bluuebunny/crossref_metadata_2025 huggingface dataset:
R&D ‘inputs’ and ‘outputs’ of technology‐based firms located on and off Science Parks
Authors: Westhead Paul
Published: March 2003

Science Parks (adjacent to universities) provide an important resource network for technology‐based firms. To ascertain the ‘added value’ of a Science Park location the innovativeness (with regard to a variety of ‘input’ as well as ‘output’ measures) of independent technology‐based Science Park firms are compared with the levels recorded by a comparable group of firms not located on a Park. Empirical evidence collected in 1992/93 from firms in a ‘follow‐on’ sample (originally interviewed in 1986) as well as a ‘new sample’ study (independent firms that had located on a Science Park between 1986 and 1992) both revealed no statistically significant differences between the two groups on a variety of innovativeness measures. Results from both samples suggest Science Park firms do not directly invest more in R&D than off‐Park firms nor do they record significantly higher levels of technology diffusion. The policy implications of the research findings are discussed.
Cooperative research and development agreements (CRADAs) as technology transfer mechanisms
Authors: Rogers Everett M. , Carayannis Elias G. , Kurihara Kazuo , Allbritton Marcel M.
Published: March 2003

Cooperative Research and Development Agreements (CRADAs) between Federal R&D laboratories and private companies in the US are intended, in large part, to transfer technologies developed at Federal R&D laboratories to private companies. We surveyed the Federal laboratory and private CRADA partners involved in CRADAs at Los Alamos National Laboratory in New Mexico in order to identify certain difficulties inherent in CRADAs as mechanisms for technology transfer. Company partners do not share a common organizational culture with their Federal laboratory counterparts, and are critical of the length of time and complexity of government administrative arrangements necessary to form a CRADA.
Organization of industrial R&D on a global scale
Authors: Gassmann Oliver , Von Zedtwitz Maximilian
Published: March 2003

Although the globalization of industrial R&D processes has increasingly attracted management scientists and considerable work on R&D internationalization has been done since the 70s, important problems in organizing geographically distributed R&D sites have not yet been resolved. This analysis is based on 165 interviews in 31 technology‐based multinationals from Switzerland, Germany, USA, and Japan conducted between 1994 and 1997. We describe the extent of R&D internationalization, its key drivers and principal impediments. Two trends are identified: (i) a geographic concentration on leading technology centres, and (ii) a tightened coordination of R&D units. Overlaying structures, superimposed to regional and functional structures, play a central role in overcoming current deficits in global R&D management. Organizational constituents of this structure are technology offices (Schering), technology management as a competence center (Schindler), central project offices (IBM), central project management (Bayer), project oriented career development (Bosch), virtual project management departments (Roche), and cross‐cultural job rotation (ATR).
Organizing for technological collaborations: a managerial perspective
Authors: Chiesa Vittorio , Manzini Raffaella
Published: March 2003

Researchers and practitioners have recently paid great attention to technological partnering. In this paper, the problem of choosing which organizational form the technological collaboration should take is carefully examined. The aim is to support the decision‐maker who, once it has been decided that a certain technology is to be acquired externally, has to identify the most appropriate mode for such an acquisition. This is not an easy task and is critical to the success of the collaboration. A framework is suggested to assist the decision‐maker, based upon the preliminary results of a qualitative empirical study. It is then applied to two case studies. The framework is articulated into three logical steps. First, the characteristics of different organizational forms of collaboration are analysed in terms of integration and formalization. Second, the company's requirements from a specific collaboration are defined in similar terms within the context of objective, content, partner typology. Third, the characteristics of the organizational form are matched with the company's specific requirements so as to identify the most appropriate organizational form for the collaboration.
Creating a bridge between university and industry in small European countries: the role of the Industrial Liaison Office
Authors: Jones‐Evans Dylan , Klofsten Magnus , Andersson Ewa , Pandya Dipti
Published: March 2003

