the innovative performance of german multinationals abroad evidence from the european community innovation survey this article analyzes cross country differences in innovation behavior of subsidiaries of german multinational enterprises the analysis is based on data from community innovation survey cis4 and covers 16 european countries we find considerable differences in innovation input intensity and innovation output intensity between german subsidiaries located in different european countries multivariate analysis reveals that these differences are largely related to firm characteristics a significant relationship between firm level innovation and host country characteristics can only be found for innovation output copyright 2011 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

patterns of internationalisation of corporate technology location vs home country advantages given the trends towards increasing globalisation of markets and of production the globalisation of technology remains a subject of considerable interest to analysts and policy makers in the 1990s this paper provides some new empirical observations for debate and discussion on the patterns of technological activities of large firms outside their home countries it is based on a systematic analysis of the us patenting activities of 220 of the most internationalised firms in terms of their technology in the 1990s although firms are active outside their home countries in the high technology fields such as computers pharmaceuticals telecommunications image and sound and materials quite a sizeable proportion of their foreign activities are concerned with process and machinery technologies moreover a comparison of the technological advantage of the company at home and the advantage of the location shows that in a large majority of cases firms tend to locate their technology abroad in their core areas where they are strong at home these results suggest that adapting products and processes and materials to suit foreign markets and providing technical support to off shore manufacturing plants remain major factors underlying the internationalisation of technology they are also consistent with the notion that firms are increasingly engaging in small scale activities to monitor and scan new technological developments in centres of excellence in foreign countries within their areas of existing strength however there is little evidence to suggest that even these most internationalised firms routinely go abroad to compensate for their weakness at home

is western europe losing the technological race abstract using a variety of indicators this paper compares technological levels in japan the usa and w europe there is no justification for assuming general european technological backwardness whilst it lags in electronics and since 1975 has had a relatively slow rate of growth of innovative activities it also has sectors of strength chemicals machinery production engineering and countries whose relative commitments of resources to innovative activities are at least equal and sometimes superior to those of japan and the usa frg sweden switzerland its main policy challenges are to increase the rate of growth of innovative activities in lagging countries and to ensure pervasive applications of information technology similarly there is no convincing evidence that w europe is relatively backward in converting technology into economically efficient innovations some policy problems are significant in all three regions skill shortages whilst others are in the usa and w europe short term planning horizons of top management particular european problems are the effects of social legislation on worker flexibility and mobility of national regulations on intra european competition and of slow rates of growth of output on the growth of innovative activities japan and the usa have their problems with the latter continuously under challenge from the former and increasingly specialised in defence and raw materials related technologies

r d offshoring and the productivity growth of european regions the recent increase in r d offshoring has raised fears that knowledge and competitiveness in advanced countries may be at risk of hollowing out at the same time economic research has stressed that this process is also likely to allow some reverse technology transfer and foster growth at home this paper addresses this issue by investigating the extent to which r d offshoring is associated with productivity dynamics of european regions we find that offshoring regions have higher productivity growth but this positive effect fades with the number of investment projects carried out abroad a large and positive correlation emerges between the extent of r d offshoring and the home region productivity growth supporting the idea that carrying out r d abroad strengthens european competitiveness

firm capabilities technological dynamism and the internationalisation of innovation a behavioural approach we develop a behavioural framework of bounded rational decision making under uncertainty to analyse the role of technological dynamism in the firm s environment for its decision to internationalise innovation applying prospect theory we argue that technological uncertainty in the firm s environment affects its risk preferences differently depending on its technological capabilities a key prediction is that firms with low capabilities will internationalise innovation when faced by technological uncertainty while firms with high capabilities will concentrate their innovation at the home base we also argue that our behavioural approach based on prospect theory is not a stand alone programme but benefits from the integration with traditional concepts in ib in particular we make a case that organisational measures fostering absorptive capacity such as intensive personnel exchange between headquarters and subsidiaries can help to attenuate the high capability firms tendency to concentrate innovation at the home base when faced by high uncertainty we corroborate the predictions of our framework based on data from the german part of the community innovation survey

safe nests in global nets internationalization and appropriability of r d in wireless telecom this paper documents the case of the wireless telecom industry to bring new empirical evidence to the debate on the internationalization of research and development r d activities us patent statistics on the four industry leaders ericsson motorola nokia and qualcomm illustrate the growing trend of the internationalization of r d over the 1990s yet we show that the most critical r d projects related to the development of wireless standards remain homebound the paper then leverages qualitative data collected through interviews with informed managers to provide a fresh interpretation for the homeboundedness of critical industrial r d the stickiness of core r d projects to domestic locations is related not only to organizational inertia and the unripe maturation of subsidiaries as suggested by prior literature but particularly to the headquarters centralization of intellectual property ip management which offers a high level of appropriability of r d results the unequal distribution of appropriability across corporate r d networks is at the base of the formation of safe nests domestic r d centers that are sheltered from the forces of globalization because they offer a desirable setting for the exploitation of technologies deriving from a stronger coordination of inventive activities with the management of ip

