Economic Integration: Systemic Measures in an Input–Output Framework

Countries are linked through trade and for their mutual benefits they often group together. Consequently, trade blocs are formed in some form or another, examples of which are the EU, EFTA, ASEAN, NAFTA, and SAARC. Depending upon the form and the nature of the grouping, trade relations among countries obviously vary across the trade blocs. The pattern and the volume of trade of the participating countries are different and thus cause different impacts on the growth and development of the countries concerned. Also, the nature of integration changes over time. To examine the strength of integration within trade blocs, systemic measures of integration hitherto not available are formulated in an input–output framework. The measures are used, as a case study, to assess the inter-temporal variations in the degree of integration of SAARC.     

The Non-Trivial Choice between Innovation Indicators

We discuss the strengths and weaknesses of five alternative innovation indicators: R&D, patent applications, total innovation expenditure and shares in sales taken by imitative and by innovative products as they were measured in the 1992 Community Innovation Survey (CIS) in the Netherlands. We conclude that the two most commonly used indicators (R&D and patent applications) have more (and more severe) weaknesses than is often assumed. Moreover, our factor analysis suggests that there is little correlation between the various indicators. This underlines the empirical relevance of various sources of bias of innovation indicators as discussed in this paper.     

Information Technology As A Factor Of Production: The Role Of Differences Among Firms

Despite evidence that information technology (IT) has recently become a productive investment for a large cross-section of firms, a number of questions remain. Some of these issues can be addressed by extending the basic production function approach that was applied in earlier work. Specifically, in this short paper we: 1) control for individual firm differences in productivity by employing a ‘firm effects’ specification, 2) consider the more flexible translog specification instead of only the Cobb-Douglas specification, and 3) allow all parameters to vary between various subsectors of the economy.

We find that while ‘firm effects’ may account for as much as half of the productivity benefits imputed to IT in earlier studies, the elasticity of IT remains positive and statistically significant. We also find that the estimates of IT elasticity and marginal product are little-changed when the less restrictive translog production function is employed. Finally, we find only limited evidence of differences in IT's marginal product between manufacturing and services and between the ‘measurable’ and ‘unmeasurable’ sectors of the economy. Surprisingly, we find that the marginal product of IT is at least as high in firms that did not grow during 1988–1992 sample period as it is in firms that grew.     

Freedom of Choice in Technology Strategy? An Analysis of Technology Strategy in the Large Commercial Aircraft Industry

Many companies experience difficult situations as a result of their selected strategy. Strategic management theories implicitly assume that companies have a free choice in setting their strategy. Hence, when companies experience difficult situations this is because of management inadequacy. It is questionable whether companies always have a free choice. This research examines this issue by examining the new product strategies of the two main competitors in the commercial aircraft industry. The development of the A380 aircraft was selected to determine to what extent the companies had a choice in setting their product development strategies. The conclusion is that neither has the alleged freedom for setting its strategy. Implications of this finding are that the strategy theory needs to be adjusted for this choice issue, and that management should not always be held fully responsible for the developing events.     

Editorial

This paper presents an overview of issues for future research. as identified by the papers appearing in the Special Issue on Innovation in Telecommunications. To this end. we elaborate upon the emergence of a new innovation regime in telecommunications, discuss the performance and sustainability of this new innovation regime, and reflect upon institutional choices for the regime and accompanying policy options. Further research on innovation in telecommunications is advocated, taking up a broad range of issues, including long-term industrial evolution and sustainability concerns in a wide sense.     

Migration and Americanization: The special case of Belgian economics*

One of the distinguishing features of Belgian economics is that, from the early 1920s, so many of Belgium's best economists pursued postgraduate studies at top American universities, a case of ‘temporary’ migration. This was made possible by the fellowships granted by the Commission for Relief in Belgium, a legacy of the First World War. After a stay in the US of a few years, most returned to Belgium. However, they maintained strong links with the US. Also, they tried to recreate in Belgium the most valuable elements of their American experience. It would lead to a strong and early Americanization of Belgian economics. Moreover, they were at the forefront of several initiatives to organize economics on a European scale, such as the European Economic Review and the European Economic Association.     

Modes of biotechnology assessment in the USA,Japan and Denmark

Since the 1970s technology assessment by public bodies has become generally accepted as necessary. Modes of technology assessment differ from country to country, in terms of degree of institutionalization, acceptance by policy makers and level of public involvement, and these in turn depend on the goals, methods and organizational framework of the particular technology assessment. The varying social and political roles of technology assessment arise out of national political traditions and differing cultural views of technology. This article compares modes of biotechnology assessment in the USA, Japan and Denmark, focusing on the role of public discussion in the policy-making process. By analysing these three different contexts, the article seeks to uncover ways in which the cultural conditioning of technology policy takes place.     

SPECTRUM LICENSING AND FLEXIBLE BEAUTY CONTEST DESIGNS

McMillan's (1995) ‘flexibility’ proposition suggests a testable hypothesis about beauty contests spectrum assignments. Such flexibility purportedly allows regulators to pursue social welfare (network deployment) goals. A separate argument is that more competitive beauty contests enhance the probability of assignment. The study concludes that regulators do indeed focus on societal (network deployment) welfare goals. Initially, consideration is given in the immediate term where licenses are awarded based on operator aftermarket commitments. Subsequently, spectrum package attributes and financial performance obligations, specified in the tender documents, come into play to support the networks spread more widely through the population in a timely manner. Finally, the econometric results suggest that more competitive beauty contests enhance the probability of assignment.