one size fits all towards a differentiated regional innovation policy approach innovation has moved to the foreground in regional policy in the last decade concrete policies were shaped by best practice models derived from high tech areas and well performing regions these are often applied in a similar way across many types of regions here an attempt is made to show that there is no ideal model for innovation policy as innovation activities differ strongly between central peripheral and old industrial areas in this paper we analyse different types of regions with respect to their preconditions for innovation networking and innovation barriers based on this classification different policy options and strategies are developed

can capital scarcity help agency theory explain franchising revisiting the capital scarcity hypothesis we offer a rationale for a link between capital scarcity and franchising predictions respectively based on agency theory and the capital scarcity hypothesis were tested among 91 restaurant chains

family planning in a life cycle model with income risk several us states have recently restricted the access to abortions we study fertility intentions and how family planning and abortions are used as mechanisms to control fertility among couples facing income risk we formulate and estimate a life cycle consumption saving model with uninsurable income risk and imperfect contraceptive control that matches fertility behavior in the british household panel survey bhps well we use the estimated model to investigate how family planning and abortions are used to control fertility in our model our simulations suggest that income risk affects family planning and that abortion is used to control fertility due to the presence of income risk this indicates that the availability of abortions might play a role as an insurance mechanism

state accumulation projects and inward investment regimes strategies abstractstate accumulation projects and inward investment regimes strategies regional studies based on kitchener waterloo ontario and saguenay lac saint jean quebec case studies we link inward investment regimes iir to the strategic relational approach to the state the state continues to be significant in 1 selecting multinational enterprise mne value chain segments 2 policies maximizing foreign direct investment fdi spillovers 3 empowering iir participants and 4 managing the institutionalized compromises underlying these policies quebec s developmental state qds reflects labour s greater power and has stronger levers to maximize fdi spillovers than ontario s competition state ocs however both confront significant fdi challenges

antecedents of early terminations in franchising franchisor versus franchisee cancelations franchisors capitalize on franchisee entrepreneurial capacity to grow however enabling franchisees to develop their ventures may damage system consistency this dilemma makes conflict particularly prevalent in the field of franchising nevertheless prior research has reported an incomplete picture of factors leading to serious disagreement and premature termination in franchise partnerships we address this gap first by adding the entrepreneurial autonomy of franchisees as a relevant but underexplored source of conflict and second by providing a more fine grained analysis of franchisors versus franchisees drivers of termination specifically we focus on the controversial issues of pricing and local advertising policies and analyze how expanding franchisees entrepreneurial autonomy in these decision areas is related to contract terminations depending on who ended the relationship the franchisor or a franchisee the study also highlights less controversial requirements and conditions e g upfront investments franchisor experience that may reduce early terminations our empirical objectives are met by using survey data from a sample of franchisor companies the results show how the performance outcomes of entrepreneurial autonomy differ depending on the decision area in which it is exercised results also throw light on the consequences of various critical franchise policies that may be masked if both types of termination franchisors vs franchisees are considered together

legitimizing research technology and innovation policies for transformative change combining insights from innovation systems and multi level perspective in a comprehensive failures framework abstract the recent policy debates about orientating research technology and innovation policy towards societal challenges rather than economic growth objectives only call for new lines of argumentation to systematically legitimize policy interventions while the multi level perspective on long term transitions has attracted quite some interest over the past years as a framework for dealing with long term processes of transformative change but the innovation systems approach is still the dominant perspective for devising innovation policy innovation systems approaches stress the importance of improving innovation capabilities of firms and the institutional settings to support them but they are less suited for dealing with the strategic challenges of transforming systems of innovation production and consumption and thus with long term challenges such as climate change or resource depletion it is therefore suggested to consider insights from transition studies more prominently in a policy framework that is based on the innovation systems approach and the associated notion of failures we propose a comprehensive framework that allows legitimizing and devising policies for transformative change that draws on a combination of market failures structural system failures and transformational system failures