on the intergenerational allocation of natural resources it is known hartwick and others that under standard assumptions a society that invests in reproducible capital the competitive rents on its current extraction of exhaustible resources will enjoy a consumption stream constant in time it is shown here that this result can be interpreted as saying that an appropriately defined stock of capital including the initial endowment of resources is being maintained intact and that consumption can be interpreted as the interest on that patrimony this seems like a useful rule of thumb for policy

the internationalisation of r d by multinationals a trade off between external and internal proximity overseas production is frequently seen as a force inducing the decentralization of rd it should on the contrary be completed by the implementation of relations of proximity internal to the firm which they refer to as internal proximity from this perspective the multinational firm that manages dispersed r d units is seen as facing a tension an organizational trade off between external proximity and internal proximity copyright 1999 by oxford university press

national scientific capacity and r d offshoring abstract this paper presents new evidence regarding the role of national scientific capacity in driving patterns of r d offshoring using a larger and more comprehensive dataset than has hitherto been used and applying it in a gravity model framework our results unambiguously support the importance of inventor country scientific capacity in attracting offshored r d as expected the home country s scientific capacity is also found to play a positive role we find that in fact on average firms source technology from less technologically advanced nations suggesting that firms offshore to access niche skills

the limits of r d internationalization and the importance of local initiatives turkey as a critical case the growth of r d in east asia has triggered the notion of a new innovation geography where r d is no longer a privilege of the traditional oecd countries what does this mean for mid sized emerging economies without the scale advantages and bargaining power of india or china this paper uses turkey as a case to examine the continual unevenness of international r d investments by analyzing opportunities and limitations for local initiatives in the telecommunications pharmaceutical and automotive industries the paper finds that active private capital a sufficient scale of production and focused public policies are needed to attract international r d

macro economic analysis of forestry options on carbon sequestration in india the forestry sector provides a number of climate change mitigation options apart from this ecological benefit it has significant social and economic relevance implementation of forestry options requires large investments and sustained long term planning thus there is a need for a detailed analysis of forestry options to understand their implications on stock and flow of carbon required investments value of forest wealth contribution to gnp and livelihood demand management employment and foreign trade there is a need to evaluate the additional spending on forestry by analysing the environmental particularly carbon abatement social and economic benefits the biomass needs for india are expected to increase by two to three times by 2020 depending upon the forest types ownership patterns and land use patterns feasible forestry options are identified it is found among many supply options to be feasible to meet the demand based needs with a mix of management options species choices and organisational set up a comparative static framework is used to analyze the macro economic impacts forestry accounts for 1 84 of gnp in india it is characterized by significant forward industrial linkages and least backward linkage forestry generates about 36 million person years of employment annually india imports rs 15 billion worth of forest based materials annually implementation of the demand based forestry options can lead to a number of ecological economic and institutional changes the notable ones are enhancement of c stock from 9578 to 17 094 mt and a net annual c sequestration from 73 to 149 mt after accounting for all emissions a trebling of the output of forestry sector from rs 49 billion to rs 146 billion annually an increase in gdp contribution of forestry from rs 32 billion to rs 105 billion over a period of 35 years an increase in annual employment level by 23 million person years emergence of forestry as a net contributor of foreign exchange through trading of forestry products and an increase in economic value of forest capital stock by rs 7260 billion with a cost benefit analysis showing forestry as a profitable option implementation of forestry options calls for an understanding of current forest policies and barriers which are analyzed and a number of policy options are suggested c 1997 elsevier science b v

location and the multinational enterprise a neglected factor this article first traces the changing world economic scenario for international business over the past two decades and then goes on to examine its implications for the location of foreign direct investment and multinational enterprise activity it suggests that many of the explanations of the 1970s and early 1980s need to be modified as firm specific assets have become mobile across natural boundaries a final section of the article examines the dynamic interface between the value added activities of multinational enterprises in different locations