The frequent and intermittent need for new scientific knowledge has resulted in an increasing focus on links between industry and academic institutions. This has been particularly pronounced in the flows of knowledge between the two partners, which may lead to considerable diffusion of scientific and technical knowledge, particularly into the small firm sector. This development could be of particular benefit to smaller peripheral economies, which have demonstrated low levels of indigenous industrial technological development. As a result, universities could become increasingly important for local economic development in smaller countries on the periphery of Europe. However, a greater understanding is required of the pro‐active role that the university itself can play in developing strong linkages with industry, particularly through mechanisms such as the Industrial Liaison Office (ILO). In particular, there needs to be an examination of the strategies and policies that are undertaken to increase the process of technology transfer from academia into local indigenous business within smaller countries. This paper will therefore examine the role that universities play in the regional economic development in two contrasting small countries of Europe, namely Sweden and Ireland. Drawing on interviews with key individuals in the processes of technology transfer between academia and industry (including ILOs), as well as secondary data, it will examine the general role and function of the industrial liaison office and how this has changed. It will also discuss the involvement of the university in different types of industrial links, the main opportunities and barriers to the development of links between university and industry, the benefits to the university from industrial links, and the perception of industry’s assessment of the relationship with universities. The research will provide valuable insight into the role of universities in developing innovation and entrepreneurship within the smaller and peripheral countries of Europe and will determine whether these universities are undertaking a pro‐active role in encouraging the growth of innovative indigenous industry. This may have significant policy implications, especially with regard to the development of specific regional programmes to encourage academic‐based entrepreneurship.
Exploratory Results on the Importance of R&D Knowledge Domains in Businesses with Different Strategies
Authors: Langerak Fred , Nijssen Ed , Frambach Ruud , Gupta Ashok
Published: March 2003

A number of studies have described the consequences of the changing patterns in the business environment for R&D departments. Fewer studies have addressed the specific implications of the changing business environment for the agenda of R&D managers. Gupta and Wilemon (1996) have provided R&D managers with a priority list for action designed to be applicable to R&D departments independent of business strategy. However, a substantial body of literature suggests that the priority listing may be different for R&D departments in businesses with different strategies. Against this background this study sets out to determine whether the priority listing is different for Miles and Snow’s (1978) strategic archetypes of prospectors, analyzers, defenders and reactors. A total of 72 R&D managers of businesses competing in industrial markets in the Netherlands provided the data to test for the existence of these differences. The results indicate that the priority listings are indeed different for R&D departments in businesses with different strategies. This finding has important practical implications. The priority listings can be used by R&D managers to assess which R&D capabilities have to be developed in order to match R&D strategy with business strategy and meet the criteria for getting more commercial payback from R&D in a changing business environment.
Crafting successful strategic technology partnerships
Authors: Duysters Geert , Kok Gerard , Vaandrager Maaike
Published: March 2003

Despite the trend towards an increasing use of strategic technology alliances, mortality rates of cooperative agreements have always been extremely high. In this paper we argue that rapid economic and technological developments have overthrown traditional thinking about alliances and that firms could benefit from a new perspective on partnering. This new approach is referred to as High Touch Partnering. The new framework stresses the need for a balanced attention to strategic (re‐)positioning, establishing adequate alliance capabilities, building business communities with partners and improved partner selection.
Highly skilled globetrotters: mapping the international migration of human capital
Authors: Mahroum Sami
Published: March 2003

In the final years of the twentieth century, brain drain, skills shortages and lack of career opportunities have become issues of major concern for policy‐makers concerned with R&D in government, academia, and industry. Labour mobility across political borders, especially among highly skilled labour, provides a solution for the aforementioned concerns to some actors, but engenders problems to others. Drawing on various empirical investigations and on previous studies, this paper attempts to provide a mapping of the various types of human resources mobility across national borders. It argues that various groups of highly skilled persons are driven by different push and pull factors. In addition to immigration legislation, other factors, such as taxation, studying abroad, quality of work, openness in communication, business expansion overseas, labour market supply and demand signals, etc. play important role in the choice of highly skilled migrants to relocate overseas.
Innovation support for new technology‐based firms: the Swedish Teknopol approach
Authors: Heydebreck Peter , Klofsten Magnus , Maier Jan
Published: March 2003

Small and medium sized firms in general and new technology‐based firms in particular, serve as promoters of future economical growth. Therefore, it is of crucial importance to understand and satisfy their needs for innovation support services in regard to both the type of service and quality of delivery (e.g. confidentiality, speed).1 Drawing upon a database of 259 new technology‐based firms (NTBF) and 106 researchers, we have identified four needs bundles: marketing, technology, financing and soft service support. We have evaluated the effectiveness of the Swedish Teknopol scheme to meet these needs based upon 35 in‐depth interviews with NTBFs. The conclusions of the evaluation are presented both for policy makers and NTBF managers.
The influence of corporate acquisitions on the behaviour of key inventors
Authors: Ernst Holger , Vitt Jan
Published: March 2003

The behaviour of key inventors after the acquisition of their company is examined. Key inventors are identified on the basis of their patenting output. They account for a large number of their company’s high‐quality patents. The analysis of 43 acquisitions shows that key inventors leave to a substantial extent their company or they significantly reduce their patenting performance after the acquisition. Factors influencing the behaviour of key inventors after acquisitions are identified. Implications for the effective management of acquisitions as well as suggestions for further research are outlined.
An investigation of innovation antecedents in small firms in the context of a small developing country
Authors: Hadjimanolis Athanasios
Published: March 2003