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

habit persistence and teen sex could increased access to contraception have unintended consequences for teen pregnancies we develop a dynamic discrete choice model of teen sex and pregnancy that incorporates habit persistence habit persistence has two sources here the first is a fixed cost of having sex which relates to a moral or psychological barrier that has been crossed the first time one has sex the second is a transition cost whereby once a particular relationship has progressed to sex it is difficult to move back we estimate significant habit persistence in teen sex implying that the long run effects of contraception policy may be different from their short run counterparts especially if the failure rate of contraception is sufficiently large programs that increase access to contraception are found to decrease teen pregnancies in the short run but increase them in the long run

franchising liquidity constraints and entry the short and long run incentives to franchise are considered while monitoring problems due to geographic dispersion ensure that franchising is an efficient organizational form in the long run entry costs suggest that franchising is an efficient solution to the formidable problems posed by entry in the short run this explains the intensive use of franchising in the early growth stages followed by a greater proportion of company owned outlets as the system matures

uncertain infant mortality learning and life cycle fertility this article examines the links between infant mortality and fertility in an environment with unobserved heterogeneity in infant mortality risk across mothers in such an environment replacement behavior i e the fertility response to an experienced child death might be influenced by mothers learning about a family specific component of infant mortality risk i explicitly introduce learning by mothers in a dynamic stochastic model of life cycle marital fertility and i estimate the model s structural parameters using malaysian panel data the framework is used to estimate replacement rates and to correct for birth selectivity in the estimation of the relationship between infant mortality risk and health inputs

explaining interfirm cooperation and performance toward a reconciliation of predictions from the resource based view and organizational economics interfirm cooperation and its performance implications are examined in the context of two widely cited theoretical approaches to organizations broadly speaking the resource based view suggests that firms seek to capitalize on and increase their capabilities and endowments whereas organizational economics asserts that firms focus on minimizing the costs of organizing although these perspectives agree on managers likely actions in many areas their predictions diverge when interfirm cooperation is considered we take a step toward reconciling these differences by positing that firms place resource based concerns in front of considerations from organizational economics when deciding whether or not to engage in interfirm cooperation we examined this prediction using data from 94 publicly held restaurant chains the results support our integrated view but also suggest that giving primacy to resource concerns detracts from the performance of some firms we derive several implications of these findings in an effort to guide subsequent inquiry copyright 1999 john wiley sons ltd

investments to create bargaining power the case of franchising hybrid organizational forms such as franchise systems join two or more independent parties under a contract the ability of each party to achieve its goals depend upon the relative bargaining power in the relationship established by the contract using transaction cost economics and porter s 1980 characterization of sources of bargaining power this paper argues that the franchisor can make investments in activities such as tapered integration and buyer selection to increase its bargaining power and decrease conflict and litigation in a franchise system specifically tapered integration owning some units while franchising others selecting inexperienced franchisees and employing a long training program are predicted to increase the franchisor s bargaining power and the franchisee s compliance with franchisor standards an empirical analysis of litigation in restaurant franchise systems supports the theoretical hypotheses copyright 2000 john wiley sons ltd

agency theory and franchising some empirical results this article provides an empirical assessment of various agency theoretic explanations for franchising including risk sharing one sided moral hazard and two sided moral hazard the empirical models use proxies for factors such as risk moral hazard and franchisors need for capital to explain both franchisors decisions about the terms of their contracts royalty rates and up front franchise fees and the extent to which they use franchising in this article i exploit several new sources of data on franchising to construct a cross section of 548 franchisors involved in various business activities in the united states in 1986 the data are most consistent with a model based on two sided moral hazard the empirical models are also more successful at explaining the extent to which franchisors choose to franchise stores than at explaining the terms of franchise contracts finally contrary to the predictions of several theoretical models i find that royalty rates and franchise fees are not negatively related

following or breaking regional development paths on the role and capability of the innovative entrepreneur structural change economic diversification and new path development feature prominently in scientific and policy debates against the backdrop of increasing specialization in the economy this paper reinterprets schumpeterian innovative entrepreneurship as a fundamental process that creates new connections between distinct fields of specialization thereby induces path breaking innovations and structural change it is argued that the transformation capability of innovative entrepreneurs rests essentially on their position s and networks within evolving innovation systems by focusing on micro level processes and transformation capability the paper complements the large body of work on structural barriers unintended consequences supporting institutional arrangements and policy implications are discussed

measuring the value of children by sex and age using a dynamic programming model one of the important determinants of fertility is the value of children as perceived by parents this paper estimates gender and age specific values of children using a dynamic programming model the underlying hypothesis is that observed fertility outcome for any couple is the solution to their life cycle optimization problem findings from the korean data indicate that children impose net costs when young and net benefits when old both the early costs and the later benefits are larger for male children than female children and for better educated women than lowereducated women simulation studies which use estimated values of children suggest that a decrease in the costs of abortion and pre natal gender screening tests may raise the male birth ratio through gender selective abortions

