Influence of R&D accounting conventions on internal decision-making of companies

Abstract
The convention currently in place (SSAP 13 revised) to account formally for industrial R&D expenditure is that qualifying development expenditure meeting strict viability criteria may be capitalised (treated as an asset) but that all other development and all research must be immediately expensed (written off). This study comprising interviews and postal responses was carried out to investigate the effect this convention has on managerial actions and decisions on R&D investment by companies, particularly by smaller high-technology ones.     

Social justice in a cold climate: Could social accounting make a difference?

Building on the argument that justice should be the transcendent principle in accounting, we argue that social accounting invokes notions of community, shared social values, and fairness in the distribution of social resources. These ideas are elaborated in relation to local government, which provides a window on how communities make decisions about distributing their social resources and the accounting processes which guide these decisions. Fieldwork in two large but contrasting English local authorities suggests that the potential of social accounting is not reflected in the predominant accounting systems in local government organisations, but in more subtle and successful forms of ‘enacted social accounting’. Its utility relates to the achievement of short-term social goals where social injustices persist and accountants, managers and politicians seek to accommodate financial pressures to protect the most vulnerable members of the community. We identify local government accountants as morally responsible for the further development of social accounting which envisions a future for local government, and establishes links between social justice, environmentalism and localism.     

An empirical investigation of the EOE gold options market

On April 2, 1981, the European Option Exchange introduced the first organized exchange trading of options on spot gold. We study this new market for three months at its inception and in a parallel period a year later via various tests of rational boundary conditions. Additionally, we use call-put parity to infer implied risk free rates (IRFR's). Deviations of the IRFR's from the prevailing risk free rate permit the possibility of arbitrage through positions known as forward and reverse conversions. Our tests are modified to allow for transaction costs to more fully address the question of market efficiency.     

Working effectively in strategic alliances through managerial fit between partners: some evidence from Sino–British joint ventures and the implications for R&D professionals

To succeed in R&D strategic alliances requires not only strategic fit and cultural fit at the organisational level, but also managerial fit at the micro, inter–personal interaction level. This paper provides the results from a cross–cultural study of managerial fit between British and Chinese managers in joint ventures (JVs) initiated in 1993–1998 with a focus on two important issues: the perceived competence and managerial roles of the partners. Managerial fit between partners is critical for the success of R&D strategic alliances including JVs. Misfit in partners' managerial behaviour often results from the fact that JVs are characterised by the lack of specificity of various managerial tasks shared by the partners at the operational stage. In addition, a manager's managerial competence as perceived by the counterpart is a contributory factor to trust and supportive reaction from the counterpart, both of which are important for cohesive interaction between partners. This study has revealed that (1) there are similarities and significant differences in some of the characteristics of managerial competence perceived by the counterpart between the British and Chinese managers; and (2) there is often a mismatch of perceptions between the British and Chinese managers with regard to who plays a particular managerial role in a JV. Managerial implications are discussed and issues for further research are highlighted.     

Effective Costs and Chemical Use in United States Agricultural Production: Using the Environment as a "Free" Input

A cost–function–based production model is used to represent patterns of input use and output production in U.S. agriculture, and the implied costs of induced reductions in risk from agricultural chemicals ("bad outputs"). We estimate and evaluate shadow values for these harmful outputs, and the implied input– and output–specific substitution patterns, with a focus on the impacts on pesticide demand and its quality and quantity components. Using state–level data we find these measures to be statistically significant, vary substantively by region, and imply increased demand for effective pesticides associated with improvements in quality from embodied technology.     

Great Expectations: Benchmarking for Best Value

Many local authorities have embarked on benchmarking as one way of satisfying the Government's requirement that local authorities provide 'best value' services. This article suggests that the Government's initial enthusiasm for benchmarking was based on an incomplete understanding of the previous experiences of benchmarking in the local government sector. The most recent pronouncements make little mention of benchmarking, but there has been no explicit statement that it is no longer a key feature of best value. Local authorities are investing in developing benchmarking technology that may well fail to pay back in terms of meeting best value stipulations or in satisfying the authorities' own internal management needs. The authors suggest how local authority benchmarking efforts might be redirected to better effect.     

Disseminating research in management of technology: journals and authors

This paper describes part of a study into the emergence and evolution of the management of research and development (R&D), innovation and technology as a subject in its own right. It deals with communicating research in this area via the relevant journals. The first part of this paper describes the history and development of the bulk of the relevant journals. The second part focuses on the extent and frequency of author participation and the author affiliation in the journals described in the first part of the paper. Computing the number of author entries in these journals for the years 1954–2003 demonstrates the substantial increase in publication over this period. The analysis also examines the affiliation of authors by dividing the sample into academic and non-academic. Finally, the study then sets out to identify those who make up the 'community' on the basis of publication in these journals over the period 1954–2003. The importance of the study is not only as an historical record but also to act as a guide to practicing R&D managers on which journals would best meet their needs.     

The analysis of technological activity using abstracting services

Many organizations are at the present time faced with two problems. First, what are the events that are likely to have important implications for their activities in future time periods? Second, what new areas should they consider entering and how can they make quick appraisal of the potential in such areas? There are no easy answers to either of these questions but a number of methods have been proposed which have been found to be of assistance. This paper outlines an approach based on the use of abstracting services which can provide useful information quickly and inexpensively.