The present research was conducted in Cyprus, a small developing country. A large number (n=140) of manufacturing small and medium sized firms were surveyed, via a questionnaire administered during personal interviews with the firms’ owners or managers. A research model based on the antecedent factor approach was used. The main variables affecting innovation according to the survey results include: strategy, expenditure on R&D, co‐operation with external technology providers, use of technological information sources and overall performance of the firm. Contrary to expectations and literature claims, some environmental variables, e.g. intensity of competition, were not correlated to innovation. Managers and public policy makers in similar contexts can increase the innovativeness of firms by paying attention to its main determinants, as identified by the above research.
Technology management and collaboration profile: virtual companies and industrial platforms in the high‐tech biotechnology industries
Authors: Weisenfeld Ursula , Reeves James C. , Hunck‐Meiswinkel Astrid
Published: March 2003

In this paper we discuss collaboration in the area of technology management. We propose the concept of collaboration profile to describe various forms of networks along key differentiating characteristics. The collaboration profile is then applied using two examples to illustrate different forms of collaboration in the biotechnology industries, the ‘virtual company’ and the ‘industrial platform’. Based on interviews with members of a virtual company as well as members of industrial platforms and drawing conclusions from theoretical insights, the advantages and disadvantages of these forms and their suitability for different stages of the technology life cycle will be discussed.

Specifically, we address the following questions:

What kind of collaboration profile applies to virtual companies and industrial platforms?

How does the suitability of collaboration forms vary with the stage of technology development?

Furthermore, we demonstrate the usefulness of the collaboration profile for analysing features and potential problems of collaborations by describing two examples. Focusing on the key characteristics of a collaboration helps to check the appropriateness of the collaboration form and to identify and manage respective problems.
Firm–specific competencies determining technological innovation: A survey in Greece
Authors: Souitaris Vangelis
Published: March 2003

This paper investigates the ‘importance’ and ‘awareness’ of firm–specific competencies as determinants of technological innovation in the context of a European newly industrialised country. A literature–based portfolio model was developed including 17 established innovation–determining factors, related to the firm’s technical, market, human resource and organisational competencies. The ‘importance’ of those factors as determinants of innovation in the Greek industry was tested with a survey of 105 manufacturing firms. Using correlation and regression analyses the author classified the competencies into ‘major importance’, ‘moderate importance’ and ‘unimportant’ ones. ‘Major importance’ determinants of innovation included the intensity of R&D, strength in marketing, proportion of university graduates and engineers in the staff, proportion of staff with managerial responsibility, proportion of professional staff with previous experience in another company and incentives offered to the employees to contribute to innovation.

The ‘awareness’ of the important competencies differentiating Greek innovative companies was tested by comparing the above ‘objective’ results with the perceptions of the responding managers. The perceptual analysis confirmed the importance of the statistically–driven variables at the aggregated level. At the level of the individual variables, a number of inconsistencies were identified. The managers overestimated the importance of international work experience of professional staff and of training and underestimated the importance of the potential contribution of shop–floor employees.

Relating the results to the Greek institutional context, the study’s general finding was that the important determinants of innovation were scarce in the Greek business environment. The highly innovative companies were the ones to overcome country–specific innovation barriers, such as negligible industrial R&D, general weakness in marketing, outdated educational system, limited labour mobility and cultural problems with involving shop–floor employees in the innovation process.
Analysis, ranking and selection of R&D projects in a portfolio
Authors: Linton Jonathan D. , Walsh Steven T. , Morabito Joseph
Published: March 2003

A method for the analysis, ranking and selection of R&D projects from a portfolio is outlined and demonstrated. It is proposed that an objective multi‐criteria decision making method, Data Envelopment Analysis (DEA), be used to split a portfolio of projects into accept, consider further and reject sub‐groups. Next, the ‘consider further’ group is examined using a subjective method, the Value Creation Model. Such an approach allows for obvious decisions to be automated and complex decisions to be given careful consideration, an approach that is more consistent with how practising managers actually make select/reject decisions. DEA allows for comparison of variables without requiring weights or conversion factors. The relation between research strategy and consideration of categorical data is considered in relation to the research portfolio of the Advanced Technology Division of Bell Laboratories.
The effects of privatization on corporate R&D units: evidence from Italy and France
Authors: Munari Federico
Published: March 2003

Over the last two decades privatization programmes in a variety of different countries have radically reduced the role of the state as a major owner of productive assets. While there is empirical evidence to show that the switch in ownership generally improves productive efficiency and profitability at company level, its effects on research and development (R&D) activities, which can impact strongly on long–term performance, have been largely ignored in the literature.