do spinoff dynamics or agglomeration externalities drive industry clustering a reappraisal of steven klepper s work steven klepper s theory of industry clustering based on organizational reproduction and inheritance through spinoffs challenged the marshallian view on industry clustering this article provides an assessment of klepper s theoretical and empirical work on industry clustering we explore how new his spinoff theory on industry clustering was and we investigate the impact of klepper s theory on the economic geography community klepper s work has inspired especially recent literature on regional branching that argues that new industries grow out of and recombine capabilities from local related industries finally the article discusses what questions on industry location are still left open or in need of more evidence in the context of klepper s theory less

improving channel coordination through franchising in this paper we explore the role of franchising arrangements in improving coordination between channel members in particular we focus on two elements of the franchising contract namely the royalty structure and the monitoring technology we begin with a simple analysis where a manufacturer distributes its product through a retailer and the retail demand is affected by the retail price and the service provided by the retailer in this context we show that neither royalty payments nor monitoring are needed for full coordination we then extend the model to allow for free riding by franchisees and show that although monitoring helps affect the behavior of the franchisees royalty payments are still unnecessary to coordinate the activities of the franchisor and the franchisees finally we show that in environments where factors affecting retail sales are controlled by both the franchisor and the franchisee royalty payments provide the necessary incentives for the franchisor while monitoring systems are used to ensure that franchisees also behave in the best interest of the channel our general results are found to be consistent with those in brickley and dark 1987 and norton 1988 who conclude that franchising is affected by principal agent problems our theory finds special support in the work of lafontaine 1988 where it is concluded that the incidence of franchising is related to cost of monitoring and the importance of franchisor investments

rules of the game the place of institutions in regional economic change gertler m s rules of the game the place of institutions in regional economic change regional studies institutions exert a pervasive influence on the evolution and character of regional economies yet this role is poorly understood within recent debates on neoliberalism varieties of capitalism and other approaches to the study of economic change a reconstituted institutional economic geography must accommodate individual agency institutional evolution interscalar relations and comparative methodologies examining recent work on universities in local economies as well as on creativity based strategies and social inclusion polarization it is shown how locally distinctive institutional architectures shape evolutionary trajectories leading to differentiated social and economic outcomes the paper then enunciates some important principles of methodology and theory building in institutional analysis gertler m s les regles du jeu le role des institutions dans le developpement economique region

an estimable dynamic stochastic model of fertility and child mortality this paper develops a finite horizon dynamic stochastic model of discrete choice with respect to life cycle fertility within an environment where infant survival is uncertain the model yields implications for the number timing and spacing of children a tractable estimation method is developed for the linear constraint quadratic utility case that is intimately tied to the dynamic optimization problem and the method is applied to malaysian household data estimation is based on integrating the numerical solution of the dynamic programming model of behavior with a maximum likelihood procedure

scott a shane winner of the global award for entrepreneurship research scott a shane is the 2009 winner of the global award for entrepreneurship research in this article we discuss and analyze shane s most important contributions to the field of entrepreneurship his contribution is extraordinarily broad in scope which makes it difficult to pinpoint one or a few specifics that we associate with shane s scholarship instead they can be summarized in the following three points first he has influenced what we view as central aspects of entrepreneurship shane has been a leading figure in redirecting the focus on entrepreneurship research itself second he has influenced how we view entrepreneurship shane s research is arguably theory driven and it applies and develops theoretical lenses that greatly improve our understanding of entrepreneurship third he has contributed to how we conduct entrepreneurship research shane has been a forerunner in examining relevant units of analysis that are difficult to sample research designs and databases specifically designed for studying entrepreneurial processes and sophisticated analytical methods this has contributed to advancing the methodological rigor of the field summing them up the contributions are very impressive indeed

globalisation of knowledge production and regional innovation policy supporting specialized hubs in the bangalore software industry abstract this paper is concerned with the changing role of regional innovation systems and regional policies in supporting the transition of indigenous firms in developing countries from competing on low costs towards becoming knowledge providers in global value chains special attention is paid to policies supporting the emergence and development of the regional innovation system in this transition process regional innovation systems in developing countries have very recently started to be conceptualised as specialized hubs in global innovation and production networks asheim b coenen l vang lauridsen j 2007 face to face buzz and knowledge bases socio spatial implications for learning innovation and innovation policy environment and planning c government and policy 25 5 655 670 chaminade c vang j 2006a innovation policy for small and medium size smes in asia an innovation systems perspective in yeung h ed handbook of research on asian business edward elgar cheltenham maggi c 2007 the salmon farming and processing cluster in southern chile in pietrobello c rabellotti r eds upgrading and governance in clusters and value chains in latin america harvard university press a specialized hub refers to a node in a global value chain that mainly undertakes one or a few of the activities required for the production and development of a given good or service or serves a particular segment of the global market in global value chains firms in developing countries have traditionally been responsible for the lowest added value activities however a few emerging regional innovation systems in developing countries are beginning to challenge this scenario by rapidly upgrading in the value chain there is however still only a poorly developed understanding of how the system of innovation emerges and evolves to support this transition process and what the role of regional innovation policy is in building the regional conditions that support indigenous small and medium size enterprises smes in this transition process this paper aims at reducing this omission by analyzing the co evolution of the strategies of indigenous smes and the regional innovation system of bangalore india

