University specialization and new firm creation across industries

This article examines how the scientific specialization of universities impacts new firm creation across industries at the local level. In accordance with the Pavitt-Miozzo-Soete taxonomy, we consider eight industry categories, which reflect the characteristics of firms’ innovation patterns and, ultimately, the knowledge inputs that firms require. Using data on new firm creation in Italian provinces (i.e., at the NUTS3 level), we estimate negative binomial regression models separately for each industry category to relate new firm creation to the scientific specialization in basic sciences, applied sciences and engineering, and social sciences and humanities of neighboring universities. We find that universities specialized in applied sciences and engineering have a broad positive effect on new firm creation in a given province, this effect being especially strong in service industries. Conversely, the positive effect of university specialization in basic sciences is confined to new firm creation in science-based manufacturing industries, even if this effect is of large magnitude. Universities specialized in social sciences and humanities have no effect on new firm creation at the local level whatever industry category is considered.     

The Effects of Marginal Employment on Subsequent Labour Market Outcomes

Abstract. Unemployed workers in Austria do not lose their unemployment benefits (UI) if they work in a job where their earnings are below a certain threshold [‘marginal employment’ (ME)]. ME might improve their labour market status by signalling effort, or worsen it through reduced job‐search effort. Those who work in ME while claiming UI have less employment and lower earnings afterwards than those who do not. The penalty lessens over time but is still present after three years.     

Labor market entry and earnings dynamics: Bayesian inference using mixtures‐of‐experts Markov chain clustering

This paper analyzes patterns in the earnings development of young labor market entrants over their life cycle. We identify four distinctly different types of transition patterns between discrete earnings states in a large administrative dataset. Further, we investigate the effects of labor market conditions at the time of entry on the probability of belonging to each transition type. To estimate our statistical model we use a model‐based clustering approach. The statistical challenge in our application comes from the difficulty in extending distance‐based clustering approaches to the problem of identifying groups of similar time series in a panel of discrete‐valued time series. We use Markov chain clustering, which is an approach for clustering discrete‐valued time series obtained by observing a categorical variable with several states. This method is based on finite mixtures of first‐order time‐homogeneous Markov chain models. In order to analyze group membership we present an extension to this approach by formulating a probabilistic model for the latent group indicators within the Bayesian classification rule using a multinomial logit model. Copyright © 2011 John Wiley & Sons, Ltd.     

Cities and Climate Change Challenges: Institutions,Policy Style and Adaptation Capacity in Bogotá

While a growing awareness of climate change has marked the institutional agenda at the national level in Colombia, the capital city of Bogotá has not undertaken actions to include adaptation to climate change within its policies so far. Conceptualizing the central role of city‐level institutions in the successful realization of adaptation policies is a straightforward matter. This is not the case for actions and conditions that may foster adaptation capacity according to varying institutional and social geographies. Using secondary data and a selection of interviews with key stakeholders occupying leading planning roles in important departments of the local administration, this article explores why and how a framework based on incentives and obstacles should be complemented by recent developments in the analysis of policy implementation based on the differentiation between political and programmatic success and failure on the basis of existing local policy styles.     

Regional Business Cycles and National Economic Borders: What Are the Effects of Trade in Developing Countries?

Using regional gross product data for Argentina and Brazil over the period 1961–2000, we find that business cycle synchronization within countries is substantially larger than across them. Factors such as monetary policy and large country-specific shocks play a significant role in explaining this observed border effect. Furthermore, our GMM single and multiple equation estimates based on Brazilian states and Argentinean national data provide indicative evidence that the higher level of trade among regions within a country is an important factor that accounts for differences in output correlations across countries. JEL no. F15, F42, E32, R11     

Patterns of industrialization and the flying geese model: the case of electronics in East Asia

We use the “flying geese” framework to study the change in the geography of comparative advantages in the electronics sector in East Asia, China and the USA. Doubts have been raised about the capacity of the “flying geese” model to interpret the most recent phases of Asian development, in particular as far as progress in the electronics sector is concerned. This paper takes issue against these negative conclusions on both theoretical and empirical grounds. On the theoretical side, the paper takes up the formulation proposed by Kaname Akamatsu, arguing that some of the critical observations raised against the model look to a distorted and simplified version of Akamatsu's original theory. Analyzing the behavior of the “revealed comparative advantage index” per products and area, it is concluded that the “flying geese model” is compatible with manifold industrial development models, increasing interdependence in an integrated area which crucially also includes the US, and that asymmetries and hierarchical order persist across the countries.     

PROTECTION OF PROPERTY RIGHTS AND GROWTH AS POLITICAL EQUILIBRIA

Abstract This paper presents a survey of the literature on property rights and economic growth. Different theoretical mechanisms that relate property rights to economic development are discussed. Lack of protection of property rights can result in slow economic growth through different channels: expropriation of private wealth, corruption of civil servants, excessive taxation and barriers to adoption of new technologies. The origins of property rights are also considered. Different theories are illustrated but more attention is paid to the ‘social conflict view’ and its success and limitations. The second part of the paper illustrates relevant empirical works on property rights and growth.     

Original Equipment Suppliers Association

A look at the workings of the business economics function at the OESA JEL Classification M21     

Can we learn to live differently? Lessons from Going for Green: a case study of Merthyr Tydfil (South Wales)

Participation at the local level is an important factor in determining the success of programmes developed to achieve sustainable development. This paper is concerned with debates over the role of the individual citizen in relation to that participatory process. In particular, it focuses on the UK Governments’ citizens environmental initiative ‘Going for Green’ (GFG). Through this initiative a five‐point Green Code was developed to assist in the delivery of its sustainable development message to the general public. The initiative's overall approach to participation was based on an assumption that the primary barrier to translating environmental concern into local action was a lack of information, and that individuals would respond to messages in a similar way. As a research strategy, the case study was used to evaluate how the initiatives’ pilot Sustainable Communities Project was implemented in two comparative geographical communities in Merthyr Tydfil (South Wales). Research findings from this study have demonstrated that the case study was invaluable in terms of understanding the participatory process and experiences of broad a range of community stakeholders. Promoting a single model of participation, GFG was found to restrict the participatory process in terms of who was encouraged to participate, the scope of their participation, and those outcomes that could be achieved. This paper concludes that if significant progress is to be made in relation to achieving sustainable development, the role of the individual citizen needs to be extended beyond that of a consumer of the environment, and involve active participation in a process that is based on collective action.