Modelling innovation support systems for regional development – analysis of cluster structures in innovation in Portugal

The present article offers a concise theoretical conceptualization and operational analysis of the contribution of innovation to regional development. The latter concepts are closely related to geographical proximity, knowledge diffusion and filters and clustering. Institutional innovation profiles and regional patterns of innovation are two mutually linked, novel conceptual elements in this article. Next to a theoretical framing, the article employs the regional innovation systems concept as a vehicle to analyse institutional innovation profiles. Our case study addresses three Portuguese regions and their institutions, included in a web-based inventory of innovation agencies which offered the foundation for an extensive database. This data-set was analysed by means of a recently developed principal coordinates analysis followed by a Logistic Biplot approach (leading to a Voronoi mapping) to design a systemic typology of innovation structures where each institution is individually represented. There appears to be a significant difference in the regional innovation patterns resulting from the diverse institutional innovation profiles concerned. These profiles appear to be region specific. Our conclusion highlights the main advantages in the use of the method used for policy-makers and business companies.     

Public infrastructure provision and skilled–unskilled wage inequality in developing countries

In this paper, we develop several static three-sector general equilibrium models with diverse labor market structures to investigate the effects of government provision of public infrastructure on the skilled–unskilled wage inequality in developing countries. The basic full employment model shows that the production sectors' relative dependence on the public infrastructure provision plays a crucial role in determining the skilled–unskilled wage inequality. Different relative dependences on public infrastructure may even result in opposite changes in the skilled–unskilled wage inequality. The above results are robust even when we extend the basic full employment model to three fundamentally different cases.     

Innovation problems and search for solutions in crowdsourcing platforms – A simulation approach

Crowdsourcing initiatives are increasingly spreading among organisations aiming at outsourcing the development of solutions to internal innovation problems to external problem solvers. However, while knowledge about crowdsourcing is growing, a complete understanding of the underlying dynamics of these initiatives is still lacking. This study aims at elucidating this topic by investigating the influence exerted by the interplay between the characteristics of innovation problems, individuals developing solutions (problem solvers), and crowdsourcing platforms on the related problem solving performance. Specifically, we use NK fitness landscapes to simulate the search for solutions conducted by problem solvers in several scenarios, depending on the decomposability and accuracy of delineation of the innovation problems, the degree of bounded rationality of the solvers, and the cooperation policies of the crowdsourcing platforms. Our findings contribute to the development of the theory on search for solutions in crowdsourcing initiatives, by revealing the characteristics of problem solvers and the types of platforms that maximise the performance of the problem solving process, as the quality of the best solution provided and the time required to elaborate on it, according to specific innovation problems. Furthermore, our findings promote the formulation of guidelines for organisations using crowdsourcing to solve their innovation problems, and for the crowdsourcing platforms’ managers.     

What drives fluctuations in exchange rate growth in emerging markets – A multi-level dynamic factor approach

Historically, exchange rates in many emerging economies have been volatile. We use a dynamic hierarchical factor model to investigate the driving forces behind these fluctuations in exchange rate growth and find that in recent years, especially since the Great Recession, the common (world) factor has become more important. We also find that, since 2009, US monetary policy and Chinese economic growth have had much greater effects on emerging market exchange rate growth fluctuations. The historical decomposition indicates that 18.8% and 23% of the variations in the world factor after 2009 can be explained by US monetary policy shock and Chinese industrial production shock, respectively.     

Economic performance and “frontier” efficiency: A product life-cycle approach

We propose to introduce some economic performance variables of the firms and relate these with the corresponding frontier efficiency measures of 13 industries of the Belgian manufacturing sector in 1978. In order to find groups of similar firms by applying a cluster technique, we assume that this relationship is of a product life cycle nature.In the light of the product life cycle scheme itself and variations of it we can consider the possible explanatory variables of technical inefficiency in each group of firms as sources which intensify or slow-down the economic performance of the firm under consideration. Some cautious characterization of the top and bottom level clusters is formulated and linked to the efficiency issue.This paper was processed by N. R. Adam     

Geopolitical risk and stock market volatility in emerging markets: A GARCH – MIDAS approach

In this study, we examine the connection between geopolitical risk (GPR) and stock market volatility in emerging economies. Our motivation for this study is premised on the need to assess both the predictability and the associated economic gains in relation to the subject in order to offer more useful insights to investors and practitioners. To the best of our knowledge, this is the first study that jointly considers these objectives. Consequently, we employ the GARCH-MIDAS framework which accommodates mixed data frequencies thereby circumventing information loss or any associated bias. We find that emerging stock market volatility responds more positively to geopolitical risks although the act-related GPR index offers better out-of-sample forecasts than the threat-related GPR. We also find that accounting for global economic factors in the predictability analysis is crucial for robust outcomes. Finally, we provide some utility gains of including GPR in the predictive model of stock market volatility while also highlighting some useful implications of our findings for investment and policy decisions.     