offshoring administrative and technical work new fields for understanding the global enterprise in this paper we introduce the journal of international business studies special issue on offshoring administrative and technical services ats in doing so we have attempted to locate the topic within the international business research tradition as well as suggest challenges and opportunities that the phenomenon offers to theoretical and empirical research in the field we examine the interplay of costs knowledge and innovation in the evolution of ats offshoring from modest beginnings to its current stature as an accepted business practice we suggest that understanding the continuing evolution of ats offshoring requires researchers to take into account not only the business imperative of cost saving but also a more complex set of underlying factors and potential outcomes we argue that the rapid growth of ats offshoring has brought about an accumulation of resources including financial flows knowledge infrastructure and human capital to create new platforms for knowledge creation and innovation low costs may characterize the initial conditions for offshoring but they also provide the basis for up market moves as firms increasingly pursue innovation based strategies we introduce the papers in the special issue as integral elements in our discussion contributing new ideas that stimulated our thinking and hopefully will do the same for others seeking to understand this emerging area of globalization and international managerial practice journal of international business studies 2009 40 887 900 doi 10 1057 jibs 2009 22

r d internationalization r d collaboration and public knowledge institutions in small economies evidence from finland and the netherlands this paper investigates domestic and foreign innovating firms determinants of r d collaboration with domestic universities and public knowledge institutes in finland and the netherlands we put particular emphasis on the impact of incoming academic spillovers on the probability to co operate with these public r d institutes based on data from community innovation surveys we find that foreign firms in the netherlands are less likely to co operate with domestic public knowledge institutions than domestic firms while in finland no significant difference can be detected another result is that incoming knowledge spillovers are an important determinant for r d collaboration with domestic public knowledge institutions in both countries in case of foreign firms in finland incoming knowledge spillovers affect the probability to co operate with public knowledge institutions more positively as compared with domestic firms for the netherlands no substantial difference could be found in this respect further innovating firms in finland that require academic or basic knowledge do not co operate significantly more with public knowledge institutions than those that need applied knowledge at the same time they are willing to share knowledge with public r d partners in the netherlands innovating firms that require relatively more basic than applied knowledge increase the probability of co operation with dutch universities and public knowledge institutions but there is reluctance to share proprietary knowledge with public r d partners for both countries no significant difference between foreign and domestic firms with regard to academic knowledge requirements could be found this raises the issue whether finnish innovation policies with a strong focus on r d co operation provide incentives for strategic behaviour by domestic public partners to put more emphasis on applied research

differing degree of price flexibilities and the policy ineffectiveness proposition price regulations impart stickiness to prices the degree of response is analysed for three cpi subindex inflations freely determined regulated and mixed prices and of aggregate cpi inflation to anticipated and unanticipated monetary policies freely determined prices and aggregate cpi show similar responses but faster and larger adjustments than regulated prices to anticipated monetary policies the results imply that the extent to which monetary policies can influence prices depends on the degree of price inertia in various sectors for monetary authorities to control inflation effectively they need to focus on price movements in various sectors

effects of fiscal policies on us agriculture according to the macro rational expectation mre hypothesis only unanticipated macroeconomic policy has impacts on real economic variables and anticipated policy changes have no real impacts this study analysis the effects of the anticipated and unanticipated components of fiscal policy on the us farm real gnp by testing the neutrality and rationality propositions of the mre hypothesis the test results show that both the rationality and neutrality propositions are rejected the empirical findings indicate that the anticipated fiscal policy does have significant effects on farm output examination of a specific sector sheds light on the nature of the market and helps ascertain the resons for the non neutrality

patents as indicators of corporate technological strength abstract quantitative indicators of the technological strengths of individual companies would be an important addition to the financial and economic data used in competitor assessments merger acquisition analyses investment decisions and corporate planning and management this paper examines the links between corporate patent and patent citation data and several other indicators of corporate performance changes in sales and profits research and development budgets scientific productivity and expert opinions of company technological strength the study covers 17 us pharmaceutical companies for which financial r d and expert opinion data were readily available for these pharmaceutical companies it was found that the patent data are an excellent indicator of overall corporate technological strength with 1 an overall correlation of 0 82 between expert opinion of pharmaceutical company technical strength and the number of us patents granted to the companies and 2 correlations in the general range of 0 6 to 0 9 between increases in company profits and sales and both patent citation frequency and concentration of company patents within a few patent classes

fortune favors the prepared firm a critical factor in industrial competitiveness is the ability of firms to exploit new technological developments we term this ability a firm s absorptive capacity and argue that such a capability not only enables a firm to exploit new extramural knowledge but to predict more accurately the nature of future technological advances we develop a stylized model in which we focus exclusively on firms decisions to invest in their absorptive capacities we first examine a monopolist s investment decision analyzing the path dependence of its investment and the effect of uncertainty we then consider the effect of competition by modeling the impact of entry on an incumbent s investment behavior implications for management and public policy are then discussed

tests of rationality neutrality and market efficiency a monte carlo analysis of alternative test statistics abstract this paper examines the small sample properties of three testing strategies used to analyze the rationality monetary neutrality and market efficiency hypotheses we focus on the original two step barro test of the mre hypothesis formed entirely from ols results a test that employs the correct variance covariance formulae for these two step estimates and mishkin s fimle testing framework each test is examined under likely model respecifications the findings highlight the extensive bias incurred by drawing inferences from simple unadjusted two step estimates and reveal the relative power of all tests in identifying alternatives to the null hypotheses

