificant thus previous literature relying on r d expenditure suffers from a measurement error such that the coefficient of r d is biased towards zero as r d includes a large fraction of irrelevant expenditure i e development expenditure with respect to patenting

the parity penalty in life course perspective motherhood and occupational status in 13 european countries research documents a wage penalty for mothers compared to childless women we demonstrate there is also an occupational status penalty to motherhood interrogating supply and demand side explanations of the motherhood penalty from the life course perspective we formulate and test original hypotheses about the short term and long run career implications of parity specific births we analyze longitudinal data from the european community and household panel for 13 european countries and eight time points between 1994 and 2001 our fixed effects models show that status losses for a first birth are not just short term but accumulate over the career the timing of a birth in a woman s life course matters only for older women who experience a significant penalty to third births although the personal strategies that women use to minimize the career costs of motherhood e g having only one child prove ineffective our cross national evidence shows that public policies are linked to the motherhood penalty in

federal funding and the level of private expenditure on basic research economists have long been interested in questions concerning the role of government in stimulating private sector innovation in the late 1950s blank and stigler 2 asked in particular whether government funded industrial research and development r d activity was likely to stimulate or substitute for private sector expenditure on r d a number of studies have since addressed this issue and most conclude in favor of the existence of a positive relationship between federal r d expenditures and the level of private r d investment leyden and link 8 have provided a theoretical rationale for this observed complementarity they suggest that federallyfunded industrial r d activity may generate knowledge spillovers and other infratechnology that may raise the productivity of inputs into private r d r d is a heterogeneous activity and a question which has received relatively little attention in the literature is the extent to which the apparent complementarity between federal and private industrial r d spending holds for the different components of firms r d budgets cross section evidence on this issue produced by link 13 suggests that

japanese research consortia a microeconometric analysis of industrial policy despite the existence of much theoretical research analyzing the potential benefits and costs of r d consortia there has been little corresponding empirical work on their efficacy in this paper we undertake a large sample econometric study of japanese government sponsored research consortia we find evidence that frequent participation in these consortia has a positive impact on research expenditure and research productivity these results hold after controlling for the potential endogeneity of intensity of participation in consortia to participating firms research productivity furthermore we find evidence that part of this impact arises from the increased knowledge spillovers that take place within these consortia

complementary resources and cooperative research a model of research joint ventures among competitors we present a model of research joint ventures in which if firms have highly complementary skills and resources then they prefer to cooperate in areas where the technology is highly appropriable as in applied research the model also indicates that large firms have a greater incentive to cooperate because they are better positioned to capture the benefits of a research venture these findings seem to explain why cooperative research among rival firms in japan has been applied rather than basic and conducted frequently among large companies but firms prefer as small a partner as possible to limit the sharing of research results creating a tension that may make cooperative efforts among rivals difficult to manage for this reason cooperation with organizations such as universities or nonprofit institutions may be a viable alternative for firms looking for complementary skills and resources

the work employment distinction among new mothers cps data for 1979 to 1988 are used to examine the determinants of employment actual work and maternity leave for women in the year following childbirth women with better market skills higher expected wages older more education are more likely than other new mothers to have a job and to work among employed women paid leave is also positively related to market skills work responds to childbirth more than employment does with the greatest differences in the first three months following childbirth therefore most women working when their child was one year old had returned to work within three months of childbirth

