Economic systems in developing countries – A macro cluster approach

This study is an attempt to close a gap in the comparative capitalism literature. Studies in that field focus mostly on industrialized countries, discuss economic systems in developing regions separately, and do not provide evidence based on a worldwide sample. We use an established macroeconomic cluster approach to identify economic systems in a worldwide sample of 115 developing and industrialized countries. We use an innovative approach to correct for income-related differences that would otherwise distort the cluster results. The major results are (1) that two broad categories of economic systems exist in developing countries (liberal and coordinated), which mirrors the results for industrialized countries, and (2) that economic systems in developing countries are apparently determined by a mixture of colonial heritage—with the transfer of more liberal institutions in the case of British colonialization—and regional affiliation, which explain differences within continents and between continents.     

Are systems of innovation in Eastern Europe efficient?

This paper explores the determinants of productivity in the countries of Eastern Europe (EE) through the perspective of ‘narrow’ and ‘broad’ national systems of innovation (NSI). Based on panel econometrics, it examines the extent to which systems in EE could be considered ‘(in)efficient’. Our results suggest that the EE countries have lower levels of productivity than might be expected given their research and development (R&D), innovation and production capabilities. The inefficiencies of ‘broad’ NSI are compounded by the inefficiencies of ‘narrow’ NSI in terms of generating numbers of science and technology publications and resident patents relative to R&D employment compared to the rest of the world. Our results point to an important distinction between technology and production capability as the drivers of productivity improvements and provide some policy implications.     

The competitive advantage of cluster firms: the priority of regional network position over extra-regional networks – a study of a French high-tech cluster

This paper extends research on industry clusters by unbundling network from cluster effects and by analysing how network effects drive the performance of cluster firms. The results show that a firm's connectedness in a regional network is positively associated with firm performance. However, we found that for cluster firms, it is even more important to build strong network positions by developing rather exclusive alliance networks. In addition, a weak position within a cluster cannot be compensated for by strong extra-regional networking activities. From this perspective, cluster-specific advantages are firm-specific and the basis for competitive advantage. Regional competitiveness is therefore a non-substitutable pre-condition for the overall performance of cluster firms.     

An economic–probabilistic model for risk analysis in technological innovation projects

This paper presents the application of an economic–probabilistic model to conduct risk analysis in technological innovation (TI) projects. The model integrates risk and economic analysis by quantifying both value and probability of occurrence of cash flow deviations, thus resulting in an economic–probabilistic analysis of the expected returns. The main risk categories and factors in TI projects are identified and associated to cash flow groups. The model allows to calculate risk-adjusted values for cash flow groups and project net present value through stochastic simulation. As a result, the model provides both the risk-adjusted project economic return with the associated probability distribution to its NPV and the variability that each risk factor generates in the project return. The model offers important benefits from the point of view of practitioners, including a condensed list of independent risk factors and the use of a monetary scale to assess risk impact which is familiar to most decision makers.     

Panel data and descriptor for energy econometrics – an efficiency,resilience and innovation analysis

Quality & Quantity - The work at hand presents a new extensive panel dataset for energy economics, econometrics and policy. The referred dataset is made of 5000 observations circa, including 6...     

New multi-regional input–output databases for Australia – enabling timely and flexible regional analysis

ABSTRACT

Decision-making at regional scales requires timely information. Within four months of the release of official national statistics, we have produced a time-series (2008–2015) of balanced sub-national, multi-regional supply-and-use tables (MR-SUT), integrated with a set of socio-economic and environmental accounts. This was achieved using the Australian IELab, where data used in this study are available (https://ielab.info/resources/91). Four multi-regional, environmentally extended supply-use tables regionalised in different ways were produced to demonstrate the flexibility of tailoring input–output models to specific research or policy questions. Results for satellite coefficients are sensitive to the chosen regional grouping and method for regionalisation. We demonstrate the relevance of such purpose-built information to government and corporate decision-makers by analysing the indirect economic and employment consequences of a slowdown of the mining boom in Western Australia. The demonstrated innovations in flexibility and timeliness will help move past some of the limitations that have historically hindered the uptake and utility of applied input–output analysis.     