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

how do different drivers of r d investment in foreign locations affect domestic firm performance an analysis based on swiss panel micro data the aim of this article is to investigate the differences between specific motives of rd 2817 companies shows first that factors related to firm specific knowledge oriented advantages are more important for explaining the likelihood of foreign r d activities than factors reflecting disadvantages related to home location second knowledge oriented motives of foreign r d positively influence the innovation performance of domestic firms whereas market and resource oriented strategies have a positive impact on labor productivity copyright 2011 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

the rate and motives of the internationalisation of large firm r d 1994 2005 towards a turning point this paper addresses the internationalisation of rd and iii a rapid rise but still limited of asian firm r d internationalisation third these movements did not promote as anticipated the role of technology based motives asset augmenting strategies in the internationalisation of large firms r d technology based motives remain the most important of driver but the gap with market based considerations has narrowed

national accounts and environmental resources in the paper optimal growth theory is used to derive the appropriate definition of the net national product concept when there are environmental resources and environmental damage to take into account the basic conclusions are that conventional defined np should be corrected by deducting environmental damage and adding the value of the net change of all resources

technological internationalisation in the electro technical industry a cross company comparison of patenting patterns 1986 2000 abstract this paper addresses the issue of r d internationalisation of two multinationals in the electro technical industry ge and abb by means of a patent data analysis the overwhelming majority of both companies r d activities are concentrated in western europe and north america the locational overlap between the two firms activities is small these results are consistent with findings from earlier studies that 1 there is little evidence to suggest that the production of technology is globalised in a general sense and 2 that tapping knowledge from an industry s global lead location plays a very limited role in foreign r d investments

ecosystem services and regional development an application to sweden this study carries out interregional comparisons of development and sustainable use of natural capital with and without inclusion of non marketed ecosystem services a simple dynamic model of an open economy shows that appropriate adjustment of conventional income accounts includes flow and stock components but excludes explicit entrance of pollution calculations are made for swedish regions and for two types of ecosystem services pollution sequestration and recreational services provided by three types of ecosystems forests agricultural landscape and wetlands when comparing the adjusted and non adjusted regional income accounts it is shown that the two measurements generate significantly different pictures of regional income and growth regions that are traditionally considered as relatively less growth promoting are shown to hold important sources of wealth from natural capital while counties that are rich in conventional accounts fall behind when adjusting for values of changes in natural capital

accumulating technological competence its changing impact on corporate diversification and internationalization recent studies have suggested that firm specific technological competence may be diversified and internationalized we show that increases in competence increased corporate technological diversification until the early 1970s and then again more recently however a new interrelationship has now emerged between the accumulation diversification and internationalization of technological competence due to the formation of internationally integrated networks within firms the empirical analysis consists of a dynamic cross section model applied to the corporate patenting in the us of 166 of the largest european and us industrial firms from 1901 to 1995 copyright 2000 by oxford university press

panel discussion price stability the goal of price stability the debate in canada in the past three years the goal of price stability has been widely discussed in canada the debate has taken place both in the academic community and in the press with the most notable contributions contained in two volumes published by the c d howe institute and staff studies put out by the bank of canada see lipsey l990 york 1990 selody 1990 and cozier and wilkinson 1990 the ongoing debate about price stability as a goal for bank of canada policy was set oft by governor crow s remarks in the hanson lecture of january 1988 in that lecture he made two key points about this issue first that price stability yields a healthier economy than inflation and consequently that the aim of monetary policy should be to achieve a pace of monetary expansion that promotes price stability and second that it is not possible to achieve a predictable stable positive rate of inflation such that the economy behaves in very much the same way as in a world with stable prices much of the subsequent discussion and debate can be divided into three main categories with some contributions falling of course into more than one of the categories first the attempts to delineate and quantify the long term benefits from price stability second the analysis of the transitory costs of achieving price stability and third attempts to search for structural or institutional changes that would reduce these transitional costs a variety of subsidiary technical issues have also played some role in the debate the most important being the appropriateness of the various price indexes as the focus of policy and whether price stability really means

the internationalization of inventive activity a gravity model using patent data this paper discusses the extent and the determinants of the internationalization of european inventive activity between 1990 and 2004 using an innovative method to treat the information contained in the european patent office s patstat database the observed level of internationalization of inventive activities while being rather low has steadily increased over time the amount of collaboration between actors residing in different countries is assessed by means of a gravity model as it is familiar in the literature on international trade the amount of bilateral collaboration is positively affected by the presence of a common language and a common border and by the common participation in the european union participation in the euro zone is also found to have a marginally negative effect international collaboration is negatively affected by distance with estimated elasticities that are significantly smaller than the ones that characterize international trade contrary to the rumors about the death of distance this effect has become stronger in recent years