In this paper we address this issue by analyzing seven cases of privatization that have recently occurred in Italy and France in order to gauge how R&D activities may be affected by privatization in terms of objectives and organization. The organizations studied show that R&D units within privatized companies are subject to profound restructuring actions, generally designed to boost efficiency and to strengthen integration with the goals of the business units and of the final customers. A new role for R&D thus emerges: the aim is no longer to generate new knowledge in the broad national interest, but rather more directly to create value for the company and its clients, by emphasizing the assessment and integration of external knowledge.
Innovation policy for developing Taiwan’s competitive advantages
Authors: Shyu Joseph Z. , Chiu Yi–Chia
Published: March 2003

Innovation is a prerequisite for every nation and business facing the emergence of a knowledge–based economy and globalization. For small and medium firms in developing countries with limited resources and relatively low national advantage innovation is much more difficult. Government innovation policy, stemming from three sides – supply, demand, and environment, has been shown to play a major role in assisting firms to conduct innovation activities, especially in developing countries. This paper first summarizes recent tends and issues relevant to Taiwan’s innovation structure and policy. Then, considering the present situation of Taiwan, analyzes the effect of government policy and current problems. Recommendations are presented systematically, based upon innovation policy.
Transitory alliances: an instrument for surviving turbulent industries?
Authors: Duysters Geert , De Man Ard–Pieter
Published: March 2003

Over the past decades, firms have constantly struggled to deal effectively with their rapidly changing environment. Especially in high tech industries, costs of R&D have rocketed, whereas steep learning curves and ever shortening product and technology life cycles have reduced the time to recoup these costs. Under such conditions of turbulence, a new form of alliances becomes an important part of the innovator's toolkit: transitory alliances. Transitory alliances can be defined as short–lived alliances that focus on completing narrowly defined tasks in a very short time frame. Companies can no longer rely exclusively on their traditional alliance and M&A practices to survive industry turbulence. Furthermore, transitory alliances can be a wellspring of innovation and provide companies with access to a portfolio of new ideas. They can help companies to acquire knowledge in a swift manner, thereby strengthening their ability to survive the high speed of change. The specific characteristics of this alliance type are discussed in this paper. Typical examples are taken from Internet related sectors.
Academic entrepreneurs or entrepreneurial academics? research–based ventures and public support mechanisms
Authors: Meyer Martin
Published: March 2003

The emergence of a new mode of knowledge production, the formation of a ‘Triple Helix’ of university–industry–government, and the advent of the academic entrepreneur – all these different developments point, in one way or another, to the increased attention that is being paid to the economic utilization of publicly funded research. One way to utilize academic research in a commercial manner is to set up university spin–off companies. We shall discuss the phenomenon of academic entrepreneurship in the context of public support mechanisms and incentive structures. One key finding is that support mechanisms do not necessarily promote academic entrepreneurship but further the development of a behavioural pattern that can be associated with the notion of the ‘entrepreneurial academic’– scientists in public sector organizations who are not necessarily interested in setting up a fast–growing company but looking for other avenues in which they can pursue their research interests. Badly targeted support mechanisms can have a negative impact on the growth–pattern of science–based SMEs by providing a distorted set of incentives. We shall discuss some of these support mechanisms in detail and illustrate effects they have had on the development of four research–based ventures.
Sameness without Identity: an Aristotelian Solution to the Problem of Material Constitution
Authors: Rea Michael C.
Published: March 2003

In this paper, I present an Aristotelian solution to the problem of material constitution. The problem of material constitution arises whenever it appears that an object a and an object b share all of the same parts and yet are essentially related to their parts in different ways. (A familiar example: A lump of bronze constitutes a statue of Athena. The lump and the statue share all of the same parts, but it appears that the lump can, whereas the statue cannot, survive radical rearrangements of those parts.) I argue that if we are prepared to follow Aristotle in making a distinction between numerical sameness and identity, we can solve the problem of material constitution without recourse to co‐location or contingent identity and without repudiating any of the familiar objects of common sense (such as lumps and statues) or denying that these objects have the essential properties we ordinarily think that they have.
Plattner's Arrow: Science and Multi‐Dimensional Time
Authors: Richmond Alasdair M.
Published: March 2003

Might time be multi‐dimensional? In exploring this question, this paper uses a thought‐experiment about dimensionality, H. G. Wells' ‘The Plattner Story’. Plattner has his left and right sides transposed after a trip through a fourth spatial dimension, a change with independent empirical consequences. This example is then generalised to reversals of the directions of time and entropy. Finally, this thought‐experiment is related to relativistic theories of time and the possibility of preserving causality in a temporally multi‐dimensional framework.
A Duty Not to Vote
Authors: Sheehy Paul
Published: March 2003

