Innovative productivity and returns to scale in the pharmaceutical industry

This study shows that firms in the pharmaceutical industry experience decreasing returns to scale in R & D as the level of R & D expenditures rises. The paper presents the results of our study of the innovative output of 16 pharmaceutical firms over a 19 year period. Given the strong correlation between R & D budgets and firm size, our study suggests the wave of mergers in the industry may yield less innovative productivity than managers expect.     

The Effects of Screening and Monitoring on Credit Rationing of SMEs

In this paper, we seek to empirically assess which determinants of the capability and incentives of banks to screen and monitor firms are significant in explaining credit rationing to Italian SMEs. After testing for the presence of non‐random selection bias and the potential endogeneity of some determinants of interest, the probit model results we obtain suggest that the average banking size and the multiple banking relationship phenomenon are statistically significant factors affecting credit rationing, presumably through their impact on the aforementioned banks' capability and incentives. Other potential determinants of banks' incentives to monitor and screen, such as local banking competition and firm' capacity to collateralize, are never significant. However, when we split the sample according to the level of competition in credit markets, we find that the estimated marginal effects of all significant determinants of interest are larger in absolute value than those obtained when using the whole sample.     

Bayesian MCMC Mapping of Quantitative Trait Loci in a Half-sib Design: a Graphical Model Perspective

Graphical models provide a powerful and flexible approach to the analysis of complex problems in genetics. While task-specific software may be extremely efficient for any particular analysis, it is often difficult to adapt to new computational challenges. By viewing these genetic applications in a more general framework, many problems can be handled by essentially the same software. This is advantageous in an area where fast methodological development is essential. Once a method has been fully developed and tested, problem-specific software may then be required. The aim of this paper is to illustrate the potential use of a graphical model approach to genetic analyses by taking a very simple and well-understood problem by way of example.     

Organizational rejuvenation for knowledge exploitation: Exploring corporate entrepreneurship in an MNE

The purpose of this paper is to study how organizational rejuvenation is used to increase and support knowledge exploitation in multinational enterprises. Using case-study data to explore the theoretical arguments, interesting findings emerge. The main finding is that entrepreneurial activities in IT industry enable organizational rejuvenation with repercussions beyond the focal function. Other findings relate to how corporate entrepreneurship activities provide possibilities for continuous knowledge exploitation within the MNE and how entrepreneurial groups inside MNEs form the foundation from which the organizational rejuvenation originates. Finally, the form of organizational rejuvenation studied embraced both structural and behavioral changes. The authors acknowledge an equal share in the development of this article.     

DOES ORGANIZATION MATTER? A STUDY OF PHYSICIANS' IDEAL ORGANIZATION

It is a known phenomenon that it is difficult to make organizational changes within professional organizations. One recurring observation and experience from health care studies is that it is difficult to discuss the last organizational change with professionals because the most recent change is always perceived as the worst. In order to avoid this routine response, the authors of this article asked 56 senior physicians from the Swedish health care sector what their ideal organization looks like. The authors note that there is a strong institutionalized idea among the physicians of how health care should be organized. The image is not particularly complicated: the organization should be based on the meeting between doctor and patient. One conclusion in the article is that professionals dislike change, but nevertheless, they still want it. Actual change is not the problem – only changes that are not in compliance with the professionals' opinions of organization and management.     

CONSUMER THEORY, HOME PRODUCTION, AND ENERGY EFFICIENCY

Arguments about the existence of the so-called energy efficiency gap are typically based on evaluations of efficiency measures as investments whose end result is to reduce the cost of providing a given level of energy services. This article demonstrates that the investment approach tends to undervalue energy efficiency improvements because it omits the increase in utility that results from the consumer's substitution of energy services for other goods. The substitution occurs because the efficiency measure reduces the marginal cost (implicit price) of energy services. Sample calculations based on a Cobb-Douglas utility function are used to illustrate the potential size of the undervaluation of efficiency investments.     

Extending working hours: why not work 42 h rather than 38?—a CGE analysis for Germany

Faced with a record level of unemployment, the present debate in Germany is to extend the weekly hours of work. In this paper the employment effects of an economy-wide increase in weekly hours are quantified on the basis of a computable general equilibrium model for different specifications of the wage setting rule and the use of additional policy-induced public income. The simulation results back the argument of the opponents of longer working time that not more jobs will be created. However, when the higher tax revenues from GDP growth are used to reduce social security contributions, then the claim of the proponents that more jobs will be created can be supported.