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

leviathan as an inventor an extended agency model of state owned versus private firm invention in emerging and developed economies we examine the relative merits of state soe and private poe ownership on firm invention output in emerging as well as developed economies firm soe affords a vehicle by which governments throughout the world encourage risky investment in new technological paths yet from a traditional agency theoretical standpoint soes are plagued by low powered incentives and dysfunctional involvement e g wasteful budgets and political meddling which reduces soe performance relative to poes to examine this paradox we build an extended agency model which rather than overlooking agency cost drivers entertains a more balanced view in which these so called agency liabilities in fact benefit soes particularly in the sphere of inventions we argue that given relatively higher levels of managerial autonomy soes may outperform poes in some types of inventive output we further propose that key boundary conditions operate to modify this base effect in that contexts lacking political constraints a condition found in most emerging economies increase the risk of political meddling reducing managerial autonomy so that any soe inventive advantages wane significantly we also hypothesize that this negative effect of weak institutions is attenuated in high invention productivity sectors empirically we track the frequency pioneerism and impact of patent inventions of 521 soes and matched poes for 16 years across 43 countries and 22 industries we find empirical support for our hypotheses based on a robust set of fixed effects regression analyses aided by a battery of checks to assess self selection and omitted variable bias

linking fdi motivation and host economy productivity effects conceptual and empirical analysis we develop a taxonomy that relates foreign direct investment fdi motivation technology and cost based to its anticipated effects on host countries domestic productivity we then empirically examine the effects of fdi into the united kingdom on domestic productivity and find that different types of fdi have markedly different productivity spillover effects which are consistent with the conceptual analysis the uk gains substantially only from inward fdi motivated by a strong technology based ownership advantage as theory predicts inward fdi motivated by technology sourcing considerations leads to no productivity spillovers

freely determined versus regulated prices implications for the measured link between money and inflation wiley author accepted manuscript can be posted 2 years after official publication date must acknowledge source link to publisher version and include following statement this is the accepted version of the following article dexter a s levi m d and nault b r freely determined versus regulated prices implications for the link between money and inflation journal of money credit and banking 25 2 may 1993 222 231 which has been published in final form at http www jstor org stable 2077838 policy http exchanges wiley com authors self archiving 361 html article deposited according to publisher s policy 05 25 2015

the globalization of r d results of a survey of foreign affiliated r d laboratories in the usa abstract this paper examines the globalization of innovation and the phenomenon of foreign direct investment fdi in research and development to do so it draws from a survey of foreign affiliated r d laboratories in the united states while the literature on foreign direct investment has emphasized the role of markets in driving off shore investments the main conclusion of this research is that the globalization of innovation is driven in large measure by technology factors of particular importance is the objective of firms to secure access to scientific and technical human capital

foreign direct investment and the sourcing of technological advantage evidence from the biotechnology industry this paper investigates the proposition that foreign direct investment in a high technology industry is motivated in part by the sourcing of country specific technological advantages embedded in foreign firms the empirical findings show that foreign equity investment is drawn to american biotechnology firms with high levels of patent activity we suggest that in the biotechnology industry foreign direct investment in the form of equity participation can be an efficient vehicle for tapping into country specific firm embodied technological advantages

geographical amplitude in the international generation of technology present situation and business determinants abstract building on a rich dataset with information on 65 000 firms and 465 000 european patent applications from 1978 to 2000 this paper addresses the geographical amplitude of international technology generation first we show that the number of countries hosting international technological activities is increasing the usa and some developing nations benefit from this internationalisation conversely although europe as a whole still plays a leading role in the encouragement of foreign technological activities some european countries such as germany and the uk appear to be losing their technological appeal second we verify that multinational corporations mncs have increased the geographical amplitude of their technological activities in fact the mean number of countries in which mncs internationalised technology generation has doubled during the 23 years we have analyzed third we address the business characteristics that explain this phenomenon a negative binomial regression suggests that internationalisation is higher in mncs showing a greater technological diversification a higher volume of technological activity a wider presence in international markets and more experience in the international generation of technology finally american corporations and regardless of the home country those firms whose main technological fields are in chemistry pharmaceuticals or electronics present the highest geographical dispersion of their international technological activities