The role of Technological Business Incubators in supporting business innovation in China: a case of regional adaptability?

This paper examines the extent to which both the support services of Technological Business Incubators (TBIs) and exogenous local factors facilitate the innovation activity of incubated new ventures. Using data on all 215 surviving Chinese incubators and their incubated firms from government surveys conducted over five consecutive years from 2009 until 2013, combined with information from nine case studies, we examine the effects of four incubator services on three levels of innovation in incubated firms, whilst also taking account of key exogenous factors. Technical service support from an incubator was found to have had a positive influence on all levels of innovation activity across all regions whilst incubator financial support had a positive effect on the making of more advanced innovations. The availability of venture capital had a significant impact on making lower order innovations whereas the availability of scientific knowledge resources influenced more advanced innovation activity. Whereas TBI support services in the more developed Eastern region are mainly concerned with leveraging external resources, those in the less developed Central and Western regions are more concerned with compensating for the lack of external resources to support innovation.     

The impact of digitalization on the future of the PSM function managing purchasing and innovation in new product development – Evidence from a Delphi study

Bringing innovative products to markets is essential for companies, especially in competitive environments. One of the driving forces for successful new product development (NPD) is the inclusion of the functions that form part of the process such as purchasing and supply management (PSM). While extensive research has been conducted on the role of procurement in promoting innovation, insufficient research on the future of the PSM function in NPD has been conducted. This study addresses this gap, considering increasing digitalization and its effect on the future PSM function managing purchasing and innovation. To explore the future of PSM in NPD, a Delphi survey with 91 experts from industry, academia, and politics or associations was performed. The results reveal that digitalization will influence the PSM function in NPD across different time horizons and forms depending on the subject area. While in many areas, an interplay between digital technologies and human PSM professionals is expected, in certain domains the PSM function is likely to lose added value compared to digital technologies. Furthermore, digitalization is expected to be a potential enabler of a stronger key innovation role for PSM in NPD but to also introduce new requirements such as data science capabilities.     

Self-employment of immigrants and natives in Sweden – a multilevel analysis

Recent research suggests that self-employment among immigrants is due to a combination of multiple situational, cultural and institutional factors, all acting together. Using multilevel regression and unique data on the entire population of Sweden for the year 2007, this study attempts to quantify the relative importance for the self-employed of embeddedness in ethnic contexts (country of birth) and regional business and public regulatory frameworks (labour market areas). This information indicates whether the layers under consideration are valid constructs of the surroundings that influence individual self-employment. The results show that 10% (women) and 8% (men) of the total variation in individual differences in self-employment can be attributed to the country of birth. When labour market areas are included in the analyses, the share of the total variation increases to 14% for women and 12% for men. The results show that the ethnic context and the economic environment play a minor role in understanding individual differences in self-employment levels. The results can have important implications when planning interventions or other actions focusing on self-employment as public measures to promote self-employment often are based on geographic areas and ethnic contexts.     

Economic downturns and compositional effects in regional population structures by age: a multi-temporal analysis in Greek regions, 1981–2017

Population movements (international and internal migration) and changing fertility and mortality patterns have significantly affected demographic structures. Investigation of the relationship between (evolving) population structures and economic downturns is a key issue in economic demography. Analysis of compositional changes in regional population structures over a sufficiently long time interval may provide an informed knowledge to better understanding of this relationship and the underlying socioeconomic context in European countries. Based on these premises, Greece was considered a paradigmatic case of sequential economic expansions and recessions, impacting the structure of resident population in the last four decades. In this work, changes over time in population structures by age in Greek regions were explored (1981–2017) using a multi-temporal principal component analysis. A diachronic analysis of compositional effects of economic downturns on regional population structures indicates spatially-heterogeneous demographic processes in Greece. The subsequent recession has represented a turning point in Greek demography, consolidating changes in traditional family structures, while stimulating out-migration at younger ages to Northern and Western European regions and containing immigration from developing countries. Metropolitan areas and coastal districts had more rapid population dynamics, while peripheral rural regions experienced more rapid changes towards aging. Population aging had a short-term impact on regional population structures in Greece, with possibly negative consequences for the ability of the country’s economy to recover from crisis.

