Innovative growth: the role of market power and negative selection

ABSTRACT

This paper relies on register-based statistical data from Finland to measure broad research and development (R&D), organizational capital (OC) and information and communication technology (ICT) investments as innovation inputs in addition to formal survey-based R&D and CIS survey data on innovations. The linked panel data are appropriate for a comparison of low-market-share (small) and large-market-share (large) firms. We analyze the productivity growth and profitability of Finnish firms with varying market power. In contrast to high-market-share firms, low-market-share firms are characterized by low profit derived from new innovations. This study suggests that in addition to imitative growth, a ‘negative selection mechanism’ explains the high productivity growth relative to the low profits.     

Economic cost of deforestation in semi-deciduous forests — A case of two forest districts in Ghana

The ecological, economic and socio-cultural roles of forests are under threat in Ghana due to the high rate of deforestation. Efforts are being made to combat this problem through rehabilitation measures. However, the costs of deforestation and restoration benefits are not adequately estimated. This paper fills in the gap in knowledge by providing an empirical estimation of the cost of deforestation in monetary terms. Primary data collected regarding timber, non-timber forest products and soils in semi-deciduous forests were analyzed using opportunity cost and replacement cost techniques. The results emphasize differences in the value of these forest goods and services lost annually. The largest losses were in stumpage fees, edible fruits, and avoided carbon emissions values. The results show that US$133,650,000 gross revenue, equivalent to 2.6% of the 2008 agricultural sector Gross Domestic Product, is lost annually. It can be concluded that restoring the degraded forest lands would bring benefits particularly to the local communities through increased stumpage revenues and harvest of non-timber forest products, as well as additional funds from carbon credits. It is recommended that stakeholders of forest resources are made aware of these costs in order to raise awareness of what they are losing through deforestation.     

Local residents’ perceptions of energy landscape: the case of transmission lines

Although the transmission line network is relatively comprehensive in many countries, there are new needs to develop the networks due to the increased consumption of energy and new decentralized energy sources. However, compared with other large-scale infrastructure in the landscape, there has been relatively little research on the perceptions of transmission lines. Consequently, the aim of this study was to analyse how transmission lines are perceived in comparison with other landscape elements and how the perceptions of existing transmission lines differ from those concerning new lines. Finally, the heterogeneity of the perceptions was examined with the aid of the latent class method. The study was based on survey data from an urban fringe community in southern Finland. The results confirmed the presupposition that transmission lines are generally perceived as negative landscape elements, both when long-established and when new. However, the perceptions among the residents were heterogeneous. This heterogeneity was explained with environmental attitudes and leisure activities as well as knowledge and land ownership. The results have implications for planning, public communication and participation related to transmission lines, as well as other visually dominating man-made structures in the landscape.