national account of timber and forest environmental resources in sweden this paper outlines an extension of the national account of income from forest resources in sweden 1987 incorporating changes in timber inventories production of nonmarketed timber and nontimber goods and depletion or improvement in vital environmental stocks such as soil nutrients biodiversity and carbon sinks the total net value added provided by forest resources and forestry labour 1987 is estimated to 22 billions sek this is one third more than the contribution of forestry to ordinary gnp

an operative framework for total hicksian income measurement application to a multiple use forest a methodology for estimating total hicksian income in multiple use forests is presented the approach consistently incorporates commercial as well as non commercial economic values and enables the measurement of national accounting aggregates taking into account variation in man made and natural capital innovative solutions are developed i for the estimation of non market values such as recreation where an attempt to determine exchange values has been made simulating markets ii for timber where standing timber valuation methods have been extended to cover uneven stands and iii for carbon fixation valuation where only permanently fixed carbon after 1990 has been taken into account the methodology is applied to a multiple use pinewood in the guadarrama mountains near madrid spain timber cattle grazing hunting recreation carbon fixation and conservation values are measured and integrated in the accounting system using primary microeconomic data from the case study results indicate the importance of non commercial income which accounts for 51 of the total income and the social relevance of the analysed forest implying that only 31 of the total income generated is appropriated by the forest owner

the spillover effects of nominal wage rigidity in a multisector economy note although western economies are composed of markets with differing degrees of wage price stickiness most analytical macromodels are not composed of distinct sectors arld do not attempt to analyze how different sectors respond to policy actions and supply or demand shocks blinder and mankiw 1984 investigate how macropolicies and shocks affect a multicontract archipelago economy composed of five sectors islands each characterized by different wage price behavior they convincingly demonstrate how heterogeneous markets pose aggregation problems for policy makers and econometricians because each market reacts differently to common shocks however the blinder mankiw model is not really a model of an economy composed of integrated heterogeneous markets their archipelago model assumes that the workers in each sector island consume only the product produced in their sector a more realistic and analytically more appealing model would integrate the sectors by having each worker consume the same basket of heterogeneous goods under these circumstances conditions in one sector which affect the price of that sector s output can affect wage demands i e labor supply in another sector and thereby the output of this other sector through this channel wage price stickiness in one sector allows aggregate demand policy and shocks to have real effects on a sector with perfectly flexible sectoral wages and prices this result does not occur in the blinder mankiw model because it lacks this type of cpi labor supply linkage between sectors in fact these spillover effects have not been directly addressed by the existing literature for purposes of brevity only aggregate demand shocks will be considered in a closed economy consisting of only two sectors one having goods and labor markets which clear instantaneously henceforth the classical or walrasian sector and the

natural resources national accounting and economic depreciation abstract the current value hamiltonian in an aggregate optimal growth problem with heterogeneous capital stocks including exhaustible renewable and environmental stocks is the nnp function routine substitutions reveal that the using up of natural resource stocks is representable as easy to interpret economic depreciation magnitudes we obtain true nnp inclusive of natural resource stock diminution implications for actual national accounting practices are also discussed

location versus home country advantages in r d activities some further results on multinationals locational strategies abstract in this paper we study the question of the determinants of the foreign location of technological activities of multinational firms mnfs do they locate their knowledge activities as a consequence of their home country advantages or according to host country strengths we have defined four types of strategy learning according to revealed technological advantages our results based on the 345 mnfs with the greatest patenting activity in europe globally confirm the main findings of patel and vega research policy 28 2 3 1999 145 155 in a great majority of cases nearly 70 mnfs locate their activities abroad in technological areas or fields where they are strong at home strategies 2 and 3 moreover strategy 3 which corresponds with dynamic learning outclasses strategy 2 which corresponds with myopic learning and becomes increasingly important over time the strategy of japanese firms is very different from european and us mnfs in europe japanese firms seek out locations that have complementary strengths to their own strategy 2 in terms of policy implications it can be noted that the national system of innovation in particular the system of academic research should strengthen the technological advantages of local firms and enable them to successfully locate a part of their r d activities abroad

does anticipated monetary policy matter an econometric investigation a heated debate has arisen over the policy ineffectiveness proposition associate with the work of lucas sargent and wallace it postulates that anticipated aggregate demand policy will have no effect on business cycle fluctuations so that one deterministic feedback policy rule is as good as any other from the point of view of stabilizing the economy this paper develops a methodology for empirically analyzing rational expectations models displaying this neutrality result and then applies it to the important question of whether anticipated monetary policy matters to the business cycle