     

Mapping potentials for input–output-based innovation flows in industrial clusters – an application to Germany

Our paper pursues two aims: first, it presents an approach based on input–output innovation flow matrices to study intersectoral innovation flows within industrial clusters. Second, we apply this approach to the identification of structural weaknesses in East Germany relative to the western part of the country. The case of East Germany forms an interesting subject because while its convergence process after unification began promisingly in the first half of the 1990s, convergence has since slowed down. The existing gap can now be traced mainly to structural weaknesses in the East German economy, such as the absence of strong industrial cluster structures. With this in mind, we investigate whether East Germany does in fact reveal the abovementioned structural weaknesses. Does East Germany possess fewer industrial clusters? Are they less connected? Does East Germany lack specific clusters that are also important for the non-clustered part of the economy?     

Households’ attitudes toward earthquake protection: An empirical analysis of the impact of fiscal support in Japan

Faced with an aging society and major earthquake risk in the near future, promoting the improvement of existing houses is one of the most important issues in Japan. In this paper, we formulate two types of demand models for home safety: a model for barrier-free conversion and a model for seismic retrofit based on a logit model. We explore statistically the factors that affect the demand for each improvement using prefectural data in Japan. We also analyze statistically the significance and impact of financial support programs for improving existing houses, which the Japanese government has implemented at the prefectural and municipal level. The results clarify the differences between the determinants of each type of improvement and show that the support program for barrier-free conversion has a positive and statistically significant effect on households’ preference. However, neither the seismic test nor the seismic retrofit program conducted by prefectures has a positive impact on preference, whereas those by municipalities do affect preference.     

What are the main explanations of occupational diseases and accidents at work in the agricultural sector? A panel analysis for Italian regional data

The aim of this paper is to investigate the causes of occupational diseases and accidents at work (ODA) in the Italian agricultural sector. To this end, we proceed with a two-stage analysis of Italian regional data for the period 1976–2004. The first phase of the analysis shows that in the Italian agricultural sector productivity Granger-causes ODA, and not vice versa. The results of the econometric estimates in the second stage of the analysis show that an increase in “productivity pressure” (associated with an increase in production rhythms) will produce, in the long run, an increase in accidents on less serious ODA (or temporary ODA); the same effect will not be observed on the more serious ODA (or permanent ODA). We verify how pro work legislation reduces ODA and how this effect is strengthened in the long-run. In addition, we observe that in the long-run the increase in the “pressure on workers” (associated with a high unemployment rate and a high probability of being fired) is the main cause of the increase in less and more serious ODA.     

An analysis of natural disasters’ effects – A global comparative study of ‘Blessing in Disguise’

This paper addresses the intriguing issue of whether natural disasters do not only generate negative impacts on society, but, in the long run – under favourable and effective policy and behavioural responses – also positive outcomes. This challenging and novel resilience question is formulated here as the ‘Blessing in Disguise’ hypothesis. There is quite some speculation in the literature on possible long-term and systemic effects of disasters, but there is little empirical evidence supported by solid quantitative analysis on expected positive outcomes. The challenging aim of the present study – to examine under what conditions natural hazards may lead to positive socio-economic outcomes in the long run (‘Blessing in Disguise’) – is empirically addressed from a resilience perspective. It integrates in one quantitative research framework (the ‘Pentagon model’), a Stimulus-Response approach and a Capability-Theory inspired framing of territorial opportunities in coping with natural disasters, and uses a mix of statistical and econometric analyses, such as multiple linear regression analysis, cluster analysis, and a Stimulus-Response adjusted Difference-in-Difference model. Our findings, based on a global comparative study, show that a ‘Blessing in Disguise’ scenario is frequently a valid proposition that may manifest itself differently in different geographic, social-economic, political and institutional contexts. Although there is not a single pattern of development specific in all cases, it is clear that positive recovery trends can be observed both at the state level, and also at the regional level. The analysed data show regularly incremental changes after recent natural disasters (especially in the long term) at country level, but more thorough positive changes can be identified at the regional scale. In conclusion, the management of disasters requires proper response capacities and appears to create a window of opportunity for improved capabilities, but it is only a conditional possibility that may be transformed into a sustainable form of new development.     