The view that there is a duty to vote in a fair and free democracy has been a source of philosophical debate. In this paper I turn from the question of whether there is a positive duty to vote to whether there can be a duty not to vote in a ‘decent’ democratic state. Considerations of fairness and of respect for one's peers underpin an argument that a voter who is indifferent about the outcome of an election has a duty not to cast her ballot. This is not an argument against a general duty to vote, other things being equal, but points to one of the ways in which such a duty can be undermined or outweighed by competing considerations.
Towards a Theory of Oppression
Authors: Zutlevics T.L.
Published: March 2003

Despite the concern with oppressive systems and practices there have been few attempts to analyse the general concept of oppression. Recently, Iris Marion Young has argued that it is not possible to analyse oppression as a unitary moral category. Rather, the term ‘oppression’ refers to several distinct structures, namely, exploitation, marginalisation, powerlessness, cultural imperialism, and violence. This paper rejects Young's claim and advances a general theory of oppression. Drawing insight from American chattel slavery and the situation of the German Jews during the 1930's, I argue that to be oppressed is to be unjustly denied the opportunity for what I call ‘resilient autonomy’. I argue that all instances of oppression can usefully be analysed in these terms. I test my analysis against each of Young's five structures of oppression, concluding that in each case they are captured by my analysis.
Psychoanalysis and the Body–Mind Problem
Authors: Brearley Michael
Published: March 2003

In this paper I have tried to clarify some of the differences between on the one hand ordinary doubts and uncertainties that are part and parcel of the psychoanalytic process, and on the other hand the sort of doubt that Socrates called ‘aporia’, that is, philosophical and conceptual. I have described one point at which philosophical doubt may creep into psychoanalytic thinking on body/mind issues. I presented a psychoanalytical model of the mind, based largely on Bion and Anzieu, in which mind is seen to be emergent from a body–mind nexus, to which we may, under pressure, regress. I elaborated this by reference to an example of my own somatisation, and to Anzieu’s theory of a skin ego. Finally I made some comparisons between philosophical solutions to anxieties arising both in the mind/body area and in general epistemology, and psychoanalytic approaches to similar anxieties in life.
Time Travel and Changing the Past: (Or How to Kill Yourself and Live to Tell the Tale)
Authors: Goddu G. C.
Published: March 2003

According to the prevailing sentiment, changing the past is logically impossible. The prevailing sentiment is wrong. In this paper, I argue that the claim that changing the past entails a contradiction ultimately rests upon an empirical assumption, and so the conclusion that changing the past is logically impossible is to be resisted. I then present and discuss a model of time which drops the empirical assumption and coherently models changing the past. Finally, I defend the model, and changing the past, against objections.
Contemporary Pluralism and Toleration
Authors: Galeotti Anna Elisabetta
Published: March 2003

The author outlines a conception of toleration as recognition of differences which she argues to be more adequate than current liberal views in order to face issues arising from contemporary pluralism. The liberal conception of toleration as freedom from government's interference in certain areas is appropriate if pluralism is conceived of as a plurality of conflicting conceptions of the good. By contrast, if pluralism is understood as the plurality of groups and cultures, asymmetrically situated in democratic society, then the issues underlying toleration are seen as the contested claim of minorities for asserting their different identity in the public space. Public toleration of differences is thus viewed as a symbolic public gesture of inclusion of the different identities and their bearers into democratic citizenship on an equal footing as members of minority groups. The argument supporting public toleration is so founded on reason of justice.
From Limited Realism to Plural Law. Normative Approach versus Cultural Perspective
Authors: Arnaud André‐JEAN
Published: March 2003

Soft law, alternatives, informal conflict settlement procedures, are all the daily fare of legal sociologists who accept pluralism as part and parcel of the legal scene. Not so legal dogmatics, however, whose legal experts are still loath to think in terms of legal pluralism. For legal dogmatics, the “modern” theory of the State and its legal system—a theory forming the plinth of our Western concept of laws and rights—is founded on a pyramidal structure of legal norms and the exclusive validity of the laws created by the State. As a result, no given social system can formally allow several legal norms proposing different interpretations of the same matter to exist at the same time. In our “monocentrist” Western tradition of law and the State, pluralism is in oddity, an anachronism.
Constitutional Agreements without Constitutional Theories
Authors: Sunstein Cass R.
Published: March 2003