making new franchise systems work this paper argues that new franchise systems are more likely to survive if they are structured to economize on agency costs after controlling for industry effects and firm age and size this paper shows empirical support for six of nine hypotheses about the linkage between mechanisms for economizing on agency costs and the survival of new franchise systems 1998 by john wiley sons ltd

challenges of transformation innovation re bundling and traditional manufacturing in canada s technology triangle bathelt h munro a k and spigel b challenges of transformation innovation re bundling and traditional manufacturing in canada s technology triangle regional studies this paper develops a perspective of regional re bundling in overcoming economic crises it does this by focusing on the effects of the recent global financial crisis on traditional manufacturing it analyses the structure of innovation processes and their development over time in canada s technology triangle a region known for university related spin off processes and successful modernization what is less well known is that this region has been strongly influenced by traditional manufacturing industries it is shown that these industries have been well prepared to deal with the effects of the crisis due to ongoing innovation and diversification stimulated by prior economic crises bathelt h munro a k and spigel b

quality signaling through ex ante voluntary information disclosure in entrepreneurial networks evidence from franchising this paper examines antecedents of ex ante voluntary information disclosures for standardized contracts in entrepreneurial networks entrepreneurs e g franchisors may make such disclosures to prospective business partners in order to signal profitability of partnering attract financial and managerial resources and develop their entrepreneurial networks in practice only a fraction of franchisors make financial performance representations fprs an ex ante voluntary information disclosure to prospective franchisees we address gaps in the signaling voluntary information disclosure franchising entrepreneurship and small and medium enterprise sme literatures we draw on signaling theory to develop a theoretical framework and investigate factors that influence a franchisor s disclosure decision we evaluate hypotheses from our theoretical framework through econometric analyses of multi sector panel data for the us franchising industry we estimate a logit model and use lagged independent variables to address our dichotomous independent variable and potential endogeneity respectively our results support the view that firms signal their quality through fprs to attract potential business partners and expand their entrepreneurial networks beyond the extant literature we find that rigorous partner qualification is another driver of voluntary information disclosure in franchising our findings also provide empirical support for the complementary role played by multiple quality signaling mechanisms used by franchisors and yield public policy implications for franchising

new firm survival institutional explanations for new franchisor mortality why do some new firms succeed and others fail economists argue that new firms fail because entrepreneurs inefficiently manage production and organizational design williamson 1985 sociologists e g granovetter 1985 have typically viewed this explanation as undersocialized and argue that institutional legitimacy must also be considered to explain the survival of new firms this paper examines the survival of 1292 new franchisors established in the united states from 1979 1996 the results show that institutional legitimacy adds to economic explanations for the survival of new franchisors and suggests the importance of a properly socialized explanation

the effects of new franchisor partnering strategies on franchise system size many young firms use strategic actions to attract partners who help them increase the size of their operations quickly this article examines the use of strategic actions to attract partners and increase system size in the context of franchising we build on research in entrepreneurship marketing organization theory strategic management and finance to develop specific hypotheses about the influences of franchisor pricing policy and strategic control decisions on system size we test these hypotheses empirically using panel data on a sample of 1 292 business format franchise systems from 152 industries that were established in the united states between 1979 and 1996 and followed from their inception forward in time our model accounts for the endogeneity of strategic decisions controls for unobserved firm and industry factors and accounts for selection effects due to system failure the results show that franchisors that grow larger 1 lower royalty rates as the systems age 2 have low up front franchise fees that rise over time 3 own a small proportion of outlets and lower that percentage over time 4 keep franchisees initial investment low and 5 finance their franchisees

the specification and estimation of dynamic stochastic discrete choice models a survey our main goal is to quantify the returns to a career in the united states congress we specify a dynamic model of career decisions of a member of congress and estimate this model using a newly collected dataset given estimates of the structural model we