market structure and innovation a survey economics we all recite deals with allocation of limited resources towards satisfaction of unlimited wants resources are typically identified as land labor and capital plus a technology that determines their transformation into consumer goods disparity between the available goods and services and the desired gives rise to scarcity and the question of what how and for whom to produce the focus then shifts to description and evaluation of alternative resource allocation mechanisms for making the choices the pareto criterion by which an allocation of resources is deemed efficient if any reallocation improving the position of some individual worsens the position of others is a commonly employed gauge of a mechanism s performance in the absence of externalities increasing returns to scale and uncertainty a perfectly competitive market system yields a pareto optimal allocation of resources this underlies the view that individual self interest is compatible with society s interest the further conclusion that pareto optimality may not be achieved via the market system in the presence of monopoly elements provides an economic rationale for antitrust laws the objective of a resource allocation mechanism appears to be according to the analysis described above to make the best of available resources the alternative objective of relaxing constraints through expanding the resource base or developing new technology seems to be beyond its scope thus until rather recently technical advance had been regarded in the mainstream of economic theory as unmotivated by the quest for profits and substantially unaffected by resource allocation instead as j schmookler observed technology had been viewed as a parameter like the weather affecting the outcome of resource allocations but itself unaffected by them 84 1965 evidence that technological progress has significantly contributed to growth in productivity together with a substantial increase in research and development activity largely financed by government and carried out by industry see f machlup 51 1962 may have spurred reconsideration of this view once technical advance is regarded as an economic variable it is natural to in

from motherhood penalties to husband premia the new challenge for gender equality and family policy lessons from norway given the key role that processes occurring in the family play in creating gender inequality the family is a central focus of policies aimed at creating greater gender equality we examine how family status affects the gender wage gap using longitudinal matched employer employee data from norway 1979 96 a period with extensive expansion of family policies the motherhood penalty dropped dramatically from 1979 to 1996 among men the premia for marriage and fatherhood remained constant in 1979 the gender wage gap was primarily due to the motherhood penalty but by 1996 husband premia were more important than motherhood penalties

r d portfolio and market structure this article analyses how firms allocate their resources when they compete for multiple patents in heterogeneous research projects simultaneously a simple model shows that firms resource allocation is biased away from risky and basic research even when imitation is not possible and firms are fully rational therefore a market may lack major innovations despite large aggregate research expenditure and strong patent protection this article also shows that as a market becomes more competitive firms invest relatively less in basic research but more in risky research these results provide a novel explanation for an ambiguous empirical relationship between innovation and market concentration

customer lifetime value measurement the measurement of customer lifetime value is important because it is used as a metric in evaluating decisions in the context of customer relationship management for a firm it is important to form some expectations as to the lifetime value of each customer at the time a customer starts doing business with the firm and at each purchase by the customer in this paper we use a hierarchical bayes approach to estimate the lifetime value of each customer at each purchase occasion by jointly modeling the purchase timing purchase amount and risk of defection from the firm for each customer the data come from a membership based direct marketing company where the times of each customer joining the membership and terminating it are known once these events happen in addition there is an uncertain relationship between customer lifetime and purchase behavior therefore longer customer lifetime does not necessarily imply higher customer lifetime value we compare the performance of our model with other models on a separate validation data set the models compared are the extended nbd pareto model the recency frequency and monetary value model two models nested in our proposed model and a heuristic model that takes the average customer lifetime the average interpurchase time and the average dollar purchase amount observed in our estimation sample and uses them to predict the present value of future customer revenues at each purchase occasion in our hold out sample the results show that our model performs better than all the other models compared both at predicting customer lifetime value and in targeting valuable customers the results also show that longer interpurchase times are associated with larger purchase amounts and a greater risk of leaving the firm both male and female customers seem to have similar interpurchase time intervals and risk of leaving however female customers spend less compared with male customers

institutions and dynamic comparative advantage the electronics industry in south korea and taiwan if development proceeds by stages then taiwan as a more developed economy should have preceded south korea into high technology capital and knowledge intensive production in fact korea has overtaken taiwan in many respects the resolution of the paradox is traced principally to differences in industrial and firm structures in the two countries the conglomerate organizational mode in korea has permitted entry into many markets the smaller taiwanese firms have been unable to sustain themselves in these markets as there firms head onto the 1990s the limitations of their present industrial structures presage a possible convergence with each moving towards the other this paper suggests the importance of studying flexible institutional response and particularly the inner workings of a firm as an integral element of a theory of dynamic comparative advantage copyright 1990 by oxford university press

