Economic espionage and interallied strategic cooperation

Incidents of economic espionage by foreign governments against US corporations, persons, and institutions are numerous and very costly. Meeting this challenge has become a high national priority, and several significant measures have been taken by Washington that affect the business community directly and indirectly. Allies of the United States are among the principal culprits. This raises a potentially serious issue: How to pursue mutually beneficial, essentially cooperative, interallied strategic relations while economic relations among allies are acquiring a sharper competitive edge? Thus far, economic espionage has not jeopardized traditional security ties. © 1998 John Wiley & Sons, Inc.     

Regulating securities analysts

We examine the effects of regulations designed to address the potential conflict of interest that arises when sell-side analyst research is not independent of investment banking. We focus on two types of regulation: (1) internal barriers between equity research and investment banking that restrict communication; and (2) disclosure requirements relating to analyst compensation. We find that information barriers can increase research effort and improve report quality by limiting an investment bank's ability to distort its analyst's incentives. However, this type of regulation can also reduce information production and lower the quality of reports if an investment bank benefits directly from research activity. Disclosure requirements, on the other hand, unambiguously lead to more informative prices and a higher report quality relative to either information barriers or no regulation.     

Market Orientation,Generative Learning,Innovation Strategy and Business Performance Inter‐Relationships in Bioscience Firms

We propose conceptual arguments to establish relationships between market orientation and generative learning and their respective impact on exploitative innovation strategy and explorative innovation strategy. We then consider the ambidextrous association between both forms of innovation strategy and business performance. This model is subject to an empirical test using data generated from 160 bioscience firms. Using structural equation modelling, two mutually exclusive paths are specified where market orientation leads to exploitative innovation strategy, while generative learning leads to explorative innovation strategy. We then find that the ambidexterity exhibited by firms in the form of exploitative innovation strategy and explorative innovation strategy significantly explains improvements in firms’ business performance. Discussion is given to these findings and managerial implications are presented along with avenues for further research.     

Forest Conservation in Costa Rica when Nonuse Benefits are Uncertain but Rising

Stochastic dynamic programming is used to investigate optimal holding of primary tropical forest in humid Costa Rica when future nonuse benefits of forest conservation are uncertain and increasing. The quasi-option value of maintaining primary forests is included as a component of investment in natural capital. Although the impact of uncertainty on conservation incentives is substantial, our results indicate that a rising trend in future benefits and compensation by the international community for beneficial spillovers are more important factors in determining optimal holdings of forest stocks. Without compensatory payments, however, further deforestation may be warranted.     

Report data identify risk areas for improper payments

Hospitals should take several steps in using data from the Program for Evaluating Payment Patterns Report (PEPPER) to enhance compliance efforts and identify risk areas for improper payments: Designate one person to monitor PEPPER releases and download the quarterly report. Review the reports and list all areas where the hospital is most at risk for improper payments. Prioritize at-risk areas with the national comparison, followed by jurisdictional and state comparison. Conduct small-sample case reviews in at-risk areas and determine next steps, such as process improvement or rebilling. Include hospital finance, compliance, legal, case management, and coding experts as part of discussion.