accounting for cultural heritage a theoretical and empirical exploration with focus on swedish reindeer husbandry the aim of this paper is to explore some of the theoretical and empirical aspects of an economy which includes cultural capital we use a simple dynamic growth model and the concept of a social acc

transaction cost economics in real time this paper attempts to place the theq of the boundaries of thejirm within the context of the passage of time more precisely it resurrects and places in a modem frame some of the insights of the chsical and marshallian theories of organization the modem reinterpretation of those theories centers around the capabilities view of the jirm taken together with governance costs the capabilities ofjirm and market determine the boundaries of the jirm in the short run ovw time capabilities change as firms and markets learn which implies a kind of information or knowledge cost the cost of trandewing the firm s capability to the market w vice versa these dynamic governance costs are the costs of persuading negotiating and coordinating with and teaching others they arise in the face of change notably txchnological and organizational innovation in fit they are the costs of not having the capabilities you need when you need them dynamic transaction costs provide an explanation for vertical integration that is arguably more general than those dominant in the literature in the face of uncertainty and divwgent views ofthe future common ownership of multiple stages of production is a supwior institutional arrangement for coordinating systemic change asset specrfity is neither necessary nor suffient for this to be true dynamic governance costs may also affit internal organization it may sometimes be costly in 3 terms of persuasion negotiation and teaching to create within the firm capabilities readily available on the market indeed in cases in which systemic coordination is not 4 the issue the market may turn out to be the superior institution of coordination in e 2 genwal the capabilities view of the jirm suggests that we look atfim2 and market as alternative and sometimes overlapping institutions of learning 1 transaction costs in the long rzln and the short 9 x classical and neoclassical perspectives

does host market regulation induce cross border environmental innovation this paper evaluates the effect of host country environmental policy stringency on the offshoring of environmental patents for 2000 top world r d performers it is shown that a more stringent environmental regulation triggers both the extensive and intensive margin of patent offshoring in the field of environmental technologies results are robust to various different specifications alternative definitions of innovation offshoring and of regulation restrictions and to the consideration of possible endogeneity of regulation it is suggested inter alia that r d subsidies and non market based regulatory measures are more important than market based instruments as drivers of cross border environmental innovation length 26 pages

what determines the location choice of r d activities by multinational firms abstract we analyse 446 location decisions of r d activities by multinational firms incorporated in the european union over 1999 2006 our results suggest that on average the location probability of a representative r d foreign affiliate increased with agglomeration economies from foreign r d activities human capital proximity to centres of research excellence and the research and innovation capacity of the region further our evidence suggests that in comparison to european multinational firms the effects of patents intensity and proximity to centres of research excellence were stronger in the case of north american multinational firms while government r d expenditure intensity increased the probability of location of r d activities by european multinational firms in the region it did not have a significant effect on the probability of location of r d activities by north american multinational firms

the impact of technological innovation on international trade patterns the evidence reconsidered abstract this paper presents some new evidence in relation to the role of technical change in particular industrial innovation on the international competitiveness of the various oecd countries its originality consists primarily of a using a technology output indicator to measure technological performance b presenting and comparing various measures of trade and technological performance for each individual oecd country with the exception of iceland c analysing at a relatively high level of product industry disaggregation the relationship between export performance and technological performance at the same time the very limited scope of the paper has to be emphasized a the analysis is purely static all the evidence presented relates to one year 1977 b most of the results obtained are preliminary and should be further substantiated by more detailed empirical and theoretical research c as a consequence little attention has been paid to policy implications which it was felt could only be discussed properly in a later stage the paper consists of four sections a brief review of the state of the art section 1 a discussion on definitions of technology intensity section 2 the development of the best technology output indicator section 3 and the empirical analysis itself section 4 the following most important results emerge from these various sections a there are serious shortcomings in using average technology intensity as bench mark for classifying products or industries in technology intensive or nontechnology intensive categories b there is a substantial difference between technology intensity as measured on the basis of a technology input proxy rd c yet as between countries the most traditional output and input indicators the number of patents granted and the amount spent on rd d foreign patenting in particular foreign patenting in the united states figs 1 and 2 section 3 is a more reliable technology output proxy than domestic patenting e in terms of technological comparative advantage as opposed to technology intensity it is the small oecd countries as opposed to the large ones which seem to base their trade comparative advantage on technological comparative performance table 7 section 4 1 f at the individual industry level it is found that i for most technology intensive industries defined however in a less restrictive way than us r d intensities a close relation exists between technological performance and export performance and ii that as compared to other country specific resource variables technological performance is the most important trade explanatory variable its elasticity increasing with the technology intensity of industries tables 11 and 12 section 4 2 space constraints prevented us from presenting the data in relation to the inter industry and inter country analysis these can however be obtained from the author