On the relation between currency and banking crises in developing countries, 1980–2010

This paper investigates the relationship between the occurrence of currency and banking crises using high-frequency data for a sample of 94 countries during 1980–2010. The two types of crises are proxied by continuous, multi-categorical and dummy variables based on market pressure indexes, and a dummy variable from the Laeven–Valencia banking crises database. Results suggest that a bidirectional leading relationship exists between the two types of crises. However, banking crises do not lead currency crises robustly when banking crises are proxied by dummies based on market pressure indexes. Finally, currency crises have robust state dependence, but this is not the case for banking crises.     

A Point Processes approach to bicycle sharing systems’ design and management

Public bicycle systems have attracted a great deal of attention in recent years. The success of this service heavily depends on the topology of the city and on the locations of bike stations in relation to potential demand. In fact, it is primarily important that users find bike stations in convenient locations, sufficiently close both to the origins of their trips and to their destinations, and that each rental station guarantees the availability both of enough bicycles and of enough empty docking slots.This paper proposes a point processes approach to the study of bike-sharing systems, allowing us to quantify and control parameters having a key role in decisions both of strategic and operational type.Differently from previous studies, the point processes approach catches both the interdependence among the stations and the links between spatial and time aspects of the problem.The application of point processes, in particular spatial mixed Poisson processes, to this field requires the statement and proof of an invariance property of such processes under stochastic dependent transformations, that may be of interest also from a theoretical point of view.     

Open government data platforms – A complex adaptive sociomaterial systems perspective

In this paper we focus on the emerging phenomenon of Open Government Data Platforms (OGDPs), in particular those that provide open performance data to general public. Governments world-wide continue to implement these platforms, aiming to increase transparency and accountability. However, in spite of their positive intentions, ODGPs that provide performance data (e.g. about schools or hospitals) are reported to create serious harmful social effects. While the related literature has reported numerous cases of these unintended effects, the questions regarding why and how they emerge remain open. This is not surprising, given the complexity and dynamics of processes instigated through the use of ODGPs by a very large number of known and unknowable actors. Through a diffractive reading of complexity theories, in particular Complex Adaptive Systems (CAS) and sociomateriality, in this paper we propose a Complex Adaptive Sociomaterial Systems (CASS) theorization of OGDPs. Drawing from a case of OGDP in Australia called My School, which provides open performance data for more than 10.000 schools, we demonstrate how the proposed theoretical lens of CASS enables us to reveal and explain why and how these platforms perform unintended, yet serious social harm. Given that OGDPs are rapidly emerging around the world, our research opens a pathway for a research-informed public discourse about their harmful effects and responsibilities of different stakeholders.     

Enterprise systems in financial sector – an application in precious metal trading forecasting

The use of enterprise systems has become increasingly popular in the financial service industry. This paper discusses the applications of enterprise systems in the financial sectors and presents an application in gold price forecasting. We carefully examine the impacts of a few most widely assumed factors that have significant impact on the long-term gold price using statistical regression techniques. The analysis on our proposed linear regression mode indicates that the United States ultra scale of M2 money supply has been the most important catalyst for the rising price of gold, and the CRB index upward trend has also been the weighty factor for pushing up the gold price. In addition, the gold price has a low negative correlation with the Dow Jones Industrial Average, and low positive correlations with the US dollar index and the gold ETFs holdings.     

A Summary of Economic System Reform in National Minority Areas in 1995

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Challenges and prospects of HRM in developing countries: testing the HRM–performance link in the Eritrean civil service

In this article, the authors examine how, when and to what extent HR practices affect performance at the employee level. As performance is a multi-faceted and complicated concept, HRM outcomes were used as mediating factors between HR practices and employee performance. The data were collected among civil servants in Eritrea, Africa's youngest and poorest country. Although the results generally are in line with previous studies using Western data, their implications in this particular country may be different. Therefore, the challenges and prospects of HR practices in Eritrean civil service organizations are critically analysed and discussed. In the authors' opinion, that the Eritrean economic and political environment within which HR practices operate has not been conducive in maximizing the impact of HR practices on performance. These findings highlight the situation of most developing countries.     