“Openness” of public governments in smart cities: removing the barriers for innovation and entrepreneurship

International Entrepreneurship and Management Journal - Open innovation practices have been found to positively affect innovation and entrepreneurship due to the complementarities and uniqueness of...     

Inclusion of disabled people in the Italian labour market: an efficiency analysis of law 68/1999 at regional level

Law 68 of March 12, 1999, whose aim is the regulation and promotion of the employment of persons with disabilities, delegates to the regions the management of the labour market. Consequently, its successful implementation depends almost exclusively on the regions’ actions and ability to efficiently coordinate the various actors involved in the work integration of disabled people. The main objective of this paper is to verify which Italian regions are ranked among the most efficient ones in the application of this law. To this purpose, the efficiency analysis is carried out by applying the Data Envelopment Analysis (DEA) method to Italian regions data for the year 2005. In this context, we implement a “cascade” analysis by introducing both environmental variables and social capital variables in different steps of the analysis. The results show that the sheer presence of potential employers and of employment offices is not enough to make a region able to correctly apply the law 68/1999. Both environmental and socio-welfare factors have to be considered, as they are important in determining the efficiency of each region in providing employment for disabled people. Hence, the present study represents an additional source of useful information to policy makers for future economic policy actions in order to promote the integration of disabled people in the labour market: environmental and social capital variables ought to be included as policy instruments within the context of law 68/1999.     

Compete at the expense of responsibility? Firm’s alliance responsibility in innovation process for SMEs

This paper attempts to investigate the impact of a firm’s social responsibility on its level of competition, cooperation and co-opetition using the game theory approach. We consider a duopoly market that comprises the focal firm which undertakes the responsibility of alliance and peripheral firm that represents all other firms within the technological innovational alliance of Small and Medium Enterprise (SME). Both the focal firm and the peripheral firm conduct technological innovation to overcome the constraints of technology, talent and fund. The study concludes that competitive efforts could substitute alliance responsibility, and cooperation efforts are contingent upon the market demand and/or alliance responsibility.     

Adapting supply chain management strategies to security – an analysis of existing gaps and recommendations for improvement

The purpose of this paper is to determine the main security threats in supply chains, to understand gaps in today’s supply chain management strategies and to make recommendations to enhance security in the context of supply chain management. Previous research lacks comprehensive studies and recommendations about how supply chain managers deal with security issues in line with the business visions and strategies of their companies. The study methodology is based on an exploratory approach. Data were collected from 20 managers from international companies by means of self-administered surveys, one-to-one interviews and group interviews. Study findings point out risk management as an important tool at the disposal of managers for trading off performance and vulnerability. However, some important challenges also need to be considered, such as lack of data, insiders, IT vulnerabilities, regulatory frameworks, criminal behaviour, etc. Hence, recommendations are made for managers to improve their understanding of supply chain security.     

A process approach to understanding multiple open source innovation contests – Assessing the contest structures,execution, and participant responses in the android developer challenges

As organizations recognize the importance of open innovation, understanding emerging mechanisms for soliciting outside participation is a growing area of academic interest. Strategies can be as diverse as hosting innovation contests, sponsoring open source software (OSS) communities, or engaging in bilateral partnerships. While these have been studied as distinct strategies, more recent work has identified the possibility for combining these approaches, or deploying different methods at different times. Because each of these open innovation strategies are characterized by different incentive systems as well as different work and social practices, the combination of these can reveal unexpected participant responses (e.g., collaboration in innovation contests, competitive behavior in OSS communities). This study examines an explicit attempt to combine these strategies, to host an open source innovation contest. Through the case of Google's Android Developer Challenge, a series of multi-million dollar innovation contests used to launch an OSS community over several years, this study utilized a process approach to understanding open source innovation contests to understand how participants responded and also how the contest conditions changed over time. We found several practices of competition and collaboration that worked around the short term and long term incentives and constraints posed by the contest. We also followed the contest through various transition phases and found that participants reacted strongly to changes in structure, execution, and shifting conditions over time. Through this case, we extend our understanding of innovation contests as a process and specifically the promises and pitfalls of open source innovation contests.