a dynamic model of contraceptive choice of spanish couples in this paper we propose a simple dynamic stochastic model of sterilization and contraceptive use and we estimate its structural parameters using a sample of married couples from the 1995 spanish family and fertility survey the estimated structural model improves on previous studies in terms of its ability to rationalize observed behavior the large proportion of women contracepting at parity 0 is interpreted as evidence of precautionary contraceptive behavior allowing for simple forms of permanent unobserved heterogeneity across couples in their ability to conceive has important implications for estimates of utility and cost parameters our estimates of child valuation parameters imply that most spanish couples would have two children but significant deviations from this goal are brought about by imperfect and costly fertility control our simulations suggest that the introduction of sterilization has reduced fertility by an average of 0 2 children per couple and that the availability of more effective reversible contraceptive methods would reduce expected fertility by up to 0 4 children per couple

the choice of organizational form the case of franchising abstract we examine companies that franchise some units and centrally operate own others the agency problems confronting these two organizational forms are analyzed testable hypotheses are developed the empirical results support the notion that owning versus franchising reflects a trade off among agency related problems the cost of monitoring store managers appears to be especially important in the own franchise decision the level of repeat business and initial investment requirements per unit also appear to be important

to franchise or not to franchise an analysis of decision rights and organizational form shares abstract for innovators and entrepreneurs in service businesses franchising is frequently suggested as a way to succeed and grow academic research has provided little guidance for potential franchisors however this article provides a model to guide that choice of organizational form using results from agency theory analytically franchising is a way to allocate decisions within the franchise system between the franchisor and the franchisee in order to promote efficiency and provide incentives franchisees make decisions regarding local operations such as hours prices and locations because they have the knowledge about local trading conditions franchisors make decisions regarding the product its production and associated marketing efforts that together create the standardization that the trademark signals the revenue of franchise systems is divided to provide incentives to each party to support the allocation of decisions franchisors receive a percentage of gross sales typically 5 to compensate them for use of the trademark and associated services franchisees keep the unit s profits after paying royalties these profits motivate the franchisee to make the good decisions that operate the unit efficiently but franchising has limitations as well first by making franchisees invest in a unit in a specific geographic area the franchise system exposes the franchisees to business risk it consists of local economic conditions beyond franchisees control that could reduce or eliminate their capital that risk could be eliminated by owning a geographically diversified portfolio of shares of units in different places but then incentives are weakened second the requirements of standardization under the common trademark constrain franchisees from the full use of their human capital including their knowledge of local conditions some adaptations to the local market are prohibited by the requirement of standardization so high levels of either business risk or human capital in an industry make franchising a less desirable choice of organizational form these ideas are tested with interindustry data using an econometric discrete choice model on the share of sales through franchise systems termed organizational form share the methodology is identical to market share models used in economics and marketing business risk as measured by percent of units that have failed in the industry in the last 3 years and human capital required in the industry as measured by average wages paid both negatively influence the share of sales through franchise systems the model can be applied by entrepreneurs considering franchising especially in industries not traditionally associated with franchising using public data sources identified in the study a prospective franchisor can research the industry to determine if industry conditions support franchising as the optimal choice of organizational form the empirical texts also suggest a second managerially relevant conclusion the decision of should we franchise can be and should be separated from the decision of how do we implement franchising factors previously shown to influence the implementation of franchising the degree of ownership of units within the system do not influence organizational form share thus suggesting that the strategic decision of whether to franchise is distinct from the operating decision of how to implement franchising

organizational incentives and organizational mortality despite a long tradition of research on organizational mortality organizational theorists have not examined the effect of incentive contracting on firm survival this paper fills this gap by examining the effect of incentive contracting on the survival of u s business format franchise systems over the period 1984 1996 the paper finds empirical support for several hypotheses derived from efficient contracting theory in general large firms that adopt policies which screen agents signal quality and control agents free riding are more likely to survive than large firms which do not adopt these policies

the transition to flexible specialisation in the us film industry external economice the division of labour and the crossing of industrial divides there is increasing evidence that mass production methods are losing their dominance in the advanced industrial economies and that various forms of flexible production organization are on the rise the transition from mass production organization to flexible specialization is analyzed in detail through a case study of the film industry where it is shown that a system of production once based on product standardization high levels of vertical integration and stable oligopolistic market structures has after a period of vertical disintegration given way to a production system based on a deep division of labor between firms and high levels of flexibility in both product design and output levels the transition may be the result of increasing external economies of scale stemming from the development of the industry s social division of labor copyright 1989 by oxford university press