r versus d estimating the differentiated effect of research and development on innovation results r d is considered to be the main source of innovation we argue that r d is too broad a measure including activities differing in purposes culture people management and other features however empirical studies have not analyzed them separately mainly due to the lack of data using firm level data the aim of this paper is to estimate the differentiated effect of research and development on different innovation outputs results show that both research and development activities are important however we find that development activities are more important for product innovation while the effect of research activities is higher on process innovation moreover we analyze differences by technological intensity of the sector when analyzing product and process innovations we find evidence supporting the existence of higher payoffs to development and especially to research in low tech sectors when compared with high tech ones

the origins and dynamics of taiwan s r d consortia a series of collaborative r d ventures have emerged in taiwan within a quite distinctive institutional framework unlike the case of many of the collaborative arrangements between established firms in the us europe or japan where mutual risk reduction is frequently the driving influence in the case of taiwan it is technological learning upgrading and catch up industry creation that is the object of the collaborative exercises the taiwan r d alliances were formed hesitantly in the 1980s but have flourished in the 1990s as institutional forms have been found which encourage firms to cooperate in raising their technological levels several alliances could be counted in taiwan in the late 1990s bringing together firms and public sector research institutes with the added organizational input of trade associations and catalytic financial assistance from government the article discusses the evolving organizational architecture of these r d alliances utilizing several case studies and seeks to draw comparisons between these institutional innovations in taiwan and established collaborative arrangements in the usa japan and europe

the origins and development of the northeast asian political economy industrial sectors product cycles and political consequences theories of the product cycle hegemony and the world system are used to analyze the creation and development of the northeast asian political economy in this century japan south korea and taiwan have each developed in a particular relationship with the others the three taken together form a hierarchical constantly interacting political economic unit during the period of colonial rule japan was unique in building an imperial economic unit marked by a strong role for the state whether in tokyo or taipei by a tight integral unking of all three nations into a communications and transport network running toward the metropole and by a strategy of both using the colonies for agricultural surpluses and then locating industries there after 1945 a diffuse american hegemony replaced japan s unilateral system but elements of the prewar model have survived strong states direct economic development in south korea and taiwan here termed bureaucratic authoritarian industrializing regimes both countries are receptacles for japan s declining industries and both countries develop in tandem if in competition with each other the most recent export led competition has seen taiwan succeed where south korea has temporarily failed leaving seoul in an export led trap burdened with rapidly increasing external debt taiwan furthermore has industrialized relatively free of social disruption whereas korean society resisted its transformation at japanese hands and remains more rebellious today there can be one japan and one taiwan but not two or many of either in the world economy

from technological catch up to innovation based economic growth south korea and taiwan compared abstract this paper sets out to analyse the divergent models pursued by south korea and taiwan in regard to technological catching up and their ongoing transition towards innovation based economies it is found that south korea s former high debt and chaebol dominated model inclined it to pursue a schumpeterian scale based technological development while taiwan s former pro stability small and medium sized enterprise sme based model tended to favour its emphasis on a neo marshallian network based technological development it will be argued that the state s approach to economic liberalisation and firms demand for capital for technological upgrading are the major factors that have underpinned the adjustment efforts of these two countries

the limits of capital transcending the public financer private producer split in industrial r d abstract a near consensus has emerged supporting the public funding of industrial r d as a solution to a host of market failures however the common policy prescription urges government to go no further than minimal market enhancing intervention largely keeping the state to the role of financer of privately conducted r d by focusing on three general issues in the context of industrial r d trust coordination and motivation this article develops an argument for a more expansive government role two models of state intervention are at the center of the analysis public production of r d and state sponsorship of inter firm and inter organizational networks it is argued that both these models have distinct advantages as well as weaknesses in addressing common challenges to industrial r d production informed by the positive experiences of different states that have moved in recent years from high technology industries periphery to the center this article explains how the two models of state intervention address the various problems associated with pure private production it is concluded that while even advanced countries with well developed markets might find it advantageous to actively intervene in industrial r d the two models should especially be considered in cases of economies that suffer from weak market signals low retention of value added functions limited professional capacities and limited institutional thickness and networks