the drivers of foreign direct investment into research and development an empirical investigation this paper examines the determinants of foreign direct investment fdi in research and development laboratories by 32 multinational enterprises in the pharmaceutical and electronics industries the paper applies a dichotomous set of motives for fdi results from an econometric analysis of 136 laboratory investments show that relative market size and relative strength of a country s science base determine whether fdi in research and development is carried out in order to exploit existing firm specific advantages or in order to build up new firm specific advantages this holds true in similar form for japanese european and u s firms and across the two industries

aggregation and stabilization policy in a multi contract economy abstract this paper presents a model of a multi sector economy in which each sector is characterized by a different type of wage or price stickness the various sectors experience the same exogenous shocks and have the same money supply the analysis shows that demand shocks pose no serious problems for stabilization policy in contrast supply shocks may force the policymaker to choose between stability in one sector and stability in another the analysis also shows that the economist as to the economy s underlying structure and obscures the tradeoffs the policymaker must confront in particular a feedback rule chosen on the basis of an aggregate model could be either better or worse than a passive policy

large firms in the production of the world s technology an important case of non globalisation us patenting by 686 of the world s largest manufacturing firms shows that their share of the world s production of technology is less than their share of r d activities and varies greatly amongst sectors in most cases the technological activities of these large firms are concentrated in their home country the characteristics of which influence the volume and trends in their technological activities much more strongly then the international component of these activities at the same time these large firms are major elements in the volume and the pattern of sectoral specializations in their home countries technological activities

global r d networks and large scale innovations the case of the automobile industry abstract the transition towards mass flexibility the increasing heterogeneity of the automobile market and the penetration of foreign investment have been singled out as important factors behind the rise of post national corporations operating in multiple regions of the world such firms not only conduct sales and assembly operations on a multi regional basis but it is claimed rd and ii by coordinating activities globally the purpose of this research is to determine whether r d activities in the automobile industry are globalized it was found that the process of large scale innovation the acceleration of product development and the increasing strategic importance of technology tend to concentrate r d e activities near the home base the factors limiting the concentration of this phenomenon are the dispersion of foreign sales the surveillance of competitor s engineering and styling activities and the support of foreign assembly plants firms pursuing global export or regional strategies tend to concentrate r d e activities near the home base only firms pursuing multi regional strategies have partly dispersed r d e activities to major regional markets the development of global networks is constrained by communication difficulties travel time and cost as well as by pressures for regional autonomy

new forms of organisation and r d internationalisation among the world s 100 largest food and beverages multinationals this paper explores the strategic internationalisation of research and development r d activities of the world s 100 largest food and beverages f b multinationals mnes in 1996 and 2000 with a sample of nearly 8000 affiliates for each period we develop a global innovation strategy gis structure where we analyse the r d internationalisation process of f b mnes we argue that in a fully developed gis model the sourcing of creative inputs does not come exclusively from a central r d laboratory but other overseas r d laboratories or technological affiliates can also undertake genuine knowledge creation activity from capitalising on the scientific heterogeneity fostered in individual host countries as well as distinctive demand conditions our results indicate the increasing importance of overseas technological affiliates in the application of a gis in the leading f b mnes which determine the degree of their technological internationalisation two variants of technological affiliates reflect two broad knowledge related activities i e adaptation and genuine forms of knowledge creation

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

patent statistics in the age of globalisation new legal procedures new analytical methods new economic interpretation abstract patent analysis seems to become more difficult in the age of globalisation starting from microlevel observations it is evident that multinational enterprises pursue different technological marketing and strategic aims in effect they cover world markets in a distinctly different manner with patent intellectual property this article in good economic tradition starts with consideration of recent microlevel patent behaviour in telecommunications before new macroeconomic procedures to measure technical change are outlined the new challenges to patent statistics comprise the assignment of countries to patent documents of multinational firms the appropriate use of economic filters in comparing patent statistics from various patent offices the fitting of the new international patent procedures offered by the amended patent cooperation treaty pct to national statistics the assignment of patent applications in case of withdrawn country destinations and the estimation of time series if most recent data sets are incomplete we propose consistent workable adjustments to patent statistics that overcome the above mentioned biases which we denote the triad patent model for measuring technical progress in the proper economic sense first applications deal with the assessment of the pace of technical change in major countries up until 1995 in conclusion we discuss problems for future research the main policy implication is that macroeconomic patent statistics can correct for the effects of global knowledge production indeed as these are not disruptive but rather limited and well accountable