How is constitution‐making possible, when people disagree on so many questions about what is good and what is right? The answer lies in the existence of incompletely theorized agreements–agreements on abstract formulations (freedom of speech, equality under the law) and on particular practices, amidst disagreement about the largest issues in social life. Such agreements help make constitutions and constitutional law possible, even within nations whose citizens cannot concur on the most fundamental matters. Incompletely theorized agreements thus help illuminate an enduring constitutional puzzle: how members of diverse societies can work together on terms of mutual respect amidst intense disagreements about both the right and the good.
Inflows of Foreign Technology and Indigenous Technological Development
Authors: Pack Howard , Saggi Kamal
Published: March 2003

This paper explores the effects of inflows of foreign technology on technological development in developing countries. It evaluates the existing literature exploring this issue and indicates directions for further research. In particular, it is argued that the implications of the theory of foreign direct investment (the dominant channel of international technology transfer) for technological development have not been fully explored. Dynamic analyses of technology transfer that accommodate the salient features of developing countries have also begun to appear only recently. Further work along these lines is likely to yield rich dividends.
Infrastructure and Evolution in Division of Labor
Authors: Wen Mei
Published: March 2003

This paper studies the relationship between infrastructure expenditure and endogenous growth generated by spontaneous evolution of division of labor. It identifies the necessary condition for infrastructure expenditure to take place and its equilibrium time path. Dynamic equilibrium shows that the optimal infrastructure expenditure, the size of the market network, and the level of division of labor increase concurrently. While infrastructure can promote the evolution of division of labor through reducing the unit transaction cost, the total transaction cost each consumer‐producer incurs rises as the optimal share of the infrastructure expenditure increases with economic development.
A General Test of the Prebisch–Singer Hypothesis
Authors: Lutz Matthias G.
Published: March 2003

This paper examines jointly the Prebisch–Singer hypothesis of a long‐term decline in the relative price of primary commodities and the appropriate framework in which it is tested. A general model is estimated which nests the univariate and bivariate time‐series models used in the past literature. The results suggest that the econometric models estimated in the majority of previous studies were misspecified. The evidence strongly supports the Prebisch–Singer hypothesis and rejects recent findings—that the terms of trade are characterized by infrequent negative shocks—in favor of a long‐term negative trend.
Analysis of Food Demand in Peru: Implications for Food–Feed Competition
Authors: Bhaumik Sumon Kumar , Nugent Jeffrey B.
Published: March 2003

In their policy proposals on how best to stimulate economic growth, economists have been increasingly emphasizing free markets. It is, however, possible that free‐market‐led economic growth can lead to increased income inequity which can further increase poverty. One of the more interesting but thus far insufficiently explored mechanisms for the latter is food–feed competition. Using Peruvian Living Standard Survey (PLSS) data for 1985–86 and 1990, the paper examines the demand patterns of households and concludes that the empirical evidence is in agreement with the hypotheses underlying the theory of food–feed competition.
Occupational Structure and Incidence of Poverty in Indian Towns of Different Sizes
Authors: Dubey Amaresh , Gangopadhyay Shubhashis , Wadhwa Wilima
Published: March 2003

This paper investigates the incidence of poverty in Indian towns and cities of various sizes of population. It also tests the hypothesis that larger towns and cities, because of their size, are capable of supporting more complex economic activities, improving labor productivity, and hence lowering the incidence of poverty. In particular, similar levels of education, ceteris paribus, have a larger impact in bigger conurbations.
Rural to Urban Migration as a Household Decision: Evidence from Kenya
Authors: Agesa Richard U. , Kim Sunwoong
Published: March 2003

A simple intertemporal expected‐utility model for the household is developed to explore the determinants of split and family migration. Split migration occurs when the household head moves from a rural to an urban area first, and the rest of the family remains behind to join him later. Family migration occurs when the household moves together. The validity of the theoretical model is tested using data from Kenya. The findings support the predictions of the theoretical model; specifically, the results suggest that a large number of dependents may increase the likelihood of split migration.
Macroeconomic Effects of Reducing Gender Wage Inequality in an Export‐Oriented, Semi‐Industrialized Economy
Authors: Blecker Robert A. , Seguino Stephanie
Published: March 2003

The paper presents two short‐run, structuralist models of an export‐oriented, two‐sector, semi‐industrialized economy in which women workers are concentrated in export production. The first model analyzes the comparative static effects of an exogenous increase in female wages holding male wages and the exchange rate constant. The second model endogenizes the female–male wage ratio and the real exchange rate, assuming flexible nominal wages and a crawling‐peg exchange rate. Either stable or unstable dynamics are possible. In the stable cases, a depreciation policy can either close or widen the gender wage gap.
Do Changes in Democracy Affect the Political Budget Cycle? Evidence from Mexico
Authors: Gonzalez Maria de los Angeles
Published: March 2003

