Technology development in developing countries: The case of a private R & D institution in Brazil

Research Development (RD) is concerned with the conversion of inventions (i.e. new ideas) into innovations (i.e. new products, processes and services in the market-place). Empirical evidence indicates that the rate of success of RD is small. In the innovation chain of events the scientific or technical accomplishment is but one link, a necessary but not sufficient condition of success. Often the market is the decisive factor.
Many research and development organizations (R & DOs), especially those funded privately, allocate their resources with a strong orientation towards satisfying perceived market needs. If this incentive persists during the R & D work the RD effort will probably be much facilitated.
In the light of the above concepts, the Brazilian R & D and RD experiences are reviewed with practical examples and emphasis on the efforts of Centro de Tecnologia Promon—CTP (Promon Technology Center). CTP works on non-conventional energy, industrial process development and telecommunication product development.
The experience reported is not intended to serve as a general solution to R & D or RD problems in the developing world. The purpose is rather to suggest alternative pathways and to point out the importance of a diversified approach to the tough task of closing the innovation loop.     

Valuing high altitude spruce-fir forest improvements: importance of forest condition and recreation activity

High altitude spruce fir forests are typical around the world and are often subjected to multiple forms of recreational use. In this paper, we use household and recreation group data for a spruce fir forest high in the Appalachian Mountains of the U. S. to evaluate the benefits from forest protection (i. e., from improving the forest condition). Our benefits estimation procedures use the referendum-type, contingent valuation (CV) approach of Cameron (1988). We modify the usual practice of obtaining a single willingness-to-pay (WTP) value by using alternative questionnaire scenarios and conducting tests to examine i) household and recreation group value sensitivity to forest condition, and ii) recreation group differences in WTP for forest protection. A first sample of southeastern U. S. households was asked to value a forest protection program for a spruce-fir forest showing no impact from insect disturbance or atmospheric deposition. The second sample was asked to value a protection program for a forest already experiencing impact from insect infestation and air pollution. Logit analysis of the two samples revealed no statistically significant difference in household WTP between the two forest protection programs. Further analysis indicated that consumptive forest users (i. e., hunters and anglers) held forest protection values that were sensitive to a change forest condition, while nonconsumptive forest users (i. e., campers and hikers) held values that were insensitive to the same condition change. Recreation group comparisons revealed that consumptive forest users also held lower values for forest protection than nonconsumptive recreationists. These results demonstrate the importance of estimating public values for forest protection in terms of heterogeneous groups rather than as a homogeneous whole.     

Transfer pricing: Technical and productivity change within the firm

Use of transfer prices is regarded by many writers as an efficient means of management of multidivisional firms. Its use in effect creates an internal market for the firm. However, its value as a management technique isknown to be subject to a number of limitations of the type discussed in the general economic theory of market failure. Nevertheless, two important limitations of transfer pricing have been neglected in the literature: (1) imputed profit/loss based on optimal transfer prices can be a poor guide to the economic value of a division to a firm when market transaction costs are important (for instance, even if a division shows an imputed loss, it may not be optimal to dispose of it), and (2) transfer pricing can retard technical change, innovation and productivity enhancement within a division to the detriment of the firm as a whole. Both aspects are examined here.     

Cooperative R&D and the Value of the Firm

In this paper, we investigate the stock price responses of listed firms in the U.S. markets to announcements of R & D collaborations. We find that abnormal returns of stocks are significantly positive after R & D collaborations are announced. The positive stock price response towards the R & D cooperation initiations can be partially explained by the nature of the collaborations and the characteristics of the participating firms. We also find that the stock prices of rival firms respond negatively to announcements of R & D cooperation. This result seems to support the hypothesis that cooperative R & D improves economic efficiency of the cooperative firms that gain competitive advantage. We do not find evidence supporting the hypothesis that R & D cooperation creates collusive, anticompetitive effects in the product market.     

Interview with Bruce Rohde,CEO of Conagra,Inc.: HR as major source of competitive advantage

ConAgra, Incorporated is a diversified international food company. It operates across the food chain in 32 countries around the world. Its primary focus is to help feed people better. Bruce Rohde, president of ConAgra & Board of Directors Vice Chairman, was appointed by the Board as Chief Executive Officer on September 25, 1997. In this interview Mr. Rohde outlines his plan to increase the companyßs growth during the next decade. © 1998 John Wiley & Sons, Inc.     

Household Electricity Demand, Revisited

Recent efforts to restructure electricity markets have renewed interest in assessing how consumers respond to price changes. This paper develops a model for evaluating the effects of alternative tariff designs on electricity use. The model concurrently addresses several interrelated difficulties posed by nonlinear pricing, heterogeneity in consumer price sensitivity, and consumption aggregation over appliances and time. We estimate the model using extensive data for a representative sample of 1300 California households. The results imply a strikingly skewed distribution of household electricity price elasticities in the population, with a small fraction of households accounting for most aggregate demand response. We then estimate the aggregate and distributional consequences of recent tariff structure changes in California, the consumption effects of which have been the subject of considerable debate.