Does income inequality lead to banking crises in developing countries? Empirical evidence from cross-country panel data

This study empirically examines whether increasing income inequality results in banking crises using panel data for 68 countries covering the years 1973 to 2010. The results show that developing countries with high inequality tend to have higher levels of domestic credit and that domestic credit booms increase the probability of banking crises. We also find that developing economies display direct channels from inequality to banking crises without an association with credit booms. We find no consistent evidence that income inequality contributes to banking crises in advanced economies. In developing countries, the probability of banking crises increases dramatically as income inequality levels increase: The probability of a systemic banking crisis within three years is 9.5% when the Gini is as low as 0.2 in developing countries and increases to 57.4% when the Gini is 0.4. These results are robust to several specifications.     

Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment

The discussion on which institutions determine entrepreneurial activity – and the role of institutions in the aggregated output for developing countries – is as yet unresolved. The extant literature about entrepreneurship recognizes new ventures as potential mechanisms for long-term development. Yet, there is a consensus on the lack of evidence, particularly for these countries. Drawing on institutional economics, this article explores the interrelationships among institutional environment, entrepreneurial activity, and economic growth. To this end, we use simultaneous-equation panel data models for a sample of 14 developing countries (78 observations) over the period of 2004–2012. The main findings suggest a causal chain running from institutions to opportunity entrepreneurship, which is linked to the economic growth of emerging economies. In particular, we find that institutional factors – such as the number of procedures to start a new business, private credit coverage ,, and access to communication– influence entrepreneurial activity driven by opportunity. Policy implications for developing countries could be derived in order to enhance their economic performance through entrepreneurial activity.

     

Measurement of Economic Result in Public Organizations： A Departmental Analysis

The aim of this work is to demonstrate how public university hospital （UH） managers can improve the process of decision-making by using the measurement of economic value added to the society （EVAS） generated by these organizations. Thus, the economic values of the organization and its departments were calculated, according to the theory studied： measurement model of economic result of Slomski （1996）. It was considered the conduction of a case study in a public UH, evaluating its economic performance in a 3-year period. For the interpretation of results, the Data Envelopment Analysis （DEA） which categorized the departments of the hospital studied as efficient or inefficient was used. This study revealed that managers can improve the decision-making process by using the EVAS, since it has been established that this measurement of economic value has sensitivity to identify which of the economic value drivers should be emphasized in the management.     

On the location of knowledge-intensive entrepreneurship in developing countries: lessons from São Paulo,Brazil

This article empirically appraises the geographical distribution of knowledge-intensive entrepreneurship (KIE) in the settings of an emerging economy. We start from the typical agglomeration approach and then introduce a set of variables related to local market conditions, distance from the economic hub, and knowledge & innovation system to explain KIE location and density on the basis of city-level data in the State of São Paulo, Brazil. Findings indicate KIE concentration in and around a few urban areas, providing support to agglomeration economies concepts. There is strong evidence that the local presence of research-oriented universities, access to capital, and business concentration are correlated to KIE emergence and density. Results also indicate the moderating effect of agglomeration diseconomies mainly related to factors of rapid and anarchic expansion of urban centers and the consequences of extreme inequalities in income distribution. This challenges the usability of concepts of entrepreneurial ecosystems from advanced economies if not adapted to the realities of developing countries.     

The effects of applying a hybrid method with a macro–micro approach for market research in the telecommunication industry

This research attempts to provide an example of a hybrid method that combines both a macro and a micro approach in the academic domain of the telecommunication market and, also, to study the possible effects from this application. According to the philosophy of plural or multiple methods, this research tries to connect two studies with a methodological triangulation that sequentially uses the results of one method for planning the next method. Empirically, the implementation of this example has two sources of data: one is from an historical data bank (1989–2007) derived from the public sector; and the other is obtained from a questionnaire survey of 427 effective respondents. From the macro perspective (step 1), the differences of consumer behavior in a collective dimension were drawn between mobile telecommunication and digital services. It was found that the users of digital services were more self-motivated than the users of only mobile telecommunication. Accordingly, this result was the research motive of step 2 that investigated the consumers’ motives on the micro level. This research found that a hybrid method of design in the research of the telecommunication market discloses more possible combinations for designing research, more extensive research perspectives and findings, and increased feasibility and interest for additional investigations.     

What model for entry in first-price auctions? A nonparametric approach

We develop a selective entry model for first-price auctions that nests two polar models often estimated in the empirical literature on auctions, Levin and Smith (1994), and Samuelson (1985). The selective entry model features a pro-competitive selection effect. The selection effect is shown to be nonparametrically identifiable, and a nonparametric test for its presence is proposed. This test can be used to discriminate between the two polar models.