The previous empirical literature in opportunistic election cycles attempts to identify whether there is a significant impact of the election calendar on economic policy. The econometric analysis implemented in this paper goes a step further, seeking to test whether a country’s time‐varying degree of democracy affects the way in which economic policy is chosen as elections approach. A simple econometric model is estimated for the case of Mexico’s fiscal policy between 1957 and 1997. The estimation reveals the government’s strong systematic use of public spending in infrastructure and current transfers as a means to earn votes. Most importantly, we show that the magnitude of the election cycle has been exacerbated during the country’s most democratic episodes.
Political Institutions, Capital Flows, and Developing Country Growth: An Empirical Investigation
Authors: Oliva Maria‐Angels , Rivera‐Batiz Luis A.
Published: March 2003

The paper examines the real per‐capita growth effects of the quality of democracy, the rule of law, and capital flows in developing countries. The direct growth effects of democracy are positive and often statistically significant. Moreover, the estimates from a three‐stage least‐squares regression offer evidence that democracy has indirect growth effects that work by encouraging schooling and that the rule of law influences growth indirectly by encouraging foreign direct investment. A higher FDI to GDP ratio is associated with a faster growth rate. The estimated growth effect of the FDI to GDP ratio is several times higher than the estimated growth effect of the domestic investment to GDP ratio. By contrast, this study does not find a clear asso‐ciation between other types of capital flows and growth.
Determinants of Foreign Direct Investment
Authors: Biswas Romita
Published: March 2003

Despite the growing interest in capital and technology issues, certain issues still remain to be explored regarding the determinants of foreign direct investment by a multinational corporation and the corporation’s consequent choice of investment location. This paper addresses some of these concerns by analyzing the determinants of foreign direct investment by a multinational corporation, both theoretically and empirically. For this purpose, the paper integrates a number of traditional and nontraditional variables into the standard theory of investment based on the maximization of the expected value of the firm. The theoretical model implies that both traditional as well as nontraditional factors matter in determining the flows of foreign direct investment in a country. The generalized investment theory on US foreign direct investment then is tested empirically utilizing panel data for 44 countries from 1983 to 1990. The estimation results provide considerable support for the importance of both traditional and nontraditional factors in determining flows of foreign direct investment in a country. Furthermore, the country‐specific dummies show high level of significance, reflecting the importance of the country‐specific characteristics in explaining flows of foreign direct investment.
The Economics and Politics of Trade Policy: An Empirical Analysis of ITC Decision Making
Authors: Hansen Wendy L. , Prusa Thomas J.
Published: March 2003

The paper studies the determinants of trade policy decisions, focusing specifically on antidumping and countervailing duty statutes administered by the International Trade Commission (ITC). Using detailed industry, import, and political pressure data, ITC decision making is modeled, weighing the relative impact of economic and political factors in predicting policy outcomes. It is found that the ITC’s decision making is significantly influenced by both economic and political factors. However, because an industry has much greater ability to create political pressure than induce economic injury, the results highlight the strategic importance of oversight representation and PAC contributions in an industry’s bid for protection.
Export and Income Growth in Japan and Taiwan
Authors: Xu Zhenhui
Published: March 2003

Economic theory suggests that export growth promotes economic growth. Yet empirical research has not found clear support for the export‐led growth hypothesis, even for the newly industrialized economies where the theory should be most applicable. This paper provides an explanation for the apparent discrepancy between the theory and the empirical results. It shows that causality inferences on the export‐led growth hypothesis are sensitive to unit roots or near‐unit roots in the time series and to the lag structure chosen for causality tests. Therefore, the issues of unit root and lag structure deserve scrutiny in empirical research.
Industrialization, Economic Growth, and International Trade
Authors: Wong Kar‐yiu , Yip Chong K.
Published: March 2003

This paper analyzes the relationship between economic growth, industrialization, and international trade in a two‐sector endogenous growth model. With learning‐by‐doing, the economy grows perpetually along a balanced growth path, with manufacturing’s relative price declining continuously. Under trade, its pattern of trade and growth will be affected by external growth. If it remains diversified under trade, its growth can keep in pace with the rest of the world. If the growth rate of the rest of the world is higher than a certain limit, the economy cannot catch up and will eventually produce agriculture only.
Foreign Direct Investment, Licensing, and Incentives for Innovation
Authors: Saggi Kamal
Published: March 2003