the determinants of research and development intensity in the uk the primary purpose of this paper is to discover whether research and development expenditures are related to firm size market structure and technological influences in the uk after providing a preliminary analysis of r d activity the paper tackles the problem of the rather limited data set two approaches are adopted first analysing part of the relationship using a broadly based sample and second providing data on a more narrowly based sample over three years the results suggest that firm size and concentration have virtually no influence on r d intensity in the uk among firms with r d programmes

cooperative research in a newly industrialized country taiwan abstract partly triggered by the successful experience of the japanese vlsi program taiwan has launched several cooperative research projects aimed at enhancing industrial competitiveness these undertakings however have not performed as well as expected under such circumstances the taiwanese government is anxious to explore which factors affect the inter industry and inter firm variation in cooperative research activity and to evaluate the feasibility of such r d cooperative projects our analysis suggests that the more research active the industry is the greater is the proportion of those funds allocated to cooperative arrangements and foreign competition is the principal factor which influences a firm s decision to engage in cooperative research activity furthermore we conclude that taiwanese firms should look beyond their own r d as the major source of new technology and become involved in cooperative research the reasons for such a necessity are due to the accelerating pace of technological change scale barriers in high tech industries and taiwan s small and medium sized enterprise dominant status in the industrial structure however a compromise which allows research goals to fall in the middle ground between research oriented and product oriented measures is advisable to match taiwan s current environment in addition implementing a new cost sharing principle and an appropriate incentive scheme to improve research efficiency in government led cooperative programs are urgently needed

the participation of new technology based firms in eu funded r d partnerships the role of venture capital this paper investigates the participation of new technology based firms ntbfs in eu funded r d partnerships we examine whether venture capital vc backed firms are more likely to enter these partnerships than their non vc backed peers and the role of the ownership and governance of the vc investor we resort to a mixed method approach we use qualitative information collected through interviews with managers of ntbfs and vc firms to better illustrate our deductively derived theoretical hypotheses that are then tested through a large scale econometric analysis the econometric analysis takes advantage of the vico dataset which includes longitudinal data on 8346 ntbfs from seven european countries observed from 1995 to 2008 out of which 758 were vc backed the econometric results show that vc backing has a strong positive impact on ntbfs participation in eu funded r d partnerships but the magnitude of this effect rapidly decreases with ntbfs prior experience of this type of partnership moreover the magnitude of the impact of vc backing considerably differs depending on the type of investor with bank and government vc exhibiting the strongest positive effects

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

catching up or falling behind patterns in international interfirm technology partnering abstract the central issue in this paper is to what extent diverging international patterns in the distribution of technological capabilities are also found in interfirm technology cooperation to answer this question attention will be paid to two largely different forms of interfirm technology partnering one is the phenomenon of strategic technology partnering the other covers interfirm technology transfer agreements other mechanisms for international technology transfer that we discuss put the central subject of the present contribution in a wider context the analysis enables us to address the possible limits of catching up through technology partnering and the major differences between the developed economies newly industrialized countries nics and less deeveloped countries ldcs a major conclusion in that interfirm partnering so far has not led to a catching up of ldcs and most of the nics as it is much more part of a process of concentration of technological competencies within the developed economies

the importance of modeling temporal dependence of timing and quantity in direct marketing abstract the analysis of customer value in direct marketing typically combines customer timing and quantity data into a single statistic that is used to compute lifetime values rank order customers for differential action and identify prospects for cross selling however current models assume that purchase timing and quantity decisions are independently realized i e uncorrelated over time given individual level parameters in this article the authors show that customer value calculations can be severely biased in these models when timing and quantity are dependently related the authors propose alternative models that lead to substantial gains in profitability in two direct marketing data sets the results indicate that the commonly held assumption of independence leads to an overvaluation of customer value

technology development mode a transaction cost conceptualization technology alliances have emerged in the past decade as a significant mode for the development of innovation the present research assesses the factors explaining whether firms will engage in such technology alliances or utilize the more traditional mode of internal r d the hypotheses stem from a transaction cost conceptualization results suggest that firms which pursue technology alliances are likely to have less commitment to product category specific assets to face higher technological uncertainty to be more capable at measuring innovation performance to have more successful technology alliance experiences and to compete in lower growth product categories 1998 john wiley sons ltd

