The next Silicon Valley? On the relationship between geographical clustering and public policy

Inspired by the success of geographical clustering in California, many governments pursue cluster policy in the hope to build the next Silicon Valley. In this paper we critically assess the relationship between geographical clustering and public policy. With the help of a range of theoretical insights and case study examples we show that cluster policy in fact is a risky\ venture, especially when it is tried to copy the success of regional ‘best practices’. Therefore, we advice policy makers to move away from the Silicon Valley model and to modestly start from a place-specific approach of ‘Regional Realism’.     

Einzelbesprechungen

Ohne ZusammenfassungAus dem Englischen übersetzt von Karl BodeAus dem Russischen übersetzt von A. GerschenkronAus dem Italienischen übersetzt von M. St. Braun, WienAus dem Italienischen übersetzt von Erich Allina, Wien     

Leadership in your midst: tapping the hidden strengths of minority executives

All companies value leadership-some of them enough to invest dearly in cultivating it. But few management teams seem to value one engine of leadership development that is right under their noses, churning out the kind of talent they need most. It's the complicated, overburdened but very rich lives of their minority managers. Minority professionals-particularly women of color-are called upon inordinately to lend their skills and guidance to activities outside their jobs. Sylvia Ann Hewlett, who heads the Center for Work-Life Policy, and her coauthors, Carolyn Buck Luce of Ernst & Young and Cornel West of Princeton, present new research on the extent to which minority professionals take on community service and other responsibilities outside the workplace and more than their share of recruiting, mentoring, and committee work within the workplace. These invisible lives, argue the authors, can be a source of competitive strength if companies can learn to recognize and further cultivate the cultural capital they represent. But it's hard to convince minority professionals that their employer respects and values their off-hours responsibilities. A lack of trust keeps many people from revealing much about their personal lives. The authors outline four ways companies can leverage hidden skills: Develop a new level of awareness of minority professionals' invisible lives; appreciate the outsize burdens these professionals carry and try to lighten them; build trust by putting teeth into diversity goals; and, to finish the job of leadership development, help minorities reflect on their off-hours experiences, extract and generalize the lessons, and apply what's been learned in other settings.     

Teaching Business Ethics Through Strategically Integrated Micro-Insertions

This article identifies an integrated teaching strategy that was originally developed for engineers, the so-called ‘micro-insertion’ approach, as a practical and effective means to teach ethics at business schools. It is argued that instructors can incorporate not only generic or thematic learning objectives for students into this method (i.e., the intended content of what is being taught: in our case, an underlying ethical base for doing business), but also do so via a strategically integrated approach regarding the appropriate mix and timing of these micro-insertions. With this in mind, we propose a qualitative and example-based approach that endeavors to provide a versatile way for business teachers to incorporate ethics into their general business classes. We also present a conceptual and theoretical framework that underpins this method, and we further provide a set of specific examples and a practical table that show how business instructors might integrate ethics-oriented micro-insertions into their teaching.     

Im Spiegel der Anderen

The concept of social comparison is a core aspect of social psychology research and an important part of identity development, yet there has been little research on this phenomenon in the context of media usage. Combining different kinds of measurements, this study investigates the similarities and differences in social comparison to media characters versus persons from the social environment. A sample of 278 respondents answered a questionnaire about both kinds of comparison. Results indicate that persons from the social environment serve more often as comparison targets than media characters. Furthermore, media characters lead to an increased amount of upward comparison and to comparison with dissimilar others. The relevance of comparison dimensions seems to be independent of the comparison target.     

Everything All Right at the Internal EU Borders? The Ambivalent Effects of Cross-Border Integration and the Rise of Euroscepticism

ABSTRACT

The policy of the European Union, which promotes a vision of Europe without borders and has fostered the development of cooperation across borders over 25 years, has led, in some parts of Europe, to the emergence of so-called integrated cross-border regions. Thus far, the increase of cross-border flows and interactions has always been a normative and almost unquestioned policy paradigm. However, tendencies of re-bordering and signs of growing Euroscepticism can also be observed nowadays in these border regions, which show the importance of investigating the negative externalities that can be generated by cross-border integration. This article attempts to do this by focusing on three case studies usually considered as among the most integrated ones in Europe because of cross-border flows related to work: the cross-border metropolitan regions of Basel, Geneva and Luxembourg. Our findings show that if several decades of cross-border integration have led to the reinforcement of the functional linkages between the border regions, some effects of the cross-border integration process have also created a functional specialisation of space that relies on social and economic inequalities. Such a situation contradicts the ideal of cross-border territorial cohesion and helps to better understand the rise of Euroscepticism in some of the border areas.     

Are Investors Rational When Valuing Loss Firms?

The authors examine whether high valuation of loss firms really exists and can be explained by behavioral factors. This valuation may originate from irrational behavior of optimistic investors who prefer lottery-like stocks, or from rational expectations of firms' profitability. Using a sample of small Canadian firms going public, the authors show that both individual investors and underwriters price loss firms higher than profit firms, everything being equal. Post-IPO 3-year underperformance does not differ statistically between loss and profit firms. Investors thus apparently behave irrationally for all firms, but their irrationality does not seem greater for loss firms.     

Identifying relevant and irrelevant variables in sparse factor models

This paper considers factor estimation from heterogeneous data, where some of the variables—the relevant ones—are informative for estimating the factors, and others—the irrelevant ones—are not. We estimate the factor model within a Bayesian framework, specifying a sparse prior distribution for the factor loadings. Based on identified posterior factor loading estimates, we provide alternative methods to identify relevant and irrelevant variables. Simulations show that both types of variables are identified quite accurately. Empirical estimates for a large multi‐country GDP dataset and a disaggregated inflation dataset for the USA show that a considerable share of variables is irrelevant for factor estimation.