In a two‐period duopoly model, this paper considers a foreign firm’s choice between licensing and FDI and studies the relative impact of these modes of technology transfer on the incentives for innovation of that firm and its domestic rival. Relative to licensing, FDI limits technology spillovers to the domestic firm but dissipates more rents in the product market. Internalization allows the foreign firm to build on an existing technological advantage. While the local firm develops its best technology if initial licensing is followed by FDI, the foreign firm transfers the most efficient technology under FDI in both periods.
The Usual Suspects? Productivity and Demand Shocks and Asia–Pacific Real Exchange Rates
Authors: Chinn Menzie D.
Published: March 2003

A productivity‐based model of East Asian relative prices and real exchange rates is tested using calculated productivity levels for China, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand. Time‐series regressions of the exchange rate on relative productivity ratios indicate such a relationship for Japan, Malaysia, and the Philippines (and Indonesia and Korea when oil prices are included). Panel regression provides slightly more encouraging results when the panel encompasses a subset of countries (Indonesia, Japan, Korea, Malaysia, and the Philippines). Neither government spending nor the terms of trade appear to be important factors.
Uncertainty Resolution and Strategic Trade Policy in Oligopolistic Industries
Authors: Caglayan Mustafa
Published: March 2003

This paper investigates a government’s choice of strategic trade policy when the domestic firm observes a private noisy signal about the stochastic market demand while in competition with a rival firm. The government chooses between quantity controls and subsidies to maximize profits of the domestic firm. Assuming that firms compete à la Cournot in a third country, it is shown that the optimal trade policy depends not only on demand uncertainty but also on the predictability of the true market demand by the firms.
More Evidence in Favor of the Balassa–Samuelson Hypothesis
Authors: DeLoach Stephen B.
Published: March 2003

This study provides additional evidence of a significant long‐run relationship between the relative price of nontradables and real output, consistent with the productivity‐bias hypothesis of Balassa and Samuelson. The results, however, also indicate that additional permanent supply shocks, specifically real oil prices, need to be considered. In every case, relative prices are significantly affected by permanent innovations in real output and real oil prices. The general lack of evidence of cointegration, however, points to the possibility that additional long‐run determinants of relative prices have been omitted.
Monetary Policy in the Aftermath of Currency Crises: The Case of Asia
Authors: Baig Taimur , Goldfajn Ilan
Published: March 2003

The paper evaluates monetary policy and its relationship with the exchange rate in the five Asian crisis countries. The findings are compared with previous currency crises in recent history. It is found that there is no evidence of overly tight monetary policy in the Asian crisis countries in 1997 and early 1998. There is also no evidence that high interest rates led to weaker exchange rates. The usual tradeoff between inflation and output when raising interest rates suggested the need for a softer monetary policy in the crisis countries to combat recession. However, in some countries, corporate balance sheet considerations suggested the need to reverse overly depreciated currencies through firmer monetary policy.
The Stolper–Samuelson Theorem Faces Congress
Authors: Beaulieu Eugene
Published: March 2003

The factor–industry detachment corollary of the Stolper–Samuelson theorem predicts that the economic interests of trade policy are independent of industry and depend only on the type of factor ownership. This paper examines whether congressional voting patterns on trade policy are determined by the factor endowment of the constituency or by its industrial composition. The industry model of trade policy determination is not rejected by the empirical tests while the results for the factor model are ambiguous. This provides evidence that the literature examining congressional voting patterns on broad‐based trade policy should re‐evaluate the maintained assumption that factors do not matter.
Mergers and Trade Policy under Oligopoly
Authors: Collie David R.
Published: March 2003

For an oligopolistic industry, the effects of mergers on the domestic country's optimal trade policy are analyzed. If the domestic country pursues an optimal trade policy then it will always lose as a result of a foreign merger. The optimal domestic response to a foreign merger is to decrease (increase) the tariff if demand is concave (convex) and to increase the production subsidy. The foreign merger reduces foreign welfare when the domestic country pursues its optimal trade policy. The optimal domestic response to a domestic merger is to leave the tariff unchanged and to increase the production subsidy.
Industry Agglomerations and Employment Change in Non‐Metropolitan Areas
Authors: Barkley David L. , Henry Mark S. , Kim Yunsoo
Published: March 2003

The purpose of this study is to determine the role of industry agglomerations on industry‐level employment change in non‐metro areas of the United States. Regression analysis of cross‐sectional data is used to estimate the determinants of non‐metro 1981–1992 employment change for ten two‐digit SIC manufacturing industries. Industry agglomerations in metro and non‐metro areas are identified using cluster analysis. Area characteristics included in the regression equations are diversity of the local economy, industry mix, average plant size and availability of urbanization economies. The findings indicate that industry agglomerations were associated with both larger employment gains in areas with growing industry employment and larger employment losses for areas with declining employment. Neither regional specialization in the industry nor nearby metro agglomerations were significant determinants of employment change in non‐metro areas.