leading companies and networks of strategic alliances in information technologies abstract strategic alliances joint ventures and a wide array of cooperative r d pacts have received considerable attention in recent years in this paper an attempt is made to understand not only some recent trends in inter firm cooperation in information technologies but also to reveal the role played by a large group of companies the research is based on a large databank with information on thousands of alliances and their participating companies applying a number of statistical techniques it is possible to identify the major players within information technology and its sub fields the analysis enables us to recognize the major international networks of inter firm alliances the changes over time and different positions taken by world leading companies in several industrial and technological settings

an analysis of the composition of r d spending research and development encompasses a myriad of activities generally research is the primary search for technical or scientific advancement and development is the translation of such advancement into product of process innovations the national science foundation has fostered an even finer breakdown basic research applied research and development in practice however r d is more heterogeneous than these labels imply the research fields associated with basic research include areas in both the physical and biological sciences applied research and development projects relate to product groups as diverse as all the activities in the industrial sector nevertheless most previous empirical studies of the microeconomic aspects of r d have treated r d spending as a single homogeneous activity consequently a generally acceptable set of variables has developed for explaining inter firm levels of r d spending but virtually nothing is known about the determinants of the inter firm composition of r d

a theory of privatisation public enterprises around the world have proved to be highly inefficient primarily because they pursue strategies such as excess employment that satisfy the political objectives of politicians who control them privatization of public enterprises can raise the cost to politicians of influencing them since subsidies to private firms necessary to force them to remain inefficient are politically harder to sustain than wasted profits of the state firms in this way privatization leads to efficient restructuring of firms moreover privatization is more effective when combined with a tight monetary policy and when the new owners of firms are profit maximizing investors rather than their employees or even managers copyright 1996 by royal economic society

true and spurious duration dependence the identifiability of the proportional hazard model lancaster and nickell 1980 have argued that in the proportional hazard model the effects of time dependence true duration dependence and unobserved sample heterogeneity spurious duration dependence cannot be distinguished we show that both effects can be distinguished if the model allows for observed explanatory variables in the hazard we also discuss the application of our result to practical situations

assessing the effect of public subsidies on firm r d investment a survey this survey examines the empirical literature on the relationship between public r d subsidies and private r d investment over the past five decades the survey reveals a considerable heterogeneity of empirical results that cannot be explained fully by methodological issues we aim to provide further explanations of the possible causes of that heterogeneity in particular we emphasise a set of issues that in our view are critical to understanding the potential effect of public r d subsidies on private r d spending special attention is paid to the dynamic aspects and composition of firm r d the constraints faced by the firm such as financial constraints and the amount and source of public subsidies none of these issues have been investigated in depth we formulate a set of research assumptions to guide future empirical research in this field

enhancing value via cooperation firms process benefits from participation in a standard consortium firms benefit from participating in a consortium in two ways from final products and from the cooperation process process benefits including interorganizational learning and social capital benefits are critical to motivate firms to participate in a consortium however there is limited understanding of what factors enable firms to obtain process benefits via consortium activities based on 232 member surveys collected from seven e business standard consortia we find that firms anticipate more process benefits if they are more technically capable value the forthcoming standards higher and participate in a better managed consortium surprisingly although relational risks exist due to potential competition among consortium members their impacts on process benefits are insignificant in e business standard consortia furthermore our empirical analysis suggests that more technically capable firms handle relational risk less effectively when learning within the consortium copyright 2012 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

