The road not taken: competition and the R&D portfolio

This article examines the effects of market structure on the variety of research projects undertaken and the amount of duplication of research. A characterization of the equilibrium market portfolio of R&D projects and the socially optimal portfolio is provided. It is shown that a merger decreases the variety of developed projects and decreases the amount of duplication of research. An increase in the intensity of competition among firms leads to an increase in the variety of developed projects and a decrease in the amount of duplication of research.     

Uncertainty and the specificity of human capital

This paper studies the choice between general and specific human capital. A trade-off arises because general human capital, while less productive, can easily be reallocated across firms. Accordingly, the fraction of individuals with specific human capital depends on the amount of uncertainty in the economy. Our model implies that while economies with more specific human capital tend to be more productive, they also tend to be more vulnerable to turbulence. As such, our theory sheds some light on the experience of Japan, where human capital is notoriously specific: while Japan benefited from this predominately specific labor force in tranquil times, this specificity may also have been at the heart of its prolonged stagnation.     

How do threshold firms sustain corporate entrepreneurship? The role of boards and absorptive capacity

As companies move from one stage of their cycle to the next, they often have to revamp their skills and build innovative capabilities to survive, achieve profitability, and stimulate growth. Corporate entrepreneurship (CE) activities give these firms a foundation for building and exploiting these capabilities. In turn, stimulating and sustaining CE requires the infusion of resources and new knowledge into the firm's operations, using multiple external sources. In this paper, we highlight the importance of boards of directors and absorptive capacity for gaining access to varied and current knowledge that enriches CE. We suggest that boards and absorptive capacity complement each other in fueling CE activities. Further, boards can sometimes substitute for poor absorptive capacity and vice versa, influencing the intensity of CE activities. Managing these complementarities (or substitutions) is crucial for sustaining CE initiatives and creating value from them.     

Risking public health by approving some health claims? – The case of phosphorus

There is a well-established consensus on the many biological functions of essential nutrients, and related general function health claims will be soon authorised in the European Union. Such claims about the role of nutrients in the body’s growth, development and functioning could provide a powerful marketing tool and significant increase in the consumption of specific food products. Even though these claims are scientifically substantiated, there are both health and ethical concerns about whether such claims should be allowed where the intake of these nutrients easily exceeds the recommendations and a bigger intake might have adverse affects. The case of phosphorus and its role in the maintenance of normal bone is discussed.     

Absorptive capacity, its determinants, and influence on innovation output: Cross-cultural validation of the structural model

The main purpose of this study is to provide stronger quantitative evidence in the field of organizational absorptive capacity research by using a more direct measure of absorptive capacity and a wide range of variables in a cross-nationally tested structural model. The results show that there exist two kinds of absorptive capacity: demand-pull and science-push. Their most important determinants proved to be internal R&D, training of personnel, innovation co-operation and attitude toward change. Both kinds of absorptive capacity are positively related to product and process innovation output. Therefore, absorptive capacity is to be given more attention in the future research and innovation policy considerations.     

Characteristics of learning computer-controlled mechanisms by teachers and students in a common laboratory environment

Growing popularity of robotics education motivates developing its didactics and studying it in teacher training programs. This paper presents a study conducted in the Department of Education in Technology and Science, Technion, in which university students and school pupils cope with robotics challenges of designing, building and operating computer-controlled mechanisms. The university students were involved in developing robot prototypes and related instructional materials, and assisted in teaching robotics and guiding projects to middle school and high school pupils. The study focused on behaviors of the two groups of learners and aimed to elicit and analyze typical characteristics of learning in the developed robotics environment. We collected qualitative data on learning through robot design and experimentation activities and, by means of the ground theory method, elicited and analyzed typical behavioral characteristics of students’ and pupils’ learning: self-confidence, help, collaboration, interest, seriousness, self-dependence, learning effort, responsibility, coping with learning pressure, learning through observation, and perseverance. As found, the behavior characteristics evolve in the course of robotics studies and their evolution can give indication on the development of the desired competences.     

When Kamay Met Hill: Organisational Ethics in Practice

The Kamay and Hill insider trading conviction in Australia highlights many of the issues and problems involved in the prevention, detection and prosecution of insider trading. The case uniquely highlights how ethical behaviour is instilled at home, in school and in society, and the need for ethical responsibility at the personal and organisational level to complement legal rules and enforcement. We use the Kamay and Hill case to explore the reasons behind the failure of the traditional top-down approach to insider trading prevention, where institutional ethical codes of conduct largely reflect and rely upon national rules, norms, and regulation. We propose a bottom-up approach to ensure that individual and organisational behaviour is ethical, where emphasis is not on compliance but on a set of core ethical values that allow individual and corporate expression. It is our strong belief that compliance cannot replace ethics.     

The effects of public expenditures on labour productivity in Europe

Empirica - In this paper, we analyse the effects of public expenditures and their structure on productivity growth in industry and services in the European Union (EU) countries (1996–2017)....     

Oil and ethnic inequality in Nigeria

Although it is known that ethnic biases exist in Africa, less is known about how these respond to natural resource prices. Many ethnically fragmented African countries depend on a small number commodities for their export base. Oil prices experienced in early life predict differential adult outcomes across Nigerian ethnic groups. Our difference-in-difference approach compares members of southern ethnicities to other Nigerians from the same birth cohort. This North-South distinction mirrors several economic, political, and religious cleavages in the country. Greater prices in a southern individual’s birth year predict several relative outcomes, including reduced fertility, delayed marriage, higher probabilities of working and having a skilled occupation, greater schooling, lower height, and greater BMI. These microeconomic impacts are explained by macroeconomic responses to oil prices; relatively, urban incomes increase, food production declines, and maternal labor intensifies in the South.