firms motivations for cooperative r d an empirical analysis of spanish firms abstract the aim of this paper is to analyze the motives that have caused industrial firms to cooperate in r d there are many theoretical works devoted to the theme but few empirical studies have been carried out with large samples to analyze the factors which determine why firms cooperate in r d we first review the reasons offered by the literature to explain technological cooperation with this allowing us to determine the conceptual framework and to propose some hypotheses we test these hypotheses with a sample of 1652 spanish firms that have carried out r d activities the results obtained suggest that firms motivations for cooperative r d are the complexity of technology and the fact that innovation is costly and uncertain we find that in order to undertake cooperative r d it is necessary to have certain internal capacities in this area with our results being supported by the theory of absorptive capacity however and by contrast with the results presented in other works questions related to market access and search for opportunities do not appear to exert an influence over cooperative r d besides the large sized firms resort more to cooperation and the reasons for cooperative r d differ as between large and small sized firms

some new evidence on the determinants of large and small firm innovation empirical analyses presented by acs and audretsch suggest differences in the market structure determinants of innovation between large and small firms in u s manufacturing the evidence they offer is ambiguous by using data for a different country the netherlands a different measure of innovation and a different aggregation level we offer new evidence allowing a revaluation of the findings for the u s material moreover the influence of the market structure determinants does not appear to differ between a period of sluggish growth 1983 and one of relatively high growth 1989

public r d policies and cost behavior of the us manufacturing industries abstract this paper estimates and evaluates the contribution of r d tax incentives and publicly financed r d investment policies in promoting the growth of output and privately funded r d investment in us manufacturing industries publicly financed r d induced cost savings but crowds out privately financed r d investment while the incremental r d tax credit and immediate deductibility provision of r d expenditures have a significant impact on privately financed r d investment the optimal mix of both instruments is an important element for sustaining a balanced growth in output and productivity in the manufacturing sector

predicting future random events based on past performance there are many situations where one is interested in predicting the expected number of events in period 2 given that x events occurred in period 1 for example insurance companies must decide whether or not to cancel the insurance of drivers who had 3 or more accidents during the previous year in analyzing marketing research data an analyst may wish to predict the number of future purchases to be made by those customers who made x purchases in the previous 3 months the owner of a baseball team may wish to estimate the number of home runs a batter will hit this year given he hit say 40 home runs last year when the events e g accidents purchase occasions home runs can be assumed to occur randomly over time a very general result due to robbins robbins h 1977 prediction and estimation for the compound poisson distribution proc national acad sci usa74 2670 2671 is available this approach has certain advantages and disadvantages with respect to the negative binomial model that is commonly used to analyze purchasing and accident data the robbins result is particularly appropriate for predicting what the zero class in period 1 will do in period 2 the main purpose of this paper is to present the robbins result in a form that can be readily understood by applied researchers in a variety of disciplines data on consumer purchases motor vehicle violations and accidents are analyzed and applications to other areas are discussed

demand side vs supply side technology policies hidden treatment and new empirical evidence on the policy mix this paper provides new empirical evidence about the impact of various technological policies upon firms innovative behaviour we take into consideration the role of policies for innovative activities and we focus on their interaction while supply side policies such as r d subsidies and tax credits have been both extensively discussed in the literature and empirically investigated the analysis of innovative public procurement is a growing trend in the literature which still lacks robust empirical evidence in this paper we replicate the existing results on supply side policies surmise fresh empirical evidence on the outcome of innovative public procurement and address the issue of possible interaction among the various tools when controlling for the interaction with other policies supply side subsidies cease to be as effective as reported in previous studies and innovative public procurement seems to be more effective than other tools the preliminary evidence suggests that technology policies exert the highest impact when different policies interact

a segment level hazard approach to studying household purchase timing decisions the increasing availability of customer level data and the willingness of marketers to customize the timing of their offers to consumers makes the accurate segment level description of household purchase timing decisions a compelling issue in this paper we employ a finite mixture accelerated failure time model to identify and characterize household segments in terms of their purchasing rates and their propensity to accelerate purchases due to marketing mix activities such an approach also promises to alleviate possible aggregation problems arising from the use of a common hazard rate for all households an application to household panel data suggested that infrequent buyers show higher propensity to accelerate than frequent buyers do and that positive duration effects are underestimated when not accounting for segment specific hazard rates copyright 2002 john wiley sons ltd